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[ClutchFans] Houston Rockets Salary Cap Update: 2012-13 Training Camp Edition
Tags:  2012, basketball, clutchfans, houston, houston rockets, nba, training, training camp Tags
BimaThug is offline Old 10-01-2012, 11:32 AM   #1
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DarkHorse is offline Old 10-01-2012, 11:40 AM   #2
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Like clockwork.

Thanks Bima, this is excellent as always.

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Carl Herrera is offline Old 10-01-2012, 11:44 AM   #3
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Thanks, but is this the "official" salary cap update? I can't tell unless you put it in the title.

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RocketDevil is offline Old 10-01-2012, 12:11 PM   #4
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Excellent analysis. I agree with all of it. I would add the following comment to your discussion of Sean Livingston. I think that Livingston has to be the #2 point guard to make the team, $3.5MM is too much for a #3. Cutting Livingston would increase the team's ability (by $2,5MM) to trade for a max salary player without including Martin in the deal.
 
jocar is offline Old 10-01-2012, 03:20 PM   #5
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:/ I was under the impression that, with all these 1st and 2nd year contracts we would have room for 2 more near max signings if we traded KMart. What did I miss?
 
sidestep is offline Old 10-01-2012, 03:57 PM   #6
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On September 7, the team signed Scott Machado to a three-year deal for the league minimum salary, with the first year 50% guaranteed.
Can someone clarify what 50% guaranteed means? Under what conditions would only 50% of the first year salary be paid out?
 
DonatasFanboy is offline Old 10-01-2012, 04:06 PM   #7
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Originally Posted by sidestep View Post
Can someone clarify what 50% guaranteed means? Under what conditions would only 50% of the first year salary be paid out?
you can cut him at any time during the first year, and pay 50% of the remaining year 1 salary.
in many cases, parties agree on a date after which the year becomes fully guaranteed. Not in this case.

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DonatasFanboy is offline Old 10-01-2012, 04:14 PM   #8
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you can cut him at any time during the first year, and pay 50% of the remaining year 1 salary.
in many cases, parties agree on a date after which the year becomes fully guaranteed. Not in this case.
* but till the deadline when all contracts become guaranteed league wide. it's set at around mid point of the season, January or February

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BimaThug is offline Old 10-01-2012, 04:19 PM   #9
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Excellent analysis. I agree with all of it. I would add the following comment to your discussion of Sean Livingston. I think that Livingston has to be the #2 point guard to make the team, $3.5MM is too much for a #3. Cutting Livingston would increase the team's ability (by $2,5MM) to trade for a max salary player without including Martin in the deal.
Given the team's current cap situation, trading for a max contract during this season without using Martin's expiring contract will be tough, regardless of what the Rockets do with Livingston. Also, as noted in the cap update, trades to take on more salary from other teams are actually marginally easier to pull off by KEEPING Livingston's contract on the roster for such trades.

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:/ I was under the impression that, with all these 1st and 2nd year contracts we would have room for 2 more near max signings if we traded KMart. What did I miss?
For THIS season, the Rockets will not have the oodles of cap room that many here think they have. That will come next summer. Given the league's mandated minimum team salary ($49,337,400), having "double-max" cap room in-season is a dangerous place to be, since the team would need to essentially cut a check for the difference (i.e., however far short of that that minimum team salary amount that the actual team salary ended up, but including money owed to Luis Scola) to its players at the end of the season. Better to have actually spent that money on guys like Lin and Asik (or, for those still not over it, Dragic).

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Can someone clarify what 50% guaranteed means? Under what conditions would only 50% of the first year salary be paid out?
This means that Scott Machado is guaranteed to be paid at least $236,802 next season, which amount also counts against the cap. The Rockets can waive Machado and only pay him this amount at any point before January 8, 2013 (two days before the date on which all contracts become fully guaranteed league-wide). If Machado makes it past early January, then his first year's salary ($473,604 total) will become fully guaranteed.

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DrNuegebauer is offline Old 10-01-2012, 04:24 PM   #10
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:/ I was under the impression that, with all these 1st and 2nd year contracts we would have room for 2 more near max signings if we traded KMart. What did I miss?
KMart is on 12.4 million.

We DID have room for 2 max signings if we had ditched him --> both Lin and Asik are on 8.37mill, add their salaries to Martins and voila, you had room for 2 max FAs.



Unless you're thinking about next off-season? In which case Martin expires along with a bunch of the other guys (Forbes, Johnson, Brockman, Delfino etc), and with those guys completely off the books we once again have ~$30mill (or 2 max FAs).

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Hayesfan is offline Old 10-01-2012, 04:39 PM   #11
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Great information as always... and Michael is adorable!

I really hope to see a little of what Livingston can bring to the table. I'd rather keep him as a trade piece than let him go for the cap relief he can bring, but then again, if there is something there worth using that space to upgrade he isn't a huge loss.

I wish this team was going to be a "real training camp" team. They have so much to battle for against one another, I'd love to be a fly (camera) on the wall.

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RocketDevil is offline Old 10-01-2012, 06:50 PM   #12
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Given the team's current cap situation, trading for a max contract during this season without using Martin's expiring contract will be tough, regardless of what the Rockets do with Livingston.
It is tough, but possible. If Livingston is cut the Rockets could potentially have $7.5MM in cap space available. That space combined with Delfino, Patterson & Morris (plus draft picks) would work for a max contract such as Kevin Love or Mark Gasol (although not for any of the Miami big 3). If we are trading at the trade deadline with a team which has given up on the season and wants young players and draft picks, having to include Martin could be an impediment to a deal
Also, as noted in the cap update, trades to take on more salary from other teams are actually marginally easier to pull off by KEEPING Livingston's contract on the roster for such trades.
That is true early in the season (particularly during the first 23 games when payments to Livingston are less than $1.0MM. After salaries are guaranteed in early January, I don't see the benefit. My assumption is that the most likely time for a trade is at the trade deadline, and at that point it would have been better to have saved the $2.5MM in salary cap space, particularly since Livingston may have useful skills as a good player, but at $3.5MM would be considered a liability in any deal.
 
BimaThug is offline Old 10-01-2012, 07:29 PM   #13
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Quote:
Originally Posted by RocketDevil View Post
Given the team's current cap situation, trading for a max contract during this season without using Martin's expiring contract will be tough, regardless of what the Rockets do with Livingston.
It is tough, but possible. If Livingston is cut the Rockets could potentially have $7.5MM in cap space available. That space combined with Delfino, Patterson & Morris (plus draft picks) would work for a max contract such as Kevin Love or Mark Gasol (although not for any of the Miami big 3). If we are trading at the trade deadline with a team which has given up on the season and wants young players and draft picks, having to include Martin could be an impediment to a deal
Also, as noted in the cap update, trades to take on more salary from other teams are actually marginally easier to pull off by KEEPING Livingston's contract on the roster for such trades.
That is true early in the season (particularly during the first 23 games when payments to Livingston are less than $1.0MM. After salaries are guaranteed in early January, I don't see the benefit. My assumption is that the most likely time for a trade is at the trade deadline, and at that point it would have been better to have saved the $2.5MM in salary cap space, particularly since Livingston may have useful skills as a good player, but at $3.5MM would be considered a liability in any deal.
You are correct on both points. However, if the Rockets are acquiring a true max-CALIBER player in a trade and do not see Martin as part of their future, they will gladly part with Martin in addition to young players and picks. Also, just for clarification, my point about keeping Livingston was in the event of a late December trade. Most free agent contracts become trade-eligible in mid-December, and there are a few trades around the league that happen at that point (example: the Terrence Williams trade).

Regardless, you seem to know what you're talking about. (he says without any intention of being patronizing)

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ArtV is offline Old 10-01-2012, 07:59 PM   #14
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Hopefully when it comes down to keeping the 15th player, we cut Flynn and keep Lin even if it costs Les a few dollars more.
 
chonox is offline Old 10-01-2012, 10:47 PM   #15
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xiki is offline Old 10-01-2012, 11:08 PM   #16
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You are appreciated, BT. Good work. Of course the bonus was the best part!
 
clos4life is offline Old 10-01-2012, 11:56 PM   #17
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Hopefully when it comes down to keeping the 15th player, we cut Flynn and keep Lin even if it costs Les a few dollars more.
Aaah, if only time travel could exist...

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haoafu is offline Old 10-02-2012, 11:07 AM   #18
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Great analysis.

Lin should be a pretty good defender, and his opponent PPP ranked him in top 1/3 of all players.
 
dobro1229 is online now Old 10-02-2012, 12:07 PM   #19
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Thanks for the update Bima. Great work as always.

Trading for a max contract is one thing, but more than likely the Rockets salary cap is built this year in way that they could easily trade for a player that is ABOUT TO be up for a major extension with a team that might not value that player at a higher salary dollar, or is financially strapped moving forward.

-Someone like James Harden (if they think he's a potential superstar) would be a perfect trade candidate to fit in the Rockets plans moving forward. Possibly Tyreke Evans as well if they think he can turn his career around from last seasons dissapointment as well. Although I dont think he's anywhere near worth giving a max contract out to, you might be able to trade for him at a very minimal cost.


Of course there is always Kevin Martin and his contract that is there if a big fish just so happens to wind up on the blocks comes February, and you need his salary to take on a max contract. Thats why we probably haven't seen Morey trade him yet to a team like Minnesota for peanuts just to get rid of him.


-Quick question though. I see you listed Lin and Asik at the 8M number as counting against the cap this year. So If I understand this correctly, in the third year of both of their contracts, they will still only have the 8M or so count against the cap in 2014/15? The "poison pill" structure of the contract only accounts for the dollar amount hitting their bank account and not the salary cap?

If thats the case, a few NBA website have it listed wrong.

I actually am relieved if this is the case because that third year scared me if (or maybe I say when) in the next two years, the Rockets aquire someone that is either on a large contract, or needs to be extended on a large contract. It will be nice to have that extra 12M cap flexibility from those two contract then. Right now, it really doesn't make a huge difference what they are counting towards the cap.
 
jopatmc is offline Old 10-02-2012, 12:23 PM   #20
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Quote:
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You are correct on both points. However, if the Rockets are acquiring a true max-CALIBER player in a trade and do not see Martin as part of their future, they will gladly part with Martin in addition to young players and picks. Also, just for clarification, my point about keeping Livingston was in the event of a late December trade. Most free agent contracts become trade-eligible in mid-December, and there are a few trades around the league that happen at that point (example: the Terrence Williams trade).

Regardless, you seem to know what you're talking about. (he says without any intention of being patronizing)
"true max-CALIBER player in a trade"



Care to speculate on what possible true max-CALIBER players are going to become available through trade between now and the trade deadline?

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