"toad" <papatoad.RemoveThis@mrstoad.com> wrote in message
news:qalNb.13977$4l3.12056@nwrddc02.gnilink.net...
>
>
> "Terraholm" <terraholm_SpamGoAway.RemoveThis@hotmail.com> wrote in message
> news:100becre81kraaf@corp.supernews.com...
> > Most likely way to get cap space would be to let 'sheed walk plus wait
> > another year for more ending contracts. Even if they let him walk, they
> will
> > not be under the cap this summer.
> > Another way, as was pointed out earlier by someone else... Bribe
> Charlotte
> > to take Damon in the expansion draft with cash and a first round pick
plus
> > waive their FA rights on 'Sheed and the mid-level.
> > That would clear about 1 max contract for a FA.
>
>
> okay, lemme ask you something. What's the point in being under the cap?
The cap is a line where the trade rules change.
> Isn't virtually every team in the NBA over the cap? It doesn't seem to
> handicap teams from making trades and signing players even if they're over
> the cap.
Being under the cap allows for signing FAs whose market value is more than
the exceptions. Those teams are attractive to FAs because they can sign
without having to deal with their old team for a sign and trade.
When making trades it means they do not have to give up as much as they get
and that makes trades much easier. If a team is 5 million under the cap they
can trade a 5 million player for over 10 million in salary.
Where Portland wants Terry he is a base year compensation contract. That
means his trade value is 50% for his team but the team getting him counts as
full. Makes matching salaries very difficult if both teams are over the cap.
>
> I suppose once you're over the cap, we start talking luxury tax and all
> that, so essentially it's just more expensive to have a payroll that's
over
> the cap eh?
The tax line/escrow limit is higher than the cap line. Teams under the tax
line not only do not pay tax, they receive those revenues from the teams
that do so. Sterling for example made about 10 million extra profit last
year from the Clippers being under the tax line. Money that partly came from
the 50 million dollar check for the tax from the Blazers that Patterson
wrote last summer.
More complicated than this for details..... but for general sample say team
"A" was at about 62 million last year, that is about 9 million over the tax
limit. They had a player making 9 million they tried to trade for an ending
contract but failed so they were not able to drop that salary last year.
That player above the tax limit last season cost team 'A" his 9 million
salary, the amount of his salary again in tax, and several million in tax
back from other teams. So that 9 million player cost the owner about 26
million.
See Larry's page for more accurate numbers....=)
However it looks like the payrolls will drop so that this summer the GMs
will not have to be so concerned about the tax next year. Also the tax
structure is likely to change as they negotiate the new CBA.
>
> which is all the more reason to be thankful we have Paul Allen as our
owner.
He has considered the Blazers more of a hobby than a business I think, but
they need to get the cap under control for basketball reasons too.
--
Laurel T
"I hate to do it, but I have to give Smitty
some credit for his defense.
Steve did a nice job of yelling for help every time Cliff
got the ball." DRob on guarding Uncle Cliffy
>> Stay informed about: Hey Blazers Fans What Do You Think About These Trade Rumors