[ClutchFans] BimaThug: Houston Rockets Salary Cap Update

Dump Ariza while holding onto Battier and Jefferies?

 

daryl morey and jonathon feigan were at Yao's downtown for lunch today. No pics.

 

No pics... Didn't happen...

 

understood. wasn't going to bother them at a restaurant.

This has no significant value to anything anyways.

 

All I'm saying is that it is a little too early to start patting Les on the back for an 80 million dollar roster.... and I agree with DD that the above senario is very possible.

 

no way will the team give up significant assets just to get under the luxury tax

no way at all maybe some to lower the bill but not all the stuff we got from NY last year.


the thing is the tax payout is determined by the number of teams over the tax with so many teams falling under the tax this year thanks to the free agency bonanza the payout for the upcoming year is probably going to be one of the smallest in recent years.

it makes no sense to give up all those future picks and young players just to get a payout of a few million. i think sooner or later morey and les knew they would have to be over the lux tax and its better to do it when most of the teams are under so that way the benefit of being under is not as lucrative.


Bima - I threw out a random proposal in the sticky thread of

jeffries
2012 Rockets first round (~mid to low 20s - NOT the NY pick)
future 2nd round
taylor


for Courtney Lee of the nets

is that something you think cap wise in terms of dumping salary and future assets is doable? Or do you think the NY swap or pick would be necessary instead of the Rockets 2012 pick? Remember the Nets GM is now Billy King...Billy King

 

Not only is that a great trade from a financial aspect, it also improves us on the court as well!

Lee would be the perfect back up to Martin and can is good enough to start just incase Martin gets injured. We could do this same trade but get Rudy Fernandez, but I like Lee better because he actually plays defense.

Brooks/Lowry
Martin/Lee
Ariza/Battier/Budinger
Scola/Hill/Patterson
Yao/Miller/Hayes

 

The_Yoyo, ask yourself these questions:

(1) How much do you think New Jersey would want in exchange for taking on Jeffries's salary?

(2) How much do you think New Jersey would want in exchange for Courtney Lee?

Now, combine the two.

Is it more than you have the Rockets giving up in your trade proposal?

Yeah. That's what I thought.

 

Well, Andersen is now gone for just a 2nd round pick....it is getting closer.....



I am certain they will try like mad to get under the tax....it is what they do.

DD

 

This move is going to save a lot of money. And also, it get's rid of Anderson who could not beat out Chuck Hayes last season. That goes to show he just didn't fit with the Rockets Squad or Ricks System.

Best of Luck to Anderson!

 

As much as I like your posts Bima, I think you overanalyze what things cost....sometimes NBA GMs just do a solid for another guy.

Trading Andersen and maybe getting a 2nd round pick......(though not assured).

This is why you and I disagree about Jeffries, I think he will be available to trade and some team may take on his expiring deal at the deadline for very little.

That Lux tax line just got significantly closer now.....

DD

 

I don't know what Bima's stance is but I think the general consensus is that Jeffries contract will really not be valuable until the deadline when team's will only end up paying about a third of his salary, rather than trading for him now and paying the full $6+ million.

Bima wasn't all that far off on Andersen. Sure, we didn't have to give up a pick, but we gave them cash and got a second round pick five years from now. Not an overwhelming haul, but good because it saves Les $5 million for now ... hopefully $5 million that we can re-invest when the time is right.

There's no doubt we'll pay the tax at some point, whether it is this year just depends on how we look and Yao's status at the deadline.

 

since we shipped david andersen out, does it bring us closer to the full MLE?

 

There is "No doubt"?

I have a ton of doubt, they have never paid the tax, ever, and IMO, until they do, they won't.



I am not dogging the Rockets for it, I would do the same thing, but to consistently talk about how they are willing to pay the tax, and then do everything they can to get under it, says it is 100% a marketing move that fans are falling for.....and not reality.

Jeffries may go at the deadline, or he may go before the season, lots of teams have space to accept him, and if the Rox pay his salary, I think there will be takers.

IMO, of course.

DD

 

It's not a marketing move. The average fan probably doesn't even understand exactly what they mean when they say "Les is willing to pay the tax". Team slogans and ticket promotions are marketing moves. The GM stating that the owner is willing to pay the luxury tax is not.

The fact of the matter is that as it is right now, you almost have to pay the tax to compete on a long-term basis. You might get away with it for a few years if you've got a superstar on a rookie contract, but that's it. Most of the top-tier teams (Lakers, Celtics, Magic) over the last few years have been well over the limit, and will continue to be so until they need to rebuild. This could change with the new CBA, but for now that's how it is. So I have no doubt that Morey has the green light to go over, but he's just waiting for the right time to do so. Just because Les says "go for it", doesn't mean he's going to rush out and hand out bad contracts and not try to save money in the meantime.

And I'd be shocked if Jeffries goes as a salary dump before the deadline. He would be an integral part of a salary match if we had the opportunity to land Granger, Paul, or anyone else. No sense in dumping him before we explore every last avenue.

 

Why dump our starting Small Forward? Rather a slightly over the Hill Battier and a third tier player like Jefferies!

 

Ok, here is what I think, you are RIGHT about them hoping for a Granger type of star player, but IMO, once they find out there are not any deals to be made for superstar players they will dump one of:

Jeffries, Battier or Ariza to get under the taxline.

For Battier and Trevor they probably would actually GET something, but for Jeffries they would have to pay a team with cap space or a trade exception to take him on...and pay the rest of his contract.

But realize this, getting under the tax line is not just saving the org $$$$, it also means they share in the revenues paid by teams OVER the tax line, so dumping Jeffries might be a $20 million dollar NET move.

DD

 

Teams under the tax got around a $3 million cut for last season.

 

Bimathug: Quick question-- In light of the David Andersen deal, what do you think of my theory that the cost of dumping contracts, as long as they expire after the season, is lower this year than in recent years because of the high number of teams with substantial cap room or trade exceptions?

The Andersen dump seems much cheaper than the Francis dump (had to give both cash and high 2nd rounder for that one) even though this requires TOR to pay salary for the entire year. Maybe it's just that Toronto actually don't mind having Andersen as a player, but it may also mean that more teams are willing to take on a minor contract for what's essentially a few 100K in cash.

 

Ok, so a $7 million dollar net move.



$7 million saved on Lux tax, and $3 million made on Lux tax earnings.....which would pay the $3 million that the trade cost....

Still, wouldn't you do that?

Bima, you were so sure of that, now that number is down to $8.84 million.....are you still sure?

Dumping Andersen was 100% a Lux tax move.....you don't dump an asset for nothing, especially as you pointed out, he has a partial guarantee for next year.....this is a move by the organization to give them the ability to duck under that lux tax line at the trade deadline.

DD