The Cavs and the salary cap

[natedagg]

The tax rates in that spreadsheet are for the repeater tax. You have to be a tax payer for 3 out of 4 seasons to qualify for the repeater tax. Next year would only be our 2nd year in the tax, so we're still at least a year away from the repeater.

Fuck man, these guys thought of everything. Like they put a bunch of wicked agents in a room and let them try to come up with all of the evil ways to make things work for players, teams, etc. That'd be my dream job, lol.

 

[col63onel]

I could have sworn it was 2 out of 3.

Here is what the CBA FAQ says:

The line right below the one you quoted

For 2015-16 and all subsequent seasons, teams pay an incremental rate based on their team salary. They pay the repeater rate if they were taxpayers in at least three of the four previous seasons.

 

[kovanovich]

Nate Duncan did an interesting podcast last night with Dan Feldman. More than half of it is devoted to the Cavs.

http://basketball.realgm.com/wireta...ball-Pod-Dan-Feldman-on-Cavs-Hawks-Offseasons

Both Duncan and Feldman operate on the assumption pretty much everyone will be back. Duncan had been saying that he was skeptical that the Haywood chip would be used, but he now seems convinced the Cavs will use it. They seem rather annoyed by this, as if the Cavs are somehow cheating the system.

The other half of the show is on the Atlanta off-season. Good news there (which I really hadn't considered) is that ATL has only Early Bird rights on both Millsap and Carroll, and it will be difficult to retain both since they likely will need to use capspace to re-sign them. In an odd sort of way, Danny Ferry signed them to contracts that were actually too team-favorable.

 

[JFT]

How would this work for Cavs?

View: https://twitter.com/realcavsfans/status/613876322130075648

 

[bigfoot5415]

How would this work for Cavs?

View: https://twitter.com/realcavsfans/status/613876322130075648

Think of it like this. We have until Aug 2nd to trade Haywood because his contract is worth $10.5 mil unguaranteed. ($13.2 in incoming salary). So as you know, he can help a team clear X amount of space.

By trading him and gaining an exception, we essentially extend our $10.5 trade chip by one year.

I just dont know why a team under the cap (by 10 mil), would want to do this.

 

[MirORich]

How would this work for Cavs?

View: https://twitter.com/realcavsfans/status/613876322130075648

We would trade Haywood(after his contract becomes worth 10.5 million) to a team way under the cap that could simply absorb him without sending out any contracts to the Cavs.

That would create a 10.5 million trade exception that would be good for the entire season and during next years draft as well. So, once the season settles in and the contenders and pretenders get sorted out, some of the pretenders who are looking to get a head start on the huge FA race next year could trade us a player for the exception created from the Haywood trade.

That trade exception could also be paired up with players(just not with other trade exceptions) and draft picks. It would present a lot of options and future flexibility if no slam dunk trade for Haywood materializes between now and August 2.

 

[spydy13]

I just dont know why a team under the cap (by 10 mil), would want to do this.

You would have to give them a pick of some sort. Maybe a second or two. Is there any restrictions on how far out you can trade seconds?

 

[westsidebob]

There's too many variables out there right now.

No reason to trade Haywood tomorrow for the exception, they have time.

If wade opts in, or the cavs draft someone that obviously doesn't fit, then its game on.

 

[bigfoot5415]

You would have to give them a pick of some sort. Maybe a second or two. Is there any restrictions on how far out you can trade seconds?

We have traded all 2nd rounders until 2019. Thats another reason I have to imagine we trade back into the 2nd tomorrow. Even if its for a stash player. As far as 2nd restrictions, I see a few teams traded their 2020. That is our next available 2nd. By then I would like to start building up picks again....just in case.

 

[col63onel]

You would have to give them a pick of some sort. Maybe a second or two. Is there any restrictions on how far out you can trade seconds?

You can trade picks 7 years in advance.

If we gain a trade exception for Haywood, I am 90% we trade our 2020 2nd rounder to Philly. Hinkie loves him some 2nd rounders.

 

[kovanovich]

Cavs of course also have a second rounder tomorrow (#53) that could be traded.

Of course, the Cavs won't do a deal witht e Haywood contract before the draft, so they would likely end up trading the rights to the player that they draft there, which is problematic because it may not be a player the team they are trying to trade with is interested in.

They could also trade the pick for a future second rounder. You might say, why would a team trade a future second rounder for a late second rounder this year, but there could be a number of reasons for that, not least of which is they simply fell with in love with a guy available at 53. That future second rounder would become a tradeable asset and could be included as the sweetener in the Haywood deal. It's not much but it is a free second rounder for simply completing some paperwork.

If that doesn't work, there are other options, such as including their #24 pick in the Haywood deal, and getting back some second rounders, either this year or (preferably) in future years. Maybe even a heavily protected future first, though that's probably less likely. Philly is the obvious candidate here. Then you would have the second rounders for a future deal where you could absorb as much as $10.5M in the the TPE generated when you deal Haywood.

 

[westsidebob]

If the team taking on Haywood needs the salary dump, the cavs may not need to give a pick.


Remember, Griff got the rights to three euro scrubs in the Jack trade. They could be instead of a pick to balance a trade.

 

[Mdog1]

If we trade Haywood and recieve a TPE, it can't be combined with others. For example if we wanted a 12 million dollar player, we couldn't get him with the TPE. We can get a player worth 100k above the TPE, in this case 10.6 million,

We could however make two seperate trades. One for the TPE, one for a player of ours, but it would have to be two seperate players. We could use the exception on multiple players.

In other words, an exception is not nearly as flexible as Haywoods contract, but it is a good asset.

 

[col63onel]

There is a question I always wondered. How much does Gilbert REALLY have to pay. He's the majority owner, but that's only like 25% right? I'm saying he doesn't foot the whole bill, or even close to it, for luxury tax penalties or any of that, right? I just never understood how that exactly works.

I'm sort of curious how the merchandising and all of that works too and exactly where all the profit goes. But that's a totally separate question. I'm sure the NBA takes a cut and that along with tickets sales perhaps account for paying everyone employed by the organization? I just wonder how all this money flow works.

Coon just says "the team" owes money. I have no idea how ownership groups determine who foots what bill, whether it be team salary, day to day expenses, luxury tax, etc.

Also, per Forbes, Gilbert owns 72%.

 

[col63onel]

Bumping this thread. It's that time of year again. If you have any salary cap related questions, post them here, and tag me.