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Chron: Trade can be final before July 1 (+ my math)

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by JoeBarelyCares, Jun 27, 2004.

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  1. JoeBarelyCares

    JoeBarelyCares Member

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    From today's Chronicle NBA Notebook:

    Another update:

    The Steve Francis-Tracy McGrady trade can go through this month or after July 13. The Rockets and Magic worked out deals that can be approved while Francis is still a base-year player and next month when he is not. The league moratorium on trades or free-agent signings, this year from July 1-13, would push back any July deal until the 14th.

    Help me out on this, capologists. Before July 1st, Francis will be a BYC player. So we can only take back half of his salary, while Orlando has to fit it in as a full salary. Also, the TE cannot be combined with another player, so any deal that has us taking back a player from Orlando for the TE would have to technically be considered a separate deal. So here are my calculations (using this past year's salaries, because this is a pre July 1 deal):

    Orlando receives:
    Francis $9.93 million
    Mobley $5.38 million
    Cato $7.34 million
    Total: $22.65

    Add 15%, plus $100,000, and Orlando can send out at most $26.15 million in salaries. On the flip side, they must send out at least $18.15 million in salaries ($22.65 million x .85 - $100K), to be eligible to receive this much in salaries back from Houston.

    Given Francis' BYC status, Houston can only take back $17.68 million for the three players they send out, plus 15%, plus $100,000, which equals $20.33.

    Houston receives:
    TMac $13.27 million
    Howard $4.98 million
    Lue $1.50 million
    Gaines $1.13 million
    Total: $20.88 million

    As this is $550,000 more than Houston can take, then either Gaines or Lue would need to be a separate trade, in exchange for part of the TE exception. But either could be left out, and the deal still go down prior to July 1st. However, our TE would be reduced by at least $1.13 million, from $6.99 million to $5.86 million.

    This is significant, as $5.86 million is essentially the same as the middle class exception that every capped-out team has, and would cause us to lose our edge over other capped-out teams we currently enjoy by being able to offer more money in a sign and trade deal. This could be the difference between us getting or not getting a Brent Barry. However, after July 15th, the deal could easily be done without using the TE.

    Am I calculating this right?
     
    #1 JoeBarelyCares, Jun 27, 2004
  2. drpepper

    drpepper Member

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    Isn't Declureq(sp?) supposed to be included?
     
    #2 drpepper, Jun 27, 2004
  3. micah1j

    micah1j Member

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    I think you're using last years salaries.
     
    #3 micah1j, Jun 27, 2004
  4. Ying Yang

    Ying Yang Member

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    Thank you Joe this is the only clear post I have read in about two weeks and it explains everything. Anybody with a modicum of intelligence should now be quite and have patience while this deal is executed to the best advantage of the Roickets.
     
    #4 Ying Yang, Jun 27, 2004
  5. AroundTheWorld

    AroundTheWorld Member

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    Oh the irony :).
     
    #5 AroundTheWorld, Jun 27, 2004
  6. GATER

    GATER Member

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    JBC -
    Francis' BYC salary was $10.1m. To circumvent his BYC value of 1/2 that amount, all that would be required is to use the TE for Juwan Howard who made about $4.9m for 2003-04.

    Here are the #'s for a July 14th or later trade:

    Steve Francis = $11.3m
    Kelvin Cato = $8.0m
    Cuttino Mobley = $5.9m
    Total = $25.2m

    Tracy McGrady = $14.5m
    Juwan Howard = $5.4m
    Tyronn Lue = $1.7m
    Reece Gaines = $1.2m
    Total = $22.8m

    $22.8 * 115% = $26.2m > $25.2m

    Trade accepted. :)


    BTW: Where did you get those salaris? They don't look quite correct to me. :confused:
     
    #6 GATER, Jun 27, 2004
    Last edited: Jun 27, 2004
  7. Harrisment

    Harrisment Member

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    :D
     
    #7 Harrisment, Jun 27, 2004
  8. calurker

    calurker Member

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    Wait, why does Orlando need to leave out a player and then have Houston use $1.13M worth of TE instead of having the trade the way it is and have Houston use $555K worth of TE? Am I missing something?
     
    #8 calurker, Jun 27, 2004
  9. JoeBarelyCares

    JoeBarelyCares Member

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    Because it would have to be a separate trade - Houston cannot combine the TE with any player.

    GATER - I got the salaries from the hoops hype web site. Do you think it is an accurate source? I used the 03-04 salaries to calculate a pre-July 1st deal.
     
    #9 JoeBarelyCares, Jun 27, 2004
  10. JoeBarelyCares

    JoeBarelyCares Member

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    p.s. I was operating from the assumption that the Rockets would want to save all of the TE to have available for a sign and trade of another player's fee agent (such as Brent Barry), for a starting salary of up to $6.99 million, after July 15th.
     
    #10 JoeBarelyCares, Jun 27, 2004
  11. Ying Yang

    Ying Yang Member

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    Lue wont be part of the deal because he will be a free agent on July 1st. Could NELSON might take his place?
     
    #11 Ying Yang, Jun 27, 2004
  12. JPM0016

    JPM0016 Member

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    Lue will be part of the deal. I still believe this gets done in a couple of days.

    the magic didn't draft Jameer to trade him. So, No
     
    #12 JPM0016, Jun 27, 2004
  13. barbourdg

    barbourdg Member

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    what good was that TE we got from Utah?

    I thought expiring contracts were worth something? We gave up Glen Rices expiring contract, and it cost us a 1st round pick. To make matters worse we had to give that pick this year. Why couldn't it been a future pick in the next 4-5 years, like every other deal in this league.

    This salary cap manuever did nothing since we had already signed JJ. Was it just for signing Pike?

    If we can not use the TE with a player trade, then is it even worth using? Or are the Rockets going to let it expire, like they did with another TE a few years back?
     
    #13 barbourdg, Jun 27, 2004
  14. canoner2002

    canoner2002 Contributing Member

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    he will not be a FA until he opt out his current contract next year.
     
    #14 canoner2002, Jun 27, 2004
  15. reptilexcq

    reptilexcq Member

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    Why can't they make a sign agreement that the trade will be done after July 15 so Francis is not a BYC player and so they can keep Cato and not use their exception or whatever. Why the trade now and only take back only half of Francis salary i dont' understand.
     
    #15 reptilexcq, Jun 27, 2004
  16. JPM0016

    JPM0016 Member

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    Francis/Mobley isn't going to get the trade done. Kelvin Cato gives them a legitimate defensive prescence. Something they've been sorely lacking for a long time.
     
    #16 JPM0016, Jun 27, 2004
  17. Man

    Man Member

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    I thought the trade was going to happen tomorrow...or just announced? Agreed to?
     
    #17 Man, Jun 27, 2004
  18. Uprising

    Uprising Member

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    :D Now that's classic.
     
    #18 Uprising, Jun 27, 2004
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