Author Topic: Whats the point of a salary cap?! (Read 922 times)

Teddy Roosevelt · « **Reply #15 on:** July 31, 2010, 06:33:03 AM »

Quote from: .:DaYg0sTyLz:. on July 24, 2010, 06:14:31 PM

They need the hard cap, and a minimum cap as well. The league doesnt get the full $1 for every $1 over the luxury threshold. It is distributed amongst the other teams who dont exceed the cap. The problem is, i watch basketball for the sport...not because I want to see big market teams win. What this cap does is essentially make a small/medium sized market team work much harder in order to win a championship then a big market team does. There is not enough of a punishment for exceeding the luxury tax line...and on the other side, teams who only care about their profits are rewarded for spending very little.

Actually, each team that is under the cap gets 1/30 of luxury tax income. The rest goes to the league.

westsiderider323 · « **Reply #16 on:** July 31, 2010, 10:00:38 AM »

its a damn shame seein these rookie kids gettin paid more then proven veterans

.:DaYg0sTyLz:. · « **Reply #17 on:** July 31, 2010, 02:16:57 PM »

Quote from: Teddy Roosevelt on July 31, 2010, 06:33:03 AM

Quote from: .:DaYg0sTyLz:. on July 24, 2010, 06:14:31 PM
They need the hard cap, and a minimum cap as well. The league doesnt get the full $1 for every $1 over the luxury threshold. It is distributed amongst the other teams who dont exceed the cap. The problem is, i watch basketball for the sport...not because I want to see big market teams win. What this cap does is essentially make a small/medium sized market team work much harder in order to win a championship then a big market team does. There is not enough of a punishment for exceeding the luxury tax line...and on the other side, teams who only care about their profits are rewarded for spending very little.
Actually, each team that is under the cap gets 1/30 of luxury tax income. The rest goes to the league.

Yeah. The league doesnt get the full amount. 1/30 represents the percentage each team would receive based on how many teams there are. So if only 5 teams are over the luxury tax the league would get 16% of the luxury tax paid by those teams. The remaining 84% would be distributed amongst the other 25 teams.