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Raptors Salary Cap Situation (and planning for the future)

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  • DanH
    replied
    TheWaterboy wrote: View Post
    It's been a while since this go-to reference thread has been updated. So I am going to write out what I understand about our current financial position and ask for corrections (then edit here for clarity).

    1. While we are under the hard cap this year, we will not be under the hard cap next year unless we make a move which triggers it again.
    2. After the Caboclo trade, we can bring on a player on the vet minimum without triggering the luxury tax.
    3. We have a trade exception from the Carroll trade which we will have just under two weeks to use at the start of July.
    4. Fred Van Vleet is a restricted free agent, meaning we can match offer sheets for him if the price is right.
    5. We will be able to use the mid-level exception next year.
    6. Despite the flexibility we have due to the combination of items 3, 4, and 5, taking full advantage of even two of these opportunities will be EXPENSIVE. Unless there is a pretty major opportunity that presents itself to us, it is unlikely we take advantage of more than one of these options without making a trade to clear salary (if that's even possible in the current salary environment).

    My thanks to those more knowledgeable than I am, whose knowledge stated elsewhere I am relying on for this.
    Unfortunately, the full MLE initiates a hard cap, and since we will be over that line in all likelihood, we will likely be restricted to the tax-payer's MLE, which is just over half as valuable ($5.3M or so, only 3 seasons, not 4) as the full MLE.

    We have a trade exception from the Carroll trade (11.8M) that is good until July 13th this summer. We also have a Cory Joseph exception (originally worth 7.63M) which expires one day later. I believe the Raptors used part of that CoJo exception in the Bruno trade, so now it is only worth 6.125M, and they created a new 2.45M exception that expires on the 8th of February next season.

    Yes, the Raptors are currently lined up with the current roster, letting all FA's walk, and filling out the 14 roster spots with minimum salaries, to have a total team salary of 131M, which comes with a tax bill of 15M, making for a total roster cost of 146M. If, for example, FVV gets a full MLE offer and the Raptors match that offer, those numbers would increase to 138M, 33M in tax, and a total bill of 171M. So FVV at the MLE costs the team 25M. Similarly, a tax-MLE signing (5.3M) would actually cost the team 14M.

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  • TheWaterboy
    replied
    It's been a while since this go-to reference thread has been updated. So I am going to write out what I understand about our current financial position and ask for corrections (then edit here for clarity).

    1. While we are under the hard cap this year, we will not be under the hard cap next year unless we make a move which triggers it again.
    2. After the Caboclo trade, we can bring on a player on the vet minimum without triggering the luxury tax.
    3. We have a trade exception from the Carroll trade which we will have just under two weeks to use at the start of July.
    4. Fred Van Vleet is a restricted free agent, meaning we can match offer sheets for him if the price is right.
    5. We will be able to use the mid-level exception next year.
    6. Despite the flexibility we have due to the combination of items 3, 4, and 5, taking full advantage of even two of these opportunities will be EXPENSIVE. Unless there is a pretty major opportunity that presents itself to us, it is unlikely we take advantage of more than one of these options without making a trade to clear salary (if that's even possible in the current salary environment).

    My thanks to those more knowledgeable than I am, whose knowledge stated elsewhere I am relying on for this.

    Leave a comment:


  • DanH
    replied
    Cody73 wrote: View Post
    Now.... I heard that if we restructure Miles deal to be 4 years with the 4th year as the PO, we can still use the MLE. Is this true, Dan?

    Also, we do have the Bi-Annual Exception to use as well, right?
    Yes, to do a sign and trade, there must be 3 regular years before any option year. So a 3+1 deal would work. Question is if Masai wants to commit money beyond this 3 year window. The options are: give Miles a simple 3 year contract, no option; give him a 3+1 deal, which puts the organization at risk of carrying that 4th year cost; give him a 3+1 deal where the player option year is partially guaranteed (for a couple million or something), allowing the team to shed most of that salary if he opts in, and giving him the control to get out, just a year later than he wanted.

    In any of those cases, the MLE would be freed up. And yes, we do have the BAE. But the real restrictor is the hard cap - we only have somewhere between 3-4.5M to offer under the hard cap even if we do keep the MLE to use. Moving a guy like Nogueira for nothing could free up that number to 6-7.5M, most of the MLE, but not enough to match offers from other MLE-using teams.

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  • Cody73
    replied
    Now.... I heard that if we restructure Miles deal to be 4 years with the 4th year as the PO, we can still use the MLE. Is this true, Dan?

    Also, we do have the Bi-Annual Exception to use as well, right?

    Leave a comment:


  • DanH
    replied
    It's a hard cap. You can't go above it. Period.

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  • SkywalkerAC
    replied
    Now the big question will be whether we spend up to the hard cap or whether we try to stay below the tax. What happens with the hard cap and player incentives? Can we go above the hard cap once the season is underway (ie by trading the player exception at the deadline)?

    Leave a comment:


  • lewro
    replied
    Oops, didn't refresh sorry

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  • lewro
    replied
    KHD wrote: View Post
    ok i missed something... why are we hard-capped?
    S&t

    Leave a comment:


  • KHD
    replied
    DanH wrote: View Post
    We are receiving Miles in a sign and trade. Teams that a) receive a player in a sign and trade or b) use the full MLE or BAE, are hard capped for the year.
    oh.

    Leave a comment:


  • DanH
    replied
    KHD wrote: View Post
    ok i missed something... why are we hard-capped?
    We are receiving Miles in a sign and trade. Teams that a) receive a player in a sign and trade or b) use the full MLE or BAE, are hard capped for the year.

    Leave a comment:


  • Ebonhawke
    replied
    KHD wrote: View Post
    ok i missed something... why are we hard-capped?
    Because of the sign and trade with Indiana

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  • KHD
    replied
    ok i missed something... why are we hard-capped?

    Leave a comment:


  • DanH
    replied
    Hard cap prevents everything. It's a hard cap. Impossible to spend past it.

    With Hamilton stretched, Raps now about 4.9M clear of hard cap. And have to sign someone.

    Keep in mind though, all of this is working off of non-confirmed salary numbers. Could change.

    Leave a comment:


  • SkywalkerAC
    replied
    DanH wrote: View Post
    I posted in the off season thread.

    We are hard capped at 125.3M.

    We have full MLE available, but need to stay under hard cap anyway. Still have TPE from Carroll deal, but again, have to stay under hard cap. Currently ~3M under the hard cap.
    Nice, thanks. So we could just sign someone for 3 mill. Or we could ditch Bebe and Hamilton like you suggested and use the full MLE (did I read somewhere that it's up around 8 mill now?), but wouldn't that leave us with two open roster spots? Does the hard cap prevent veteran minimum salaries as well?

    Trading JV into space might give us a bit more flexibility in adding another wing. But it's hard to imagine that tradeoff (JV for MLE) working out in our favour.

    Maybe we just stand pat now, with the roster at 14 (plus the 2 2-ways is 16). And save the 6 million bucks.

    Leave a comment:


  • DanH
    replied
    SkywalkerAC wrote: View Post
    Anyone know where this leaves us in terms of committed salary?

    Can Masai go ahead and use the full MLE and sort it out after the fact?

    Are we hard-capped at 125 mill for the entire season, or just the offseason?
    I posted in the off season thread.

    We are hard capped at 125.3M.

    We have full MLE available, but need to stay under hard cap anyway. Still have TPE from Carroll deal, but again, have to stay under hard cap. Currently ~3M under the hard cap.

    Leave a comment:

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