For the first question -- the salary counts. It doesn't matter whether insurance is paying it. The team can apply to have the salary removed, after a year waiting period.
For the second question -- the Board of Governors can exclude the salary of disabled players from the luxury tax, and typically does so.
Larry Coon: Jerome James may not count towards the luxury tax
Larry Coon, creator of the salary cap FAQ, discussed whether or not Jerome James' salary could be excluded from the luxury tax on the realgm forum.
If this pans out, this is amazingly good news for the Bulls. It means that the Bulls would actually have about eight million dollars underneath the luxury tax threshold after signing their draft picks.
That would give them enough room to sign and keep Ben Gordon without the tax getting in the way. I've asked Larry a follow up question, about whether the same benefit could be carried over to a team if there's a trade. If so, that would really enhance his value in a trade to a team like Phoenix that would love to get under the tax.
Of course, it's no guarantee that Jerome James' will be viewed as medically retired this year. The Bulls still need to hope on that count. However, if he is, then the Bulls will be in good shape salary wise to improve the team.
That would give them enough room to sign and keep Ben Gordon without the tax getting in the way. I've asked Larry a follow up question, about whether the same benefit could be carried over to a team if there's a trade. If so, that would really enhance his value in a trade to a team like Phoenix that would love to get under the tax.
Of course, it's no guarantee that Jerome James' will be viewed as medically retired this year. The Bulls still need to hope on that count. However, if he is, then the Bulls will be in good shape salary wise to improve the team.
2 Comments
Justin said:
This would be amazing news. It definitely gives us a better chance at making a run for Bosh or Amare while still keeping Gordon. Keep us updated!
Doug Thonus said:
I agree. The real question would be, could we trade him to a team and have them reap the luxury tax benefits. If so, it makes a run at Amare FAR more likely than it would have been otherwise.
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