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Shocking News: NBA Salary Cap Projected to Be Around $56.1M

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  • Shocking News: NBA Salary Cap Projected to Be Around $56.1M

    Very surprising considering they were talking about it being close to $50M in December. Although the number of teams that can offer Bosh a max-deal doesn't change, it does mean that teams have more room to play around with. If Bosh leaves, we'll have a payroll of $46M and would have $9-10M to sign free-agents from other teams.

    Once we do that, then we can sign our own free-agents, namely Amir Johnson and perhaps Antoine Wright.

    LINK

    The NBA is projecting the salary cap to be higher than it expected, good news for teams preparing for this summer's free agency period.

    NBA commissioner David Stern said on Friday that the league is projecting the cap to come in at about $56.1 million. The actual number won't be determined until early July, before teams can begin officially signing players.

    Though that figure would still be lower than this season's $57.7 million cap, it's far better than estimates from last summer, when the league sent a memo to teams warning them of a potential sharp drop to between $50.4 million to $53.6 million.

  • #2
    Arsenalist wrote: View Post
    Very surprising considering they were talking about it being close to $50M in December. Although the number of teams that can offer Bosh a max-deal doesn't change, it does mean that teams have more room to play around with. If Bosh leaves, we'll have a payroll of $46M and would have $9-10M to sign free-agents from other teams.

    Once we do that, then we can sign our own free-agents, namely Amir Johnson and perhaps Antoine Wright.

    LINK
    If Bosh leaves it would also mean that the Raptors could make a money wise unbalanced trade with another team under the cap. This would add some flexibility in trade possibilities.

    I do believe though that unless the Raptors renounce their rights to Bosh that his salary remains part of the Raptors cap number until he actually signs with another team so if the Raptors did not renounce their rights to Bosh they would have to wait for him to sign with someone else before his dollars came of their cap computation giving them that added flexibility in making a trade or even signing a free agent.

    Until Bosh signs with another team, unless the Raptors renounce their rights to him they will not be able to sign any free agents other than their own players or by using one the many exceptions such as the MLE.
    Last edited by Buddahfan; Fri Apr 16, 2010, 04:53 PM.
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    • #3
      i don't really find that all that shocking... i guess it's good but i don't pay a lot of attention to that kind of stuff.

      although, it is good to know.
      If Your Uncle Jack Helped You Off An Elephant, Would You Help Your Uncle Jack Off An Elephant?

      Sometimes, I like to buy a book on CD and listen to it, while reading music.

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      • #4
        I am surprised ... I thought the early estimates where overly pessimistic but I thought we'd see a larger drop than this.

        I thought the cap would be in the $54 million to $55 million range.

        Excellent news for every team with cap space this summer.
        nbaroundtable

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        • #5
          I wonder if there is a cba angle here. Didn't Stern say that they lost 400 mill. or something close ? This does not jive with that statement of "fact" does it?

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          • #6
            Bendit wrote: View Post
            I wonder if there is a cba angle here. Didn't Stern say that they lost 400 mill. or something close ? This does not jive with that statement of "fact" does it?
            I think that the salary cap is tied into team revenues and not profits. While more revenues usually mean more profits that is not always the case. Many companies with large revenues lose money because their expenses are out of control

            It is interesting to note that the original memo last July telling teams that the salary cap for 2010-11 could drop into the lower $50 million range did include this disclaimer;
            although the memo did include a disclaimer stressing that these were "early" projections that could "change based on economic conditions and as more information on leaguewide business performance becomes available."
            http://sports.espn.go.com/nba/news/story?id=4312837

            The fact that the players union thinks that the low projection last summer could have been an attempt at collusion and wants to look into it and possibly sue does not surprise.

            A lot of corporations in the U.S. now refuse to give earnings projections on the quarterly conference calls and earnings releases because of the plethora of stockholder lawsuits where the projections were to high.

            The NBA even with the disclaimer on their memo last July never should have have issued the memo for the 2010-11 salary cap projection a year in advance. No one can accurately project what revenues are going to be for an organization as large as the NBA one year in advance.
            Avatar: Riverboat Coffee House 134 Yorkville Ave. billboard of upcoming entertainers - Circa 1960s

            Memories some so sweet, indeed

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            Quote from well known personality who led their high school team to a state championship.

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