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Why we needed to dip below the luxury tax line

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by BallaDoc, Feb 8, 2019.

  1. Corrosion

    Corrosion Member

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    This is what I kept trying to explain to @ApacheWarrior in that other thread where he claimed the current option gave then greater financial freedom …

    If they resign Shumpert this changes tho … they wont have nothing to show for that pick and contract. This is one of the big questions for the offseason.
     
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  2. Corrosion

    Corrosion Member

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    Where did you get that apron figure of $138 ?? Spotrac has next years tax threshold as $132m …. and committed salary at $121.89m


    Agree with the rest of your post , just looking for clarification on the figures.

    Don't forget about cap holds eating into that space below the apron.
     
  3. daywalker02

    daywalker02 Member

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    BTW It is funny how people are trying to fit in Shumpert as a SF already, I dun think he played as a SF before much in his career.

    I guess Small ball to the death.
     
  4. heypartner

    heypartner Member

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    $132m is the Luxury Tax line. The Apron is wiggle room above it. $138 is an educated guess based on the wiggle room there was this year. Not sure if Coon, Marks, Nahmad, Bima, etc have given better guesses, yet.

    @jchu14 suggested that in another thread, so I went with it.
     
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  5. solid

    solid Member

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    Am I the only one who is bored to death with the finances of the NBA? We have a boatload of accountants on Clutch Fans. I just like basketball. Frankly, I don't think any team this year beats GS in a seven-game series, but I am hoping the Rockets get a chance.
     
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  6. BigBum

    BigBum Member

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    Shumpert has about $16.6 million cap hold.
    The most important step 1 is "Let Shumpert walk first in July 1"
    Step 2: Use 9.3 million MLE to sign Marcus Morris (or someone).
    Step 3: Give House and Green 3 million each after shedding Nene salary.
     
    #46 BigBum, Feb 9, 2019
    Last edited: Feb 9, 2019
  7. cheke64

    cheke64 Member

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    Whichever dumbass gave cp3 that contract needs to be fired immediately.
     
  8. Corrosion

    Corrosion Member

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    Letting Shumpert walk doesn't make you better - You have no way to replace him financially.
    Use of the MLE - we wont have / use the Full MLE of $9m which caps us at the apron, we'll have the T-MLE which is somewhere around 5.5.
    Green can be signed using early bird , House is RFA and you can match up to the min or any/all of the MLE.

    What about Rivers / Faried - you probably don't get them back with early bird being 120% of this years salary which was the minimum.
     
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  9. Corrosion

    Corrosion Member

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    Thing is , its a big part of team building - what you can do , how you can do it - do it wrong and you put a terrible product on the court. Do it right and you are in the hunt for a championship most years.
     
  10. SuperKev

    SuperKev Member

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    It seems you did not read one word of the OP.
     
  11. Corrosion

    Corrosion Member

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    We read it but some of the OP's statements are not factual , mainly about which version of the MLE we will have to spend.

    We wont use the non taxpayer version which hard caps you at the apron. We'll literally be at or above the apron with 8 contracts and minimum cap holds.

    Harden - $37,800,000
    Capela - $16,396,552
    CP3 - $38,506,482
    Tucker - $8,349,039
    EG - $14,057,730
    Nene - $3,825,360
    Clark - $1,416,852
    Hartenstein - $1,416,852

    Salary for those 8 players - 121,768,867

    Add on 4 cap holds at the 2nd year minimum of just over $1.5m = $6mand change. putting you at $127,768,867 before adding a single player.

    Use of the non tax payer MLE of $9m immediately puts you over the apron. Cant use it.

    The OP's entire idea crumbles around this one point because he can exercise none of his plan.

    Bottom line is , next year this franchise is all but guaranteed to be paying the tax.
     
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  12. D-rock

    D-rock Member

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    Shump at SG and Harden at SF then.

    Age of positionless basketball, those 2 positions are wings.
     
  13. SuperKev

    SuperKev Member

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    Bima's assessment does not seem to jive with yours. Also you seem to ignore some of the fundamental premises of the OP's post. If we get under and stay under this year we won't fall into repeater penalty territory.
     
  14. Corrosion

    Corrosion Member

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    I gave you the numbers about next year -

    Bima has yet to really comment on that , what he has commented on is this season - more specifically being able to add buyout targets while remaining below the tax this season - that may be where you think we are in conflict - this year vs next year. Next year we are almost assuredly in tax territory. The math is in the above post and pretty self explanatory showing that point. You are at ~$128m in committed salary with those 8 players and 4 cap holds and does not include Shumpert's cap hold which is $15m or so.

    Things could change by then - they could move EG or Nene freeing up some space …. but its highly unlikely you move EG and improve the roster while cutting committed salary. (no #1 pick to trade next year - tho you have future picks)

    As for the OP's contention on being and staying under the tax this year , putting off the repeater tax , that part is factual.

    What I pointed out was the fact that we are not likely at all to use the NT-MLE next season and his contention was that he could sign two players with that - that wrecks his entire plan. Use of the full NT-MLE puts you at ~$135.5m …. with 9 players under contract and three cap holds. You are already over the apron at that point and the use of that exception hard caps you below that.
     
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  15. justtxyank

    justtxyank Member

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    The non tax mle has been a confusing item for people. Not sure where it came from but a lot of people think that by being under the tax THIS year we get the full MLE next year.

    The two are unrelated.
     
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  16. blahblehblah

    blahblehblah Member

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    Seems like you didn't read corrosion's post
     
  17. BigBum

    BigBum Member

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    If you keep Shumpert. Cap hold, you can’t sign anybody, right?
     
  18. Corrosion

    Corrosion Member

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    We're already over the cap so we cant sign anyone without the use of an exception (BAE , MLE , Bird , Non-Bird , Minimum) .

    With Shumpert , you have his bird rights as the exception so you can sign him over the cap and still have the T-MLE as well as non-bird to your other expiring FA's.

    That doesn't hard cap you. The hard cap comes into play when you use the BAE or Non tax payer MLE , neither of which they would have because they would already be beyond the apron .
     
  19. Sino rocketfan

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    If we can beat the Warriors, both Tilman and Morey would agree to pay the repeater tax as much as they can.
    But now we have little chance to chanllenge the Warriors this season.....
     
  20. pippendagimp

    pippendagimp Member

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    it's like a classic Chicken or the Egg conundrum. and in this case our front office is clearly chicken
     

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