Just had a look at the soft cap taxes (on Wikipedia). Looks like it’s 37.5% of the overspend for first year and 75.0% of the overspend for “repeat offenders”.I raised it a few days ago as well - with this list, now is the time to be using 110% of the soft cap, get the training and rehab right - and win another flag.
It's not the time to be penny pinching....
Soft cap next year is $6.95m so paying and extra $695k (10%) would cost the club a further $261k in taxes. Doing it again in 2024 would cost the club $521k in taxes.
I would definitely be taking the hit in 2023 then re-assess in a years time. If it works then it was worth it and if it doesn’t then Bevo probably isn’t there in 2024 - his salary versus an incoming coach puts you back down again below the cap.
What I don’t understand though is with those tax rates why the **** you would waste list spots on old players like Stef Martin or keeping Wallis on the list just to pay them outside of the soft cap. The list spots in my view are much more valuable than shifting money between soft caps and salary caps to avoid the tax at what should be pretty low wages (plus the 2 extra draftee wages you would carry).
*Edit: The soft cap operates as a minimum function of [x]% of overspend or $1m (first time) or $2m (repeat offenders). The existence of those ceilings to me indicates at least some clubs would be planning to spend >$2.7m above the soft cap.