On March 18, the Cleveland Cavaliers signed F Okaro White to a 10-Day Contract. Per 10-Day Contract rules, White will play for the longer of 10 days or 3 games with the Cavaliers. Since the Cavaliers will play the Bucks (3/19), Raptors (3/21), and Suns (3/23) within 10 days of signing, his contract will terminate after ten days.
The contract numbers break down as follows:
(Days on Cavaliers/Days in NBA Season) * (1YOS Veteran’s Min Salary) = 10-Day Deal
(10/177) * $1,312,611 = $74,159
Using the chart below, the contract will charge the Tax Bill at a value of $83,129, as the league counts all 10-Day contracts the same against the Luxury Tax.
Prior to the signing, the Cavaliers were $16,556,755 over the Luxury Tax Line ($119,266,000). With this signing, they will raise that bill as follows:
Luxury Tax Prior to White + White Tax Bill = New Total Salaries
$16,556,755 + $83,129 = $16,639,884
Since the Cavaliers have exceeded the Salary Cap in three of the past four seasons, they fall under the Repeater Tax rate. Their new Luxury Tax breakdown is as follows:
White Tax Bill * ($15,000,000-$19,999,999 Tax Rate) = Total White Lux Tax Bill
$83,129 * ($4.25) = $353,298
Updated Luxury Tax Bill:
$4,999,999 * ($2.50) = $12,499,997
$4,999,999 * ($2.75) = $13,749,997
$4,999,999 * ($3.50) = $17,499,996
$1,639,884 * ($4.25) = $6,969,507
The signing of F Okaro White has raised the Cavaliers’ Luxury Tax Bill by $353,298 to a new total of $50,719,497.
I'm Jake, a recent graduate of Duke University pursuing a career in collegiate or professional basketball operations.
Cap #s 2018 - 2019
Salary Cap: $101.869M
Lux. Tax: $123.733M
Tax Apron: $129.827M
Tax Floor: $91.682M
Room MLE: $4.45M