| 18 February 2009
Key: Player Option / Team Option / Qualifying Offer / 80% Scale Offer Tea
Player | 2008/09 | 2009/10 | 2010/11 | 2011/12 | 2012/13 |
| Andrei Kirilenko | $15,080,312 | $16,451,250 | $17,822,187 | $0 | $0 |
$11,593,817 | $12,657,233 | $0 | $0 | $0 | |
| Mehmet Okur | $8,500,000 | $9,000,000 | $0 | $0 | $0 |
$6,000,000 | $6,500,000 | $0 | $0 | $0 | |
$5,069,448 | $13,785,000 | $15,202,590 | $16,647,180 | $18,091,770 | |
$4,773,927 | $5,155,115 | $5,536,303 | $0 | $0 | |
$3,700,000 | $3,700,000 | $3,700,000 | $3,700,000 | $0 | |
$2,074,302 | $0 | $0 | $0 | $0 | |
$2,000,000 | $0 | $0 | $0 | $0 | |
$1,834,680 | $2,717,161 | $3,779,571 | $0 | $0 | |
$1,188,000 | $0 | $0 | $0 | $0 | |
| Kosta Koufos | $1,129,320 | $1,214,040 | $1,298,640 | $2,203,792 | $3,206,517 |
| $1,081,440 | $0 | $0 | $0 | $0 | |
| $810,000 | $870,000 | $0 | $0 | $0 | |
$797,581 | $0 | $0 | $0 | $0 | |
| TOTALS: | $65,632,827 | $71,179,799 | $42,261,080 | $16,647,180 | $18,091,770 |
This is the current and future yearly salary for individuals on the Utah Jazz roster. On the bottom is the combined total salary for the Utah Jazz for the next five seasons. RED signifies Team option, BLUE signifies player option and GREEN signifies qualifying offer. These numbers are for current contracts between Utah Jazz and its players. These salaries do not include performance or playoff bonuses which are add-ons and are not included against the Salary Cap.
The NBA Salary cap changes on a yearly basis and is usually changed during the NBA Summer meetings which are held the first week of July every year. The NBA Salary cap unlike the NFL has a soft salary cap meaning that they are exceptions that are made by the NBA when a certain player qualifies for an exception (Mid-level, Rookie, Bi-Annual, Veteran, and others). Here is how the Salary Caps is Calculated each year---
Each July the league projects Basketball Related Income (BRI) and benefits for the upcoming season. They take a defined percentage of projected BRI (see the chart below), subtract projected benefits (about $112 million in 2005-06), and make adjustments based on whether the previous season's BRI was above or below projections. They then divide by the number of NBA teams (except expansion teams in their first two seasons) to arrive at the cap. The salary cap adjusts each year on the first day following the July Moratorium (see question number 90).
Note that adjusting based on whether the previous season's BRI was above or below projections creates a pattern where the salary cap increases significantly one year, and barely moves (or even decreases) the next. This effect was more pronounced in the previous CBA, where lump-sum payments for such things as local media contracts counted fully in the year in which they were received. The current CBA addressed this problem by mandating that lump-sum payments will be applied evenly across all of the salary cap years covered by a contract. However, adjustments from the previous CBA (such as a $74 million increase in BRI in 04-05 attributable to the Lakers' local cable revenue) created a rebound effect that will last well into the current CBA.
| Season | Defined percentage of BRI | Actual salary cap |
|---|---|---|
| 2005-06 | 49.5%* | $49.5 million ($37.125 million for the Charlotte Bobcats) |
| 2006-07 | 51% | $53.135 million |
| 2007-08 | 51% | $55.63 million |
| 2008-09 | 51% | $58.68 million |
| 2009-10 | 51% | |
| 2010-11 | 51% | |
| 2011-12 | 51% | |
* The league and Players Association agreed to use a figure of $49.5 million for the 2005-06 cap, rather than the calculated figure (which would have resulted in a salary cap of $50.9 million).
At the other end of the spectrum there is a minimum team salary, which is defined as 75% of the salary cap. Any team that doesn't spend at least that much is surcharged at the end of the season, and that money is given to the players. In practice, most teams' salaries will be higher than the salary cap amount. www.cbafaq.com
The BRI is basically any money that is earned by and NBA team which can include but is not limited to:- Regular season gate receipts
- Broadcast rights
- Exhibition game proceeds
- Playoff gate receipts
- Novelty, program and concession sales
- Parking
- Proceeds from team sponsorships
- Proceeds from team promotions
- Arena club revenues
- Proceeds from summer camps
- Proceeds from non-NBA basketball tournaments
- Proceeds from mascot and dance team appearances
- Proceeds from beverage sale rights
- 40% of proceeds from arena signage
- 40% of proceeds from luxury suites
- 45% - 50% of proceeds from arena naming rights
- Proceeds from other premium seat licenses
After the Salary Cap is determined the "Luxury Tax" is then determined. The luxury tax is a threshold that when broken, charges the team that has broken the threshold, a dollar for dollar tax. The Luxury Tax for 2008-2009 NBA Season is $71.15 million. Here is a list of all 30 of the NBA teams and their respective salary as of current.
| 1. New York Knicks | | $97,685,075 |
| | $92,758,122 | |
| 3. Cleveland Cavaliers | | $90,329,718 |
| 4. Portland Trail Blazers | | $80,600,059 |
| | $79,518,743 | |
| 6. Houston Rockets | | $75,468,359 |
| 7. Los Angeles Lakers | | $75,255,408 |
| 8. Phoenix Suns | | $75,196,295 |
| 9. Sacramento Kings | | $73,927,126 |
| 10. Detroit Pistons | | $72,076,423 |
| 11. Toronto Raptors | | $71,993,746 |
| 12. Milwaukee Bucks | | $71,275,939 |
| 13. Washington Wizards | | $70,259,475 |
| 14. Indiana Pacers | | $70,036,797 |
| 15. Chicago Bulls | | $69,936,391 |
16. Denver Nuggets | | $69,534,011 |
| 17. Miami Heat | | $69,512,808 |
| 18. Orlando Magic | | $69,279,761 |
| 19. Golden State Warriors | | $68,461,515 |
| 20. Atlanta Hawks | | $68,012,336 |
| 21. San Antonio Spurs | | $67,922,642 |
| 22. New Orleans Hornets | | $67,866,515 |
| 23. Philadelphia 76ers | | $67,249,108 |
24. Utah Jazz | | $65,632,827 |
| 25. Oklahoma City Thunder | | $65,027,361 |
| 26. Minnesota Timberwolves | | $64,848,820 |
27. New Jersey Nets | | $62,609,434 |
| | $61,694,345 | |
| | $60,775,937 | |
| | $54,608,126 |
For example, The New York Knicks actual salary cost is 26 million more than shown here, because they have to pay the luxury tax. That is why Stephon Marbury's contract is such a big deal. Not Only will they have to pay a Luxury tax but they miss out on the Tax payout at the end of the season so it actually costs them another 3-4 million on top of the dollar per dollar tax.
IT IS IMPORTANT TO NOTE:
THAT A TEAMS SALARY IS DETERMINED AT THE END OF THE YEAR AFTER THE SALARY CAP AND LUXURY TAX ARE DETERMINED.
This is why the Allen Iverson trade was so big for the Nuggets because it along with another small trade put them below the Luxury Tax.
WHAT DOES THIS MEAN FOR THE JAZZ?
Larry Miller and Kevin O'Conner have always said that they would stay under the Luxury Tax. They do not want to help other teams win championships.
There are curently 11 teams who are paying the luxury tax. You may say so what. SO WHAT. Well the luxury tax is split between all of the other 19 teams that are below the luxury tax. So this means that the 11 teams paying luxury tax at the end of the season are paying the other 19 teams almost 3 million dollars of free money because they can't manage their money.
Three million dollars, who cares? Well if you look at the current Jazz team salaries you can see exactly what that would do. It would pay for Cj Miles salary for this year or any number of other combinations of players on the Jazz, including Paul Millsap at his current salary for 4 seasons. I know that he will make much much more than this but it is just an example.
The bad economy is effecting the NBA, its teams, the teams sponsors, and its fans. Read here. Essentially when season ticket holders bought their tickets, Luxury boxes where sold, and advertisers made their contracts(July, August 2008) the economy was bad but not near as bad as it is now. Which means that renewals in all three of these areas will not happen in 2009. This will in turn force the NBA to, for the first time, lower the Salary Cap and Luxury Tax for NBA. This will lower the current cap and tax and swallow many teams that are close or near those guidelines.
At the end of next season if Boozer and Memo don't opt out this season, (which is looking more and more unlikely because of the Budgets of other teams) the Jazz will have 28 million dollars coming of the budget if you add Fez' and Hapring's expiring contracts. Which means that the Jazz will be the Central focal point of trade talks next season because of the number of big players that are available after next season- Kobe, Lebron, D Wade, Joe Johnson, Bosh, Carmello and others.
The New York Knicks have the highest payroll in the NBA at 97 million and are trying to clear cap space for the Infamous 2010 off-season mentioned above. With the Knicks trying so hard to cut cap space they will have no time to focus on winning which will give the Utah Jazz an almost guaranteed lottery pick after next season. The Jazz own the Knicks unprotected 2010 first round draft pick.
If the Salary cap decreases lets say 2-5 % the Luxury tax will decrease as well. With players salaries increasing on average of 10% a year ever team in the NBA could essentially gain 12-15% on the cap and tax.
Kevin O'Conner has stayed the course and every deal he has and hasn't made have been in the best interest of the long term success for the Jazz.
So I say out loud "Although the injuries have sucked, I Love You Kevin O'Connor for not doing anything stupid or short term with the Utah Jazz". We have some contracts to work out at the end of the season, Millsap most importantly, but in this win now world of the NBA the Utah Jazz front office has the long term in mind. In my eyes, the future looks very very good. -s
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