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[2019-20] Luxury Tax Watch

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by justtxyank, Jul 3, 2019.

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Will the Rockets start 2019-20 under the tax?

Poll closed Jul 10, 2019.
  1. Yes

    54.0%
  2. No

    26.0%
  3. I abstain. Courteously.

    20.0%
  1. fallenphoenix

    fallenphoenix Contributing Member

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    it's almost like the players that cost less aren't as good.

    wait a minute...
     
    LFE171 likes this.
  2. Sajan

    Sajan Member

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    What years have we paid the tax?

    Didn't GSW pay almost 55 million last year in tax?
     
  3. ThatBoyNick

    ThatBoyNick Member

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    I think we can achieve spending the rest of our NT MLE if we use a couple of roster spots on rookies like Ponds and whoever else impresses from summer league. When I do the math (very rough math that is) it seems possible, I'll lay it out.

    Paul - 38.5
    Harden 38.2
    Capela - 14.9
    Gordon - 14
    Tucker - 8.4
    House - 3.5
    Rivers - 1.6
    Hartenstein - 1.4
    Clark -1.4
    Troy Williams dead cap - .1

    9 players = roughly 122 million

    leaving 10.6 million for 4 more roster spots. We have roughly 5.7 million we can use of our remaining NT MLE, let's assume we only use 5.5 million of that and go with at least two rookie minimum guys.

    MLE - 5.5 million
    Vet min - 1.6
    Vet min - 1.6
    Rookie min - .9
    Rookie min - .9

    ='s 10.5 million

    So technically, I think we can use almost the entirety of our remaining MLE, and still barely squeeze under the taxpayer cap. That being said, not paying taxes isn't NEARLY as important as it was last year due to us no longer having to worry about the repeater tax with CP3 expiring before that would be enacted.

    Hou could comfortably use both the remaining MLE, and BAE without hitting the hard cap.


    The question is, do we go this route? Or do we stick with our 2.1 TP MLE, vet mins and try to sign Shump as a trade filler down the road.
     
  4. BimaThug

    BimaThug Resident Capologist
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    TL;DR this thread, but if Tilman Fertitta is "willing to spend" on using the Non-Taxpayer MLE and the Bi-Annual Exception to add key pieces, the most luxury tax that the Rockets would even be ALLOWED to pay this season would be less than $9.8 million.
     
  5. justtxyank

    justtxyank Contributing Member

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    200never
     
  6. baller4life315

    baller4life315 Contributing Member

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    Great thread and question.

    I voted no. I think at this point (Jimmy Butler or bust) we’ll avoid it, and it explains more broadly why we’ve been bystanders so far in free agency.
     
    pippendagimp likes this.
  7. pippendagimp

    pippendagimp Member

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    i think we actually paid a very slight amount one year but forget exactly when
     
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  8. pippendagimp

    pippendagimp Member

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    + gerald green too, already signed to vet min

    also i seem to remember something about our vet min contracts only partially counting towards the cap as well
     
    ThatBoyNick likes this.
  9. pippendagimp

    pippendagimp Member

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    ponds also has guaranteed money but not sure about the details
     
  10. justtxyank

    justtxyank Contributing Member

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    At this point it’s a philosophical question in my mind. I don’t really care if they pay luxury tax, but I do care if avoidance is part of the calculation
     
    Nook likes this.
  11. joshuaao

    joshuaao Member

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    Kawhi’s decision is holding up signings across the league. I’ll reserve judgment until after that point. Hope we do one of the following:

    1. Use NT MLE and BAE to get quality free agents at a discount, OR
    2. Sign Shumpert to a large one year deal via bird right to facilitate trades (SnT or a deal later in the year)
     
  12. J.R.

    J.R. Member

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    pippendagimp likes this.
  13. baller4life315

    baller4life315 Contributing Member

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    I hope you’re right about being aggressive with a Shump SnT, but I’m skeptical at this point. This feels like a repeat of last offseason and also the trade deadline.

    Plenty of scenarios discussed yet nothing materialized, so we decided to “punt”.
     
  14. justtxyank

    justtxyank Contributing Member

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    Yeah it’s crazy how teams haven’t been signing guys bc of kawhi.

    Wait wut

    I think the rockets might be the only team in the nba that hasn’t made an outside player transaction
     
  15. JoeBarelyCares

    JoeBarelyCares Contributing Member

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    Plus lose out on the kickback to non-tax paying teams ($3.1 million last year).
     
  16. Earnie Banks

    Earnie Banks Member

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    I bought into the rationalization that we needed to avoid the repeater tax, and to this day defend Tillman (or at least holding off judgement). Mostly because that makes sense, it blows things up exponentially, and there werent players worth that.

    I trust him and Morey saying Tillman will be more than willing to spend well over the luxury cap moving forward. Not much of this has, or will change until after the trade deadline this year.

    If we stay under the cap this year, Im buying none of it anymore. Ill jump on the "Fertitta is a horrible owner who cares nothing about winning" bandwagon. I think that is a fair balance of trusting Tillman/Morey and completely turning on them this early into his ownership.

    Right now, I am stoked about Rivers and House, and expect one more big signing or trade to be done by playoffs.
     
  17. joshuaao

    joshuaao Member

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    There was a rush of moves at the start of free agency (with a lot of overpays too), but things have tapered off a bit.

    Guys like Danny Green, Jamychal, Demarcus, Jabari Parker and Marcus Morris are still out there. The only teams with meaningful cap space (both LA teams) are in a holding pattern for Kawhi.

    I bet once Kawhi signs, you’ll see these guys come off the board too.

    (For the record, I do wish the Rockets made a push for Jeff Green or WCS, but who knows if those two were interested in the Rockets in the first place)
     
  18. justtxyank

    justtxyank Contributing Member

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    It hasn’t tapered off though it’s just that big names are basically all gone except for the small group that wants la. There are multiple signings every day.

    Like I said, I believe we are the only team without a player transaction that didn’t involve our own players
     
  19. harold bingo

    harold bingo Udoka Only Fan
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    I feel 100% the same way. A lot already wrote off Tilman because of his behavior before he owned the Rockets, but I'll give him a chance to prove himself here. But if we end up under the tax this year after what happened last year, I'm done.
     
    Earnie Banks and snowconeman22 like this.
  20. alethios

    alethios Member

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    We never had the cap space to bring in marquis players without gutting our team in the process. Since we can't do better than bench-worthy players, does it make sense to go over the LT line? It does make sense to use some of the MLE to get a backup wing player.
     

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