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Morey stuffed by Silver, Nene's likely bonuses rejected

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by ThatBoyNick, Sep 19, 2019.

  1. ThatBoyNick

    ThatBoyNick Member

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    Feel like it deserves its own thread. NBA rejects Morey's genius.

     
  2. Clips/Roxfan

    Clips/Roxfan Member
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    Dan Feldman said it best:

    "This is a huge blow to Houston. The Rockets are now stuck with an over-the-hill center they can’t trade for value and can’t play much without triggering bonuses that’ll make him way overpaid.

    If they had known how this would turn out, they would’ve signed Nene to a one-year minimum contract at most. At least that’d be partially subsidized by the league. Because this is is a two-year deal, Houston is on the hook for the full base salary".

    https://nba.nbcsports.com/2019/09/1...kets-to-use-nenes-contract-as-10m-trade-chip/
     
  3. pippendagimp

    pippendagimp Member

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    f'n alien lookin rig fixin beeeeyatch
     
  4. YOLO

    YOLO Member

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    Tilman: “bye nene”
     
  5. Reeko

    Reeko Member

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    Morey tried to be slick, but Adam Silver shut that down quick

    Silver said really, this sh*t is silly, you’ll have to do better if you wanna get Iggy
     
    #5 Reeko, Sep 19, 2019
    Last edited: Sep 19, 2019
  6. fryjol7

    fryjol7 Member

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    This is what you want from a winning organization, trying to get an edge within the rules. Sucks that it did not work, but can't blame them for trying.
     
    UTSA2step, Manos, BigMaloe and 30 others like this.
  7. amaru

    amaru Member

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    Boy oh boy! I bet Tilman is LIViD!
     
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  8. eliefor3

    eliefor3 Member

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    I wonder if the rockets can void the deal
     
    GotGame15 likes this.
  9. amaru

    amaru Member

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    I suppose Nene could retire but that would look very suspicious lol
     
  10. Clips/Roxfan

    Clips/Roxfan Member
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  11. DirtyDizzil

    DirtyDizzil Member

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    Read, Heat did the same thing a few years ago ? But didn't get punished, am I right ?
     
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  12. YOLO

    YOLO Member

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    Tilman’s Definitely pissed off
     
    c1utchfan925 and kjayp like this.
  13. smoothie_king

    smoothie_king Member

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    The bonus inflated deal is hog-wash for a player who only played 8 minutes of playoff minutes.

    Nene only played in second quarter rarely seeing action in the second half for the rockets this past post-season.
     
    saleem likes this.
  14. Os Trigonum

    Os Trigonum Haters go home
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    murray you magnificent moron
     
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  15. Reeko

    Reeko Member

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    what the Heat did back in 2017

    When Johnson’s deal was announced, hours later, it left us all confused. He would get a 4-year, $60 million deal. The math would seem to indicate a starting point of $14.0 million.

    Something was wrong. That was $2.1 million over. Which apparently suggested Ellington had to go. And there was no way in the world the Heat were going to waive Ellington to squeeze out a few extra bucks for Waiters, Olynyk and Johnson!

    So how did the Heat manage to create an extra $2.1 million of cap room?

    By cleverly leveraging a tool they tend to only rarely ever utilize – the performance bonus.

    Performance bonuses are exactly what they sound like – bonuses that a player can earn if he achieves certain performance-related milestones (e.g., games played, points per game, rebounds per game, etc.). But how they are treated for salary cap purposes has the potential to create intricate opportunities.

    Performance bonuses are classified by the NBA as either “likely to be achieved” or “unlikely to be achieved.” The distinction is critical because likely bonuses are included in the player’s salary (and thus count toward a team’s maximum available cap space), but unlikely bonuses are not.

    With a bit of creativity, the Heat could therefore potentially increase its total cap space beyond the limits of the $99 million salary cap by offering players contracts that contain bonuses which are deemed by the NBA as “unlikely to be achieved.” In such a case, the bonus portion of the contract could potentially not count against the salary cap (but still be paid out if it is ultimately earned), freeing up that cap space to be spent elsewhere!

    The NBA determines whether a bonus is deemed likely or unlikely to be achieved based on whether the criterion was achieved in the previous season. For example, if a player averaged 7.0 assists per game in 2016-17, then a performance bonus for 2017-18 based on 7.0 assists per game would be classified as “likely to be achieved” (and included in the player’s cap hit), but a bonus based on 8.0 assists per game would be classified as “unlikely to be achieved” (and not included in the player’s cap hit). The commissioner has the ability to re-classify the bonus at his discretion should he feel the prior season’s performance is not a credible indicator, a power which is rarely ever exercised. Therefore, it’s rather easy to structure a bonus for a guy like Waiters, who played just 46 games last season, which might be considered unlikely to be achieved but, in reality, seem imminently achievable. Just base it, at least in part, on his ability to play at least, say, 50 games.

    Bonuses deemed unlikely to be achieved are limited to 15% of the base salary in each season of the contract at the time of signing. All bonuses are re-evaluated at the end of each season, to determine whether they should be reclassified as likely or unlikely.

    This type of maneuverability would seem too good to be true, as if the Heat would be perpetrating a scheme that would effectively be bending (if not outright breaking) the salary cap rules. But would it be?

    Absolutely not!

    Despite the fact that this is rarely used in NBA circles (for various, practical reasons), it is perfectly legal.

    The CBA contains detailed and explicit rules specifically designed to reduce the likelihood of this very thing. But the rules only reduce the possibility, not eliminate it. It is this weakness that the Heat exploited!

    Follow the following explanation closely: NBA rules state that when a new contract is submitted to the league office for approval, the entire potential payout – including the base salary, any likely bonuses, and any unlikely bonuses – must fit within the team’s available cap room (or available exception, as the case may be). Not only that, when determining the team’s available cap room, the unlikely bonuses from all contracts signed that season are subtracted. Which, seemingly, eliminates the possibility.

    But here’s the thing: the rule only applies at the point the incentive-laden contract is signed.

    As long as the first-year salary – including both likely and unlikely bonuses — in any new contract(s) fits within the team’s cap room at the point the contract is officially executed, the contract is legal. The first-year salary thereafter excludes the amount of the unlikely bonus.

    The Heat manipulated these rules with each of Waiters, Olynyk and Johnson:

    • Dion Waiters’ contract was publicly reported as 4-years, $52 million, but that’s not technically how it is structured. Waiters will actually receive $47.3 million in base salary, plus up to another $4.7 million in bonus money which he can earn for playing in 70 games each season. All of that bonus money has initially been deemed as unlikely to be achieved. Which means that after the contract was approved, only the first-year base salary was charged against the cap for this season; that’s $11.0 million, without the $1.1 million in bonus money.
    • Kelly Olynyk’s contract was publicly reported as 4-years, $50 million (with a player option on the final year), but that’s not technically how it was structured. He will actually receive $45.6 million in base salary, plus up to another $5.6 million in bonus money which he can earn for playing in 1,700 minutes and make the playoffs each season. (He also has a trade bonus equal to the lesser of 5% of the remaining value of the contract and $2 million.) All of that bonus money has initially been deemed as unlikely to be achieved. Which means that after the contract was approved, only the first-year base salary was charged against the cap for this season; that’s $10.6 million, without the $1.4 million in bonus money.
    • James Johnson’s contract was publicly reported as 4-years, $60 million (with a player option on the final year), but that’s not technically how it was structured. He will actually receive $59.1 million in base salary, plus up to another $946K in weigh-in bonus money. That bonus money, unlike the others, is always counted against the salary cap. Which means that after the contract was approved, the $13.7 million first-year salary and the $220K bonus were both charged against the cap for this season; that’s $14.0 million.
    seems like Nene had a bunch of “likely” bonuses

    According to reports, the controversial incentives for the veteran Rockets center are tied to games played and wins. Under the current contract, which required the use of Bird rights to give, Nene would earn $2,435,247 if he plays in ten games, $2,500,000 if he plays in 25 games, and another $2,500,000 if he plays in 40 games.

    The Rockets, or whatever team Nene ultimately finishes the 2019-20 season with, must also win at least 52 games (Houston went 53-29 last season) for him to earn each incentive.

    Nene played in 42 games last season, and the team had 53 wins, so the NBA doesn’t view these bonuses as “unlikely.”
     
  16. ThatBoyNick

    ThatBoyNick Member

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    Either approve the entire deal, or scrap the entire deal. This partial approval is bullshit, done on purpose to **** us over.

    We could have 3 options with re-signing him at that point.

    Truly sign Nene to a 10 mill deal

    Sign Nene to a vet min deal

    Sign Nene to something in the middle, at least 3.8 mill+ to compensate for the money he opted out of this season


    All three options would have allowed for real benefits, like having a large tradeable salary, ducking the tax, or being fair to Nene, along with all 3 allowing us to actually play him as much as we want (his body willing).


    Really hope Morey is allowed to void this deal and redo it all.
     
  17. smoothie_king

    smoothie_king Member

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    In the end, it looks as though nene is gonnna get shafted. Who is nene's contract agent, Master P the rapper!?
     
    BigShasta likes this.
  18. amaru

    amaru Member

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    I’m sure Nene will be back with the Rockets in a
    non-specific role that will reward him for his loyalty
     
    banzai, CCity Zero and roslolian like this.
  19. smoothie_king

    smoothie_king Member

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    they might preparing extensions for gary clark or Hartenstein but don't talk about clemons because if westbrook couldn't stay put in okc with the players he had over there...don't see clemmons or shamorie ponds doing much.
     
    #19 smoothie_king, Sep 19, 2019
    Last edited: Sep 19, 2019
  20. ThatBoyNick

    ThatBoyNick Member

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    I wouldn't be surprised if Nene's probability of making money actually just went through the roof. In the previous deal, it seemed highly likely he'd only be making the base 2.6 mill, that would have provided maximum benefit in trades.

    Now, the only way for the Rockets to use Nene's contract as a significant trade piece is if they actually guarantee it, or if he naturally hits his incentives by the trade deadline. I wouldn't be surprised if Morey guaranteed his entire 10 mill, traded him with a 1st for a role player like Thad Young or something at the deadline.
     
    RocksMillenium, da_juice and amaru like this.
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