Re: Salary Cap Loophole

[Kim Malo <kimmalo@xxxxxxxxxxxxxx>]

At 05:41 PM 7/9/2003 +0000, David A Wickerham wrote:
>Ive been following the recruiting war over Jason Kidd, and am surprised 
>that most of it seems to revolve around finding a job for Joumana.

Huh? Where on earth did you get this idea?

>   Is there a loophole in the salary cap/luxury tax?  Any reason that Mark 
> Cuban couldnt sign Paul Pierce for the minimum and then give his Mother a 
> $15 million a year job as the president of some start-up company?  How 
> about Paul Allen signing  Jermaine ONeal for $1 million and then getting 
> his wife a $10 million per year no show job at Microsoft?
>
>Anybody know if this kind of behavior is proscribed and whether New Jersey 
>or San Antonio could be sanctioned for their actions?

It's proscribed.
Assuming you mean doing it under the table so it's not part of the 
compensation contract and hence part of the cap figure, then

http://members.cox.net/lmcoon/salarycap.htm#21
21.  Do players and teams ever have under-the-table agreements?  What 
happens when the league finds out about them?  Is this what happened with 
the Timberwolves and Joe Smith?

If a team makes a direct agreement with a player that is not reported to 
the league, the penalties can be even harsher than those described in 
question number 20 .  Such a violation is considered by the league to be 
among the most serious a team can commit.  Again, the league will 
investigate any allegations of wrongdoing.  A violation can result in a 
fine up to $3,500,000, forfeiture of draft picks, voiding the player's 
contract(s), and/or the suspension for up to one year of any team personnel 
who were involved

Kim