spurs might be in rebuilding mode after 10/11, but the talent out there is fkn ...
would duncan pick up the termination option and look for a longer contract?
tp is either leaving or spurs going to low ball him with the new cba...
Whenever a team sign a player or do a trade, there aren't only basketball considerations but also financial considerations. Only the basketball side matters for fans but if you want to understand moves made and have an idea about what moves will be done, you had to look at the financial side.
Basketball is the Yang, money is the Yin.
Spurs 10-11 salaries :
Players with a guaranteed salary :
Spurs will have 15 players with a fully guaranteed contract and without team or player options:
Tim Duncan: $18,835,381
Tony Parker: $13,500,000
Manu Ginobili: $11,854,584
Richard Jefferson: $8,400,000
Antonio McDyess: $4,860,000
Tiago Splitter: $3,400,000
Matt Bonner: $3,000,000
James Anderson: $1,361,400
DeJuan Blair: $918,000
George Hill: $854,389
Chris Quinn: $804,130
Gary Neal: $525,000 (count for $854,389 against the tax)
Steve Novak: $206,059
Danny Green: $130,022 (count for $145,749 against the tax)
Da'Sean Butler: $125,000
Ime Udoka*: $226,162
Garrett Temple*: $110,000
Alonzo Gee*: $107,604 (count for $120,620 against the tax)
Steve Novak*: $100,516
Bobby Simmons*: $75,387
Larry Owens*: $55,718 (count for $100,516 against the tax)
Othyus Jeffers*: $44,835 (count for $50,258 against the tax)
Danny Green*: $40,352(count for $45,232 against the tax)
The total salary for these 15 players is $69,534,539 ($69,947,772 against the tax)
The Luxury Tax:
What is the luxury tax?
The luxury tax is a mechanism whose first goal is to reduce the differences between the richest and the poorest franchises.
In Early July, the league calculates a threshold based on an evaluation of its revenue for the next season. At the end of the season, teams whose payroll is higher than the luxury tax threshold pay a dollar for each dollar above the threshold. The money given by all the taxpayers is then divided. Each team bellow the tax gets 1/30th of this money and the rest is either equally divided between all the franchises or used to help franchise(s) with serious financial troubles.
The double penalty system:
A team above the tax is two time penalized. First, they had to pay the $ for $ tax. Second, they don't get 1/30th of the luxury tax money given by NBA teams.
This system has two consequences:
- The $ for $ tax pushes teams with payroll significantly higher than the luxury tax threshold to lower their payroll.
- The redistribution system pushes teams that are just above the tax to go just under. What is problematic for a team $100K above the tax isn't the additional $100K to pay in tax but the $3M you don't get during the redistribution.
Luxury tax threshold in 10-11:
The 2010-2011 luxury tax threshold is $70.307M
Total luxury tax paid in 10-11:
This number is really important for a team close to the luxury tax level because it determines how hard they should try to stay/go under the threshold.
About $58M will be paid in luxury tax by NBA teams. It makes a $1.9M gain in redistribution for teams below the tax.
Impact of the luxury tax on Spurs for 10-11:
Spurs are $359K under the tax with 15 players under contract.
Salaries listed in this post aren't the definitive salaries that will count against the tax because of bonuses but Spurs should remain below the tax
After 2010-2011:
Players under contract for 2011-2012:
13 players have contracts for 2011-2012:
- Tim Duncan with an early termination option of $21,164,619.
- Manu Ginobili with a $12,981,038 salary.
- Tony Parker with a $12,500,000 salary.
- Richard Jeffferson with a $9,282,000 salary.
- Antonio McDyess with a $5,220,000 salary. Only $2,640,000 is guaranteed until July 1st 2011. This contract could end up as a nice trade asset in June 2011.
- Tiago Splitter with a $3,672,000 salary.
- Matt Bonner with a $3,315,000 salary.
- George Hill with a $1,540,463 salary.
- James Anderson with a $1,402,000 salary.
- DeJuan Blair with a $986,000 salary. Only $500K are guaranteed.
- Gary Neal with a $788,872 unguaranteed salary.
- Danny Green with a $884,293 unguaranteed salary
- Da'Sean Butler with a $788,872 unguaranteed salary that becomes $276,105 guaranteed on the first day of the regular season.
Players under contract for 2012-2013:
9 players have contracts for 2012-2013:
- Manu Ginobili with a $14,107,492 salary.
- Tony Parker with a $12,500,000 salary.
- Richard Jeffferson with a $10,164,000 salary.
- Tiago Splitter with a $3,944,000 salary.
- Matt Bonner with a $3,63,000 salary.
- James Anderson with a $1,526,499 salary. This year is a team option that must be picked before November 1st 2011.
- DeJuan Blair with a $1,054,00 salary that is fully unguaranteed and become fully guaranteed on November 1st 2012.
- Gary Neal with a minimum unguaranteed salary.
- Da'Sean Butler with a minimum unguaranteed salary that becomes fully guaranteed on July 15th 2012.
Players under contract for 2013-2014:
4 players have contracts for 2013-2014:
- Tony Parker with a $12,500,000 salary.
- Richard Jeffferson with a $11,046,000 player option.
- Matt Bonner with a $3,945,000 salary. $1M is guaranteed and it becomes fully guarantedd on June 29th 2013.
- James Anderson with a $2,353,861 salary. This year is a team option that must be picked before November 1st 2012.
Players under contract for 2014-2015:
1 player is under contract for 2014-2015:
- Tony Parker with a $12,500,000 salary. Only $3.5M is guaranteed.
What can we say about that:
It's nearly impossible to draw accurate conclusions give the CBA will change in 2011.
However, Spurs have a lot of money committed for the 2011-2012 year. It Tim Duncan pick his option, Spurs will have $69.5M of guaranteed salary. It could create some financial problems.
PS: Salaries numbers comes from ShamSports. Thanks to Sham for his great work.
Last edited by Bruno; 04-26-2011 at 06:18 AM.
spurs might be in rebuilding mode after 10/11, but the talent out there is fkn ...
would duncan pick up the termination option and look for a longer contract?
tp is either leaving or spurs going to low ball him with the new cba...
Thanks to Sham and you as always. I can't tell you how appreciated it is that you to take the time to help people like myself get a better understanding and knowledge of all of this.
Great job.
so we have close to 8 mil to spend...and if we are over the cap we use the MLE right.....
If you are over the cap or within the amount of the MLE from the cap, you use the exception and not the cap space -- it's one or the other and never both.
The Spurs can only use exceptions and trades to acquire players.
We have much less than 8M in cap space once cap holds are taken into account. Spurs will be using their exceptions, not that small amount of cap space. For the purpose of considering Spurs spending this summer, it will be as if they're over the cap. By the time it's all said and done they will be well over the cap and could very well approach the luxury tax level.
http://sports.espn.go.com/nba/news/story?id=5362260
NBA teams found out Wednesday that the salary cap for next season will be nearly $2 million higher than anticipated, providing additional unforeseen cap space to several teams.
The NBA announced a cap of $58 million for the 2010-11 season, when most teams had budgeted a cap of $56.1 million.
The exact salary cap figure, according to league sources, is $58,044,000, up from $57.7 million in the 2009-10 season.
That means teams such as Miami, New York, New Jersey, Chicago and the Los Angeles Clippers have more spending room than anticipated to accommodate free-agent signings.
The luxury-tax line for the coming season will be $70,307,000, up from $69.9 million.
The midlevel exception for next season is $5.765 million.
The cap went into effect at 12:01 a.m. Thursday, ending the league's moratorium period and allowing free-agent contracts to be signed.
Meanwhile, 11 teams officially were notified of their luxury-tax obligations for the 2009-10 season, with the two-time champion Los Angeles Lakers easily topping the list of taxpayers.
The Lakers are required to cut a tax check of $21.4 million to the league office by July 23, based on figures teams received in conjunction with the NBA's announcement regarding next season's cap.
Teams with a payroll above $69.9 million last season are required to pay one tax dollar for every dollar they are over the tax threshold. The Lakers are the only team over the $20 million barrier -- $21,430,778, to be exact.
The Dallas Mavericks are next in line at $17,582,574, followed by Cleveland ($15,410,550), Boston ($14,928,662), Orlando ($11,046,595), San Antonio ($8,810,302), Denver ($5,562,942), New York ($5,199,024), Phoenix ($4,958,790), Utah ($3,105,372) and Miami ($3,039,769).
The 19 teams that do not owe any tax, in accordance with the league's collective bargaining agreement, will each receive a rebate of $3.7 million. The league also announced Wednesday night that the tax line for the 2010-11 season has risen to $70.3 million.
one potentially important upshot:
this means we can get Splitter on the MLE, resign RJ on a $7m contract AND get a player in for the LLE, without going into the luxury tax.
(this situation would would put us virtually right at the luxury tax amount)
Thanks. This helps clear a few things up
since some teams are trading players for TE, i wish we could do the same IF we have an intention of trading someone
Looks like RJ's deal just might end up putting a wrench in the works
A first estimation on the total luxury tax paid by teams next year:
Boston: $5M
Dallas: $15M
Denver: $13M
Houston: $12M
Lakers: $22M
Orlando: $22M
Portland: $2M
Utah: $7M
Teams will pay $98M in luxury tax.
Teams under the cap will get $3.3M in redistribution.
A $3.3M gain for being just under the cap is a quite significant gain. it should convince Spurs to make the effort of staying below the tax.
How is our situation at the moment ?
I'm doing the math, hold on.
Spurs situation regarding the luxury tax:
Players with guaranteed contracts
Duncan + Parker + Ginobili + McDyess + Blair + Hill : $50.82M
Matt Bonner: $3.05M
Tiago Splitter: $3.4M
Richard Jefferson: $8.4M
Gary Neal: $.85M (against the tax)
$66.52M for 10 players
James Anderson will likely be signed. His salary will be between $0.91M and $1.36M.
Spurs payroll will be between $67.43M and $67.88M for 11 players. Spurs are between $2.43M and $2.88M.
If Spurs want to stay below the tax:
- They won't be able to have a 15 players roster.
- They should be able to carry a 14 players roster if they are able to sign Anderson for only 100% of the rookie scale and if the players waived aren't Gee and Temple.
- They will have no problem at staying under the tax with a 13 players roster.
Last edited by Bruno; 07-24-2010 at 12:24 PM.
I make our situation as sneaking under the tax if we cut Jerrels from the roster
Bruno, is George Hill's salary not $1.157m rather than $854k?
No, it isn't.
For first round picks, teams can give between 80% and 120% of the rookie scale salary each year. Hill got 120% of the scale on his first two years, and 80% on his third and fourth year. The idea behind that move was to create as much cap space as possible for Spurs' 2010 plan.
And 80% of the rookie scale is less than $854K but Hill will be paid $854K because it is the minimum salary for a player with 2 years of service.
It should be noted:
I assume the delay in Anderson's contract is that they're trying to get him to take 80% scale; pretty typical Spurs move. Will be interesting to see what he finally accepts, but I'm sure they'll convince him to take a first year discount if it's a big deal luxury tax wise.
Bonus question: for the sake of luxury tax calculations, the Spurs could carry 15 most of the year, then dump the least promising prospect in a salary dump trade at the deadline to get under the tax line, correct?
Um, what is his source about Holt committing to Luxury Tax territory?
Anderson was a big college player and has a powerful agent (Andy Miller). I don't see Spurs convincing him to only take 80%. It should be 100% or 120%.
Yes, correct.
It's what I've thought all along and I respect Aldridge enough to think that he wouldn't suggest something like that if he didn't hear it from the horse's mouth or someone extremely close to the situation and with knowledge of the gameplan.
given how close we seem to be to the luxury tax boundary it would seem strange if it wasn't the plan to end up under it in the end, though
Why is that?
They could very well keep all four of Neal, Hairston, Temple and Gee, possibly three of them and use their LLE or what's left of their MLE on someone else.
I think lurker23 brought up a possibility, one I happen to believe will play out, and that's that the Spurs could find themselves at a number just over the tax to start the season but dump a contract (a la Ratliff last year) to not actually have to pay the tax.
But that's only if the difference in personnel isn't worth paying the tax. If they believe the players they have or can acquire will push them into being a tax payer, I don't believe they'll hesitate to be one; David Aldridge's reporting seems to confirm that belief for the next two years.
Between the salary, the luxury tax paid on the salary and the redistribution, Spurs could be in a situation where they had to decided between keeping a player like Gee, Jerrels or Hairston and nearly $5M.
Even if Holt is ready to pay some luxury tax, I somewhat doubt he will be fine with keeping a marginal prospect for almost $5M. And he will be right.
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