Come on, man. This is some guy making up a story in order to have something to say. Yes, the salary cap went down. That means two things: maximum deals will be a little smaller, and teams
who are under the cap and pursuing free-agents have a little less money to work with. The rest of the "article's" rhetoric about teams wanting to shed dead weight has always been true, and has nothing to do with the revised cap number.
The NBA projects it's cap based on revenue. This last year it went 3 million shorter than expected. So yes the cap went up but it went up 33% less than anticipated.
Yes, it went up less than some early projection. So what? It still went up 5% over the 2016-17 figure of $94 million. That's very likely to outpace inflation, which was 1.6% (annualized) in June and has not been as high as 3.0% in any month since 2011.
And it is expected to have an even smaller increase next year.
The first projection for the 2018-19 increase was $108 million from $102 million, which is 6%. Even if it now goes up from $99 mlllion to "only" something like $104 million -- which would be $4 million short of the projection -- that would be 5%.
2 years ago, the NBA thought that revenues would spike far more than they have so many teams overspent on free agents.
The cap rose from $70 million in 2015-16 to $99 million now. That's 41%. The projection had instead been a 46% increase over two years. That's "far more"?
If someone told you that you'd be making 46% more money two years from now, and so you started spending more freely, and then it turned out you were making only 41% more instead, would this be a
big problem?
And by the way, the first projection for last year (2016-17) was $89 million, but the actual number came in at $92 million.
https://www.usatoday.com/story/spor...-salary-cap-higher-than-projections/83095482/ So an error of a few million one way or the other isn't big news.
The idea being that everyone would be making over 10 million a year so signing someone to a big deal would look like a value in 3 years. That simply isn't the reality now.
If we approximate that salaries are scaled to the cap, then a 3% difference in the cap would mean that a salary of $10 million in the "high cap" scenario becomes instead $9.7 million in the "low cap" scenario. Does that look like a big difference to you?
Thus, you have limited cap space that you can't tie heavy portions into declining players.
Which has always been true.
This is simple economics Eric. Why you want to argue about it is beyond me.
It's even simpler than simple economics. It's simple arithmetic. You're getting conned by people trying to make a story out of nothing.
Dragic is a depreciating asset tied to a fixed number. The larger that depreciation, the less his value in relation to any transaction.
Yes, but as I've said before, his value to the Cavaliers in 2019-20 is irrelevant.
Cleveland is going to be paying something like $70 million in luxury tax this year. Talk about a depreciating asset! Do you really think they care whether Dragic's true value in 2019-20 is only $12 million instead of the $19 million he'll be paid?