I'm going to fill up the first post later today with the salary situation for 2012-2013 and beyond.
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 11-12 salaries :
Players with a guaranteed contract :
Spurs have 15 players with a fully guaranteed salary:
Tim Duncan: $21,164,619
Manu Ginobili: $12,981,038
Tony Parker: $12,500,000
Stephen Jackson: $9,256,500
Tiago Splitter: $3,672,000
Matt Bonner: $3,315,000
Kawhi Leonard: $1,731,960
James Anderson: $1,463,520
DeJuan Blair: $986,000
Cory Joseph: $942,700
Danny Green: $854,389
Gary Neal: $788,872 (count for $854,389 against the tax)
Patty Mills: $261,829
Boris Diaw: $241,158 (the league will give him an additional $104,090)
Derrick Byars: $12,293 (count for $13,780 against the tax)
Antonio McDyess*: $2,640,000
Malcolm Thomas*: $114,582 (count for $206,707 against the tax)
Ike Diogu*: $75,793
Eric Dawson*: $38,194 (count for $68,902 against the tax)
Eric Dawson*: $38,194 (count for $68,902 against the tax)
Justin Dentmon*: $38,194 (count for $68,902 against the tax)
The total salary for these 15 players is $73,116,835 ($73,368,088 against the tax)
Pro-ration:
Because of the shortened season, Players won't get their full salary this year. They will be paid 66/82th of it. Salaries given above are full salaries and not the prorated version.
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. This mechanism will be stronger after the 2012-2013 season when the new progressive luxury tax will apply.
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. Half of this money is equally divided between teams below the tax and the other half is either equally divided between all the franchises or used by the league.
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 a share 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 11-12:
The 2011-2012 luxury tax threshold is $70.307M.
Total luxury tax paid in 11-12:
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.
6 teams (Lakers, Celtics, Heat, Mavs, Spurs and Hawks) should paid some luxury tax for a total amount of $40M. Teams below the tax will get 1/48th of this, that is to say $833K. This redistribution is significantly lower than in the past. When you consider the pro-ration, it even drops to $670K.
Impact of the luxury tax on Spurs for 11-12:
Spurs will end the season $3.06M above the tax threshold. Given the low redistribution and the pro-ration, it isn't too penalizing this year to be a little above the tax.
Spurs 12-13 salaries :
Players with a guaranteed contract :
Manu Ginobili: $14,107,492
Tony Parker: $12,500,000
Stephen Jackson: $10,059,750
Tiago Splitter: $3,944,000
Matt Bonner: $3,630,000
Kawhi Leonard: $1,809,840
Cory Joseph: $1,074,720
The total salary for these 7 players is $47,125,802
Players without a guaranteed contract or with a player option:
DeJuan Blair with a $1,054,000 salary that is fully unguaranteed and become fully guaranteed on November 1st 2012.
Patty Mills has a $885,120 player option.
Gary Neal with a $854,389 unguaranteed salary.
Derrick Byars has a $854,389 unguaranteed salary.
Spurs and the luxury tax in 12-13:
The luxury tax in 2012-2013 should be at $70.3M. If Spurs keep Blair and Neal and if Mills doesn't opt out, their payroll will be $49.9M. Spurs will have $20.4M below the tax to re-sign Duncan, Green, use the MLE ($5M) and sign few players to vet min contracts. Spurs should be able to stay below the tax in 2012-2013.
After 12-13:
Players under contract for 2013-2014:
5 players have contracts for 2013-2014:
- Tony Parker with a $12,500,000 salary.
- Matt Bonner with a $3,945,000 salary. $1M is guaranteed and it becomes fully guaranteed on June 29th 2013.
- Kawhi Leonard with a $1,887,840 salary. This year is a team option that must be picked before November 1st 2012.
- Cory Joseph with a $1,120,920 salary. This year is a team option that must be picked before November 1st 2012.
Players under contract for 2014-2015:
3 player is under contract for 2014-2015:
- Tony Parker with a $12,500,000 salary. Only $3.5M is guaranteed.
- Kawhi Leonard with a $2,894,059 salary. This year is a team option that must be picked before November 1st 2013.
- Cory Joseph with a $2,023,261 salary. This year is a team option that must be picked before November 1st 2013.
What can we say about that:
After 12-13, the new luxury tax will kick in and the luxury tax threshold will act almost as an hard cap for a team like Spurs. Spurs could also be in rebuilding mode and needs some cap space.
When you consider Bonner's 13-14 salary is only $1M guaranteed and that he could be amnestied, Spurs will be in a really good financial shape.
PS: Salaries numbers comes from ShamSports. Thanks to Sham for his great work.
Last edited by Bruno; 05-06-2012 at 08:41 PM.
I'm going to fill up the first post later today with the salary situation for 2012-2013 and beyond.
Done.
Let me know if I've made some mistakes or if you have some questions. Numbers will be adjusted when details are available.
Fantastic work, Bruno.
Excellent work.
I was just thinking about this earlier. I need to see who is becoming a FA next season so I can try and contemplate my fantasy sceanrios
It's interesting the Spurs could offer max salary for Dwight Howard the next season. He's certainly gone from Orlando. The Spurs have a great coach and many pieces that would allow Howard win various MVP's and championships.
In the grand scheme of things I think he is looking more for the money and fame, rather than the championships simply due to his choices of where to relocate.
thanks timvp and Libri.
You can find a list of 2012 free agents on espn:
http://sports.espn.go.com/nba/news/s...eeAgents-11-12
A lot will depend on Tim obviously. I dont think it's reasonable to assume Tim will accept 5M per year, but that would be nice. The FA class isn't all that great but with cap space you also have to consider trades in addition to free agency since you can absorb salaries without sending money back which allows you to get good players as well.
We also have to look at what the Spurs goal is beyond next year. It's hard to tell.
I was wondering whether or not Green would be restricted ... good news that he is.
And regarding JA, I'm guessing the Spurs won't pick up his option. The Spurs have been stingy with options, especially if there is a chance to open up salary cap space. For example, the Spurs declined a smaller option on Speedy Claxton just to save room under the cap.
I hope the Spurs decide to go for one last push. If they do that I would like them to take some short term risks. Go after some older vets on creative 1 or 2 year deals. A scenario I would like to see: Resign Tim & go after KG.
What is good too with Green is that his early bird rights cap hold is very low. The tactic would be to re-sign Green after having spend the cap space on other free agents. Even if Green new deal start at $3M or $4M, it won't eat cap space.
If Spurs are seriously considering using cap space next summer, Spurs will face a tough choice with Anderson's option. Right now, they might think that Manu will be the starting SG, Leonard the starting SF, Neal the backup SG and Green the backup SF. It will turn Anderson into a 3rd stringer who will only play garbage time of if there is an injury. Anyway, Spurs have still 10 days left to make their choice. I guess they will look closely at what Anderson and Green will do during that time.
I'm also curious to see Joseph and Leonard deal. Will it be structure to maximize some capspace next summer? It seems that they have lowballed Joseph by only signing him for about 110% of the rookie scale on his first year.
The Spurs could offer Duncan something like $5M - $6M - $7M 50% guaranteed. Which is basically $14.5M for 2 seasons. They used the same scheme to save cap space with Bowen, Horry and Dice's contracts.
One thing I frankly don't understand is why we should give up on players that have undoubtedly some sort of chance to develop in more than decent players inside a very money/friendly contract...for limited money beneficials.
We already made this mistake before, and we should have learned from that.
I mean, in situations like the Scola, Mahinmi and, now, Anderson ones, signing or keeping the players till their chance to be paid less than their more than possible value in the following years, is a sort of gift you can't refuse.
After all, that's the first way to have valuable pieces in the trade market.
Anderson has been considered and still is a more than valuable player...paying him something like one million dollars is nothing compared to the possible trade market value he could have after just playing decently some games... plus, he's a commodity, being a more than decent "third" option.
This small amount of money is not what put us in danger...on the contrary, this is the kind of sacrifice you can ask to our "big players" to take when they have to be re-signed.
Thanks for this excellent write up! The fun will be to see who the spurs target. I'd make a qualifying offer to restricted FA Roy Hibbert; however, the small-market Pacer, who are well below the cap, would likely match (though they'll also concurrently have to match QOs on George Hill).
If the Spurs are going to amnesty RJ, it'll have to be next summer I would think. Otherwise, he enters that territory by the 2013 trade deadline where he becomes a valuable expiring contract. I think he stays, unless Anderson/Green convince the Spurs they are viable replacements.
Apart from Roy Hibbert and B Bass, there are not many good role-players. Star will not come to SA. Guess part of the cap space will be spent on signing either Colo or Lorbek?
Anyone know what our cap space would be next with duncan expiring and amnestying RJ?
not many players in the league that are franchise players that could take the spurs forward....they all lack something and have there needs and wants that the spurs/city cant give them from a lifestyle pov...
the players from the 03 class are all locked in, the later classes are just trash imo...
i want aldridge or amare on this team, for their ty defense, we have enough calibre players down low and on the perimeter with green/KL to cover their defensive weaknesses, these guys carry the offensive load...
The reason the Spurs do it is simple- Cash.
They are operate on a narrow margin. Mahinmi showed only a modi of promise and was due 1.8 million if his option was picked up. Scola same story. In 07 the Spurs where slightly over the cap with several memebers of the le team needing to be resigned and others with increasing salary. So they dumped Beno and used Scola to reduce cap space (Butler). In 07 the view on Scola was quite different- the Spurs tried to get a 1st round pick but no would go far it- the thought of many scouts was his game would not translate into the NBA.
I'm not saying this is right, but that is how they have operated.
I am with TMVP- I getting a strong feeling they will not pick up Andersons option.
thanks brunoawesome work
I for one am definitely hoping we go after Hibbert or Javale McGee so that we can lock down our starting center gig for the foreseeable future. Hibbert would be the preferred choice but if McGee could ever get his head together man could he be a beast. Both are restricted though.
Batum is a player that, in the past, I along with many other Spurstalkers have wanted in silver and black. With Lenard on the roster now, though, I think it would be foolish to use our resources on him, especially with the type of deal I see him getting.
Obviously, the fantasy is Dwight. If winning were important to him there's no doubt SA would be a great option, but c'mon, I really don't see us landing him at all. The guy wants to go to a big market and that's what I obviously expect to happen.
If The Spurs go ahead with the Master plan, what are the options on the trade front?
Say Duncan resigns for 6 million, and we have 10million left (Simplifying the numbers a little), We could (if this information from ESPN is correct) trade for a player making an even higher salary
http://espn.go.com/nba/story/_/page/...pares-last-one
If we have 10 million under the cap, we can take back 15.1 million in salary(Plus 150% of the contract value we send out.)
Trading Also has the value of the fact that we're not using Free Agent Money, and could use the 5million MLE rather than the 2.5 million Cap space exception(Similar to how NY traded for Tyson Chandler rather than signing him as a FA, and consequently were able to use the MLE) which would allow us to sign Lorbek and de Colo to deals with exceptions rather than cap space.
If we couldn't trade for a really good player, would a trade for an overpaid big man + pick/swap of picks be reasonable.
For instance, If we have the 20th pick, Would New Orleans OK a Okafor + Minnesota pick (~12th) for Blair + our pick trade? Would we?(Trade occuring in the new season not on draft day, but that's a minor obstacle.)
I'd like Hibbert more, especially as he seems to have learned to rebound, but I don't see the Pacers letting him go, and after that, Okafor seems close to the other bigs who might be on the market, and saving a ton of money might motivate the league owned Hornets.
Here is a pretty good list and write up of FA's for 2012.
Sporting News NBA writer Sean Deveney takes a look at this summer's free agent crop.
AP photo
Eric Gordon
The headline players selected in the 2008 NBA Draft did pretty well for themselves when it came to signing contract extensions that will make them exponentially richer when they kick in after the season. The Bulls' Derrick Rose ($94 million) and the Thunder's Russell Westbrook signed for the five-year maximum (at $80 million), and though Timberwolves forward Kevin Love signed for only four years (with a player option after Year 3), he did secure a $62 million payday.
In addition, Danilo Gallinari and the Nuggets came to a four-year agreement, inking a contract worth $42 million. And another Nugget was sewn up when center Kosta Koufos signed a three-year extension worth $9 million.
But beyond that, a gaggle of pretty talented players let the deadline pass without putting their names on new contracts. While that might be worrisome for fans of those players' teams—as well as the accountants for those players—it is very good news for general managers whose teams are expected to have, or be able to create through use of the amnesty provision, enough money to make max-contract offers next summer.
That's because, for all the attention that the Summer of '12 free-agent marquee names—Dwight Howard and Deron Williams—have gotten, there simply is not a lot behind them. There are some pretty good point guards after Williams (Steve Nash, Ray Felton, Andre Miller, Chauncey Billups), but not much is out there at other positions. There are expected to be about a dozen teams with significant cap space available, and once the futures of Williams and Howard are decided, they can't all wind up bidding on Gerald Wallace and Chris Kaman.
The upcoming summer has been likened to the Summer of '10, when LeBron James, Chris Bosh and Dwyane Wade were free agents. But that's not a good comparison. "The idea that this is going to be like 2010 was is ridiculous," one East general manager told Sporting News. "When you got past that first layer in 2010, you still had guys like Joe Johnson and Rudy Gay and Amare (Stoudemire). Carlos Boozer was in that class. Felton, Ray Allen, Wes Matthews, Udonis Haslem—there were good players all over the board that summer. Now, you've got a lot of teams with money and it is really a thin class."
Not as thin anymore, at least. Only five of the 26 eligible '08 first-rounders signed contract extensions before the deadline, which means the market has been beefed up because those other 21 will now become restricted free agents. And that's not necessarily a bad thing. Teams can still match offers for their own restricted free agents, but the waiting period for decisions on matching—which had been seven days, long enough to be a disincentive for teams that might have made offers—has been cut to three days. There will be enough cap space floating around next summer to make being a restricted free agent much less of a hassle than it has been in the past.
Consider the layers that have just been added to the summer market:
Top shelvers
Eric Gordon, Hornets; Roy Hibbert, Pacers; Brook Lopez, Nets. The Hornets, still owned by the NBA, received approval to make Gordon a four-year offer, and it was somewhat of a surprise that Gordon—who has played just twice this year because of a bad knee—held out for the full five years, especially because the most he can get on the open market will be four years anyway. He is one of the league's best young scorers, though, and immediately vaulted to the top of many teams' summer wish lists. Hibbert and Lopez, both centers, probably will have whatever offers they receive matched by their teams, but considering the lack of size among potential free agents, they will still draw plenty of interest.
Potential top-shelvers
Ryan Anderson, Magic; Nicolas Batum, Trail Blazers; O.J. Mayo, Grizzlies. Because of all the uncertainty around Howard, the Magic declined to offer up an extension to Anderson this offseason, but he has put forth a breakout year (16.8 points and 6.9 rebounds) that will guarantee he gets a good payday next year. Batum hasn't quite had the breakout year some expected for him, but he has still shown enough talent to be a major free-agent target, especially if the Blazers push to keep fellow small forward Gerald Wallace. Mayo finally appears to be embracing his role as sixth man in Memphis, and if he maintains his numbers and his good at ude, he will only boost his value.
Quality role players
Darrell Arthur, Grizzlies; Jerryd Bayless, Raptors; D.J. Augustin, Bobcats; Jason Thompson, Kings; Brandon Rush, Warriors; George Hill, Pacers; Courtney Lee, Rockets; Robin Lopez, Suns. The Warriors and Pacers tried to get something done on Rush and Hill, respectively, but those two now move to the top of the list for teams looking for backcourt depth off the bench. Lee is also a very effective backcourt defender who can knock down 3s. Thompson, Lopez and Arthur could provide rotation depth for anybody's frontcourt.
Upside gambles
Michael Beasley, Timberwolves; Anthony Randolph, Timberwolves; Marreese Speights, Grizzlies; JaVale McGee, Wizards; J.J. Hickson, Kings. All five of these guys have shown enough talent to make them worthy of continued chances in the NBA. But all five have shown some form of inconsistency, knuckleheadedness or lack of basketball IQ-in Beasley's case, all three-to keep them from getting a big contract.
-- This story originally appeared on SportingNews.com
I too am a big Hibbert fan, but the Pacer's will in all likelihood match any offer sheet (though it's not without it's limits to the extent they are after E. Gordon).
Brook Lopez has always intrigued me for his offensive game, but his shockingly low rebounding numbers have always put me off and now he's coming off an injury. The Nets will be in an interesting pickle this summer: they'll have to allow Howard enough time to weigh their offer, but at the same time not sleep on matching any offer sheet for Lopez. Nets have a lot riding on that offer to Howard (new stadium, J. Will's happiness). Lopez ripe for the picking?
Nope, you can't.
You can't trade cap space like that. The 150% rule only apply when you trade away players. When a team is $10M below the cap, they can trade for a player paid $10M. If you use cap space in a trade, you must remain below the cap after it.
Nope, you don't have a MLE in that case.
If you use your cap space in a trade, you can't use the MLE.
Knicks haven't use the MLE, since they don't have it, or even the room exception this year.
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