The Cavs and the salary cap

[Birdy89]

The other thing is that agents will plan accordingly. Many players are going to be hesitant to sign long-term deals this offseason, instead opting to wait until next year when they can get more money. Locking players up early in anticipation of the cap rising is a great strategy, but you have to convince the players/agents to agree to it as well. There isn't much incentive for them to sign early (although there is some -- financial security in case of a catastrophic injury, a dollar today being worth more than a dollar a year from now [i.e. investments], etc).

Where we will see the biggest impact of the cap increase is that suddenly the minimum spending level increases by a ton as well, and teams have to throw money at a limited group of FA's just to hit the portion of the cap they have to spend so they don't have to cut the players an extra check at the end of the year.

That is why we are going to see guys trying to get to free agency next year (and the year after) when the cap jumps twice.

Small/Mid market teams will be flooded with with money to spend as teams have to spend 90% of the cap. With a limited number of players in free agency and teams with money burning a hole in their pockets mediocre players are going to get paid.

That is why I expect to see a ton of 1 year deals this off-season.

16-17 summer is going to be a bonanza, but the ensuing lockout after the year will make it likely we never see that next $20 million jump in 17-18. It is why all the players are so locked in on next summer to lock in the huge salaries while they can because the system will change again when the owners lock the players out.

 

[KilgoreTrout]

Sorry if this was already mentioned by someone….I was skimming this thread….

One thing to keep in mind is the MASSIVE salary cap jump there will be.

In terms of paying an exorbitant amount in luxury taxes, that doesn’t apply to every year moving forward, it really only applies to NEXT year.

When this new TV deal kicks in, as well as Nike nearly doubling the apparel contact, cap estimates are in the range of:

2016 - $89 Million Dollar Cap, $108 million dollar luxury tax
2017 - $108 Million Dollar Cap, $127 million dollar luxury tax

So when we’re talking about retaining players, we are actually way better off eating a huge tax bill this season, in exchange for locking some of these core players up at more reassembles deals, post salary cap jump. When every dollar counts, the only thing we can lament is the Anderson deal and not locking up TT when we had a chance. Both of those moves are going to cost us a considerable amount in both salary and tax bills.

I’ll also state that this is just he way of the world in the NBA. The Warriors have a ridiculous bargain on Curry’s contract for two more seasons but they are going to be in the same boat.

Golden State has 78 million committed next season and that is WITHOUT resigning Green, Barbosa or Speights.

They likely have to keep one of Speights / Barbosa and Green is slated to get max money. That is going to push them in the 100 million dollar range and that doesn’t include any additional signings or draft picks.

This is just the lay of the land in the NBA. The best teams have to pay the most money.

Don't forget Iggy.

 

[KilgoreTrout]

That massive salary cap bump will be nullified by Lebron's 35 mil/yr contract. Then add in a Mozgov 15 million dollar + contract in a year and were pushing like a 175 million dollar roster before tax. There's zero way we can keep everyone. I can't see Gilbert losing 150 million a year for 5 years to field this team.

He will, if everyone who goes to the games, goes to his casino afterward and drops a g.

 

[I'mWithDan]

He will, if everyone who goes to the games, goes to his casino afterward and drops a g.

One revenue stream I would love to see numbers on is FlashSeats.

Gilbert has to just make an absolute KILLING on that site.

It honestly hasn't changed since it launched and the commission rates / fees they collect are ridiculous.

 

[Walter White]

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.

 

[Rich]

I saw a report earlier today that Rich Paul has "made it known" that he's seeking a max or near max for Thompson.

I get that the team just had a great playoff run, but the numbers getting thrown around. Max for Thompson? 15 million for Mozgov? Just because we had great season doesn't mean everyone on the team should get paid like a star player.

 

[Birdy89]

I saw a report earlier today that Rich Paul has "made it known" that he's seeking a max or near max for Thompson.

I get that the team just had a great playoff run, but the numbers getting thrown around. Max for Thompson? 15 million for Mozgov? Just because we had great season doesn't mean everyone on the team should get paid like a star player.

It is the curse of being in a win now mode and being over the cap.

Agents know you can't replace your players production because you're capped out, but at the same time you can't afford to lose the player.

TT/Moz hold all the cards in their negotiations with the team because everyone in the room knows the Cavs need them and can't replace them.

 

[caf]

I saw a report earlier today that Rich Paul has "made it known" that he's seeking a max or near max for Thompson.

I get that the team just had a great playoff run, but the numbers getting thrown around. Max for Thompson? 15 million for Mozgov? Just because we had great season doesn't mean everyone on the team should get paid like a star player.

They can ask for almost anything because we don't have the assets to replace their production.

It's either overpay, or replace them with vet-min guys. Supply and demand my friend.

 

[Rich]

They can ask for almost anything because we don't have the assets to replace their production.

It's either overpay, or replace them with vet-min guys. Supply and demand my friend.

Works both ways, if no one else is willing to give Thompson 16 million a year, he gonna leave Cleveland because we offered him less than he wanted, but still more than anyone else? You can't just willy-nilly call out your number if there is no one else willing to pay it.

Let Thompson get to restricted free agency and let someone else set the market. Honest to god what is the harm if we're talking about paying max money anyway?

 

[gourimoko]

I saw a report earlier today that Rich Paul has "made it known" that he's seeking a max or near max for Thompson.

I get that the team just had a great playoff run, but the numbers getting thrown around. Max for Thompson? 15 million for Mozgov? Just because we had great season doesn't mean everyone on the team should get paid like a star player.

It's what I've been saying for months now.

Thompson is going to get $15M+ from this team. He's not worth that kind of bread, at least, not at this point.

He's shown flashes of a low-post offensive game though, and that has me intrigued.

I'd only be okay with it if it's a long-term deal with a team-option in the last year.

Mozgov, a 7'1 center with a developing mid-range game is probably worth $14-15M, if you can lock that in under this present CBA.

But having Love maxed at 30% of the cap ($30M in 2 years) plus both of these guys bringing in $30M+ is a tough pill....

That's why I'm saying we should strongly consider trading Thompson.

 

[MirORich]

I saw a report earlier today that Rich Paul has "made it known" that he's seeking a max or near max for Thompson.

I get that the team just had a great playoff run, but the numbers getting thrown around. Max for Thompson? 15 million for Mozgov? Just because we had great season doesn't mean everyone on the team should get paid like a star player.

Thompson making 8 million against the current cap would be 13% of the cap
If he signs for 14 million, at the midpoint of his contract, he would be taking up 13-14% of that cap.

The expanding cap changes the game. We need to keep all valuable guys for two reasons.

1. To win championships, you need valuable guys who have chemistry and familiarity with the rest of the team.

2. Valuable guys can be traded down the road for other valuable guys. Tristan(or Mozgov) at 13-15 million per year against this past years cap would have been very hard to trade. As the cap jumps to 87 and then over 100 million by 2017-2018, their new deals will be very tradeable if need be.

The salary cap explosion is going to change the game in terms of how contract numbers and values are perceived.

 

[col63onel]

They can ask for almost anything because we don't have the assets to replace their production.

It's either overpay, or replace them with vet-min guys. Supply and demand my friend.

Or this is other teams *cough*Chicago*cough* spreading rumors in order to hurt the Cavs the same way they started the Love to LA crap.

 

[westsidebob]

Griffin saying what he did today and Gilbert's public perception as a real-life version of Mr. Monopoly, money spilling out of his pockets and all is going to cool the market considerably. What GM in his right mind is going to tie up valuable time with negotiating a deal that most likely will be brought back to the Cavs to match, when he can pursue other free agents?

TT and Delly and Shump all want to be here, the Cavs want them here and no one's going to go out of their mind to overpay them. Rich Paul may want max money, but Rich Paul isn't the guy that negotiates the deals.

 

[ThirdWorld]

15M for TT?

Go Ahead

Sign and Trade for Roy Hibbert

 

[westsidebob]

15M for TT?

Go Ahead

Sign and Trade for Roy Hibbert

Can't sign and trade, they're over the apron.