Danuel House Contract Options (I have grown to love LTS)

I am very glad that the gamble to wait on bringing back Danuel House has paid off. It seems that at this point, we should be able to stay safely out of Luxury Tax Territory. However, I'm no capologist and could use some help. I believe House is valuable to the team immediately and in the future, and am assuming the Rockets do agree since they reportedly offered him a long-term deal. I would like to go over the Rockets options to play him in the playoffs and keep him long term.

Playoff options:

1. Rockets convert House to end of year contract or sign him to long-term deal before April 10, making him eligible for and adding him to the playoff roster. Rockets then proceed to kick butt in playoffs.
2. Rockets do not convert House to end of year contract or sign him to long-term deal before April 10, making him ineligible for the playoff roster. Rockets then proceed to kick butt in playoffs.

Benefits/Drawbacks for Rockets adding House for playoffs :

1. Rockets get to play House in the playoffs. This benefits both Rockets and House as House can help the team win and add up to an extra $250,000 in his pockets luxury tax free with playoff pool money.
2. Rockets must offer a Qualifying offer of 1.85 mil to House to make him a restricted agent, vs $50,000 2 way player contract. Benefits House since he gets either 1.85 mil guaranteed or is an unrestricted free agent if not. Even if becomes an unrestricted agent and doesn't get signed to even a 2-way deal for the whole season; worst case for House, #1 will mean he earned more money and he could still play somewhere else. No one signing him as an unrestricted agent would mean he wouldn't have gotten signed as a restricted free agent and the Rockets didn't want him on a 2 way deal either.
3. House gets prorated salary for portion of regular season converted. Benefits House, more money. Minimal effect on Rockets because can still easily avoid tax.
4. Playoff injury risk. Don't believe this will be much of a factor since it is just as likely for him to get injured if not in playoffs. If injured, House would have more access to Rockets doctors and training staff since he would be a team member.
5. House would likely raise his market value with playoff experience and exposure. Obviously benefits House, but only benefits the Rockets if House is signed long term.

Regular season options:

1. Rockets convert House to end of year deal immediately. See playoff option #1. Highly unlikely at this point because it prevents?/hinders the Rockets from signing him to a long term deal without Restricted free agency.
2. Rocket wait until end of RGV season to bring back House for free. (not counting towards the salary cap, but he still makes prorated NBA minimum). Highly likely, would allow Rockets to choose either playoff option and give more time to try to negotiate long-term deal.
3. Rockets do nothing with House before April 9th. Doesn't help anyone since we are assuming House would help the team. House makes less money unless he signs last minute long-term deal. Rockets could still choose either playoff option at the last minute, but could delay building chemistry if adding him last minute. Most possible negotiation time before playoff decision.

Preference:

Negotiate long-term deal as soon as possible. From what I understand Rockets could still give House extra cash up to nearly $800,000 this year as additional incentive to sign a long term deal without going over tax. Would like exact numbers relative to Capela's incentives, but I believe that is correct assuming he only hits the Western Conference finals incentive. I believe the maximum deal House could get is a prorated $25 mil so should be easy to find a number prorated to give him the remaining cap space. Adding in playoff pool earnings House could put 1 mil in his pockets this year. Since Rockets will almost certainly be in the tax next year, the 1 mil this year tax free means for the same $'s in House's pocket Tilman saves between $1.5 million and $3.75 million in tax next year depending on how far we are above tax, also helps with hard cap. meaning a deal now putting 4.7 mil actual cash in House's pockets ($800,000 + playoff pool + 2 min years) could cost up to millions less than a 2 year minimal deal in restricted free agency that puts $4.0 million in his pockets.

 

I'm pretty sure it's right. If House is last a member of an NBA team, which he will have been, his qualifying offer is the league minimum 1.85 mil. If not he his qualifying offer is another 2 way contract. Either way he will be a restricted free agent unless we refuse to offer the QO. I got that from https://www.forbes.com/sites/jeffsi...s-restricted-free-agency-unfair/#159704287ee8

 

I'm also curious what people think the offer amount would need to be for House to sign a long term deal. I would hope a net of $6 mil over the next 3 years would be a good amount. I don't think House can be certain another team will sign him, especially if he is not on the playoff roster. Especially with him being a restricted agent and the Rockets potentially matching.

I don't think the Rockets can be certain no one will sign him for more in free agency either.​

Especially if he plays in the playoffs