Quote:
Originally Posted by Spongebob
For the benefit of some here is how they got the salary cap figures for the 200506 season.
Revenue Projections
$1,740,000,000
Minus player benefits of $60 Million
$1,740,000,000
 60,000,000

$1,680,000,000 = total adjusted revenue
$1,680,000,000 X 54% = $907,200,000 = Player's Share
$907,200,000 / 30 Teams = $30,240,000 = Average Salary Mark
Then add/subtract $8.75 Million to get the salary range.
That makes the salary range $21.49M  $38.99
Then it was rounded to $21.5M  $39M

The one open question is the ~$66M in benefits ($2.2M/team) deducted before or after the multiply by 54%  I have seen examples do it both way. It would make more sense for the $66M in benefits to be taken off after the 54%, since they are part of the total player costs.
Since we don't know the exact magic number the league used for it's '05'06 revenue estimates or the exact number for benefits, we can't back track the numbers to verify the algorithm, but recently the $1.8B number has been bandied about, so, if we assume that the benefits come out of the players share (post 54%):
Total Revenue Estimate: $1.8B
Players Share: $1.8B * 54% = $972M
Minus Benefits: $972M  $66M = $906M
Salary Midpoint: $906/30 = $30.2M
Salary Cap: $30.2M + $8.75M = $38.95M  round to $39M
Salary Floor: $30.2M  $8.75M = $21.45M  round to $21.5M
The numbers seem to work out for a revenue estimate of $1.8B, benefits of $2.2M/team, and benefits costs coming out of the players share.
Based on that, cap projections can be made with the following adjustments:
 Total revenues are based on this years real revenues plus a 5% inflation factor
 The Cap/Floor spread is reduced from $17.5M this season to $16M next season  midpoint +/ $8M.
 The player share increases to 55% @ $2.2B
'05'06 Actual Revenues: $1.8B
5% escalator: $1.8B * 1.05 = $1.89B
Players Share: $1.89B * 54% = $1020.6M
Minus Benefits: $1020.6M  $66M = $954.6M
Salary Midpoint: $954.6M/30 = $31.82M
Salary Cap: $31.82M + $8M = $39.82M
Salary Floor: $31.82M  $8M = $23.82M
'05'06 Actual Revenues: $2.0B
5% escalator: $2.0B * 1.05 = $2.1B
Players Share: $2.1B * 54% = $1134M
Minus Benefits: $1134M  $66M = $1068M
Salary Midpoint: $1068M/30 = $35.6M
Salary Cap: $35.6M + $8M = $43.6M
Salary Floor: $35.6M  $8M = $27.6M
'05'06 Actual Revenues: $2.2B
5% escalator: $2.2B * 1.05 = $2.31B
Players Share: $2.31B * 55% = $1270.5M
Minus Benefits: $1270.5M  $66M = $1204.5M
Salary Midpoint: $1204.5M/30 = $40.15M
Salary Cap: $40.15M + $8M = $48.15M
Salary Floor: $40.15M  $8M = $32.15M