H-Town Sports

Houston Sports Blog - Real sports cities have TWO Conference USA teams

Wednesday, August 31, 2005

Yao Signs Extension

Sorry Los Angeles. According to Jonathan Feigen, Yao has signed a five-year extension with the Rockets that will guarantee the Great Wall 25% of the Rockets' salary cap each season through the 2010-2011 season.

3 Comments:

Blogger hedgehog said...

So Yao and McGrady eat up 50% of salary, is this smart? Or rather, is this common for teams with two superstars?

Wed Aug 31, 04:16:00 PM  
Blogger Scott said...

Hedgehog,

Note that the NBA cap is a soft cap such that the owners can exceed the cap, but they must pay the luxury tax for every $1 that the exceed the cap. In other words, the Rockets won't necessarily be prevented from spending money in the future based on T-Mac and Yao, but they may encounter significant luxury tax costs.

Wed Aug 31, 04:45:00 PM  
Blogger Tim said...

50% cap occupancy aside, T-Mac and Yao owning Toyota Center for the foreseeable future is fine by me.

Wed Aug 31, 05:42:00 PM  

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