How does the BYC work? Lewis's contract would probably become a BYC player because he would get more than 20% raise on his previous contract. So how would that impact what we have to trade to get him? I know the BYC is meant to prevent teams like us from doing this exact sign and trade, so how does work?
I highly doubt Rashard will become a base-year player. According to hoopshype his '06 salary was about 9.3 million. 20% raise on that is about $11 million for a starting salary. There's not a whole lot of teams with cap space, and with the way the luxury tax as played out, I doubt there will be many teams willing to break the bank for him. If he demands a salary that puts him into byc, he effectively limits his options, so I don't think it'll come into play. But just to answer your question, a BYC player has to either get folded into a bigger deal, or get traded to a team with the cap space to cover the difference.
First, Lewis becomes BYC if his next years' salary exceeds 120% of his contracts ending year value. Assuming hoopshype is corrects, that's 120% of $9.3m or $11.16m. Let's say Lewis wants $11.5m for year 1 making him BYC. Second, the BYC status means that Lewis' $11.5m only amounts to 1/2 of that amount...$5.75m...in outgoing value to SEA. IOW, SEA can only take back a maximum of 125% of $5.75 or $7.2m. For practical purposes, Battier is close enough for this part of the trade. BUT....Lewis still counts $11.5m to the receiving team. The Rockets would have to find an under the cap team or team with a trade exception willing to take ~4.0m in salary without sending any contracts back. (Lewis hits the Rox 75% of $11.5m so the have to send that much out minimum). A cheesy example....in addition to Battier to SEA, Houston sends Sura's contract and a future pick and/or cash to CHA for a second round pick.
