Author Topic: What can we do to fix the broken salary cap rule?  (Read 971 times)

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Re: What can we do to fix the broken salary cap rule?
« Reply #15 on: October 17, 2017, 03:50:06 PM »

Offline OHCeltic

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Just have a soft salary cap and a hard salary cap.  Can't go over the hard cap or below the soft cap.

Re: What can we do to fix the broken salary cap rule?
« Reply #16 on: October 18, 2017, 01:02:37 PM »

Offline mmmmm

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Just have a soft salary cap and a hard salary cap.  Can't go over the hard cap or below the soft cap.

By the latter, you are referring to a salary "floor", not a soft cap.

The NBA actually has all three:

salary floor - teams are required to pay out at least 90% of the salary cap.  This year, that amount is 89M.  If they don't pay out that much in salaries, the difference must be made up in extra payments distributed to the players.

soft cap - this is the 'salary cap' that is most frequently talked about.   Non-Bird external free agents can only be signed with room under this cap.   It is possible to go over the salary cap by various types of transactions (most often by using Bird Rights and other exceptions) and so it is 'soft'.

hard cap - this is essentially the effect of the luxury tax 'apron'.  Once over that, teams lose ability to use various exceptions to sign players.   Their salary can still go up, via built-in raises and via Bird Right transactions, but player additions are limited to minimum salary and rookie transactions.  This year's apron number is 125M.

Their are more complexities than are worth detailing here, but those are the essential details.   If you are interested, please see Larry Coon's excellent FAQ:

http://www.cbafaq.com/salarycap.htm
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Re: What can we do to fix the broken salary cap rule?
« Reply #17 on: October 18, 2017, 01:20:29 PM »

Offline 317

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The luxury tax works. Durant took a huge pay cut to keep the team together; Klay says he will do the same. 

Celtics ownership has been raking in huge profits, and they've realized around $1.5 billion in valuation of the franchise. When it's time to pay up the cost will be heavy, but they can afford it.

The only system that will keep all teams below the cap is an NFL-style hard cap.

I beg to differ... KD didn't take a massive pay cut. He simply weighed his other endorsements and realized that he could make it back in a large market. Good players with no such endorsement options would never make such a decision... which further proves the brokenness cuz a Milwaukee wouldn't have those alternatives

Giannis is about to sign a shoe deal worth at least $5 million per year with a chance at up to $10 million per, so playing in Milwaukee clearly doesn't hurt endorsements that much. and well i understand that some of that money is his value as an international player Russel Westbrook has major endorsements despite playing in OKC.

Re: What can we do to fix the broken salary cap rule?
« Reply #18 on: October 18, 2017, 02:21:02 PM »

Offline mmmmm

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The luxury tax works. Durant took a huge pay cut to keep the team together; Klay says he will do the same. 

Celtics ownership has been raking in huge profits, and they've realized around $1.5 billion in valuation of the franchise. When it's time to pay up the cost will be heavy, but they can afford it.

The only system that will keep all teams below the cap is an NFL-style hard cap.

I beg to differ... KD didn't take a massive pay cut. He simply weighed his other endorsements and realized that he could make it back in a large market. Good players with no such endorsement options would never make such a decision... which further proves the brokenness cuz a Milwaukee wouldn't have those alternatives

Giannis is about to sign a shoe deal worth at least $5 million per year with a chance at up to $10 million per, so playing in Milwaukee clearly doesn't hurt endorsements that much. and well i understand that some of that money is his value as an international player Russel Westbrook has major endorsements despite playing in OKC.

Top players can definitely still get big endorsement deals from national / international brands no matter where they are.

But where the differences show up is in the 'regional' endorsements.  Things like local store chains, auto dealerships, restaurants.   Being a spokesman for a NYC regional brand is a lot bigger deal than being the equivalent spokesman for some similar regional business in Kansas.   Being "locally famous" in NYC is a lot different than being locally famous in Phoenix.   Getting paid to do a spot on a NYC radio/TV station pays a ton more than doing a spot on a Green Bay area radio/TV station.

And you also have national/international brands that market regionally.   Example: those Dunkin' Donuts adds featuring Red Sox players probably don't get shown in NYC.    Their endorsement deals are going to pay the athletes based on the market they are going to target with them.
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