Post by ianboyd on Nov 7, 2010 6:03:25 GMT -5
Introduction
Cap space, often overlooked, ignored by many gms in the league and only considered to be be of importance when matching salaries for a trade. Not unlike your engine, teams disregard it until they realize something is wrong with it, also not unlike your engine, it is essential for your team to function smoothly. Championship caliber teams have been sunk because of ONE single missing piece, that extra role player to put them over the edge; teams that aren't as glamorous as some of the other star studded teams have pulled off a championship run seemingly out of nowhere due to the very opposite reason, the common factor? Cap space management, the engine that many gms often ignore and assume is working just fine is the singular driving force behind a franchise's success or failures and should be considered just as, if not more important than draft picks, defense and offense.
FA (Free Agency)
By now, you should already know what "soft cap" and "hard cap" means and how they affect your free agency signings so I won't bother to go over the obvious terms again. Free agency is often viewed as the most important period in the off season that determines the fate of every franchise in the league; championships contenders have been struck down in shambles, doomed franchises have experienced rags to riches all thanks to the cruel mistress known as free agency. Maneuvering through free agency requires quite a bit of luck, insight and of course, cap space.
Contracts for star players:
No team can succeed in the league without at least one or several stars on their team, the draft and free agency are the best ways to obtain stars for your team since they are considered "free assets" since you do not have to give up your own players or future picks to obtain them. Offering the best contracts to elite players is your best chance to sign them during free agency, but there are important things to consider:
MC (Max Contracts)
Ever since year 5 of creation season, gms have gotten a taste of handing out max contracts and how dangerous of a double edged sword it can be to your franchise: Hand out one of these to the wrong player and your franchise is basically doomed for the next 4-6 years. Still, not all max contracts are bad, it ensures you the best chance to secure the services of an elite player for a long term, something that is essential to every team with aspirations of championship contention. Some players are no-brainers when considering offering out max contracts, players such as your Kobes, Wades, Lebrons. But not everyone will be able to land a super star that is under 26 years old, determining which of the remaining players besides the elite youngsters deserve max money is essential, which brings me to my next point:
MV (Market Value)
Do you have a sim crush on a player? Is he producing at a high level? Do you really want to land him in free agency and fears someone else will steal him? Just because the answer to the previous 3 questions are a resounding yes does NOT mean you have to hand out a 6 year max offer to that player. First and foremost, consider objectively: how much will every other gm offer him? Will you still likely sign him if you offer him less than max money? Take SPECIAL consideration into the fact that during day 1-2 of free agency, every team that has enough cap to offer a max contract are likely going after the elite players. Will people still offer "your" player max money if another much better player is still on the market? Too often have teams fallen in love with their own players that when it comes to resigning them, gms will overpay them so much that the 2nd highest offer those players received are likely $100 million less. This leads to my next subject: What happens when one of your players decide to test FA and you are at a conundrum if your player doesn't happen to be a no-brainer max guy but still will likely get max money offers from someone else? Which follows into my next point:
STMDs (Short Term Max Deals)
If your player is testing free agency and you still want to hold on to him, STMDs are one of the best ways to do it: While you still own the bird rights to your player, you can offer him more money per year after the first year than any other gm in the league. This also applies to veteran stars that may or may not be on your team: a 36 year old Alonzo Mourning would in no way deserve a 6 year max contract, but offering him a 2 year STMD immediately turns him into one of the most attractive expiring contracts in the league to other gms that may have mismanaged their cap space or are looking to immediately contend for a championship. On the other hand, a 7 year max deal on a 29 year old star may look like a good idea at first, but once that star turns 35 while making 30 million a year and only putting up numbers half as impressive as what he once did due to decline will do nothing short of sink your franchise. By using STMDs correctly, you would still be able to secure your desired players while still leaving your cap space flexible for the future
Common Mistakes:
Most often the mistake comes from gms not judging the correct MV on a player and end up in a situation of dishing out way too large a contract on a player that frankly isn't worth the money. Keep in mind that NO player is ever worth sinking your franchise for 5 years, if someone else wants to overpay for a player you want then let them go right ahead and do just that while you sit back on your cap flexibility.
Example mistakes of overpaying MV:
Mike Dunleavy SF 25 $10,615,391 $11,676,930 $12,738,469 $13,800,008 $14,861,547 $15,923,087 $0 Total: $79,615,432
Carlos Boozer PF 26 $13,125,000 $14,437,500 $15,750,000 $17,062,500 $18,375,000 $19,687,500 $0 Total: $98,437,500
Kendrick Perkins C 21 $11,060,729 $12,166,802 $13,272,875 $14,378,948 $15,485,021 $16,591,094 $0 Total: $82,955,469
Rafael Araujo PF 26 $13,125,000 $14,765,625 $16,406,250 $18,046,875 $19,687,500 $21,328,125 $22,968,750 Total: $126,328,125
Special Mention to the worst contract in the league:
Stephen Jackson PG 29 $15,625,000 $17,187,500 $18,750,000 $20,312,500 $21,875,000 $0 $0 Total: $93,750,000
Contracts for role players:
No matter how star studded your team is, you still need role players to provide support for your stars, depth for your bench, grunt work to get your team extra possessions. In a nutshell, role players are VERY important to your team, but offering them the correct contracts can be tricky; they aren't worth max money and you often have no idea how much anyone else will pay for them. However, there are some very important tricks to ensure you the best chance at signing the role players you desire:
MLEBP (Mid Level Exception Break Point)
Due to the way the software is programmed, a MLE to free agents means a 1 year 4.5 million offer, every single team in the league at some point has used a MLE offer (or 20) during day 3-4 of free agency. If you've managed your cap space well and don't currently have too many max contracts on your books, you could still walk into day 3-4 well under the soft cap. At this point, you hold an INFINITE edge on teams that are over the soft cap, the MLEBP is essentially this: offer any player you want a longer than 1 year deal worth more than 4.5 million per year and you essentially all but guarantee yourself to sign him. Of course there ARE instances in which players have signed for less money, but ensuring yourself that you have offered the best deal is all anyone can really ask for. If you sign 3 solid players that can average a double double for you at pennies on the dollar, it can be that extra bit of push you need to separate your franchise from simply a playoff caliber team into a legit championship contender.
Conclusion
Just like your engine, you should inspect your cap situation at least once every year to ensure that your franchise is running smoothly. Cap flexibility may not look like much during the regular season, but come time for free agency, if you have the most cap, you are the chip leader in the poker game of player signing. Regardless of your team's current performance, under no circumstance should you be desperate enough to kill your cap space for a few extra wins, hopefully this guide will help your franchise realize the importance of that.
Cap space, often overlooked, ignored by many gms in the league and only considered to be be of importance when matching salaries for a trade. Not unlike your engine, teams disregard it until they realize something is wrong with it, also not unlike your engine, it is essential for your team to function smoothly. Championship caliber teams have been sunk because of ONE single missing piece, that extra role player to put them over the edge; teams that aren't as glamorous as some of the other star studded teams have pulled off a championship run seemingly out of nowhere due to the very opposite reason, the common factor? Cap space management, the engine that many gms often ignore and assume is working just fine is the singular driving force behind a franchise's success or failures and should be considered just as, if not more important than draft picks, defense and offense.
FA (Free Agency)
By now, you should already know what "soft cap" and "hard cap" means and how they affect your free agency signings so I won't bother to go over the obvious terms again. Free agency is often viewed as the most important period in the off season that determines the fate of every franchise in the league; championships contenders have been struck down in shambles, doomed franchises have experienced rags to riches all thanks to the cruel mistress known as free agency. Maneuvering through free agency requires quite a bit of luck, insight and of course, cap space.
Contracts for star players:
No team can succeed in the league without at least one or several stars on their team, the draft and free agency are the best ways to obtain stars for your team since they are considered "free assets" since you do not have to give up your own players or future picks to obtain them. Offering the best contracts to elite players is your best chance to sign them during free agency, but there are important things to consider:
MC (Max Contracts)
Ever since year 5 of creation season, gms have gotten a taste of handing out max contracts and how dangerous of a double edged sword it can be to your franchise: Hand out one of these to the wrong player and your franchise is basically doomed for the next 4-6 years. Still, not all max contracts are bad, it ensures you the best chance to secure the services of an elite player for a long term, something that is essential to every team with aspirations of championship contention. Some players are no-brainers when considering offering out max contracts, players such as your Kobes, Wades, Lebrons. But not everyone will be able to land a super star that is under 26 years old, determining which of the remaining players besides the elite youngsters deserve max money is essential, which brings me to my next point:
MV (Market Value)
Do you have a sim crush on a player? Is he producing at a high level? Do you really want to land him in free agency and fears someone else will steal him? Just because the answer to the previous 3 questions are a resounding yes does NOT mean you have to hand out a 6 year max offer to that player. First and foremost, consider objectively: how much will every other gm offer him? Will you still likely sign him if you offer him less than max money? Take SPECIAL consideration into the fact that during day 1-2 of free agency, every team that has enough cap to offer a max contract are likely going after the elite players. Will people still offer "your" player max money if another much better player is still on the market? Too often have teams fallen in love with their own players that when it comes to resigning them, gms will overpay them so much that the 2nd highest offer those players received are likely $100 million less. This leads to my next subject: What happens when one of your players decide to test FA and you are at a conundrum if your player doesn't happen to be a no-brainer max guy but still will likely get max money offers from someone else? Which follows into my next point:
STMDs (Short Term Max Deals)
If your player is testing free agency and you still want to hold on to him, STMDs are one of the best ways to do it: While you still own the bird rights to your player, you can offer him more money per year after the first year than any other gm in the league. This also applies to veteran stars that may or may not be on your team: a 36 year old Alonzo Mourning would in no way deserve a 6 year max contract, but offering him a 2 year STMD immediately turns him into one of the most attractive expiring contracts in the league to other gms that may have mismanaged their cap space or are looking to immediately contend for a championship. On the other hand, a 7 year max deal on a 29 year old star may look like a good idea at first, but once that star turns 35 while making 30 million a year and only putting up numbers half as impressive as what he once did due to decline will do nothing short of sink your franchise. By using STMDs correctly, you would still be able to secure your desired players while still leaving your cap space flexible for the future
Common Mistakes:
Most often the mistake comes from gms not judging the correct MV on a player and end up in a situation of dishing out way too large a contract on a player that frankly isn't worth the money. Keep in mind that NO player is ever worth sinking your franchise for 5 years, if someone else wants to overpay for a player you want then let them go right ahead and do just that while you sit back on your cap flexibility.
Example mistakes of overpaying MV:
Mike Dunleavy SF 25 $10,615,391 $11,676,930 $12,738,469 $13,800,008 $14,861,547 $15,923,087 $0 Total: $79,615,432
Carlos Boozer PF 26 $13,125,000 $14,437,500 $15,750,000 $17,062,500 $18,375,000 $19,687,500 $0 Total: $98,437,500
Kendrick Perkins C 21 $11,060,729 $12,166,802 $13,272,875 $14,378,948 $15,485,021 $16,591,094 $0 Total: $82,955,469
Rafael Araujo PF 26 $13,125,000 $14,765,625 $16,406,250 $18,046,875 $19,687,500 $21,328,125 $22,968,750 Total: $126,328,125
Special Mention to the worst contract in the league:
Stephen Jackson PG 29 $15,625,000 $17,187,500 $18,750,000 $20,312,500 $21,875,000 $0 $0 Total: $93,750,000
Contracts for role players:
No matter how star studded your team is, you still need role players to provide support for your stars, depth for your bench, grunt work to get your team extra possessions. In a nutshell, role players are VERY important to your team, but offering them the correct contracts can be tricky; they aren't worth max money and you often have no idea how much anyone else will pay for them. However, there are some very important tricks to ensure you the best chance at signing the role players you desire:
MLEBP (Mid Level Exception Break Point)
Due to the way the software is programmed, a MLE to free agents means a 1 year 4.5 million offer, every single team in the league at some point has used a MLE offer (or 20) during day 3-4 of free agency. If you've managed your cap space well and don't currently have too many max contracts on your books, you could still walk into day 3-4 well under the soft cap. At this point, you hold an INFINITE edge on teams that are over the soft cap, the MLEBP is essentially this: offer any player you want a longer than 1 year deal worth more than 4.5 million per year and you essentially all but guarantee yourself to sign him. Of course there ARE instances in which players have signed for less money, but ensuring yourself that you have offered the best deal is all anyone can really ask for. If you sign 3 solid players that can average a double double for you at pennies on the dollar, it can be that extra bit of push you need to separate your franchise from simply a playoff caliber team into a legit championship contender.
Conclusion
Just like your engine, you should inspect your cap situation at least once every year to ensure that your franchise is running smoothly. Cap flexibility may not look like much during the regular season, but come time for free agency, if you have the most cap, you are the chip leader in the poker game of player signing. Regardless of your team's current performance, under no circumstance should you be desperate enough to kill your cap space for a few extra wins, hopefully this guide will help your franchise realize the importance of that.