Salary cap next year could be a "bloodbath"

Hollinger:

Finally, let me share a juicy tip from a league source on the state of the salary cap. Basically, the situation will be worse than many people expect, and the luxury-tax level next season will be set even lower than what several teams are currently planning for. The implications will be huge as we head into next season.

Here's the more interesting part of what I was told: Next season's luxury tax might just be the tip of the iceberg. The salary cap (and thus the tax level) could drop massively in 2010; my source used the term "bloodbath."

This would have huge effects on the pursuit of big-game free agents, of course, but also on the luxury-tax level for that season … which could push many more teams over the line and lead to fire-sale-type trades.

All this would be a prelude to the labor negotiations for a new collective bargaining agreement in 2011. If money gets as tight as some project, things could get ugly.

over 3 years ago blzrfan 5 comments 1 recs |

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Mark Cuban agrees. He calls the situation a "nuclear winter" for several owners

2010 could turn out really ugly for some teams positioning themselves for big free agent acquisitions. Some just pretend to do, but some really want to and could end up with pretty mediocre new guys in the end that will lead them nowhere.

Brandon is one of those quiet assassins. - Chris Paul

by Norsktroll on Feb 15, 2009 1:55 PM PST reply actions

Awesome to know

I think this probably has KP afraid of any really long contracts.

Joel Freeland=Stud

by hightide on Feb 15, 2009 2:00 PM PST reply actions

So what's the strategy?

Is it a good idea (as TimG suggested a few weeks ago) to trade RLEC for a similar player who’s contract expires in 2010? That way, KP positions himself to have “another RLEC” this time next year, just when the other GMs are selling assets for pennies on the dollar?

by two4larue on Feb 15, 2009 3:58 PM PST reply actions

It probably evens out in the long run

If everybody has a level playing field in terms of information then all teams have the chance to adjust simultaneously. Of course the financially weak teams or the worst managed team will always have a hard time.

by oregonslee on Feb 15, 2009 4:07 PM PST reply actions

The small market teams will have especially a hard time

Since they have much more problems to compensate for a lack of national income by generating more local income. The big city teams can easier weather this storm.

Brandon is one of those quiet assassins. - Chris Paul

by Norsktroll on Feb 15, 2009 5:12 PM PST up reply actions