Over the course of the week, various sources with knowledge of the
talks have shared some of the concepts being discussed with
ESPN.com. Possibilities presented by the league as alternatives to a
hard cap include:
• The institution of a sliding "Supertax" that would charge teams $2 in
luxury tax for every dollar over $70 million in payroll, $3 for every
dollar over $75 million in payroll and $4 for every dollar for teams with
payrolls above $80 million
• A provision to allow each team to release one player via the so-called
"amnesty" clause and gain both salary-cap and luxury-tax relief when that
player's cap number is removed from the books
• Shortening guaranteed contracts to a maximum of three or four seasons
• Limiting Larry Bird rights -- which enable teams to exceed the salary cap
to re-sign their own free agents -- to one player per team per season
• Reducing the annual mid-level exception, which was valued at $5.8 million
last season, to roughly $3 million annually and limiting mid-level contracts to
a maximum of two or three seasons in length as opposed to the current
maximum of five seasons
• A new "Carmelo Rule" that would prevent teams -- as the [Only registered and activated users can see links. ]
Knicks did in February with Anthony -- from using a Bird exception to sign or
extend a player acquired by trade unless they are acquired before July 1 of
the final season of the player's contract
• The abolition of sign-and-trades and the bi-annual exception worth $2
• Significant reductions in maximum salaries and annual raises and a 5
percent rollbacks on current contracts
Each of the new-rules have a hell-no concept when u break it down....example:
So far there are just four teams with a 2011-2012 payroll currently
committed to over $70 million right now and that’s the Lakers ($91.3 million),
The Magic ($74.81 million), The Spurs ($73.18 million) and Celtics ($72.47
so the number of teams impacted by such a harsh tax system is small.
However the Players view the tax system proposed as a hard cap by
another name and that’s considered a deal breaker for their side.
To give you a sense of what that means; The Lakers $91.3 million
payroll would incur $10 million in tax for being over $70 million.
They would also incur $15 million in tax for being over $75 million and
$45.2 million for being $11.3 million over $80 million for a grand total of
$70.2 million in tax.
Add $70.2 million in tax to their $91.3 million payroll for a 2011-2012
player cost of $161.5 million.
Derik Fisher will not put his boss (Bus) into a financial crisis for building a
And the shortening of guaranteed contracts to 3 years has to be one of
the foolish ideas on the table.....if u can only offer 3 years guaranteed to
superstar players "D.Howard, CP3, and Durant," then they are only going
to sign for 3 years at max salaries.