<div class="quote_poster">Quote:</div><div class="quote_post">51. How do retired players count against the cap?
Any money paid to a player is included in team salary, even if the player has retired. For example, James Worthy retired in 1994, two years before his contract ended. He continued to receive his salary for the 94-95 and 95-96 seasons, so his salary was included in the Lakers' team salary in those seasons. It is at the team's discretion (or as the result of an agreement between the team and player) whether to continue to pay the player after he has retired.
There is one exception whereby a player can continue to receive his salary, but the salary is not included in the team's team salary. This is when a player is forced to retire for medical reasons and a league-appointed physician confirms that he is medically unfit to continue playing. There is a waiting period of two years (if the injury or illness occurred between January 1 and July 1) or until the second July 1 following the injury or illness (if it occurred between July 1 and January 1) before a team can apply for this salary cap relief. If the waiting period expires mid-season (on any date prior to the last day of the regular season), then his entire salary for that season is removed from the team's team salary. For example, Luc Longley suffered a career-ending injury in March 2001. In March 2003, the Knicks were allowed to remove his entire 02-03 salary from their books (and since the luxury tax is based on the team salary as of the last day of the regular season, the Knicks avoid paying any tax on Longley's salary). There is also some luxury tax relief associated with disabled players -- see question number 15 .
If a player retires, even for medical reasons, his team does not receive a salary cap exception to acquire a replacement player. </div>
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There it is. The Knicks don't get salary cap relief, because the benefits don't go into effect until 2 years. Houston's contract ends in 2 years.
<div class="quote_poster">Quote:</div><div class="quote_post">The league did decide to credit teams that pay luxury tax for players who have been ruled permanently disabled.
There is a one-year waiting period following the player's injury or illness. The credit is in the amount of the Disabled Player Exception (half the player's salary, or the average salary, whichever is less -- see question 22 for the definition of "average salary") and is subtracted from the team's luxury tax payment. This prevents a form of double jeopardy, where a team would otherwise have to pay tax on an injured player's salary, and also on his replacement's. Interestingly, if the injured player is traded before he is deemed permanently disabled, then neither team receives the credit. This credit is subject to readoption on a year-to-year basis.</div>
The Knicks might save luxury tax, but it will only be for the final year of Houston's contract, and it has to be approved by a league physician that Houston is retiring because of medical reasons. And it's only for half his salary. The Knicks would have been better off using the Allan Houston rule on Allan Houston.
