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DeSean Jackson


Joined: 26 Nov 2010
Posts: 490
PostPosted: Wed Jun 28, 2017 5:15 pm    Post subject: Question for the NBA fans Reply with quote

Whatsup guys, I'm new to the NBA as I just recently started taken interest in the sport. I'm confused on the cap and how it works. I see teams wanting to sign players in FA, but they have to shed salary first? Why can't they just go over the cap and use the luxury tax? And how can warriors resign all those people without any cap space? I think luxury tax is very dumb and if it was taken out it'll end the super team stuff. They should make it a hard cap. But can someone please explain it to me? Thanks.
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11sanchez11


Joined: 08 Feb 2010
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Location: Tucson, AZ
PostPosted: Wed Jun 28, 2017 5:26 pm    Post subject: Reply with quote

Quote:
Why can't they just go over the cap and use the luxury tax? And how can warriors resign all those people without any cap space?


You can only go over the salary cap if you are signing (resigning) guys that are already on your team.

More specifically, I think you can only go over the salary cap if you are signing guys whose Bird Rights you have. Might be wrong here tho.
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MKnight82


Joined: 04 Mar 2009
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PostPosted: Wed Jun 28, 2017 5:28 pm    Post subject: Reply with quote

You can sign free agents only up to the salary cap (except for some small exceptions like the mid level exception). Eventually though if you go over the luxury cap with your own players you have to pay a luxury tax that is spread out amongst the other teams in the NBA.
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Last edited by MKnight82 on Wed Jun 28, 2017 5:37 pm; edited 1 time in total
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DeSean Jackson


Joined: 26 Nov 2010
Posts: 490
PostPosted: Wed Jun 28, 2017 5:29 pm    Post subject: Reply with quote

11sanchez11 wrote:
Quote:
Why can't they just go over the cap and use the luxury tax? And how can warriors resign all those people without any cap space?


You can only go over the luxury tax if you are signing (resigning) guys that are already on your team.

So if Celtics sign Hayward in free agency and have no cap space. They can give IT a huge contract by going over the luxury tax? And they can do that every year?
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MKnight82


Joined: 04 Mar 2009
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PostPosted: Wed Jun 28, 2017 5:31 pm    Post subject: Reply with quote

DeSean Jackson wrote:
11sanchez11 wrote:
Quote:
Why can't they just go over the cap and use the luxury tax? And how can warriors resign all those people without any cap space?


You can only go over the luxury tax if you are signing (resigning) guys that are already on your team.

So if Celtics sign Hayward in free agency and have no cap space. They can give IT a huge contract by going over the luxury tax? And they can do that every year?
Yes if their owner is willing to pay the luxury tax.
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11sanchez11


Joined: 08 Feb 2010
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PostPosted: Wed Jun 28, 2017 5:33 pm    Post subject: Reply with quote

DeSean Jackson wrote:
11sanchez11 wrote:
Quote:
Why can't they just go over the cap and use the luxury tax? And how can warriors resign all those people without any cap space?


You can only go over the luxury tax if you are signing (resigning) guys that are already on your team.

So if Celtics sign Hayward in free agency and have no cap space. They can give IT a huge contract by going over the luxury tax? And they can do that every year?


I edited my post, the luxury tax isn't important to this part. The salary cap is.

Yes, they can go over the salary cap to max IT even if they have no cap room.
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DeSean Jackson


Joined: 26 Nov 2010
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PostPosted: Wed Jun 28, 2017 5:33 pm    Post subject: Reply with quote

MKnight82 wrote:
DeSean Jackson wrote:
11sanchez11 wrote:
Quote:
Why can't they just go over the cap and use the luxury tax? And how can warriors resign all those people without any cap space?


You can only go over the luxury tax if you are signing (resigning) guys that are already on your team.

So if Celtics sign Hayward in free agency and have no cap space. They can give IT a huge contract by going over the luxury tax? And they can do that every year?
Yes if their owner is willing to pay the luxury tax.

Wow so warriors can keep all there guys if they wanted to? Should def have a limit
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11sanchez11


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PostPosted: Wed Jun 28, 2017 5:35 pm    Post subject: Reply with quote

DeSean Jackson wrote:

Wow so warriors can keep all there guys if they wanted to? Should def have a limit
yup, depending how much they go over they would have to pay a ridiculous amount tho.
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DeSean Jackson


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PostPosted: Wed Jun 28, 2017 5:38 pm    Post subject: Reply with quote

11sanchez11 wrote:
DeSean Jackson wrote:

Wow so warriors can keep all there guys if they wanted to? Should def have a limit
yup, depending how much they go over they would have to pay a ridiculous amount tho.

I just read something earlier and I was confused. How kevin durant will take a pay cut so they can resign Andre. Why would he need to take a pay cut when they can just use the luxury tax for both of them since they are resigning.
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11sanchez11


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PostPosted: Wed Jun 28, 2017 5:48 pm    Post subject: Reply with quote

DeSean Jackson wrote:
11sanchez11 wrote:
DeSean Jackson wrote:

Wow so warriors can keep all there guys if they wanted to? Should def have a limit
yup, depending how much they go over they would have to pay a ridiculous amount tho.

I just read something earlier and I was confused. How kevin durant will take a pay cut so they can resign Andre. Why would he need to take a pay cut when they can just use the luxury tax for both of them since they are resigning.


Good question. I don't think they have his Bird Rights (I edited my first post to include this). You can't go over the salary cap unless you have someone's Bird's Rights, I believe. They do have Iggy's BRs tho, I think. And they would have to renounce Iggy's and Livingston's BRs (they have a cap hit if they keep their BRs) to sign KD to a full max. But if KD takes less than the max they can keep Iggy's and Livinston's BRs to go over the cap to resign them both and KD.
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Spartica4Real


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PostPosted: Wed Jun 28, 2017 6:00 pm    Post subject: Reply with quote

Bird rights aren't the problem imo. Allows teams to keep their home grown stars/players (or if they remain under the cap long enough after signing a free agent they get rewarded with that player's bird rights). The problem is max contracts. The cap and contract structure is dumb when Mike Conley makes as much as LeBron James. Get rid of max contracts and let the market deem what a player's worth.
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11sanchez11


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PostPosted: Wed Jun 28, 2017 6:00 pm    Post subject: Reply with quote

You get a players BRs if you draft them or trade for them in their first contract.

Also if you sign them to a certain length of contract (idk if this one is right).

I would assume this is why the Warriors don't have KD's BRs. They only signed him for one year.
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Spartica4Real


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PostPosted: Wed Jun 28, 2017 6:10 pm    Post subject: Reply with quote

11sanchez11 wrote:
You get a players BRs if you draft them or trade for them in their first contract.

Also if you sign them to a certain length of contract (idk if this one is right).

I would assume this is why the Warriors don't have KD's BRs. They only signed him for one year.


It's not contract length, just how long he's on the team. 2 or 3 years I think. They'll have his bird rights soon.
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48 1/2ers


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PostPosted: Wed Jun 28, 2017 7:20 pm    Post subject: Reply with quote

The Luxury Tax can end up being a crazy number to spend. in 2014 the Nets total payroll was like $100m but the tax added another $80m because they went over the cap by like $28m. The tax is intimidating enough to keep teams from hoarding big contracts.

These bird rights, mid level extensions, trade exceptions are what separate the NBA salary cap and team payroll structure from other sports like the MLB, NFL, and Soccer.
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mse326


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PostPosted: Thu Jun 29, 2017 11:55 am    Post subject: Reply with quote

Spartica4Real wrote:
Bird rights aren't the problem imo. Allows teams to keep their home grown stars/players (or if they remain under the cap long enough after signing a free agent they get rewarded with that player's bird rights). The problem is max contracts. The cap and contract structure is dumb when Mike Conley makes as much as LeBron James. Get rid of max contracts and let the market deem what a player's worth.


I agree but it will never happen. There relatively aren't that many that max contracts effect negatively. They benefit the owners and well over 50% of the players, so there is no one to say no.
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