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[ClutchFans] The Chandler Parsons Contract: Salary Cap Implications of Exercising or Declining the T

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by BimaThug, Dec 31, 2013.

  1. Clutch

    Clutch Administrator
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    My guess is the Rockets feel a sense of urgency to get the right trade pieces (picks, young talent) soon so they can pull off the trade they want and lock in Parsons by this summer. It is less risk for them that Parsons will walk (in a year and a half), it puts Parsons into restricted free agency (a game they seem to be able to play very well) and gets Chandler his money sooner rather than later (which I tend to think was the reason Fegan was hired).

    For what its worth, I've seen Dan Fegan at the Toyota Center (in the locker room, etc.) at two games this year.
     
  2. BimaThug

    BimaThug Resident Capologist
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    For the most part, yes. Players can no longer get that extra year or the higher annual raises they used to via sign-and-trade deals (as player like Lebron and Bosh did in 2010). All sign-and-trade deals are limited to the same maximum number of years (4) and annual raises (4.5%) that can be offered by any team to an outside free agent.

    However, as a practical matter, sign-and-trade deals can possibly help teams with much of (but not all) of the cap room needed to pay the free agent what he wants, or teams with partially- or non-guaranteed salary to use in trades, to facilitate getting the player to his desired destination while also compensating the player's former team for its troubles.

    My guess is that we will still see the occasional sign-and-trade deal under this CBA, but they will be much fewer and farther between.

    FYI, it is highly doubtful that the Houston Rockets will ever pay the repeater tax under the current CBA. Not because Les Alexander wouldn't be willing to take it on (that remains to be seen), but because the Rockets will likely never even be ELIGIBLE for such taxation.

    The current CBA includes an opt-out in 2017 that either (or both) the owners or the players will almost assuredly exercise. (Set your calendars for the next NBA Lockout on July 1, 2017, kids!)

    Under the current CBA, the repeater tax (which tacks on an additional 100% tax ON TOP OF the more punitive tax rates imposed starting this season) first kicks in for the 2014-15 season. Only those teams that were taxpayers in ALL of 2011-12, 2012-13 and 2013-14 will be subject to the repeater tax for the 2014-15 season.

    Starting in the 2015-16 season, only those teams that were taxpayers in at least 3 of the 4 prior seasons are subject to the repeater tax.

    The Rockets were NOT taxpayers in 2011-12 or 2012-13. Therefore, they already know that they will not have to pay any repeater tax in 2014-15 or 2015-16.

    The only way the Rockets could possibly be subject to the repeater tax (again, assuming--fairly safely, I might add--that the parties opt out of the CBA in 2017) would be for the 2016-17 season . . . and even then, it would require that the Rockets become taxpayers THIS SEASON. Given that the Rockets are currently sitting more than $8 million BELOW the tax threshold, I seriously doubt that they will be paying the tax this season. While still theoretically possible, it would take an extraordinary number of roster moves to take on that much additional team salary.

    So, for those worried about the Rockets paying the repeater tax under the current CBA if they add another high-salaried player and re-sign Parsons to a big money deal (and possibly also re-sign Beverley, Jones, etc., at decent-sized salaries or use their MLE, etc.), don't be.

    Would the Rockets still have a hefty luxury tax bill if all those things happened? Hell, yes.

    But at least they won't (likely) be paying the repeater tax on top of that.

    By rule, the Rockets had until October 31, 2013 to exercise their third-year team options on both Jones and D-Mo for the 2014-15 season, so both those guys have guaranteed contracts for next season.

    Similarly, the Rockets will have until October 31 of THIS year to decide whether to exercise their fourth-year team options on Jones and D-Mo, which would guarantee their salaries for the 2015-16 season.
     
  3. Carl Herrera

    Carl Herrera Contributing Member

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    I agree but Parsons is probably only a secondary consideration at the most.

    The more important thing is that they have Dwight and Harden, two elite players, on the roster now and need to take advantage of their window for contention as soon as possible. Dwight, in particular, is only locked in for 3 more seasons and has a lot of miles on his body.

    So, while they don't want to make the wrong move simply to of something, they want to get whatever upgrade they can manage to get (be it a third elite player or otherwise) in place preferably before this year's playoffs or no later than next year's.

    Doing so early will help them get Parsons into restricted FA but that's not the primary concern.
     
  4. basketballholic

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    You'd have to better define that term "secondary consideration". I find it difficult to accept that Parsons is less important than one of the primary considerations.
     
  5. Rip Van Rocket

    Rip Van Rocket Contributing Member

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    There are a lot of games where Parsons looks like our best player. I'm not saying he is our best player, but he is very important. I definitely think he is our most consistent player and is a very smart player. I agree with Clutch that the Rockets would like to pull off a big trade as soon as possible so that they can then lock up Parsons. Unfortunately, I don't think a lot of teams are interested in giving up very much for either Asik or Lin.
     
  6. blahblehblah

    blahblehblah Member

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    Bima - Appreciated the article, but I wonder if the option of adding a major free agent in 2015 as well as resigning Parson is not just a pipe dream. Admittedly i'm no capologist, but find I it extremely unlikely that Lex Alexander will pay 10+ million in luxury taxes, when hes usually avoided paying ANY tax before (though he has paid it once). According to my rough estimates, in order to sign Love and Parsons,the Rockets will need to committed 66 million to just those 4 players. Howard 22.35, Harden 15.71, Love 16.5 (est) Parsons 11 (est). 66 million for 4 players with. I'm guessing after Beverley and filling out the rosters with vet minimums / Draft picks, the Rockets are looking at a mimimum of 80 million. And thats the first year. Remember everyone salary increases the next year, with Dwight being eligible for a new bigger contract due to his player option. Obviously If this team was owned by Buss, Cuban or Dolan etc, this wouldn't be an issue. Unfortunately Houston, like OKC, Spurs, Pacers, and many other teams, are constrained by the luxury tax. IMO there exits very little probability that the Rockets added a major free agent (love/Aldridge) AND resign Parson in 2015.
     
  7. meh

    meh Contributing Member

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    Do you have inside sources that say Parsons would prefer to play elsewhere than in Houston? Otherwise, it would seem to make no sense why Parsons would walk away from more money in FA, given that we can still pay him more than any other team in the NBA.

    Also, it seems that Morey only "wins" RFA because he choose the right battles. He let players that likely has limited value on the market (Lowry, Landry) go into RFA. But he has traded every player who's value may be overrated in RFA, like Brooks and Patterson. I'm not sure how Morey can win the Chandler Parsons RFA. I mean, Tyreke Evans just got $44mil.
     
  8. Chamillionaire

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    Great read. Thanks Bima.

    I hope we can keep CP25. We saw how we play without him. He does a bit of everything out there for us and is a key part of what we do.

    I just don`t want to pay him 14M like some of you guys are saying. I think that`s a bit much, but when you consider we`re paying D12 and Harden 20M per, it makes sense for the production they bring on the court. He is by far our 3rd best player.

    We really need to do something with Asik. We need a few more players contributing instead of playing our key players 35+ and our bench players underperforming.
     
  9. N/A

    N/A Member

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    Rockets think quite highly of Parsons..especially Mchale, so he's not going anywhere. Plus Les knows he's the teen heartthrob of the team. He puts more women in the seats (and some men as well) so financially he's great to have.
     
  10. Pull_Up_3

    Pull_Up_3 Member

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    like i said not worth 10Mil

    He is inconsistent VERY inconsistent
     
  11. Play07

    Play07 Member

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    When you basically don't have backup 3 the starter will always look like star that the team needs
     
  12. jcmoon

    jcmoon Contributing Member

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    yup, he's on a downstreak with his 3 point shooting lately and so goes the rockets, losing to the kings and barely beating NY. his defense is decent, not good, as i've stated. The biggest mistake the rockets will ever make is giving parsons a contract that will cost this team a 3rd star. Because as constructed, this team will not get past the second round.
     
  13. saleem

    saleem Contributing Member

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    That's the bottom line. Chandler is better than most role players and he can get more consistent with time, but we need to get into the Kevin Love sweepstakes.
     
  14. DaDakota

    DaDakota If you want to know, just ask!

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    Is that the same Kevin Love that went to the FT line last night down 2 points with 3 freethrows and bricked them all?

    Consistentcy?

    Just kidding, btw - would love to have Love.

    However, Chandler is our 3rd best player and arguably our most important one of all - he gets his within the team concept, if Harden would play more like Parsons this team would have a much better record.

    DD
     
  15. basketballholic

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    That's an amazing statement right there. And I'm pretty sure I agree with it.
     
  16. Yohohoho

    Yohohoho Member

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    The importance of Parson is there. Not only does he have to hold down the 3 position, but he is the moving light post keeping our defense lit.

    Harden does not even have to do as much as that. Being such a large target, just running a bit more will put immense strain on the opposing defense.
     
  17. moose

    moose Member

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    Give him whatever he wants. This kid needs to be a Rocket for life!
     
  18. pmac

    pmac Contributing Member

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    I would agree with you but Harden IS the team concept. The few plays that the team runs are almost all designed for Harden to score or make a play. After the play breaks down the other perimeter players penetrate and kick out until there's an opening. Parsons has particularly excelled at both finishing and shooting 3's this season.
     
    #98 pmac, Jan 25, 2014
    Last edited: Jan 25, 2014
  19. sun12

    sun12 Member

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    Asik, teams are going to be interested; Lin, no, his value is lower than before, teams are not going to trade for a backup PG/SG combo.

    If Harden is a terrific defender, yes for Parsons.

    Since Harden > Parsons, Harden is what he is, can't see Rox sign Parsons for 10-12mil. The wing defense will be terrible, won't last long in playoff. If you sign a backup defensive SF, how many minutes are you going to give the backup? it is going to be terrible.

    Now if Rox is okay with 2nd round exit, Rox could possibly sign Parsons into a long-term 10-12mil/year deal. However I am going to see a pie on the face phenomenon on Rox management/fans.

    CP would be a nice addition for a team with defensive SG though.
     
  20. Play07

    Play07 Member

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    Exactly I like reading post from people who actually understand playoff TEAM basketball, jokes can score his career high we can get happy but that's not what's going to happen in the playoffs

    parsons is solid but with harden next to him in the playoffs we will struggle on D
     

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