I have a question about cap space I would appreciate an answer to. Is it right that a team over cap space do not pay the luxury tax unless league-wide, the sum of all teams's salary exceed the total cap? If this is true, would it make for some bizzare dealing or situation among owners where they either help or hurt each other?
ragingFire, There are two pertinent salary thresholds: (1) The Team Salary Cap, and (2) The Luxury Tax Threshold. #2 is roughly $10-12m above #1. For an owner to pay a luxury tax, two things must happen, first the Luxury Tax must be triggered based on the league-wide revenues falling below a defined ratio of league-wide expenses--thus triggering the Luxury Tax for overspenders. Secondly, the owner's Team Salary must exceed the Luxury Tax threshold. As a side note, all players contribute 10% of their salaries as insurance to help prevent the Luxury Tax from triggering. That goes into an escrow account, and they get some or all of it back (plus interest) when the Tax trigger fails to be reached. When it does trigger, they get none of that money back.
So this explains why Minnesota is not returning our phone calls, in spite of how many times we have posted this trade.
