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[BimaThug] Houston Rockets Salary Cap Update: 2018 Offseason Pre-Draft Edition

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by BimaThug, Jun 2, 2018.

  1. BimaThug

    BimaThug Resident Capologist
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    Thanks for the kind words, everyone. Glad you liked the piece!

    Trying to answer some of the questions I've gotten so far. (Sorry if I don't/can't get to all of them.)

    No, as the article states, the Rockets only need to send out a little over $26.5 million before July 1. Unless a massive trade bonus is involved (I don't think LeBron would get one given his "above-max" 2018-19 salary), the Rockets could sneak in below the hard cap and still not even have to pay luxury tax. But yeah, I don't see a pre-July 1 trade scenario that does not involve Anderson. Also, a trade could always be agreed to in principle by all parties by June 29 (LeBron's opt-in deadline) but not formally consummated until after the July Moratorium.

    The Rockets would need to deal a couple of minimum salaries along with Gordon in order to get Paul George. That means that they would need to S&T Tarik Black in order to make your LeBron trade work. Also, they don't have to use their MLE on Ariza, since they have full Bird rights to him (and I don't see him taking that little, anyway). With those adjustments, those moves are technically POSSIBLE under the salary cap. But the odds of that happening are probably even beyond the optimism of Jim Carrey's character in Dumb & Dumber.

    Several problems with this scenario:

    1) Due to Base Year Compensation issues, I'm not sure the salary-matching of that particular trade would work.
    2) Accepting a S&T'd player would hard cap the Cavs, who already face luxury tax concerns, with or without LeBron.
    3) Even if there were no hard cap, a maxed-out Ariza would probably end up costing the Cavs more in salary/tax than Anderson would.

    I just don't see this happening.

    Accepting a S&T'd Capela would hard cap the Cavs. Not sure Cleveland can survive a hard cap given its luxury tax woes. Also, why would Capela agree to play in Cleveland when he could probably find a better situation for himself in free agency?

    You have been given some very bad information, my friend. Anderson has two years, $41.7 million remaining on his contract. Fully guaranteed. (If you are referring to the spotrac website showing no dead cap hit for Ryno in 2019-20, that was a typo on their part that they have since corrected.)

    Yes, the luxury tax has been (almost entirely) determined as of the last day of the regular season. A June trade in which a larger cap hit is transferred from one team's books to the other will not affect the luxury tax consequences for either team . . . UNLESS there is a trade bonus involved. If a trade bonus causes the then-current cap figure to increase, such increase counts towards the receiving team's team salary for luxury tax purposes. See CBA Art. VII, Sec. 12(f)(2). Still, I find it very unlikely that the Rockets would make a pre-July 1 trade like that that would push them over the luxury tax threshold.
     
  2. JoeBarelyCares

    JoeBarelyCares Contributing Member

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    Not in June.
     
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  3. ThatBoyNick

    ThatBoyNick Member

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    I think Wilson Chandler could be an interesting target with our MLE, wonder if he would take the taxpayers MLE at 5.3mill. Reddick, of course, is likely another target, but can't imagine him taking the taxpayers deal.
     
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  4. Deuce

    Deuce Context & Nuance

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    Excellent writeup @BimaThug! The most interesting part for me was the idea of being able to S&T Tarik Black. That salary could be very useful.

    Also, can we confirm that LeBron's opt in is June 29? I heard June 26 before. I know Geroge's is June 29 like a lot of players, but for some reason June 26 stuck with me on LeBron.
     
  5. Vivi

    Vivi Member

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    I don't see Wilson leaving 13M on the table...pretty sure he's going to opt in also cause he has the starting spot in Denver, he can play for his next contract there.
     
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  6. ThatBoyNick

    ThatBoyNick Member

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    Didn't know he had an option! Too bad he could have been a nice piece, I agree don't see him opting out of that.
     
  7. Vivi

    Vivi Member

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    I agree with you about him here, would be a good fit but yeah...
     
  8. don grahamleone

    don grahamleone Contributing Member

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  9. Soneca

    Soneca Member

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    So, basically CP3 and Ariza will get the memo that if they want to keep and improve this core, it's on them to take a discount. I think at their age they will.

    Ryan Anderson, on the other hand, what to do with him? It'll be a good day the day we get rid of him.
     
  10. mockster

    mockster Member

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    Tyreke Evans would be nice for a MLE spec if we lose gordon
     
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  11. smoothie

    smoothie Jabari Jungle

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    I'm not planning on lebron or PG, and we don't need them to win the championship next year anyway. here's what I see happening:

    1. we will make good on CP3's choice to take less money to come here by giving him the max.
    2. There will be a playoff team, or playoff hopefuls that offer ariza the non-taxpayer MLE. we will have to match that amount to keep him.
    3. capela may not get a max offer from the suns, mavs, or hawks thanks to probably drafting centers. i'd be wary of the lakers going for him if they get george and miss on lebron. if they pass too, the sixers, pacers, and kings have no use for him... it will end up being the bulls or the nets with a modest $12-14M/yr offer that the rockets will gladly match, but will capela agree to that salary for 4 years? the best thing for capela AND the rockets is for him to accept the qualifying offer. he can probably make more money next summer, and the rockets can save a lot this year.
    4. the rockets will use whatever assets they have to dump ryno's salary: picks, cash, draft rights (llull, etc...). my bet is the kings. they made him the same offer we did, but he chose to come here. they may still be interested if we add the aforementioned sweeteners. plus they also have no other real use of their cap space (last summer they had to grossly overpay randolph and hill just to attract nba level players in free agency).
    5. I'd bet we luck into green and luc for the minimum again - i don't see either getting the MLE from another team. luc MAYYYBE but with the shoulders problem and how poorly he played in the playoffs its more likely he gets the LLE. at that point he probably decides to stay and go for a championship with his friends CP3 and Tucker at the vet minimum which isn't too much of a pay cut.
    6. MLE - tyreke evans, will barton, KCP, gay, wilson chandler, thad young, illyasova, danny green, are my targets in that order. my predictions here is that chandler, young, gay, and green don't opt out. we probably have our pick of the rest and i'd bet we land tyreke evans. the grizzlies could choose to pay him more, but he doesn't want to stay on the worst team when he could join the best. he fills the need for an extra PG but can also play SF or even PF in small ball lineups with cp3, harden, and ego since he's a good rebounder and ball handler.
    7. Vet minimum - Amir Johnson. great fit since he can spread the floor as a PF and protect the rim as a C. codman also hinted at this.
    8. minimum deals - make good on hartenstein for playing in the G league last season, keep nanu since we're already paying him. the last spot will go to an undrafted/nongaranteed rookie who we can cut during buyout season.
    we'd have the following roster and still be under the LT:

    capela-amir-nene-nanu
    tucker-luc-qi-hartnestein
    ariza-tyreke-green
    harden-ego
    CP3

    of course if capela costs the max this summer, we'd be over the LT and couldn't afford tyreke. maybe we'd switch him with illyasova for the tax-payer MLE. but the rest i'd bet works out that way.
     
  12. Rocket River

    Rocket River Member

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    Honestly. I am think that we might have to get something like the mid year trade Cleveland did.

    I think we can get LeBron but it will cost us in personel and picks but also in receiving crap back

    For Instance
    LeBron and Trash (Tristan, Jr, etc etc )
    for
    Capela , Ego and Ryan( Maybe not Ryan but still) and Picks

    Capela, Tristan/Love, Ego, #8 Pick -- could be a top 8 team in the East

    Capela + Ego for LeBron
    Esp since LeBron holds the keys . . ..
    What better can they get

    Teams mentions to be of interest to LeBron
    Who would Philly Give Up? Lakers?
    That is better than Ego and Capela?


    Edit: just read that sign and Trade hard caps Cavs
    Does it if the player being signed and traded to a different team?

    Rocket River
     
    #52 Rocket River, Jun 3, 2018
    Last edited: Jun 4, 2018
  13. JayGoogle

    JayGoogle Member

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    I love this article just because I completely forgot that Sergio Llull existed.
     
  14. Deuce

    Deuce Context & Nuance

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    I wouldn't be surprised if the Rockets structure the Ariza contract to be "in line" with the PJ Tucker contract and how it ends, which now has 2 years left with a 3rd being a partial guarantee. Ariza's probably would start above current MLE level. Perhaps 10M/per.

    @BimaThug what do you think the chances of that looking like?
     
  15. Vivi

    Vivi Member

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    @BimaThug thanks for the article.

    Is there already a projection of how much the cap will rise in 2/3 years?
     
  16. BimaThug

    BimaThug Resident Capologist
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    Hard to say. I certainly think the Rockets will try to angle for a shorter-term (2-3 years) deal for Ariza, rather than paying him over four years. I've seen some (such as Nate Duncan) say they could see Ariza getting a deal structured like the one you describe but paying Ariza $12-13M per in the first two years, with a small/decent-sized partial guarantee in Year 3.

    Current projections (as far as I know) for 2019-20 are:
    --Salary Cap: $108 million
    --Luxury Tax Threshold: $131 million
    --Apron Level: $137 million

    I believe I read somewhere a while back that the cap could go up to about $120 million in 2020-21, but that information may be outdated. Plus, with the recent Supreme Court ruling allowing sports betting, it is possible the cap could go up even more in future years, depending on what sort of deals the NBA can work out with various states and/or the federal government for a cut from legal sports bets. It's all pretty murky at the moment. Here's hoping the Rockets have a decent handle on where the cap may be going in future years.
     
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  17. Yao4REAL

    Yao4REAL Member

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    I think PG 13, Lebron and Chris Paul will join the Lakers.
     
  18. DaDakota

    DaDakota If you want to know, just ask!

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    Wow - excellent read Bima !

    DD
     
  19. dobro1229

    dobro1229 Contributing Member

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    I've been leaning more and more to this possibility in the past few days the more I look at it.

    Rockets fans will freak out, but I don't necessarily think its the end of the world. Although it likely knocks the Rockets out of the running of contending with the Warriors next year, but they likely would be regardless with CP3's likely decline.

    In this case, the Rockets & Morey are essentially a year away from again being able to rework the team around Harden who is still locked up for years. Basically the Rockets might have to settle for being a 50 win team instead of a 65 (likely a 60 win team) next year in order to contend a year from now again. They'll also be a better position to make trades such as if Toronto ever decides to blow up their backcourt, or with another trade scenario.

    So long story short, I think this is actually looking more and more likely, but I won't freak out if it happens. The Lakers will be pretty freaking good for two years, but the Rockets will continue to live to fight another day in the Harden era and won't be completely locked in to the Harden/CP3 duo for the next five years.

    It is what it is, and this is something only the Lakers could pull off, and only happens in the NBA.
     
  20. daywalker02

    daywalker02 Member

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    They fake their way to a championship, yet again.
     

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