Financial Questions..

[Marcos_Beck]

Well, it was said some time ago that CBA would be updated with new salary structure, but it hasn't.. No big deal as it's still possible to see the salary structure at 2014-2015 Financials.. But, I still have a question, as I'm doing some trades when TRs are lifted and my salary is going to go sky-high, possible we'll be in luxury tax territory when everything is said and done.

Do we still have Luxury tax level 1 and 2 penalties? Or the Penalty is only one level, "Luxury Penalty - Loss of MLE, LLE, and next available 1st round pick." as it says in Financials thread?

I need to know because I'm gonna sign a player after all trades are processed, but if there's still level 1 and 2 penalties, probably I'm gonna have to sign a rookie because of lower salary..

Thanks!

[Dennis]

Still 1&2 like in the cba. CBA counts just salaries and caps need to be updated. I should do it soon.. Oh well..

[orangeparka]

BTW looking at the extensions pages what's up with the new max contracts?

Why did only the 1-6 years go up? (Believe it was 13mish before?)

[Dennis]

Changed for 6+ years too.

In terms of extensions, maximum contracts get it done. Here are the dollar values for the max contracts this season:
1-6 years in the league = 25% of cap = $17,500,000
7-9 years in the league = 30% of cap = $21,000,000
10+ years in the league = 35% of cap = $24,500,000

But keep in mind:
A free agent's maximum salary in the first year of a new contract is never less than 105% of his salary in the last year of his previous contract. For example, an eight-year veteran free agent who most recently earned $20 million has a maximum salary of at least $21 million, even if that is above the league-wide maximum. A free agent does not need to remain with the same team in order to receive 105% of his previous salary, although the team that signs him is subject to the same salary cap restrictions as with any other free agent.

[Marcos_Beck]

So Luxury Tax Penalty 1 is probably at $85.679.762?

Thanks Dennis!

[Sun Scorched]

We did reduce the lux penalty down to one threshold. No tier 1 and 2, since everyone blew past the 1st level because no championship team cares about the loss of a 2nd round pick.

Dennis - I'll update the CBA for you.

[GreenBear]

Changed for 6+ years too.

In terms of extensions, maximum contracts get it done. Here are the dollar values for the max contracts this season:
1-6 years in the league = 25% of cap = $17,500,000
7-9 years in the league = 30% of cap = $21,000,000
10+ years in the league = 35% of cap = $24,500,000

But keep in mind:
A free agent's maximum salary in the first year of a new contract is never less than 105% of his salary in the last year of his previous contract. For example, an eight-year veteran free agent who most recently earned $20 million has a maximum salary of at least $22 million, even if that is above the league-wide maximum. A free agent does not need to remain with the same team in order to receive 105% of his previous salary, although the team that signs him is subject to the same salary cap restrictions as with any other free agent.

I think there's a math error here. 105% of $20 million is $21 million.

We did reduce the lux penalty down to one threshold. No tier 1 and 2, since everyone blew past the 1st level because no championship team cares about the loss of a 2nd round pick.

Not that it affects me in any way, but I was also under the assumption that we were using just 1 luxury tax penalty. The announcement was made to do that by the old admins, and I don't recall any announcement being made by the new admins to say that we're going back to 2 tiers.

[Dennis]

Haha, yeah. Copied the rule ..

[Dennis]

We did reduce the lux penalty down to one threshold. No tier 1 and 2, since everyone blew past the 1st level because no championship team cares about the loss of a 2nd round pick.

Dennis - I'll update the CBA for you.

You can also send me the file if you dont have time for it.
Also discussing the penalties with Andrei actually. Trying to get an answer for it as soon as possible. But I want to wait for andrei's opinion first.

[Sun Scorched]

We did reduce the lux penalty down to one threshold. No tier 1 and 2, since everyone blew past the 1st level because no championship team cares about the loss of a 2nd round pick.

Dennis - I'll update the CBA for you.

You can also send me the file if you dont have time for it.
Also discussing the penalties with Andrei actually. Trying to get an answer for it as soon as possible. But I want to wait for andrei's opinion first.

I would send, but the original has been lost, somehow. I was going to re-create in Word - I'll send along once done.