Salary cap/TPE situation (not for particular player stuff)

[Glenn]

There is a Salary Cap and a Luxury Tax limit and an Apron. It costs money to go over the Luxury Tax and we are about $500,000 from that point.

 

[VF21]

There is a Salary Cap and a Luxury Tax limit and an Apron. It costs money to go over the Luxury Tax and we are about $500,000 from that point.

While all that is true, it will only cost money if we are over the luxury tax at the end of the coming season.

 

[Glenn]

While all that is true, it will only cost money if we are over the luxury tax at the end of the coming season.

Yes.

I think people are confused about the salary cap and luxury tax. I even forgot now there is a minimum team salary that must be met. I think the luxury tax was really needed as some teams could simply buy their way to having a good team. I can't remember the penalties for going over the luxury tax but it is more than simply paying a penalty in money.

Maybe there should be a sticky note discussing minimum salary, salary tax, luxury tax, and apron. I realize the entire CBA is available but it is not so easy sometimes finding the issue that is relevant. In other words I am lazy but I doubt that I am alone. Maybe sticky for a few months so we know what the FO is dealing with. I think I know enough not to need it but I'll bet a majority don't have a clue so we end up with threads about picking this guy or that when we really can't.

 

[VF21]

Yes.

I think people are confused about the salary cap and luxury tax. I even forgot now there is a minimum team salary that must be met. I think the luxury tax was really needed as some teams could simply buy their way to having a good team. I can't remember the penalties for going over the luxury tax but it is more than simply paying a penalty in money.

Maybe there should be a sticky note discussing minimum salary, salary tax, luxury tax, and apron. I realize the entire CBA is available but it is not so easy sometimes finding the issue that is relevant. In other words I am lazy but I doubt that I am alone. Maybe sticky for a few months so we know what the FO is dealing with. I think I know enough not to need it but I'll bet a majority don't have a clue so we end up with threads about picking this guy or that when we really can't.

I was kind of hoping this thread would do just that. I didn't take into consideration that it, like almost every other thread, would dissolve into a discussion about "this guy or that".

I sure wish NME was still around. What little I knew about salaries, contracts, etc. I learned from him. He really knew the ins and outs.

If somebody wants to write up some kind of primer on the topics you've recommended above, I'll be happy to sticky it.

 

[macadocious]

What happens cap wise if we buy out Terry?

 

[Capt. Factorial]

What happens cap wise if we buy out Terry?

Presumably we would waive him via the stretch provision. The stretch provision makes the bought out contract spread across twice the number of remaining years on the contract, plus one. This would make his $5.85M contract hit our cap evenly across three years (about $1.95M per year) and gain us about $3.9M of cap space this year.