Orlando Magic failed to hit salary floor in 2015
The Orlando Magic failed to hit the salary floor in 2015. Predictably, this means they have a ton of flexibility this upcoming season.
Just like there is a salary cap, the NBA has a salary floor. And the Orlando Magic did not hit that salary floor in the 2015 season.
Looks like the Orlando Magic were under the salary floor of $56.7 mil at $54.8 mil - I'll look at it further to verify @BBallInsiders
— Eric Pincus (@EricPincus) May 5, 2015
The NBA’s collective bargaining agreement, according to Larry Coon, requires teams to spend at least 90 percent of the salary cap. This year, that would come out to $56.759 million. Orlando is estimated to have spent $54,839,659 this season. They did not make any moves during the season to take on more salary and avoid the penalty.
More money was actually freed, according to Eric Pincus of Basketball Insiders, thanks to cap off sets from the previously bought out Jameer Nelson and Glen Davis. This added to the total.
About $220k of the Orlando Magic's obligation to Glen Davis was set off - recdued to $6.4 mil @BBallInsiders
— Eric Pincus (@EricPincus) May 5, 2015
Jameer Nelson's $2 mil obligation from Orlando Magic was set off by $958k, down to $1 mil @BBallInsiders
— Eric Pincus (@EricPincus) May 5, 2015
Whatever the amount, the Magic have a roughly $2 million shortfall. The penalty for falling below the floor is they have to distribute that money to 15 players on the roster to meet the salary floor. It is really not much of a penalty, it is just a minimum requirement the Magic have to pay.
So no one on the Magic should go around spending that extra $133,000 or so in one place.
Being that far beneath the salary floor does have its benefits. It does mean the Magic are expected to have a ton of cap room this summer.
Pincus estimates for Basketball Insiders that it could fall between $8.9-$23.5 million in cap room depending on what the Magic do with the options for Luke Ridnour and Ben Gordon along with the cap hold for Tobias Harris.
Even if you go with an aggressive amount — nixing Ridnour and Gordon — the Magic would have more than enough room for a max contract. Where things would get tricky is how much over the cap the Magic would be willing to go to re-sign Tobias Harris.
Harris is expected to get a contract this summer starting somewhere between $12-14 million per year. The Magic hold his Bird Rights and can go over the cap to re-sign him. His cap hold — a placeholder for the expected re-signing of a player — will come in at about $7.1 million, or 300 percent of his current salary.
With the cap expected to rise modestly to $69.1 million, the Magic should still have enough cap room for a max player plus $5 million and, of course, one of the two mid-level exceptions (depending on whether they go above the tax apron in using the exception) provided they renounce their other free agents, except Harris.
Again, the maneuverability for the Magic comes down to how far over the cap the Magic want to go to re-sign Harris. Or even if the Magic are willing to go into the luxury tax to sign Harris.
The cap is expected to balloon even further so a one-year luxury tax payment may not be a killer.
Of course, the Magic will have to find players they want and are willing to pay before any of this. They should have the flexibility though.
And certainly, the fact they did not hit the floor would suggest they have the cap flexibility to be a player this summer if they choose.