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Raptors Salary Cap Situation (and planning for the future)

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  • Puffer
    replied
    DanH wrote: View Post
    ...JV's 4/64M looking better and better (and it already looked fantastic).
    Amen to that.

    Leave a comment:


  • DanH
    replied
    With the cap now projected all the way up at 94M (a full 5M higher than initial estimates last summer and still with the moratorium to come):

    DeRozan's max is now 26.5M, up to 5/154M total.
    Raptors have 5.3M in cap room if both picks are kept and DD's cap hold is kept (all other FA's jettisoned).
    Raptors have 20.6M in cap room if picks are kept and all FA's walk.
    RFA max is now 22M or 5/126M. JV's 4/64M looking better and better (and it already looked fantastic).

    Leave a comment:


  • KHD
    replied
    Gambino wrote: View Post
    Unless I'm understanding that incorrectly, you're suggesting offering Biz a 2 year MLE with the promise of getting a massive pay increase afterwards. That is against NBA rules, and Minnesota was punished severely for it in the past when they tried to do it with Joe Smith.

    Aside from the fact that paying Biz $25M in a given year would be a pretty bad use of cap space, tell me if you think the following consequences are worth potentially getting caught doing that:

    - $3.5M fine to the team
    - No 1st round picks for the next 5 years
    - Voiding of Bismack's contract
    - Ownership suspended for a year
    - Masai Ujiri forced to step down
    - Black mark on the franchise with the league and agents.
    the funny thing about it to me is that it's joe friggin smith that they tried to break the rules for. what a waste.

    Leave a comment:


  • Gambino
    replied
    DanH wrote: View Post
    We covered that further up. He's removed the promise aspect, which removes any reason for Biz to do it.
    Ah ok missed that, and yeah then Biz would never do it.

    Leave a comment:


  • DanH
    replied
    Gambino wrote: View Post
    Unless I'm understanding that incorrectly, you're suggesting offering Biz a 2 year MLE with the promise of getting a massive pay increase afterwards. That is against NBA rules, and Minnesota was punished severely for it in the past when they tried to do it with Joe Smith.

    Aside from the fact that paying Biz $25M in a given year would be a pretty bad use of cap space, tell me if you think the following consequences are worth potentially getting caught doing that:

    - $3.5M fine to the team
    - No 1st round picks for the next 5 years
    - Voiding of Bismack's contract
    - Ownership suspended for a year
    - Masai Ujiri forced to step down
    - Black mark on the franchise with the league and agents.
    We covered that further up. He's removed the promise aspect, which removes any reason for Biz to do it.

    Leave a comment:


  • Gambino
    replied
    Unless I'm understanding that incorrectly, you're suggesting offering Biz a 2 year MLE with the promise of getting a massive pay increase afterwards. That is against NBA rules, and Minnesota was punished severely for it in the past when they tried to do it with Joe Smith.

    Aside from the fact that paying Biz $25M in a given year would be a pretty bad use of cap space, tell me if you think the following consequences are worth potentially getting caught doing that:

    - $3.5M fine to the team
    - No 1st round picks for the next 5 years
    - Voiding of Bismack's contract
    - Ownership suspended for a year
    - Masai Ujiri forced to step down
    - Black mark on the franchise with the league and agents.

    Leave a comment:


  • DanH
    replied
    Here's my confusion - why wouldn't Biz, if he really wanted to be a free agent two years from now, not just sign a 2 year, 15M per year deal?

    There's no scenario where he stays with TOR for the MLE and doesn't take a huge bath to do it.

    Leave a comment:


  • DonM
    replied
    DanH wrote: View Post
    Why the Raptors might not accept this arrangement:

    If the NBA ever found out there was any such agreement ahead of time, it would be considered cap circumvention, Biyombo's contract would be voided, the Raps would face fines and other penalties including loss of draft picks.
    DanH. Thank you very much very much for your very constructive criticism of my previous posting. It has provided me with great feedback and assistance. To bring my actions more in line with my intentions, I have posted a second version below .


    I apologize for the horizontal scroll bars after the tables for #1 Alternative and # 2 Alternative but I don't know how to get rid of them.


    How Bismack Byombo Can Make As Much Money By Resigning With The Toronto Raptors

    [Hint: It's All About The Massive Amount Of NBA TV Money Coming In Until The 2024-2025 Season and The Number Of Years That An NBA Player Signs His Contract For]


    Below are a few excerpts from an article by Kevin Draper at deadspin.com written on October 6, 2014
    "What The NBA's Insane New TV Deal Means For The League And For You" Source: http://deadspin.com/what-the-nbas-in...e-a-1642926274CBA ramifications:Below is an example With two alternatives for an NBA player [such as Bismack Byombo] to choose from:

    The circumstances: An NBA player becomes a free agent [July 1, 2016] after having played one year [2015-2016] on a 1 year NBA player`s contract with an NBA team

    # 1 Alternative: An NBA player signs a 4 year contract with any of the 29 NBA teams other than his current team [$15,000,000 per year for $60,000,000 in total].

    # 2 Alternative: a] An NBA payer signs a 2 year Non-Tax Mid Level Exception contract with his current team [$5,628,000 and $5,881,000].
    b] After the 2 year Non-Tax Mid Level Exception NBA player contract with his current team expires, the NBA player becomes a free agent for a second time.
    c] The NBA free agent signs a new 2 year NBA player contract any one of the 30 NBA teams. This NBA player contract would pay the NBA free agent $24,245,000 per year for each of the 2 years [2018-2019 and 2019-2020].
    d] The formula to arrive at #2 Alternative NBA contract offer [2018-2019 and 2019-2020] of $24,245,000 is: $60,000,000 [#1 Alternative: New Team NBA player contract offer for 4 Years] - $5,628,000 - $5,881,000 = $48,491,000 / 2 years = $24,245,500

    #1 Alternative: NBA Player Signs 4 Year Contract With Any Of 29 NBA Teams Other Than His Current Team
    [NBA Player Chooses To Get Higher Payments in years 1 and 2 and locks into a longer term 4 Year NBA player contract]


    Year Period $ Payments # Of Years Contract Type Higher $ Contracts & Lock Out Period
    1st 2016-17 $15,000,000 4 Years Cap Space Player signs 4 yr contract with 1 of 29 teams
    2nd 2017-18 $15,000,000 4 Years Cap Space Higher $ locked out until F.A. 2020-2021
    3rd 2018-19 $15,000,000 4 Years Cap Space Higher $ locked out until F.A. 2020-2021
    4th 2019-20 $15,000,000 4 Years Cap Space Higher $ locked out until F.A. 2020-2021
    4 Yr Total $60,000,000
    4 Yr Average $15,000,000
    #2 Alternative: NBA Player Signs 2 Year Non-Tax Mid Level Exception Contract With Current Team And Then A Second 2 Year Contract With Any Of 30 NBA Teams
    [NBA Player Chooses To Get Lower Payments In Years 1 and 2 And Then Signs a second NBA player contract paying much more]



    Year Period $ Payments # Of Years Contract Type Higher $ Contracts & Lock Out Period
    1st 2016-17 $5,628,000 2 Years Non-Tax Mid Player signs 2 year Non-Tax Mid (current team)
    2nd 2017-18 $5,881,000 2 Years Non-Tax: +4.5% Higher $ locked out until F.A. 2018-2019
    3rd 2018-19 $24,245,500 2 Years Full Bird or N.T. Cap Higher $ now available. 1st year new contract
    4th 2019-20 $24,245,500 2 Years Full Bird or N.T. Cap Higher $ now available. 2nd year new contract
    4 Yr Total $60,000,000
    4 Yr Average $15,000,000
    This illustration quantifies how the massive increases in NBA TV money can make smaller dollar 2 year NBA player contracts at the start of the contract equal to larger dollar 4 year NBA player contracts at the end of the contract
    A 4 year contract NBA player is locked out of of higher paying NBA player contracts from New NBA TV money until his existing NBA player contract expires.

    Why would the NBA player select a 4 year period? Why wouldn't the NBA player select a series of 1 year contracts and get paid the most he could for each year?
    Answer: If the NBA player signed with a new team each year by becoming a free agent each year, all NBA teams would be forced to sign him each year using cap space.
    No NBA team would be able to acquire the NBA player's full bird rights [need at least 3 years] making it more difficult for teams to sign him.
    As a result, a series of 1 year contracts would diminish the NBA player's market value. It would reduce the number of teams that could offer the player a 1 year contract and the $ amount those teams would be able to give him.

    What if the NBA player signs a 2 year Non-Tax Mid Level Exception contract with his current NBA team at the beginning of year 1 [2016-2017]?
    Which NBA team would most likely offer the NBA player a 2 year $24,245,500 NBA player contract at the start of year 3 [2018-2019] when he becomes a free agent again?
    Answer: The NBA player's current NBA team [the Toronto Raptors in the case of Bismack Byombo]. Why?
    29 of the 30 NBA teams would have to sign the NBA player by using cap space. This would be difficult, costly and undesirable for a lot of NBA teams.
    Only the NBA player's current Team [the Toronto Raptors] could sign the NBA player [Bismack Byombo] by using full bird rights and would not have to use cap space.

    Everyone appears to have accepted that there is no possible way that Bismack Byombo will be back with the Toronto Raptors after this year [2015-2016].
    The reason Bismack Byombo would go to another team is that everyone is looking at how much Bismack Byombo would be paid over a 1 year period [2016-2017].

    This illustration demonstrates that Bismack Byombo could be paid as much money [$60,000,000] over a 4 year period [2016-2020] from the Toronto Raptors as he could from a new team.

    This may not be a perfect solution for Bismack Byombo to remain with the Toronto Raptors. However, it is a viable solution for Bismack Byombo to consider.

    Leave a comment:


  • Miekenstien
    replied
    DanH wrote: View Post
    As noted in the DeRozan thread, he made even more incentives than expected this year (with the Raps making the ECF his playoff bonus went from $250k to $450k), so his salary was actually 10.35M instead of 10.15M, and his cap hold this summer is going up from the assumed 15.225M to 15.525M. It's only 300k but it's worth noting.

    i'm happy he did the most amount of work for his 200 k

    Leave a comment:


  • DanH
    replied
    As noted in the DeRozan thread, he made even more incentives than expected this year (with the Raps making the ECF his playoff bonus went from $250k to $450k), so his salary was actually 10.35M instead of 10.15M, and his cap hold this summer is going up from the assumed 15.225M to 15.525M. It's only 300k but it's worth noting.

    Leave a comment:


  • Bonus Jonas
    replied
    Dr Hannibal Lecter wrote: View Post
    Luxury Tax,period. U want 2 go for Championship,that's what u gotta do. There is ure salary cap situation,spend the money 2 Win..ie Jays,enough said.
    It's not that easy. Baseball doesn't have a salary cap.

    Leave a comment:


  • Dr Hannibal Lecter
    replied
    Luxury Tax,period. U want 2 go for Championship,that's what u gotta do. There is ure salary cap situation,spend the money 2 Win..ie Jays,enough said.

    Leave a comment:


  • DanH
    replied
    Puffer wrote: View Post
    Good article Dan. Pimp your stuff anytime. You should be writing for RR. Of course you are, but I mean on the front page.
    Thanks.

    It was a possibility at one point. I had done some support stuff and enough commentary that there was some discussion of something like that, but the timing was off as I had just started at RapsHQ (both sites had gone through a bit of an overhaul in terms of writers at around the same time).

    Leave a comment:


  • Puffer
    replied
    DanH wrote: View Post
    I try not to pimp my own stuff very much, but I've got a big salary prep piece for the upcoming draft and free agency up right now that I think is worth a read (note: I may be biased in this matter).

    http://www.raptorshq.com/2016/6/1/11...p-update-draft

    For those who prefer not to click to read the excess verbage, here are the raw numbers for at the draft:

    DeMarre Carroll $13,600,000
    Kyle Lowry $12,000,000
    DeMar DeRozan $10,050,000
    Cory Joseph $7,000,000
    Patrick Patterson $6,268,675
    Jonas Valanciunas $4,660,482
    Terrence Ross $3,553,917
    Luis Scola $2,900,000
    Bismack Biyombo $2,814,000
    James Johnson $2,500,000
    Lucas Nogueira $1,842,000
    Bruno Caboclo $1,524,000
    Delon Wright $1,509,360
    Norman Powell $650,000
    Jason Thompson $245,177
    Ronald Roberts $75,000
    Axel Toupane $25,000
    Michale Kyser $25,000
    Shannon Scott $25,000
    Nando de Colo $1,900,000

    Total committed salary: $73,169,511

    Salary Cap: $70,000,000
    Luxury Tax: $84,740,000
    Tax Apron (Hard Cap): $88,740,000

    And this summer:

    Jonas Valanciunas $14,382,024
    DeMarre Carroll $14,200,000
    Kyle Lowry $12,000,000
    Terrence Ross $10,000,000
    Cory Joseph $7,315,000
    Patrick Patterson $6,050,000
    Lucas Nogueira $1,921,320
    Bruno Caboclo $1,589,640
    Delon Wright $1,577,280
    Norman Powell $874,636

    Cap projection: $92,000,000
    Salary committed: $71M
    With draft picks: $73.2M

    And cap holds:

    DeMar DeRozan $15,225,000
    Luis Scola $3,480,000
    Bismack Biyombo $3,376,800
    James Johnson $3,250,000
    Nando de Colo $1,900,000
    Jason Thompson $1,136,731
    Good article Dan. Pimp your stuff anytime. You should be writing for RR. Of course you are, but I mean on the front page.

    Leave a comment:


  • Gambino
    replied
    Lol I don't think it's worth potentially throwing away the future of our franchise to re-sign Biz in some super shady way. Let's just play by the rules.

    Leave a comment:

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