Monday, May 24, 2010

MYTHICAL CAP ROOM

Oversimplified, the "Salary Cap" restricts gross payroll that that an NBA team can pay and applies fairly severe penalties to any team that goes over the "Cap".

So, when a team doesn't spend the entire permitted amount, it is said to have "cap room."  Hold that thought.


Now, the general estimate is that the NBA, as a league, is approximately $400M upside down, which would be an obligation of its member teams.


Thus, the question:  How can any team in a league $400M underwater be truly said to have "cap room."

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