Salary cap situation

nyk33334

Benchwarmer
Hey whats up guys? Can anyone please explain to me the whole salary cap and being over/under situation? I don't understand the salary cap concept.
 

hoop115

Benchwarmer
nyk33334 said:
Hey whats up guys? Can anyone please explain to me the whole salary cap and being over/under situation? I don't understand the salary cap concept.

the league sets a maximum $$$ amount that a teams' payroll can be for the upcoming season. if a team goes over that amount then the luxury tax kicks in. a team would have to pay $1 for every dollar they go over. this years salary cap is set around $49.5 million dollars.

the new cba is willing to give a one-time amnesty clause allowing a team to cut a player with that player's contract counting against the salary cap but not against the luxury tax.

ie. if the knicks are going to be $40MM over the salary cap this, they would have to pay a $40MM luxury tax. houston's contract is something like $18MM this year and $19MM next year. If we cut him, we would still be $40MM over the salary cap (preventing us from signing any significant players) but we would only have to pay $22MM this year and $23MM next year (assuming cap will stay the same)
 

ny3nyk

Rotation player
yea i was about to say that but i was just testing him to see if he knows...*writing everything down on a pad*
 
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