Cap Situation

Here is a quick breakdown of the Raptors Cap Situation going into this summer. I'll send another email out about how I think the Raptors can attack the off season given their current situation and the summer of 2008.

Actually, the Raptors were right at the salary limit of $53 million for 2007. Of course, in the NBA, this is the lower spending limit as the luxury tax doesn't kick in until you exceed $65 million, so you can look at that as the true cap limit (note - you cannot sign unrestricted free agents (from different teams) to monster deals if you're at the $55 million limit.

Alonzo was "making" 4.5 million this season and Alvin Williams was making 6.5. Combined they will offset the Chris Bosh extension which will come in around $12 million per. TJ is getting 8 million per, but other salaries are falling off (ie Mo Pete at 4.5, D Mart at 1.75 mil, Robert Whaley at 700K). Basically, after everything is said and done the Raptors are looking at a 2007-2008 salary structure of $51 million. Which puts them about $2-3 million under the projected cap of $54-55 million. Obviously, this amount of cash isn't going to buy you a high impact guy.

However, they do have a $5.8 million mid level exception, which they can give to one or several guys (once you spend you mid level you don't get it back until that contract is finished or ou trade the contract away).

Long story short, don't expect the Raptors to make any major noise this summer because they are still fairly capped out. A sign and trade with Mo Pete is a possibility (more on this later), and not having a 1st rd pick also saves a ton of cash (more discussion to follow). On the brightside, this year's unrestricted free agent class is very very iffy. Carter and Billups are the headliners, and Lewis is the next tier, but after him, the proven talent drops off a cliff.

Note - assuming the Raptors can't make any huge deals this summer, they are looking at a payroll of $39 million (plus another $1.5-2 million for their 1st rd pick, if they pick a ncaa guy), with a projected cap of about $56-57 million at the end of 2008. Giving them a projected $16 million of cap room to spend in the prime of Bosh's career, with TJ, Andrea, and Jose reaching their primes as well. 2008 is the last season of Garbo and AP's initial contracts, so their prices should drop as they would be entering their mid 30's. Basically, the Raptors should be able to add the final piece to a championship contender in a year. Look for a stop gap this summer (unless they can somehow pull off my secret plan)....