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

I'm right here, man.

I wanted to reserve my thoughts until I see HOW the Rockets acquire Dalembert.

Until I see that he has signed a contract outright with Houston, I am holding out hope that Morey can somehow acquire him via S&T with Sacramento. For instance, the Battier TPE is large enough to absorb Dalembert's new salary. There's even the (slight) chance for a dual S&T of Chuck for Dalembert.

A S&T would be preferable to an outright signing, since it would preserve all of the Rockets' cap exceptions and other TPEs. If they just opt for cap space to sign Dalembert, they'll have to renounce all of those exceptions, TPEs and cap holds.

The problem here for the Rockets (besides getting Sacramento to bite) is that all contracts signed in S&T deals must be at least three years long, although only one year needs to be guaranteed.

The way Morey has structured Dalembert's deal (two years, with the second year only partially guaranteed) can't be done in a S&T deal. There must be an extra year. The Rockets likely don't want any guarantee on that third year. Dalembert likely doesn't want another non-guaranteed season.

I'm not a huge fan of Dalembert, but he was the best remaining alternative and can definitely help this team. He does what this team needs: rebound defensively and block shots.

I actually like the contract structure. It allows the Rockets to add a good player without sacrificing much cap flexibility for next year. If he has a great season, then you've got yourself a bargain on a center for 2012-13. If he flames out, the team can cut its losses fairly easily. (I may have more to say about this in a blog entry once Dalembert actually signs and the terms of his deal are finalized.)

Cap-wise, no matter how he is acquired, this will likely wipe out any potential 2011-12 cap room. But so what? They had no one better to use it on, anyway. And even if the Rockets eat the partial guarantee in 2012, they'll still have plenty of cap room next summer if they want.

 

CH, you added language to your quote of me that wasn't mine. Was that your writing that just mistakenly got into my quote?

On the $2.5M exception: This is what is known as the "Room Exception". It is available to teams that use their cap room all the way to the salary cap max, allowing them to go over by signing a player to a $2.5M deal. The Rockets should have this available to use.

Both you and Feigen may have gotten confused by you asking him about the "mini-mid level". That is something different. Teams that do not want to become subject to a $74M hard cap can only use $3M of the MLE. This is known as the "mini-mid level" exception. The Rockets cannot use this exception, since they (allegedly) renounced the MLE in order to sign Dalembert.


jopatmc, if the Rockets ACTUALLY signed Dalembert to his contract (I wouldn't be surprised if the Rockets keep trying for a S&T until the last possible moment), then that means no more TPEs, no more MLE, no more BAE, and no more cap holds on former players (including Yao Ming).

 

Yep, that's what I wrote in the last paragraph of what you just quoted.

With an outright signing, no more TPEs.

Also, I'm guessing that some/all of Lin, Cousin and Blakely will officially be waived (to the extent they hadn't already been waived).

 

Lin wasn't amnestied. He was just "regular" waived.

You can waive any player at any time. You may just have to pay the player's salary. None of Lin, Cousin or Blakely is guaranteed any salary if waived prior to the regular season.

 

As long as a team is not over (or would not, as a result of the trade, cross into) the luxury tax threshold, it can now take back up to the LESSER of (a) 150% of the outgoing salary plus $100,000 or (b) 100% of the outgoing salary plus $5M.

Tax-paying teams are subject to the prior limit of 125% of the outgoing salary plus $100,000.

The Rockets, who are nowhere near the luxury tax now, are subject to the first limit above.

(The "140%" thing was just an early report that was later changed in negotiations.)