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<blockquote data-quote="GleefulGary" data-source="post: 835085" data-attributes="member: 12583"><p>With the NBA luxury tax, you have to pay more if you're a repeat offender.</p><p></p><p>For example, if your initial luxury tax was $18 million, and you're the same amount over the cap the following year, your luxury tax for year two would be $27 million. It increases by 150%. So really, a team is only doing it for 2-3 years tops in most cases. I believe you can also only go over the cap by re-signing your own players. </p><p></p><p>For example, if the Lakers had $16 million of cap room, and Joe Schmoe from the Bucks wanted to get paid $20 million, they couldn't do that. But if they want to re-sign Jerry Schmoe, who was on their roster, for $20 million, they could.</p><p></p><p>The NBA also introduced super Max contracts that teams with bird rights can sign their own players to if they make multiple All-NBA teams. What this will end up doing is hamstringing small market teams. You'll see this with the Bucks (Giannis) and Utah (Gobert) where they're pretty much forced to pay these guys $50/year contracts just to keep them. Pretty crazy.</p></blockquote><p></p>
[QUOTE="GleefulGary, post: 835085, member: 12583"] With the NBA luxury tax, you have to pay more if you're a repeat offender. For example, if your initial luxury tax was $18 million, and you're the same amount over the cap the following year, your luxury tax for year two would be $27 million. It increases by 150%. So really, a team is only doing it for 2-3 years tops in most cases. I believe you can also only go over the cap by re-signing your own players. For example, if the Lakers had $16 million of cap room, and Joe Schmoe from the Bucks wanted to get paid $20 million, they couldn't do that. But if they want to re-sign Jerry Schmoe, who was on their roster, for $20 million, they could. The NBA also introduced super Max contracts that teams with bird rights can sign their own players to if they make multiple All-NBA teams. What this will end up doing is hamstringing small market teams. You'll see this with the Bucks (Giannis) and Utah (Gobert) where they're pretty much forced to pay these guys $50/year contracts just to keep them. Pretty crazy. [/QUOTE]
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