[UNOFFICIAL] The Terms of D-Mo's Offer Sheet

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by BimaThug, Dec 3, 2016.

  1. BimaThug

    BimaThug Contributing Member

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    While the exact terms of the offer sheet that Donatas Motiejunas signed with the Brooklyn Nets are not publicly available at this time, the following is my best guess as to the cap figures included in the offer sheet. (Much of this information has since been confirmed by Bobby Marks, a former Assistant GM of the Nets who apparently has seen the actual offer sheet.)

    (Warning: This is pretty complicated stuff.)

    Bonuses and Incentives:
    • No signing bonus or salary advance
    • Each year contains $1,000,000 in "likely" incentives
    • Each year contains $500,000 in "unlikely" incentives*
    * Other than those tied to generally recognized league honors (MVP, All-NBA, Most Improved Player, etc.), the Rockets do NOT have to include any "unlikely" incentives in D-Mo's contract if they match the offer sheet

    Guarantee Dates:
    • 2016-17 salary is partially guaranteed for $5,000,000
    • 2016-17 salary becomes fully guaranteed if not waived by January 10, 2017
    • 2017-18 salary is non-guaranteed if waived by March 1, 2017
    • 2018-19 salary is non-guaranteed if waived by July 7, 2018
    • 2019-20 salary is non-guaranteed if waived by July 7, 2019
    Trade Restrictions:
    • Team cannot trade D-Mo at all until end of Rockets' 2016-17 season
    • Team cannot trade D-Mo without his consent until December 2, 2017
    • Team cannot trade D-Mo to the Brooklyn Nets until December 2, 2017

    Base Salary**

    • 2016-17: $8,300,000
    • 2017-18: $7,926,500
    • 2018-19: $7,553,000
    • 2019-20: $7,179,500
    ** This would be D-Mo's cap hit in each season if he were waived after his salary became guaranteed for that season and assuming he did NOT hit any of his incentives for that year.

    (Current) Cap Hits***
    • 2016-17: $9,300,000
    • 2017-18: $8,926,500
    • 2018-19: $8,553,000
    • 2019-20: $8,179,500
    *** These cap hits include base salary plus "likely" incentives but could decrease starting in 2017-18 if D-Mo fails to hit any of his incentives or increase if D-Mo hits his "likely" incentives and also hits any of his "unlikely" incentives

    Maximum Possible Cap Hits****
    • 2016-17: $9,800,000
    • 2017-18: $9,426,500
    • 2018-19: $9,053,000
    • 2019-20: $8,679,500
    **** These cap hits include base salary plus "likely" AND all "unlikely" incentives but would only be this high if D-Mo hits ALL of his incentives in the previous season; and as stated above, it is possible that the Rockets won't even have to include all of these "unlikely" incentives in D-Mo's contract if they match the offer sheet


    The big issue hanging over whether or not the Rockets will match the offer sheet is D-Mo's cap hit in the summer of 2017. Based on the figures above, that cap hit will be anywhere from $7,926,500 to $9,426,500, depending on what incentives D-Mo hits. Again, D-Mo cannot be traded next summer without his consent. The Rockets could conceivably STRETCH his cap hit over three years, reducing it to something in the $2.64 million to $3.14 million range for each of 2017-18, 2018-19 and 2019-20, but that would likely be a last resort.

    Bottom line: The offer sheet (and potential contract with the Rockets, if they match) is extraordinarily complicated and quite interesting for cap nerds like me. It remains to be seen whether the (likely) 2017-18 guaranteed salary clogging the books in the summer of 2017 will cause the Rockets to choose maximum cap flexibility over what could be a potential value contract longer-term (assuming health for D-Mo).
     
    #1 BimaThug, Dec 3, 2016
    Last edited: Dec 3, 2016
  2. DreamShook

    DreamShook Member

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    first page.
     
  3. Os Trigonum

    Os Trigonum Contributing Member

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    Fascinating, thanks Bima
     
  4. TheMystery008

    TheMystery008 Member

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    Isn't there a guarantee date by January 2017 for the remainder of his 2016-2017 salary?
     
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  5. snowconeman22

    snowconeman22 Member

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    Yeah seems like quite a tricky contract with all of its trigger dates and incentives . It's an interesting risk/ reward decision . It depends a lot on how we think we stack up this season too ( and of course health) . Thanks for the update , this is an interesting decision that is complicated by who we have now , who we are targeting in the future , and the ultimate wildcard health .
     
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  6. BimaThug

    BimaThug Contributing Member

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    Yes. As with ALL contracts in the NBA, D-Mo's 2016-17 salary will become fully guaranteed on January 10, 2017. It is nothing unique to the offer sheet as opposed to a general NBA rule. Still, I will go ahead and add it to my post above.
     
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  7. TheMystery008

    TheMystery008 Member

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    Thank you, I was not aware of that.

    I appreciate all the work you do for us!
     
  8. seeingred

    seeingred Member

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    Very much appreciated Bima. A player may have finally found a way to ensure he stays with the Rockets for a full calendar year. Tricky devil. I bet we match. If we need to clear cap space for this summer, other pieces can be moved (ahem* ryno* ahem*)
     
  9. OlajuwonFan81

    OlajuwonFan81 Member

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    After seeing the terms, i'll pass.
     
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  10. Chuck Nevitt

    Chuck Nevitt Contributing Member

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    Match it!
     
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  11. RocketsJumer

    RocketsJumer Member

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    Great stuff!

    If this is anything like how D-Mo contract really is, I would think the Rockets would sign it pretty soon.

    It's very team friendly other than the no-trade clause. There are non-guarantees after the first year (by March 1 which would be plenty of time I would think to see if he really is healthy), a team option after year 2 and the contract decreases over time. It almost seems like Morey wrote the deal for the Nets lolol

    The no-trade clause and subsequent limitations on our flexibility does seem to be the main thing tonprevent is from matching but it doesn't seem that bad. If we really need to clear cap, we have a lot of other moveable players like Brewer and KJ, Dekker, Bev and Ariza, etc. if need be.

    If D-Mo is healthy and can contribute, this seems like a great deal! At the start of FA, if we were to get D-Mo back for under 10M, I would have been pretty happy. Now, we can lock him up for 4 year on a contract under 10M a year that decreases.

    For this year, I really believe we need at least one more able 7 footer when Nene rest or Capela gets in foul trouble. We saw it last night where Nurkic abused Harrell at parts of the game because Harrell wasn't big enough. DMo is not the best rebounder but he is a solid low post defender and positional defender who happens to be a real post up option with an average deep stroke.

    I think we sign if the contract is anything close to this.
     
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  12. glenadyll

    glenadyll Contributing Member

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    Bima - what are other possibilities (trades/cuts/etc.) that could open up cap room this summer if D-Mo is matched? What are the likeliest contracts that could be moved to reach max and keep D-Mo?
     
  13. basso

    basso Contributing Member

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    so, for $8.3M, Rockets can take a flyer on DMo until march 1, and see if his back/game fit the current team.

    a lot of Les' money of course, but in the current environment seems like a reasonable approach.
     
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  14. Batman Jones

    Batman Jones Contributing Member

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    Thanks for this, BimaThug. You're an incredible asset to the board and your posts are all must-reads.
     
  15. DaDakota

    DaDakota Contributing Member

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    Calvin Watkins said the Rockets are not concerned with DMo's back at all for the next couple of years, but are concerned for the long term, bare in mind these are the same doctors that were worried about Luis Scola's knees all those years ago too....

    He has passed physicals in Houston and NJ, the only reason NOT to match is that they really do not want him beyond this season other than a contract to flip.

    While initially, I thought it was a guaranteed match - and if you are a fan of the team and you want them to do well this year, then it is a no brainer, but if the org feels it has a legitimate shot at a big name this offseason, then it would require some dumping of others if they keep DMo.

    The odd thing is the 2nd year guarantee on March 1st, it is not, if I understand it correctly, that they have to pick up his option, but rather, if he is on the roster, it auto guarantees, so the Rockets could not just pick him up this year, and then say "No thanks on the option" if he was on the team, and part of the rotation for this year - then he would be guaranteed next year too. IE, they would have to waive him completely making him an UFA this offseason.

    So, for me, this comes down to this.

    Do the Rockets believe in this year's team as a base of a playoff run - because then you add another guy at a reasonable deal, but if not, then you find someone in the D-league in case of injuries and you let DMo go to Brooklyn.

    Very very interesting play here by BJ and DMo - most folks were laughing at the deal at first, but when you dig in, it is really a clever deal.

    DD
     
  16. snowconeman22

    snowconeman22 Member

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    Bima what's your gut feeling on if we match ? I think most people here (still) somehow underestimate that moreys goal is getting another star . If he feels that his contract (effectively) hinders us from going after a guy next summer then he may not match .

    Then again Morey also sees the long term beautifully , maybe he knows the chances are small next summer or by trade to land a top 25 player so he matches in the hopes that Dmo becomes a valuable contract ( if not to trade then to be a cheaper player on our own roster)
     
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  17. DreamShakeFTW

    DreamShakeFTW Member

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    Easy decision. Match it and thank the Nets for giving you such a gift as this contract.

    It's probably better for the Rockets than anything they would have and did offer themselves.
     
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  18. Sweet Lou 4 2

    Sweet Lou 4 2 Contributing Member

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    Why not just match and see how he does.... IS there reason to at least not try him out until March,1st?.
     
  19. snowconeman22

    snowconeman22 Member

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    That earlier trigger date is key . Where did you get the Watkins info on how the rockets view his back . If that's true then I'd be very inclined to say that we are matching .

    Has he already had his Houston physical yet ?

    Not only his health but his production matters too . I think most of us are assuming f healthy then he produces , but it may take him time to click / get in shape / maybe he lost athleticism but is "healthy"
     
  20. Jayzers_100

    Jayzers_100 Member

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    I have a question. Many were stating that under the CBA, RFAs can only be offered a minimum of two-year deals. Do any of them have to be guaranteed years? I was just surprised that at the end of the day, this contract is only partially guaranteed for one season. I realize it's set up as a "4year deal", but is there any suspicion as to the terms?
     
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