Salary Cap Question

by NY1 on Jun 24, 2009 11:14 AM EDT Comment 11 comments

Do the Wizards still have use of the MLE?

And if so, are they willing to use it due to the luxury tax scenario? Does the MLE effect the hard cap or luxury tax? How much is the MLE this year? What kind of player could we sign for that money if we have it? Are we below the luxury tax threshold?

Thanks for anyone that can get to these questions. I honestly don't understand the NBA's salary cap at all.

This represents the view of the user who wrote the FanPost, and not the entire Bullets Forever community. We're a place of many opinions, not just one.

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Yes, they still have the MLE

Anyone can use it because it stands for the mid-level exception, meaning it’s an exception for teams over the salary cap level. You can spend up to the average salary no matter your cap or luxury tax situation.

However, the Wizards are also over the luxury tax. Before the trade, they had 76 million in committed salaries next year, not including the fifth pick’s salary. With the trade, they saved about $700,000 next year, putting them closer to 75 million, not including a salary for the 32nd pick. The luxury tax level last year was $71.05 million and it’s likely going to come in lower this year because of the economic recession (we’ll find out the exact figure on July 1 — NBA fiscal years are July to July). Any dollar a team goes over the tax costs double, with the matching dollar going to the league to re-distribute back to teams below the tax threshold.

Basically, we can use the MLE, but it’ll effectively cost the team double its value.

You know you'll get devoured by Cheaney, Wallace, and Juwan Howard.

by Mike Prada on Jun 24, 2009 11:21 AM EDT reply actions 0 recs

We won't use it

And we don’t need to. James and #32 should solve the problem for us.

by RamVA on Jun 24, 2009 11:37 AM EDT reply actions 0 recs

thanks

Thanks for the help but I was watching sports nite last night and they reported that the Wizards saved 3 mil. Was this an incorrect report?

Backbone of the DMV

by NY1 on Jun 24, 2009 12:35 PM EDT reply actions 0 recs

They saved $3 Million

over the course of 2 years…. When Mike Prada said $700,000 – he was talking about this year’s salaries (2009-10 season) only…

Since Songaila’s contract runs through 2010-2011 – they saved most of his salary for that year.

Bullets Forever - where "Dagger ! " happens......

by Rook6980 on Jun 24, 2009 12:53 PM EDT up reply actions 0 recs

It's actually more than that

I’m not sure where the 3 million comes from. What was the context? Perhaps they were talking about the salary of the fifth pick.

You know you'll get devoured by Cheaney, Wallace, and Juwan Howard.

by Mike Prada on Jun 24, 2009 1:00 PM EDT up reply actions 0 recs

If they're talking about saving $3Million

it’s gotta be Songaila’s salary – less the Miller/Foye overlap…

It depends on how far out you go, as to how much the Wizards saved….

Etan Thomas 2009-10: $7,350,000
Darius Songaila 2009-10: $4,526,000 2010-11: $4,818,000 (Assumes Darius would pick up his Player Option)
Oleksiy Pecherov $1,547,640 (Assumes the team would not pick up his 2010-11 option)
5th pick 2009-10: $2,636,400 2010-11: $2,834,200 (2011-12 and 2012-13 would be Team Options)
Total 2009-10 $16,060,040
Total 2010-11: $7,652,200

Incoming Salaries:
Mike Miller $9,750,000
Randy Foye $3,575,761
Total 2009-10: $13,325,761

Savings 2009-10 = $2,734,279
Savings 2010-11 = $7,652,200
Total Savings = $10,386,479

Bullets Forever - where "Dagger ! " happens......

by Rook6980 on Jun 24, 2009 1:22 PM EDT up reply actions 0 recs

You're forgetting to include Foye's qualifying offer for 2001 for 4.8 million

The way I calculated it, Songaila’s deal and Foye’s QO cancel each other out. We therefore save the combined value of O-Pec’s qualifying offer (which we weren’t going to pick up anyway) for 2.4 million and the fifth pick’s second-yer contract for somewhere around 2.8-3 million.

So, anyway, the three million is accurate. It basically accounts for the draft pick’s salary.

You know you'll get devoured by Cheaney, Wallace, and Juwan Howard.

by Mike Prada on Jun 24, 2009 1:34 PM EDT up reply actions 0 recs

2001 should be 2011

You know you'll get devoured by Cheaney, Wallace, and Juwan Howard.

by Mike Prada on Jun 24, 2009 1:34 PM EDT up reply actions 0 recs

I think those numbers are correct

The Wizards save $2.7 million this season, and next season either $7.6 million (if they don’t exercise Foye’s option) or $2.9 million (if they do). If they don’t exercise Foye’s option, perhaps they will have room to add a MLE next summer.

Coincidentally or not, the Wizards could have saved that much money by just trading the #5 pick for a future 1st round pick.

What a bold move by Washington (sarcasm).

by disgrunted on Jun 24, 2009 1:50 PM EDT up reply actions 0 recs