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I have read several comments on here to the effect that there is something "different" concerning the salary-cap now, and teams' ability to pay free agents under the new CBA. Several have said "this isn't the 1990's anymore" or something to that effect.
While the increase last year was large enough that cuts to get under the cap were all but eliminated, long term nothing has really changed. The increases last year and this year are not unprecedented. Nothing has really changed except that the numbers are larger. Percentage wise the increases are not unusual or extraordinary.
As a percentage of the previous year's salary-cap, the increases have been as follows:
1995- 7.2%
1996- 9.9%
1997- 1.6%
1998-26.5%
1999-11 .45%
2000- 6.5%
2001- 8.4%
2002- 5.5%
2003- 5.6%
2004- 7.4%
2005- 6.7%
2006-18.6%
2007- 6.9%
2008- 6.4%
As you can see, the recent increases are not all that unusual. The numbers are larger because we are dealing with a larger base. It will take only a couple years for salaries to "catch up" to the new, bigger salary pot.
Minimum salaries have also increased, and recently having increased more than the salary cap has increased, on a percentage basis. For example, while the salary cap this year increased 6.9%, rookie and veterans minimums increased approximately 10%.
The substantial salary cap increase for the 2006 season caught everyone's attention, and it was a large increase in dollars. However, as a percentage of the previous year's salary cap, the increase in 1998 was much larger and 1999 followed with an increase of another 11.45%, percentage wise much greater then the 2007 increase. In actual dollars, the increase in two seasons, 1998 and 1999, was $17 million, not that far from the $23 million of the last two seasons. Percentage-wise, it was much larger, yet it didn't take teams long to use both up and get into salary-cap troubles by back loading contracts that overpaid marginal players. It can happen again and probably will in a couple years. There has already been some discussion that several teams will struggle this year to get under the salary cap when the rookie pools are assigned. Denver is in that situation.
Healthy salary cap increases have an immediate impact of reducing the quality of the free agent pool, as teams can "keep their own" when they want to. However, as the increases level off, more and more teams find themselves with salary cap challenges.
While the increase last year was large enough that cuts to get under the cap were all but eliminated, long term nothing has really changed. The increases last year and this year are not unprecedented. Nothing has really changed except that the numbers are larger. Percentage wise the increases are not unusual or extraordinary.
As a percentage of the previous year's salary-cap, the increases have been as follows:
1995- 7.2%
1996- 9.9%
1997- 1.6%
1998-26.5%
1999-11 .45%
2000- 6.5%
2001- 8.4%
2002- 5.5%
2003- 5.6%
2004- 7.4%
2005- 6.7%
2006-18.6%
2007- 6.9%
2008- 6.4%
As you can see, the recent increases are not all that unusual. The numbers are larger because we are dealing with a larger base. It will take only a couple years for salaries to "catch up" to the new, bigger salary pot.
Minimum salaries have also increased, and recently having increased more than the salary cap has increased, on a percentage basis. For example, while the salary cap this year increased 6.9%, rookie and veterans minimums increased approximately 10%.
The substantial salary cap increase for the 2006 season caught everyone's attention, and it was a large increase in dollars. However, as a percentage of the previous year's salary cap, the increase in 1998 was much larger and 1999 followed with an increase of another 11.45%, percentage wise much greater then the 2007 increase. In actual dollars, the increase in two seasons, 1998 and 1999, was $17 million, not that far from the $23 million of the last two seasons. Percentage-wise, it was much larger, yet it didn't take teams long to use both up and get into salary-cap troubles by back loading contracts that overpaid marginal players. It can happen again and probably will in a couple years. There has already been some discussion that several teams will struggle this year to get under the salary cap when the rookie pools are assigned. Denver is in that situation.
Healthy salary cap increases have an immediate impact of reducing the quality of the free agent pool, as teams can "keep their own" when they want to. However, as the increases level off, more and more teams find themselves with salary cap challenges.
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