[ClutchFans] Houston Rockets Salary Cap Update: The New CBA

If the Rockets amnesty T-Will, then the Rockets could offer Nene or Chandler a starting salary of about $10.17M (increase that to about $10.95M if Morey holds off on signing the rookies until after signing the free agent).

If the Rockets amnesty Flynn, they can offer those guys a starting salary of about $11.22M (increased to just under $12M if they hold off signing the rookies).

The "Stretch Exception" to which you are referring only applies to NEW contracts (signed on or after December 9). Hence, I chose not to spend time on it in this update. I'm sure the Stretch Exception will make its way into future salary cap updates, though.

 

The Rockets CANNOT sign two free agents to max contracts without trading at least one of Martin, Scola or Lowry. Obviously, Morey would look to acquire at least one "max guy" via trade.

While you are correct that the "30% of cap max figure" is $17.4M. But the three superstars will be owed a little more (or a lot, in Howard's case).

Both Paul and D-Will (as 2005 draft picks) signed max extensions back in 2008. Each contract has a player option for 2012-13 at $17.78M. So, those guys can either (a) decline the player options of their contracts and sign four-year (or if re-signing with their old teams, five-year) deals starting at $17.4M or (b) sign extensions that would only pay them until 2014 (or until 2015 if re-signing with their old teams) but at the higher $17.78M figure. (There is also what is called the "105% rule" that allows max players to re-sign for 105% of their prior year's salary, regardless of what the max salary is, but that figure--$17.17M--is actually less than the "regular max".)

For Howard, a 2004 draft pick, he signed his max extension back in 2007 and has an Early Termination Option after this season. His current contract (if he elects not to opt out) would pay him $19.54M. So, Howard can either (a) opt out of his contract and sign a four-year (or if with Orlando, a five-year) deal starting at just shy of $19M (105% of his 2011-12 salary) or (b) sign an extension that would only pay him until 2014 (or until 2015 if with Orlando) but at the higher $19.54M figure.

So, long story short:

Paul and D-Will will command about $17.78M, at least.

Dwight Howard will command about $19M, at least.

(Subject to players' willingness to take "discounts".)

In your hypothetical, the Rockets would still owe Thabeet the DIFFERENCE between his actual salary ($5.13M) and the salary at which he is claimed ($2.5M), meaning that Les would still owe him about $2.63M next year, with Thabeet's new team obviously covering the other $2.5M.

Also, since the Heat are over the salary cap, they are ineligible to bid on amnesty cuts on the "secondary waiver market".

Yes, it would free up cap room and would--all else equal--be preferable to using the amnesty clause. Please note, however, that the team would have to choose between the cap room or the TPE. You can't have both.

 

Yes. This is not a new concept. The TPE is a Trade Player EXCEPTION, which allows a team to exceed the salary cap. However, if the team is already under the salary cap, it is a moot point.

THIS is why the Rockets may be able to have ~$7.8M in cap room yet opt NOT to use it. That way, they keep the MLE and all their TPEs. (Also, Yao's bird rights, in case he changes his mind ).

 

Theoretically, yes, I suppose.

I'm just not sure whether Nene wants to wait the extra two weeks to sign and might find this strategy a bit "gimmicky" for his taste. Nor would the Rockets be too enamored with starting training camp and the "entire" preseason without one of their main players.

But I like the outside-the-box thinking.

 

Perhaps. And if ever there were a season to try to pull this off, it would be this one. You probably won't find too many seasons in which the opening of the free agency period is 16 days prior to the start of the regular season.