[ClutchFans] Houston Rockets Salary Cap Update (Updated: 3/2/2011)

Morey will trade Martin before next deadline

 

I didn't want to create a new thread, so I'll post this here:


[ESPN] Luxury Tax Corner:

[rquoter]That the NBA's group of taxpayers is down to seven means the rebate teams under the tax line will receive is projected to be a mere $2.38 million per team.

Last season's rebate for teams that stayed under the tax line was close to $4 million, since there were 11 taxpaying teams forced to pay a collective $111 million in dollar-for-dollar penalties for being above the tax line.

The seven teams on course to pay tax in the summer, barring unforeseen payroll reductions between now and June 30:

1. Lakers $20.07 million
2. Magic $19.59 million
3. Mavericks $16.33 million
4. Celtics $6.37 million
5. Jazz $4.96 million
6. Blazers $3.79 million
7. Rockets $452,254

Total: $71.56 million

Per-team payout for teams under the $70.31 million tax threshold: $2.38 million[/rquoter]
http://espn.go.com/nba/dailydime/_/page/dime-110311-13/nba-scouts-say

What this essentially means it that not moving Jeffries cost the Rockets $3,284,508, though that number is a bit vague, since we probably would have have had to include cash and possibly other assets to move Jeffries.

Or like Bima said: "Alexander should be commended for being willing to pay the luxury tax rather than to make a move that might hurt the team from a basketball standpoint going forward.".

 

Make that $3,284,508 (again it's a vague number). [I forgot to double the salary tax amount the first time]

Maybe a mod can edit/merge.

 

So the Rockets can still get under the tax if they send a player to a team with cap space or a TE?

 

No. The tax amount a team owes gets determinated by the teams salary on the last day of the regular season.

I think unforeseen is the key word here. ESPN probably is referring to potential tax reductions due to player suspensions.

I can't think of anything else, though I'm not sure why they specified June 30 as the date. Maybe Bima can chip in and help me out here.

 

It's confounding that the Rockets could not shift DeMarre Carroll to Sacramento, or some other team with a TE exception, in a three-way deal, and then saved $3 million. Maybe they ran out of time to do the deal at the 2:00 p.m. deadline. Or maybe the lowest asking price for the dump was a second round pick, for which we typically pay $3 million, anyway.

 

Hope JJ gets that 1 mil back and more as FA due to opportunity to expose himself as a regular starter in NY

 

Why do you say that? Source?

The CBA defines salary cap year as July 1 to June 30. http://www.nbpa.org/sites/default/files/Article I.pdf

I also know that when trades take place on draft day (eg, Battier for Swift/Gay), the salary base used is from the previous season. I haven't seen anything that distinguishes a luxury tax calculation day as different than the salary cap year, but happy to be wrong.

If that's the case, the Rockets have an opportunity to make a move.

Unfortunately, it will actually be a bit tricky. You can't trade players at that point who could potentially become free agents, such as through team options, so the most obvious suspect (Demarre Carroll) is out. As are Dragic and Budinger. I wonder if Morey is regretting the Terence Williams move now? I seem to recall past cases where teams have exercised options and then made trades, so that may be an option for Carroll (and his $1.2m salary for next year), but I can't recall.

It is a bit odd they didn't make a move with Sacramento, who needs to add salary anyway. They could've given away Carroll + 1.5 million (easily covering the .5 M left in his salary and then some), and Sacramento could've let Carroll walk at the end of the year.

 

[rquoter]When determining the amount of tax a team owes, the league uses its team salary on the date of their last regular season game.[/rquoter]
http://members.cox.net/lmcoon/salarycap.htm#Q16

The fact that yearly salary cap period starts at July 1 and ends June 30 has nothing to do with the luxury tax.

You're right though, that until July 1, the salaries of the previous season is used in trades.

The opportunity to make a move to get under the tax has passed however.

There's no option for Carroll to be exercised. Not anymore. He'll become an unrestricted free agent. Source

As for why we didn't trade Carroll or Jeffries to the Kings, who knows.
Bima's theory that the Kings wanted to keep as much of their cap space as possible, to have flexability to do a big trade on draft night, seems plausible.
The Kings ended up giving up some of their capspace in return for Marquis Daniels and cash. Daniels' salary however is significantly lower than Jeffries', which makes the potential gains for the Kings greater.
Carroll salary on the other hand is ever lower than Daniels', so maybe there simply wasn't enough time left to follow up the Grizzlies deal. I'm afraid we'll never know .

 

Can we sign Yao to a minimum salary that is heavily incentive laden based on games played. I'm thinking a per game bonus of a max salary divided by 82 games played. So if he is injured all year, we pay him a minimum salary, but if he plays all 82 games he gets paid the maximum salary.

I assume that would impact the luxury tax at the amount actually paid. But how would it effect any hold or cap space and the ability to sign players at the beginning of the season?

 

Thanks for the response. But you didn't have to past it, I believe what you say. You have a lot of cred here.

 

Can you base the incentives on total number of points, rebs, etc? Say for instance you get 5M if you score 1000 total points?

 

90 days?

 

yeah, I was waiting bima. I'm old school, a man's man as they say. I will keep it until the season starts next year. Whatever you want my friend.

 

I didn't want to create a new thread for this, so I'll post this here, again.

http://sports.espn.go.com/nba/news/story?id=6530352

The proposal has already been shut down by the NBAPA, however the salary cap may very well stay at $58mil and I see no reason for the NBAPA to shut down an amnesty provision, since the players would still get paid.

So ... why do I bring this up?

By using the amnesty provision on a guy like Brad Miller or Thabeet the Rockets could clear up to $5.13mil in cap room.

Using Bima's number of $7.13mil cap space prior to a potential use of an amnesty provision the Rockets, by using the provision, would have between 11.88mil (Miller) and 12.26mil (Thabeet) in cap space to work with.

Now, I don't see us using the amnesty provision on Thabeet, but I wouldn't rule out Brad Miller, though that might be wishful thinking on my part.

$5mil could be the difference between Dalembert and DeAndre Jordan or Nene.
It also might enable the Rockets to sign a center, while keeping Chuck and/or Yao.

I guess we'll have to wait and see.

 

Good find, HMMMHMM.

Clarification on the amnesty clause -- does the player whose cut still count against your salary cap? I was always under the impression that the amnesty clause helped reduce your luxury tax obligations and not necessarily your salary cap space. Then again, I'm usually wrong when it comes to the CBA, so I probably am again.

http://sports.espn.go.com/nba/columns/story?columnist=stein_marc&id=2112912