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[ClutchFans] BimaThug: Houston Rockets Salary Cap Update

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by Clutch, Nov 9, 2010.

  1. Clutch

    Clutch Administrator
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    1 person likes this.
  2. DaDakota

    DaDakota If you want to know, just ask!

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    Best article to date.

    1 star !

    ;)

    DD
     
  3. MrButtocks

    MrButtocks Contributing Member

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    I had no idea flipping Jeffries would be that easy. Get under the luxury tax and get a $6.8 million trade exception to boot? Les would be all over that in a second.
     
  4. Clutch

    Clutch Administrator
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    I agree he would... but like Bima wrote, I think that's a move they make if they can't get that star player. For Carmelo you look at paying the tax, but if not, they make the cost-cutting move. I wonder what the market will be like for those moves this February -- the Timberwolves (and any under-the-cap team) will no doubt want to maximize that leverage. For example, will other teams in a similar situation as the Rockets (looking to get under the tax) be willing to give up a first rounder?
     
  5. DaDakota

    DaDakota If you want to know, just ask!

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    That is interesting.

    Do we know how many teams out there would be in a position to take on Jeffries contract?

    Is it a sellars or buyers market when you look at it from Minny's perspective?

    I understand what the Rockets are doing, but I just am unconvinced that they will be able to do it (acquiring a Superstar) that is.

    Maybe as a rental, but even that seems uber risky.

    And it doesn't help us that Denver is doing ok, and New Orleans is outstanding.....

    DD
     
  6. Carl Herrera

    Carl Herrera Contributing Member

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    I believe the Rockets used a portion of the Andersen TPE to get Courtney Lee, not a portion of the Landry TPE. I think Larry Coon actually told me that in an email. I'll dig it out and post when I get a chance.

    Small technical matter.
     
  7. Clutch

    Clutch Administrator
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    Larry might have gotten bad info because Bima's article is correct -- they used the Landry trade exception.
     
  8. No Chance

    No Chance Contributing Member

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    There are no words to describe BimaThug's valuable contribution to this board!
     
  9. Carl Herrera

    Carl Herrera Contributing Member

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    Hmm.. interesting.

    ESPN's trade machine agrees with Bima, too-- the trade machine used to not have the Andersen exception at all. Seems the Rockets decided they'd rather have a $2.5 mil exception expiring in the summer + a $1.6 mil exception expiring in February than a $3 mil exception expiring in February + a 1.2 mil exception expiring in the summer.
     
  10. anchel

    anchel Member

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    Interesting... Now the part II: Possible trades for the deadline.
     
  11. Deckard

    Deckard Blade Runner
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    Great job, Bima. You've convinced me that nothing will happen on the trade front before the deadline. We'll be rolling with what we've got until then. It should be a heck of a ride, hopefully followed by a heck of a payoff in February. That, or we avoid the LT, which may not be a popular thing in the GARM, but is great for the team absent that trade.
     
  12. BimaThug

    BimaThug Resident Capologist
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    Thanks, everyone, for the kind words and/or constructive criticism about the article. Just doing my part to keep the fan base knowledgeable and to keep the discussions here lively.

    Yeah. I even had a paragraph in a previous draft of the article directed at you, CH, to address what you heard from Larry Coon. This is how it played out.

    DD, the only teams with any cap room of which to speak are Sacramento (~$13.4M), Minnesota (~$11.8M), Oklahoma City (~$5.7M) and the L.A. Clippers (~$3.6M).

    I think you will probably see Sam Presti make yet another clever move mid-season using his cap room to take advantage of a desperate team looking to reduce its salary/tax burden.

    But the Kings and Wolves, especially, could be major players this February in the "avoid/reduce the tax" game for other financially-strapped teams. I bet both of those teams could use the cash they'd receive in such trades.
     
    5 people like this.
  13. RocketForever

    RocketForever Contributing Member

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    Great article and analysis.

    It's quality threads like this which separates clutchfans.net from the other basketball fan sites. Thank you very much.
     
  14. jopatmc

    jopatmc Contributing Member

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    Just to send this into the next dimension, imagine being able to create a trade exception of $13-$15 million by sending out multiple players simultaneously along with Jeffries, and using the trade exceptions we already have to take back value.

    For instance you trade Jeffries to Minny,and the same day you ship out Brooks, Hill, and Battier for multiple players that equal the trade exception we currently have from the Ariza trade plus the other TPE we have from the Anderson trade. We could actually use those two trade exceptions to help complete deals, that could allow us to accumulate an aggregate $13-$15 million TPE, plus picks to throw at a team like Denver for Melo in a S&T or like New Orleans in a straight up dump of Paul. The accumulated TPE plus a couple first rounders.

    For instance, we could send Battier to Denver for Chris Anderson and a couple expirings. Then send out Brooks for an expiring $2.0 million contract and a future draft pick. If we did this all simultaneously with trading Jeffries, we could use the Ariza TPE for Chris Anderson and the denver expirings, and we could use the David Andersen TPE for the player we got back for Brooks. This means we would have sent out Jeffries, Battier, and Brooks and would have an accumulated TPE of Jeffries + Battier + Brooks salary. That's enough for a max salary player sometime within the next year. Throw in a couple picks and that's a pretty attractive S&T package for Denver. It's also a pretty attractive package for New Orleans if they want to unload Paul. It's also a pretty attractive package to Minny if they want to dump salary next season and trade the rights to Rubio.

    Just one example of how Morey could pull some trades and accumulate a massive trade exception.
     
  15. DaDakota

    DaDakota If you want to know, just ask!

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    Awesome thanks Bima.

    Also, on the flip side do we know how many teams are close to the taxline like the Rockest are....ie, how many competitors for those salary slots are there?

    Bearing in mind that our contracts are of the expiring variety and do not hurt them long term etc.

    Thanks in advance.

    DD
     
  16. BimaThug

    BimaThug Resident Capologist
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    Come on, now, jopatmc! I just finished saying in the article that trade exceptions cannot be accumulated.

    I expect better from you. ;)
     
  17. BimaThug

    BimaThug Resident Capologist
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    With so many teams over the luxury tax (whether by a little or a lot), there is clearly incentive on each of those teams to pay a premium to shed payroll, since the luxury tax is a 100% tax. Sure, some of the teams near the line also stand to gain a 1/30th share of all luxury tax revenues, but the 100% tax alone is probably enough to get most of those teams to throw cash into a deal to cut payroll, as long as the payroll being cut isn't somewhat integral to that team's success.
     
  18. jopatmc

    jopatmc Contributing Member

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    Understand what I said. We are not accumulating trade exceptions in my example. We are using our existing trade exceptions to acquire players and we are sending out Jeffries, Battier, and whoever else for nothing but a new trade exception.

    I expect better from you, Bima. Think about the transactions.
     
  19. amaru

    amaru Member

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    Very in-depth analysis.

    Still not exactly sure how trade exceptions work, but glad somebody on here knows :grin:
     
  20. carolbmt

    carolbmt Contributing Member

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    Bima - what do you do for a living? Very impressive, as are all your posts.
     

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