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26 Oct 2020 15:38:37
Latest Rumor out of Real GM website says because NBA lost $1.5 Billion in revenue and the salary cap is based on last years revenues, so the upcoming season's salary cap will be LOWERED anywhere from $3 mil to $12 mil (AKA $106 mil to $97 mil salary caps) .

This means only around 10 teams will have cap space this upcoming FA period. That number will drop once the cap holds on the guaranteed contracts for 1st round picks are included. So it is quite possible that only 2 teams (Detroit and Atlanta), will have any significant cap space when the FA period begins.

Additional impacts of this

1. RFAs like Ingram, Van Fleet and Bogdanovich will be more tempted to accept the Qualifying Offer in order to be UFAs in the following FA period which may have significantly more cap space available.

2. The price for "salary dumps" just went up because of limited supply of available cap space and probably an increase in demand from teams looking to dump salary as luxury tax amounts will increase with the lower luxury tax level.

3. The trade price for non-guaranteed contracts like Gibson/ Portis (Knicks) or ilyasova (Bucks) went as well. Or Knicks can join Detroit and Atlanta by waiving around $40 mil in non-guaranteed contracts.

Just some information to take into consideration when you are developing your teams trade "rumors".

Agree5 Disagree3

26 Oct 2020 16:42:32
I could see that group trying to take 1+1 contracts (less likely) or two year deals. There might not be too many of those available, but I could see teams preferring to give a guy two years over him just taking the QO.

26 Oct 2020 17:07:47
It also might put teams in weird places with their stars. Will AD go max length deal and the likely valley of the cap? Or does he do 1+1, which puts a lot of pressure on the Lakers and Lebron to not stumble next year.

Does Giannis take a 1+1 wherever he ends up after next season? Or does he just lock in.

And even for existing extensions. This likely reduces Lillard’s extension quite drastically. If the cap is 97 million when his extension kicks in, his first year salary (estimated at the time of signing at 43.7 million) would drop to 33.95. That’s a big difference, especially if the cap then skyrockets back up to 110+.

Lots of really interesting moving pieces.

26 Oct 2020 17:46:05
Amnesty should come back.

26 Oct 2020 18:46:03
I think a halt on luxury tax (or at least not lowering it with the salary cap) would be smart.

26 Oct 2020 23:42:39
So, BMiller, you do understand that putting a hold on the luxury tax does the exact opposite for why the luxury tax rules were imposed? AKA evening the $$$$$ playing field between big and small market teams.

Also, I wouldn't count on the cap rising next season either. At least not until teams can fill arenas for 82 games + playoffs.

27 Oct 2020 04:11:35
Halting luxury tax stops teams from going through a fire sale (especially small market teams) to save money due to lowered revenue.

Not saying permanently. But two years of adjusted luxury tax could help the league as a whole.

Yeah, I expect the cap to go down for two years, then spike back up in 2022.

27 Oct 2020 12:04:47
Small market teams are not the ones significantly over the luxury cap. So this actually benefits the large market teams more.







 

 

 
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