How does the salary cap thing work in NBA??

[b-roy]

i have no idea..is it like the sim league??

[JJ81]

However much a team is over the salary cap, they have to pay double that in luxury tax.

[Beastly]

By the way there is renouncing on this.

[Bangers&Nash]

I'm entirely sure, but this is what I think it is.

There's a set limit of money you can spend on players for contracts and that is called the salary cap. If you are under the salary cap then you can spend however much money you want, if you are over the salary cap meaning you have spent more than the limit then you can either pay the luxury tax or offer a mid level exception or something which isn't much. Luxury tax is pretty much paying it after a few years with interest or something.

[Ackuracy]

^Yea I'm pretty sure thats what it is too. All I know for sure is I hate the Salary Cap on video games, I always turn that off lol.

[Bentley]

The salary cap works like this.

-There is a set amount each season that NBA teams can use to fill their roster, that amount has 2 settings.

-The "soft-cap" this is the amount that can be used as free spending. The soft-cap money can be used anyway the team wants.

-The other is the "hard-cap". The only way teams can reach the hard-cap is the increasing salaries of players due to contract agreements. The hard-cap is where the luxary cap comes into effect. If a team moves above the hard cap, then the teams owner must pay double the amount they are over.

-Both the hard and soft caps increase each season. They have went from around 5 million dollars in 1985 to around 60 million in 2010.

I know I didn't explain it extremely well, but I know the salary cap rules pretty well.

[b-roy]

can someone explain the luxury thing to me??

[Bentley]

If a team goes over the hard cap, then they must pay the NBA double the amount they are over as a penalty. If a team is 5 million dollars over the hard cap then they must pay the NBA 10 million dollars as a Luxary Tax Penalty. You get it?

[b-roy]

hmmm..so what's lakers offering artest?? MLE??

[Bentley]

Yeah. Ron Artest is signing for 2 years at the full Mid Level Exception. 5.6 Million Dollars currently.

[b-roy]

hmmm, damnit..i wish we can sign players at MLE for more than 1 year in sim leagues too

[JMEWLS]

If you're up for the read, here we go:
NBA Salary Cap - Wikipedia, the free encyclopedia

[b-roy]

lol, i wasn't bothered reading it, that's why i made this thread..just wanted to know in brief