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[ClutchFans] Houston Rockets Salary Cap Update: 2012-13 Training Camp Edition

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by BimaThug, Oct 1, 2012.

  1. BimaThug

    BimaThug Resident Capologist
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    Thanks for the kind words about my son, who my wife takes to calling Li'l BimaThug from time to time. He could actually name 11-12 players from LAST season's team back in March/April (only a few of whom are still on the team). It's amazing how quickly he picks up these players' names. I swear, I didn't drill those names into him; he just picked them up over a few discussions and watching a few games with me on TV.


    Basically, yes. The "poison pill" label to the structure of Lin's and Asik's contracts is actually a bit of a misnomer. (There is actually a different matter that is commonly known as a "poison pill" provision, which refers to when a player--typically still on his rookie scale contract--signs a massive extension but is still playing for one more year at his rookie scale salary. If a player is traded during that season, there are certain onerous trade restrictions involving that contract, which I will not get into right now. For instance, Blake Griffin's contract this season is a "poison pill" for trade purposes.)

    Anyway, back to Lin and Asik. Not only do their contracts count an evenly-distributed $8.37 million for each of the next three seasons, but the "poison pill" payment structure (as you call it) is actually BETTER for the Rockets than an alternate contract paying $8.37 million per. Since both Lin and Asik are only actually being paid $5 million this season and $5.225 million next season, their contracts essentially represent interest-free loans to the Rockets. The time value of money dictates that the present value of their contracts is actually LOWER than that of a typical three-year, $25.1 million NBA player contract.

    I honestly don't have a clue. I was basically referring above to a player who was both (a) on a max contract and (b) worth his salary, as opposed to an under-performing player on a bloated contract (for whom Morey would not give up Martin PLUS young players and picks). For a high-salaried player who is actually worth his salary, Morey would be far more likely to "pay up" to acquire that player.
     
  2. justinh

    justinh Member

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    nice work, as always. thanks, bima.
     
  3. thekad

    thekad Member

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    None. At least to Houston.

    We're going to war with this team unless Morey does something stupid (again) and trades for a stopgap player like Smith or Granger.
     
  4. Deckard

    Deckard Blade Runner
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    The Lin and Asik contracts are a trip. The more I read about them, the more I admire the deviousness of Mr. Morey. This has to have more than one rival GM shaking his head in admiration. Another great write up, Bima, and the video of your son is priceless! Be sure to tell him that we'll expect future updates as Morey works his magic. ;-)-
     
  5. BimaThug

    BimaThug Resident Capologist
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    Thanks. Yeah, the capologist in me LOVES these types of contracts.

    My guess is that you will rarely ever see this situation play out in the future. The number of one- or two-year veterans for which the "Arenas Rule" would actually come into play will be few and far between.

    Jeremy Lin was an outlier of the most extreme proportions.

    As for Omer Asik, who was a highly touted foreign prospect when he entered the NBA Draft and who likely would have been a first round pick if not for contract issues, the Bulls basically just screwed up. They should have locked Asik up for three years but instead just gave him a two-year deal. And it wasn't even an MLE issue, as the Bulls (who had just struck out on Lebron James) had plenty of cap room to use at the time. Mark Deeks (of ShamSports.com fame) actually has a great story about it here.

    Going forward, I think you will see more and more teams use either cap room or (if a team doesn't have cap room) a portion of their MLE to sign second round picks--and maybe even some undrafted guys!--to three-year deals (with non-guaranteed salary on the back end), instead of the "old standard practice" of signing those guys using the Minimum Salary Exception (which only allows for a maximum of two-year deals).
     
  6. haoafu

    haoafu Contributing Member

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    Bima, I just come across a thought: Why Rockets didn't sign Machado to 4 year deal with partially garanteed first 2 years and team option on last 2? I think Parsons/Budinger were 2nd rounders signed to such deals.

    Are they restricted to only offer 3 years to undrafted rookie, or they are not too high on Machado, so that they only offer 3 year deal?

    I don't think he will be as good as Bud or Pasrsons(he should be decent third string backup), but I'm curious about the details.
     
  7. BimaThug

    BimaThug Resident Capologist
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    The Bud and Parsons (and Jermaine Taylor) contracts were negotiated to be four-year deals, in part, to treat them (all drafted in the top half of the second round) sort of like first round picks (who all get four-year deals).

    The reason for giving guys like Greg Smith and Scott Machado THREE-year deals is largely tied to guaranteed salary. While the above-mentioned players had at least two full seasons fully guaranteed, Smith and Machado have only partial guarantees. It is highly unlikely that a player will agree to commit to more than a three-year deal when pretty much all of the contract is non-guaranteed.

    There is also the issue of restricted free agency. Free agents with three years' NBA experience are restricted free agents. Those with four years' experience are unrestricted.
     
  8. jopatmc

    jopatmc Contributing Member

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    I think it is much more likely that we take on a bad salary from a team looking to shed salary and get a possible future lottery pick then that we will be able to trade for a legit superstar max player...... unless Lamarcus or Cousins shake loose.
     
  9. haoafu

    haoafu Contributing Member

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    Thanks, Bima! Smart decisions by the management again.

    Most of the players are so undervalued, and I'm pumped up for the new season.
     
  10. dobro1229

    dobro1229 Contributing Member

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    I think that is an under the radar goal of the design of managements cap management plan.

    Look at the Mo Williams/Baron Davis trade a couple years back as an example of what can happen if you can lighten up a teams wallet.

    (The Rudy Gay, Z. Randolph, and Turkaglo contracts sort of scream out at me on paper. Also don't fall asleep on the Batum contract even though the ink hasn't even really dried on paper yet.)

    Of course if a star player "shakes loose" and they fit into the Rockets rebuilding plans then they still have would have an even greater asset in this situation even after taking on a large contract for an asset type of deal.
     
  11. jopatmc

    jopatmc Contributing Member

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    The Portland situation is going to get interesting. I just instinctively feel that Batum wants out. I think he's going to suck it up and try to get traded. I think he wants the Spurs (TP). And if Portland sucks it up, then his salary could become a huge albatross that htey feel they have to move. Problem is there's probably not a good lottery pick to be had there. However, a Batum/Aldridge package could get very interesting if Portland decides they need to rebuild.

    That sort of deal may materialize but it's very iffy. And if it does, I don't know if Morey jumps on it since we got Chandler for a tiny fraction of Batum's salary and Chandler may be just as good or better than Batum right now.

    Beyond that, Sacramento's situation is very unsettling. Cousins could get a belly full of all the losing and blow up and they feel like they have to move him while they can still get value for him before he is paid big bucks. He is a POTENTIAL max-salary player that has the POTENTIAL to be worth a max salary.

    Barring those two guys (Cousins and Aldridge)...there's nobody else. OKC is not going to trade Harden......unless he starts stinking. And then if he starts stinking real bad, do you want him on a max deal. If he plays well....they simply aren't trading him. It's a waste of time to discuss it.

    Now, the Knicks may decide to move Amare out for expirings and send out some draft picks...but they done traded their 2014 pick to Denver....so nothing cooking there.

    Utah has GS's top 6 protected pick for 2013 or 2014 possibly. And Chicago has Charlotte's 2013 pick (top 12 protected in 2013 and top 10 protected in 2014, top 8 protected in 2015 and unprotected in 2016). Utah is in good shape capwise. Only way to squeeze that pick from them would be if they were actually competing to go to the Finals and we could give them enough that they felt they could top LAL, OKC and get to the Finals.

    Chicago, on the other hand, is staring at the repeater luxury tax if they re-sign Taj, which they are likely going to do. They have to figure out how to avoid the tax and still be competitive to put the pieces around Rose to possibly get by Miami. I could see a trade developing with them where we relieve them of Boozer's boat anchor deal and send them Martin and Patterson for Boozer and Hamilton or whatever they need to send out to get under $70 million, in exchange for that Charlotte pick. But that wouldn't be unprotected until 2016 and would most likely wind up being a 10-14 lottery pick.

    There's just not a whole lot out there right now. And it doesn't appear we are going to tank. I'm looking forward to another season of getting my hopes up and watching this team compete and get better, only to wonder if we should be tanking and going after Mr. Wiggins in 2014 and Mr. Zeller this year.
     
  12. dobro1229

    dobro1229 Contributing Member

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    When you look at some of these contracts that the Rockets would get involved in taking on its probably likely that this would be a creative three team trade type of deal.

    -For example, maybe the Rockets do a three team deal with Memphis, and Utah with the Rockets taking on the unfavorable contracts of Mo & Marvin Williams for essentially the Golden State 1st round pick & Utah picking up Rudy Gay. Lots of different ways that you could shuffle around players in this type of trade, but you get the general idea.

    Regardless, there are alot of ways the Rockets can essentially take on a bad contract if you involve a third team & get a little creative.
     
  13. jopatmc

    jopatmc Contributing Member

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    Yes, lots of ways to take on bad contracts. The challenge is how do you get a true unprotected lottery pick like the Baron Davis lottery pick...by taking on a bad contract? Otherwise, in my opinion, it just isn't worth it.
     
  14. dobro1229

    dobro1229 Contributing Member

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    At the trade deadline, if there isn't a superstar trade out there, I would be more than willing to take on an unfavorable contract for a draft pick like the Golden State pick that Utah owns.

    I think GM's are getting wiser as time goes on. I dont see future top 3 draft pick trades likely in the future at all, but as we saw this Summer teams are still very willing to trade lottery picks, but are protecting themselves much better against the possibility of a Davis/Williams type of trade happening again.

    That being said, never underestimate the stupidity of some NBA front offices.
     
  15. leebigez

    leebigez Contributing Member

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    Great write Bima. I like livingston more than most. He's not the prospect he was, but last yr I saw more of his explosion come back and he's still a great passer. He's probably the best and most natural passer on the team. In terms of other notes, I can't understand martin back on the team. I mean, we can talk about him being a pro,but why would he give his all to the rockets? Id rather get a anything and get him off the roster and see lamb develop. Jmo
     
  16. dobro1229

    dobro1229 Contributing Member

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    He is going to be a free agent this Summer, and he's at the point in his career where he is due for one last major payday. Whether he likes the Rockets or not, its in his own personal best interest to kick A#$ the first half of the season to get his value back up to where it was a year ago.

    After the trade deadline, the 2 spot should essentially be Lamb's all day long, but its not going to kill his career playing behind Martin for a few weeks. If anything, it should help.
     
  17. mirus

    mirus Member

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    Could anyone (bima esp) update the new cap structure if:
    harden gets the rumored max
    and calculating other guys traded from okc
     
  18. Joe Joe

    Joe Joe Go Stros!
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    Interested as well. Cook is FA. Aldrich and Hayward are team options for next season so may be gone. My guess is that the Rockets will have about 43 million allocated in salary for 13-14 season so far.
     
  19. mirus

    mirus Member

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    thanks joe.what i really want to know is how much else we can offer for max cats and what are the picks we are holding now
     
  20. francis 4 prez

    francis 4 prez Contributing Member

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    Bima is slacking. it's been almost an hour since the trade and this still hasn't been updated for the new guys.
     
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