[Feigen] Fertitta disputes idea Rockets used the Trade Deadline to get under the Luxury Tax

I don't know why Clutchfans suddenly thought Les was a big time spender

 

Now that I think about it.... Maybe Tilman is denying this was a tax-saving strategy, only because he doesn't want you to have any expectation that he will add salary this summer in exchange.

That's so Tilman.

 

yep, during his tenure we labeled it cap flexibility and Morey sold it to the people by saying all the big name free agents that were available. We've been dud'ing for a minute

 

I think the truth is somewhere in the middle. I think they will go over the tax if they feel the player is a significant upgrade and will put us into contention. But they are not going to let James Ennis be the guy that puts them over the tax nor should they.

 

Didn't Barkley take the minimum so we can sign Pippen and Les promised Chuck $3 mill at the end of his contract?

HMMMMMMM

 

I don't think this is correct. A team could trade its first rounder every year, it just can't trade picks in back to back years during the same fiscal year. When the new fiscal year starts each summer then the team is eligible to trade the next year's pick, as long as the following year's pick has not been traded. For example, if we would have traded the 2019, 2021, 2023 and 2025 picks for Butler, come July 2019 we could not trade the 2020 pick. But since we still have our 2021 pick, after the 2019 draft we can trade our 2020 pick even though we didn't have our 2019 pick. Also, we could trade that pick during the draft as long as the trade is not effective until July (in which case we make the pick for the other team).

 

Because Les is more.

 

CLutch I've got a Q about the repeater tax .

To get levied with it , you have to be in the LT 3 out of the last 4 years right ?

Doesn't that mean if you go into the LT 3 years in a row then during the last year you have to pay the repeater tax ?

Or does it only count the preceding seasons?

Can we actually go into the LT the next 3 years and not pay any repeater tax assuming we get out of the LT afterwards ?

 

I'm not answering for @Clutch but your team will pay the repeater tax (or multiplier) every season that you're going to be over the tax threshold and not just the last year.

This is from cbafaq.com



The endgame here is if the Rockets were ready to pay taxes for this season, is the team (however it will be constructed) going to give us an overwhelming chance to contend for the championship? For example, trading for Jimmy Butler would have justified the taxes because you're getting back an All-Star player. If not, there's no reason to dip into paying Luxury tax (especially if the team is only a couple of millions over the tax level) because the reality is that your trio of Harden/CP3/Capela will eat up around 80% of your capspace for the next 3 years.

So, from a cost-benefit perspective, there's more reason to go over the luxury tax threshold and pay the tax to field a better team down the road.

It's like you don't want to burn your free pass right now of not paying luxury tax when it's not going to give you the best chance to contend. And with the rash of injuries the Rockets faced this year, it's not smart to go into the tax this season and face the wrath of possibly paying taxes for the next four seasons due to the Harden/Paul/Capela trio eating up 80% of your capspace.

I agree with Clutch in that Tilman should be upfront and more transparent that the tax is a REAL concerning thing--not only for him but also for the benefit of the team moving forward from a team-building perspective.

 

And this is what grinds my gears. People hitch onto the "seasoned vets" of this board and their rants about Tilman being cheap when Les was anything but a big spender.

 

Let's be real, the whole "Tilman is cheap" thing is just a meme that's been perpetuated by Carl Herrera for some odd reason, maybe Tilman or a family member of his did something to set him off. We don't have enough evidence yet to say which way Tilman will spend, but if he's cheap then it's just more of the same. GMs under Les always maneuvered to get under the luxury tax, this isn't anything new.

 

The repeater tax comes in on that FOURTH season.

Not sure how you're getting that. The repeater tax is not applied retroactively to prior taxpaying seasons. It is only applied on a going-forward basis. For instance, Miami is subject to the repeater tax this season. If they fail to duck the tax by the end of this season, they will pay the repeater tax on the amount by which THIS season's team salary exceeds the luxury tax threshold. They will NOT be assessed additional tax for any prior seasons.

 

Thanks for the correction @BimaThug

@snowconeman22 that'll be the LAST time I try to answer a cba question lol

 

You fundamentally do not understand how any of this works. Being in the tax with CP3 locked us in to ONE TP MLE, vet mins, and trades ONLY. The only piece we had to get significantly better was the Ryno contract. That was our pathway to anything because it was the only salary slot capable of converting. This is about contracts, not players. We are screwed permanently because that contract is gone. We were going to turn it into General Soreness. Our mission was to spend whatever you have to in draft picks to make that happen, even earlier. We didn't and wasted two years and paid a higher price ignoring the huge opportunity cost to us. Instead of using draft picks toward a positive asset, we threw away draft picks in the trash to dump salary. It is demoralizing and stupid and no other way to describe it. The writing is on the wall. Harden has no savior coming now. Imagine the outlook this team would have had with a PG13 or Butler. This offseason was the most critical and everyone failed miserably. This was two years in the making. Morey kept delaying his report card because he wanted to win in the ultimate trade. Great is the enemy of good. You overpay for a winner and I would have rather seen Morey giving up too much in future assets to secure the present. How often does a Dream or a TMac/Yao come around? We have Harden/CP3 and look what we didn't do AGAIN? Meanwhile, the rest of the NBA is building superteams and they all manage somehow to overpay and get that extra piece. The dumpster fire Sixers who were our recycling facility wasted all of their assets but they passed us by with 4 big pieces. Milwaukee and Boston and Toronto and others have all had no problem getting the job done but our ego gets in the way. This magical dream of the Warriors losing a piece while everyone gets better just highlights why your plan is fantasy. No one except us is sitting still. Our advantages one year to the next disappeared. The time is always now.

 

Ok thanks for clearing that up .

In not sure if that makes me feel better or worse about our cost cutting moves at the deadline .

It seems that would mean we have even more time to plan to get out of the tax before the repeater starts to hurt us .

I know cp and James have high salaries in that year so it could be a really high penalty but ... if you win in the years beforehand do you really care ? You will have probably made more than enough to cover the cost based on the $ winning a chip gets you . On the other hand ... if you haven't won by the final year ... does anyone really blame you for cutting costs that year to move forward ?

 

After the AD situation amd jimmy butler can we stop pretending teams are going to just give the rockets a player for some bad picks and an expiring who will put us over the top?

Can you guys stop being delusional? The most we can hope for is a tobias harris and that type of player wont put us over the top.