[ClutchFans] Houston Rockets Salary Cap Update: 2012-13 Training Camp Edition

I'm copying Bima's quote from the Pau Gasol thread:

"...but the Rockets, on July 1, could be in a cap position to offer the Lakers a deal as small (in salary) as Patrick Patterson and Greg Smith in exchange for Pau. (If the Lakers wanted him and let the Rockets know before July 1--i.e., a deal was struck on draft night--the Rockets could also throw in Carlos Delfino instead of waiving him.) A Patterson/Smith for Gasol trade would save the Lakers an astounding $70-75 million in 2013-14 alone.

Frankly, if the Rockets end up with a late lottery pick again this season, I could envision a scenario in which the Rockets make a draft night play for Gasol (which would not be officially consummated until after the July Moratorium) by offering the late lottery pick and multiple young PF prospects."

Pau should be making somewhere around 19 million. Are you and bima saying different things here? Does a Pau acquisition require something like 75% salary going back or does the lakers being in luxury tax hell change this rule requiring only a few million in salary going back?

 

Question: If Rockets trade Lin, for salary matching purpose can they use average or has to be his actually paid salary? Next year for instance in trade his salary will be $5.25 million or 8.3 mil?

 

$8.3M

 

No, Im talking about making the trade during THIS season. The reason why a deal like this is possible next Summer is because Aldrich, Douglas, Cook, Delfino(if option is not picked up) are then all off of the books & there then would be enough cap space for a deal like this.

-The 75% rule only affects the Rockets if the move puts them over the cap.

The difficultly is not having that one large expiring contract right now to move during the season. They would have to send out half of their roster this season to take on a super max contract player, and the other team would have to waive most of the players post trade.

 

Got it thanks! I feel more educated now

 

Yes 8.3 but I think the team we would trade him to has to pick up the bill for the actual salary meaning Lin becomes nearly impossible to trade on the last year (8.3 trade value but has to pay him 15 million in salary) unless he is playing like a stud in which we wouldn't trade him.

 

My understanding is the poison pill salary (5, 5, 15) only applied to the team he was originally playing for (the Knicks). I could be wrong here on the exact rules, but thats just my understanding of it.

Even if Im wrong and his salary would shift upon a trade to another team, I dont think it makes a huge difference other than the fact that he would be a very large expiring in the final season of his deal. Even if they trade him at the deadline, he only has 2.5 seasons left on his deal.

I assume The Rockets thinking is that most likely they would only move in the case that it was for a super max contract player. In that case there are alot of ways they could still save that team $(given that player they are trading is under contract another 2 seasons), and they could also give them a player in return that still can positively affect the business side of their franchise.

 

There's plenty of basketball players available to fill out roster spots 10-15, especially at the trade deadline.

 

I remember the correct numbers are: If rockets trade Lin to another team, the cap hit would still be 8.3 mil per year, but that team would have to pay actual salary of 15 mil in third year. Rockets can compensate that by sending out 3 mil cash.

To be honest though, unless Lin is damaged goods at that point the extra 7 mil salary(not counted against cap) would be nothing for most NBA owners.

 

Im sure Morey is already scouting the D-League heavily for the next Greg Smith or Jeff Adrien.

 

They never stop scouting.

 

Something about that doesn't make sense. What your basically saying here is that if Lin gets traded in the second year of his contract he would end up making $31.6 mil over the life of his contract instead of the original $25 mil given he's getting paid 8.3 in year one & two, and after the trade the team he gets traded to has to pay him $15mil in the final year.

If the Rockets are paying him 8.3 a year, then it must stay consistent over the life of his contract. Meaning that's the amount that hits his checking account.

Now, as far as their salary cap goes, that might be where the change happens. It might very well be a 15 mil cap hit in the 3rd year of the contract, but I doubt they would actually have to pay him that amount. that would be a major glitch in the contract rules, and Lin would be in hog heaven if he got traded in the 2nd year.

 

Im really lookin forward to bimas next salary update article...

 

The major issue I am referring to here, is the fact that most likely the team trading with the Rockets would need to cut 4 or 5 players after they trade for them to keep their roster at 15(could be 5 to 7 mil in salary to buyout). There are some franchises (like the Rockets) that might not think twice about it, but there are plenty that would rather look at other options for more cost effective deals on the market.

 

I believe the poison pill only applied to the NYKs in the way it would hit the Knicks cap and what his salary would count for in the LT world and trade scenarios. I.E. it was going to be 5/5/15 all around to them and the biggest hit for them was going to be the LT hit which was going to be huge. But for us, his salary would only count as 8.3x3 but Les still has to pay 5/5/15. The same would be true for any trade partner.

i guess I am saying that if he has the last year remaining in full and i am an owner and I have to cut a 15 million dollar check for a player, then i wouldn't take that lightly and it better be for a real good reason.

 

Lin is actually getting paid 5mil, 5mil and 15 mil. It won't change if he's trade or not. His cap hit will be 8.3 mil per year, and it won't change if he's traded or not.

So the team receiving him will pick up the bill of 15 mil in final year, but the cap hit for that team is still 8.3 mil in final year.

I think Larry Coon confirmed that right after we signed Lin, but I can't find the link right now.

 

Yeah, probably one of the most confusing contracts that's ever been written.

I was under the impression that 8.3 per is what is hitting his checking account, and counting against the salary cap for the Rockets, but it only would have been 5, 5, 15 if the Knicks would have matched. I would like to get official confirmation on that if you could page Larry Coon, or find that article I would appreciate it.

 

Not an issue at the trade deadline when you are cutting expiring contracts.

 

Per Larry Coon-

for a contract per the Gilbert Arenas provision, the Rockets team salary would reflect the average salary in the contract in all three seasons, rather than the full $14.8 million in the third season.

I dont see much more of an explanation out there on this particular topic, but this makes it seem that the Rockets are paying him 8.3 mil a season, and thats what is hitting their cap as well. I would think if its JUST affecting the Rockets cap, and Les is NOT actually cutting Lin a 8.3 mil dollar check this season, Larry Coon would have mentioned that rather huge wrinkle.

Which leads me to believe that if he was traded to another team, he would still only be paid 8.3 in his final year with that team. Maybe you can find more on this, but this is all that I see.

 

I am pretty sure this is right. It's actually good for Les because it is deferring the salary. Lin's payment is a bargin right now for what he brings to the table. However if he was traded after next year, the next owner gets to pick up Les' bill to a certain degree. Even with a 3 million dollar kicker, I wouldn't want to pay a player 12 million unless he was worth it (a stud which I doubt we'd trade) or you add something real nice (negative value) or you take back some true trash (negative value).