Raptors Salary Cap Situation (and planning for the future)

[Raptor Jesus]

Interesting. Thanks for that very clear elucidation.

If I'm following, then given no immediate (or any) All-NBA Team nominations for Lowry if any incentive is built in to his contract then it would not affect cap as it would be listed as unlikely? And any All-Star incentive will count as he was an All-Star last year and thus would be listed as likely?

[DanH]

A question for the cap scholars of RR.

How do player incentives; All-Star Selections, ALL NBA (Rose Rule) and others I may not know affect cap?

If for instances KLOEs deal has player attribution incentives, are the dollars reflected in cap flexibility?

Incentives, each year, are assigned a status of likely or unlikely. This is dependent entirely on whether the player achieved them the prior season - ie, if a player gets a bonus for making the all-star game, then if they made the all-star game the previous season, the bonus is listed as likely for the next one. Then if that season he misses the all-star game, the year after it would be listed as unlikely.

This is important because likely incentives count against the cap - they take up cap room. Unlikely ones don't.

So, for example, DeRozan has incentives built into his contract. He never achieved any of them until his first all-star season. The following summer, since he had achieved those incentives, his cap hit went up from 9.5M to 10.1M. Then last season he only achieved some of his incentives, so right now his cap hit is only 10.05M, as the ones he achieved are still likely and still count as cap hits, while at least one he didn't achieve is now listed as unlikely and doesn't count.

For tax implications, the final calculation is done based on whether the player earns the incentive or not that season. But that's separate from the cap question.

Rose Rule is different and actually effects the value of the contract signed based on eligibility for a veteran max extension value on a rookie scale extension by meeting certain goals like all star starter and All-NBA awards. It's not really a cap impact so much as a change in the contract value itself (which impacts the cap, of course, but not JUST the cap like incentive likelihood does).

[Raptor Jesus]

A question for the cap scholars of RR.

How do player incentives; All-Star Selections, ALL NBA (Rose Rule) and others I may not know affect cap?

If for instances KLOEs deal has player attribution incentives, are the dollars reflected in cap flexibility?

[DanH]

The only scenario where we have cap space is if we start selling assets like Ross or CoJo for cap space and picks. Then the increasing cap could spell some relief allowing us to sign a big name and keep DD. But that's a big risk and we are probably better off using those assets in a sign and trade attempt for said big free agent.

[JWash]

The one intriguing part about the cap going up so much, is wondering if DeRozan (and others) would be open to taking less % (since it would still represent huge $), to both get paid and leave room for MU to further improve the roster.

In general, the bigger the cap is, the more opportunity there is for any top-tier player to make significant money while tying up a relatively smaller % of the total cap. It could be an interesting trend to watch, league-wide, over the next couple offseasons.

DeRozan can't "leave room" for MU to further improve the roster. I think with the new projections we have ~$18M cap space if we renounce all our guys including DeMar. He's not going to take an $8M cut to his first year salary and what would probably be like a $50M cut to his overall contract. And even if he did we still would have no cap space.

Unless you're just talking about wiggle room under the tax but good luck selling that to a player. "Can you take less money so we don't have to pay as much for the team?".

[CalgaryRapsFan]

Information about actual revenue thus far in the year tends to trickle in and if it surpasses projections from the summer the projection tends to slide up (and the same for revenues that come in low - we've seen that happen as well, fairly often).

That DeRozan max deal keeps going up and up in salary. Now projects to 26M starting salary, almost 150M over 5 years.

The one intriguing part about the cap going up so much, is wondering if DeRozan (and others) would be open to taking less % (since it would still represent huge $), to both get paid and leave room for MU to further improve the roster.

In general, the bigger the cap is, the more opportunity there is for any top-tier player to make significant money while tying up a relatively smaller % of the total cap. It could be an interesting trend to watch, league-wide, over the next couple offseasons.

[DanH]

Information about actual revenue thus far in the year tends to trickle in and if it surpasses projections from the summer the projection tends to slide up (and the same for revenues that come in low - we've seen that happen as well, fairly often).

That DeRozan max deal keeps going up and up in salary. Now projects to 26M starting salary, almost 150M over 5 years.

[JWash]

92M, interesting. Any idea what "raised" the projections?

Doesn't change a whole lot for us though. Just slightly increases how much DeMar can make.

[DanH]

In Lowe's most recent post about the deadline, we get the first solid update to the projected 89M cap level this summer. Seems most teams are using 92M as an expected level now. Whether that comes from the league, not sure, but 92M it is.

[JWash]

Largely depends on if the Raps figure out how to use him properly or not.

Let's be real lol we're almost halfway into the season and are still throwing him out there without the two guys he plays best with... I don't see that changing unless Scola starts playing like shit.

[DanH]

I'm expecting 2pat to get Vasquez'd if the plan isn't to use him in a S&T.

Largely depends on if the Raps figure out how to use him properly or not.

[JWash]

Barring of course whatever happens before the deadline and at the draft. This last season we entered the draft with an interesting amount of cap room but no chance of chasing a big name. Ended up with max cap room and a sit down with LMA.

I'm expecting 2pat to get Vasquez'd if the plan isn't to use him in a S&T.

[JWash]

So would.....

JV/Ross

DD alone

Not sure about DD cause he'd have to want to go to the team we're S&Ting with which makes it tricky.

[DanH]

...and little traditional free agency.

Barring of course whatever happens before the deadline and at the draft. This last season we entered the draft with an interesting amount of cap room but no chance of chasing a big name. Ended up with max cap room and a sit down with LMA.

[mcHAPPY]

Not to mention any number of smaller combinations added to guys on rookie scale deals. The possible combinations are endless. The only thing to take out of this is that Masai has loads of trade flexibility.

...and little traditional free agency.