Stern Expects 2010 Cap to be 56.1 Million

Per Ken Berger of CBS via RGM Wiretap

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David Stern places revised '10-'11 cap figure at $56.1 million, a boon to teams pursuing free agents. Stern's new cap estimate is up dramatically from last summer's projection of $50.4M-$53.6M.

It's based on a 0.5 pct decline in league revenue (BRI), source tells CBSSports.com. Previous estimates feared a 2.5-5 pct. decline.

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That's 1.6 million lower than this year (57.7 million) which will mean we should see a relative drop in the LT from 69.92 million to around 68.32 million.

Great news!!!

Very good news. Especially for Raymond and Tyrus.

we should be able to bring back everybody if they want to be here and be right at the lux tax limit. would like to see what this team can do with a little more time together

bring back everyone but hughes...resign flip.

In order to retain TT & Felton we'll still go over. 59 + TT's QO is still 65. If we gave Felton a convention contract it should start in the 5-5.5 range and that would be 70+ million.

It's still a lot better having to lose 2 million vs 5 million before the next deadline to get under the LT. You can do that with the 80% + 100k rule in trades...meaning we shouldn't have to trade an asset for relief.

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Originally Posted by spectre

In order to retain TT & Felton we'll still go over. 59 + TT's QO is still 65. If we gave Felton a convention contract it should start in the 5-5.5 range and that would be 70+ million.

It's still a lot better having to lose 2 million vs 5 million before the next deadline to get under the LT. You can do that with the 80% + 100k rule in trades...meaning we shouldn't have to trade an asset for relief.

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Spec (or anyone else), can you explain to me why the LT threshold lowering is good?

I will be first to admit I know jackall about Luxury Tax...and about cap situations too :facepalm:

A lowered LT isn't good, but the estimates before now was that it was going to be about 5-7 million lower.

We're sitting at around 59 million with 10 players. We need around 6.3 to QO TT (that pushes our salary to around 65.3) and around 5-5.5 for a starting salary for Felton assuming he gets around 7 per average on a conventional deal (figure 10% raises...lower at the beginning of his contract and higher in the latter stages). That would put our salary right at/just above 70 million.

By working a trade and taking back less (which you're allowed to do; trades have to be within 80% + 100k of each other, so theoretically you can move a 10 million salary for 8.1 million) you can get below the LT fairly easily.

That's MUCH easier than trying to make up 5 or 6 million.

And again...we don't have to be under the LT until the end of the season, so a trade to get that extra relief doesn't have to happen until next year's trade deadline. We CAN be over the LT during the season with no penalty.

i think with TT qualifying offer we are at 59 million on next years cap, if felton gets a contract starting in the 7 million range that puts us at 65 million with a few million left to add lower level players. and with chandler and mohammed having expiring contracts we could go a number of routes to get under the tax by the trade deadline.

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Originally Posted by spectre

A lowered LT isn't good, but the estimates before now was that it was going to be about 5-7 million lower.

We're sitting at around 59 million with 10 players. We need around 6.3 to QO TT (that pushes our salary to around 65.3) and around 5-5.5 for a starting salary for Felton assuming he gets around 7 per average on a conventional deal (figure 10% raises...lower at the beginning of his contract and higher in the latter stages). That would put our salary right at/just above 70 million.

By working a trade and taking back less (which you're allowed to do; trades have to be within 80% + 100k of each other, so theoretically you can move a 10 million salary for 8.1 million) you can get below the LT fairly easily.

That's MUCH easier than trying to make up 5 or 6 million.

And again...we don't have to be under the LT until the end of the season, so a trade to get that extra relief doesn't have to happen until next year's trade deadline. We CAN be over the LT during the season with no penalty.

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we could also buyout nazr contract at the trade deadline and bring him back if needed

http://i42.tinypic.com/24lvg3s.png

Yeah, Stern is full of it.