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How much of Josh Smith's salary can we bill to Detroit?

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by Will, May 29, 2015.

  1. Will

    Will Clutch Crew
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    I'm trying to wrap my head around these numbers:

    Can somebody (who understands the math better than I do) boil this down? How much would the Rockets have to pay Smith to keep him at the income level (including the money that would still come to him from the Pistons) he signed for with the Pistons? How does the tradeoff curve look, if he's interested in helping us preserve cap space or money to sign (or re-sign) other players? Basically, I think we'd all like to know how to keep him on the team inexpensively, while billing Detroit enough to keep him happy.
     
  2. micah1j

    micah1j Member

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    How much of Josh Smith's salary can we bill to Detroit?

    zero. it doesn't work that way.
     
  3. Mr. Clutch

    Mr. Clutch Contributing Member

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    Josh Smith will only get ($X – $816k)/2 of his new contract, with X being the amount the Rockets pay.

    The Rockets pay the full amount of what they sign him for. Detroit's side is reduced.
     
  4. SemisolidSnake

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    Maybe we can bill the City of Detroit. Given its history, this wouldn't even be close to the stupidest thing they've blown tax dollars on.
     
  5. Will

    Will Clutch Crew
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    That's what I'm talking about. From Smith's perspective, how does the logic work. Given the amount he loses from Detroit per dollar he gets from us (or some other team), how much do we need to pay him, and how much can we exchange winks with the understanding that Detroit will have to pay the rest?
     
  6. Mr. Clutch

    Mr. Clutch Contributing Member

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    It's hard to say. He's essentially getting 1/2 of any new contract.

    So if we offer $6m, he gets $3m.

    If another team offers $8m, he gets $4m.

    So if a team outbids us by $2M, Josh is only getting an additional $1M, so his incentive to leave may be less.
     
    1 person likes this.
  7. CCity Zero

    CCity Zero Member

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    Nice! Yeah, this was how I was thinking about it too! Decent chance he'll stay, unless someone like Cuban wants to throw silly money...I think for the right price definitely would be nice to gel with Howard for a season. I mean sure there were times he pissed us off... But man w/o him in some of those games we definitely wouldn't have advanced to wcf...
     
  8. BimaThug

    BimaThug Resident Capologist
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    Josh Smith will make the following salary next year:

    From Houston (or his new team): $X [= whatever his new salary is]

    PLUS

    From Detroit: $5.4 million - ([$X - $845,059] / 2)
     
  9. megastahr

    megastahr Contributing Member

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    Bima, any guess On what he might make from us?
     
  10. BimaThug

    BimaThug Resident Capologist
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    My guess is that Rockets will open discussions offering the maximum "Non-Bird" amount of just under $2.5 million, pushing the great fit and how the team can then use the MLE to further improve the roster. (If he takes that amount, his total compensation from HOU/DET would be a little over $7 million.)

    If Smith demands any more than that (which he probably will/should), the calculus gets a little more difficult for Houston. Either they have to tap into the MLE (which hurts their chances of retaining McDaniels, bringing over Llull and/or adding a new key piece) or use cap room (an avenue I think they will only pursue if a star-level player shakes loose for them).

    This is not to say that the Rockets won't sign Smith to a full MLE deal. But it'd be a whole lot cooler if Smith just took the Non-Bird amount.
     
  11. RockingRox

    RockingRox Member

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    I would put it another way should the Rockets be able to sign him with "Non-Bird" exception ~$2.5 million. That is, Smith's total compensation for this year's contract would be a little over $15 million, with $8.1 million of that total being stretched to future three years from 2017-2010. Same case for the 2016-2017 season.

    I say that's more close to reality because starting from 2017-2018 for three seasons, Smith will get his new "fare" salary solely based upon his value. In the end he'll get his 7-figure salary PLUS the extra $5.4 million from Detroit to his pocket for three years.
     
  12. justtxyank

    justtxyank Contributing Member

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  13. YallMean

    YallMean Member

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    Thanks.
    He wants to return here. Wonder what the Market is like for him right now. I am sure there will be teams willing to bring him in for more than 2.5 mil. If he is look to win, the teams he should be looking at are CLE, GSW, OKC, Clippers, Spurs and Hawks. Out of those, if Hawks loses Milsap, will they be in a pursuit mode to bring Josh back and if the Clippers loses DJ, will they be interested in Josh? I think it will be really tough to sign him for just 2.5 mil.
     
  14. LabMouse

    LabMouse Member

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    The rockets should sign him with "Non-Bird" exception ~$2.5 million for one year, next year he can get a big increase due to new cap. Both sides could be happy.
     
  15. YallMean

    YallMean Member

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    Yeah, but other teams can offer him more 2.5 mil, and I am sure they will for Smith.
     
  16. YallMean

    YallMean Member

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    And Us, obviously.
     

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