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[ClutchFans] Houston Rockets Salary Cap Update: The Impact of Harden's Deal

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by BimaThug, Dec 11, 2012.

  1. lookabove

    lookabove Contributing Member

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    Didn't know about "One-Year Bird", thanks. Does Rocket have formally rescind QO to remove any CAP hold.
     
  2. hooroo

    hooroo Member

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    Bima, can the Rockets void White's contract, but pay him the guaranteed money as well? If the former can be done, could the Rockets trade his contract with cash considerations to a team looking to salary dump for tax purposes? So that tradee would be the one that voids his contract.
     
  3. just a word

    just a word Member

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    Bima, just wondering if you have any new thoughts on Morey's moves after listening to his Rocketscast live interview. I was thinking that he seems pretty satisfied with the core, for the most part, and he said that he'd only chase after a guy in trades if it was a major upgrade... as well as using a guy in a 'camby' trade.

    There was one person who suggested that Morey might try to get Jared Jefferies.
     
  4. haoafu

    haoafu Contributing Member

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    If I'm not mistaken, I thought they were just joking around.
     
  5. dobro1229

    dobro1229 Contributing Member

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    Bima,

    Not sure if this is the right thread to bring up his name, but I have a question, and thought you might at least have an idea of what the variables are in the Royce White contract situation, and how it could affect both the Rockets from a salary cap flexibility perspective, and from a trade perspective if they decide to part ways?

    I know we all want to stay positive that this situation will somehow turn around, and the Rockets will end up getting a productive player, but we are getting to the point, where voiding his contract should be a real possibility.

    -If the Rockets are looking to cut ties with Royce White say before the trade deadline, could you explain what the implications would be in the case of Waiving him Vs. seeking to Void his contract legally + recieve any damages they are claiming?

    Off the top of my head, my concerns are that Royce's roster spot could hamper Morey's abilities to make moves either this February trade deadline or possibly even this Summer. I would hate to see someone like Machado get either involved in the deal unnecessarily, or waived prior in order to make a trade happen.

    Also, if the Rockets do seek to void Royce's contract, would the Rocket be able to waive him first, and then seek to get the benefits of voiding his contract legally afterwards?

    Thanks.
     
  6. Sweet Lou 4 2

    Sweet Lou 4 2 Contributing Member
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    Hard to see how we can trade for him when JLin, Asik, and Harden's contract hitting peak levels in a few years. And what would we trade.

    If we have $9 million in cap room, we should sign a David West type player - someone with range who can help open up the paint for Harden and Lin, although not sure how much of an upgrade David West is over PP truth be told.

    Kevin Love would obviously rocket this team to contender status. I never realized how good Parsons and our other role-players were going to be.
     
  7. just a word

    just a word Member

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    Lin and Asiks' contracts would only hit that way for the Knicks or Bulls if they matched. For the Rockets, they both hit the cap space at a little above 8m a year, even though the Rockets are actually paying them only 5m each this year.
     
  8. teebone21

    teebone21 Member

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    I don't think kevin love is the key. Aside from his rebounding he plays no defense and his shot % is low. He is a volume shooter not efficient shooter
     
  9. Aruba77

    Aruba77 Contributing Member

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    maybe i'm selling him short, but i just don't see him as the kind of player that can put a team on his back. That's kind of my criteria for a franchise piece.

    But i don't want to go down the road of saying what Milsap can and cannot due because he's spent his career exceeding expectation and i love his hard nosed attitude, toughness, and work ethic. I'm not obsessed with height, but i do wish he was an inch or two taller and i wish he could spread the court like Lamarcus Aldridge (who is probably closer to the franchise piece we are looking for, but not quite someone who can put a team on his back)

    Happy holidays Ganja!
     
  10. Carl Herrera

    Carl Herrera Contributing Member

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    Q for Bima: if HOU wants to make a 1 for 2 trade, like Machado for Hamilton+M.Teague. Can they structure it as first a Hamilton for Machado deal. Then waive Hamilton. Then make a Teague for a nominal consideration (like top 59 protected pick).
     
  11. BimaThug

    BimaThug Resident Capologist
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    Just got an answer to this question this afternoon from Larry Coon.

    Because Lin's and Asik's SALARIES for 2014-15 are ~$14.9 million each, they will be entitled to the GREATER of (a) the "regular" max (for players with 0-6 years of experience) or (b) 105% of their 2014-15 salaries. Of course, those two figures are likely to be very close to one another.


    Also, I FINALLY got an answer (also from Larry Coon) to the question of how Lin and Asik's Year 3 salaries get treated if they are traded.

    Basically, the receiving team is "stuck" paying Lin/Asik his full ~$14.9 million salary (but still with a cap figure of $8.37 million).

    This means that the Rockets truly are only on the hook to each of Lin and Asik (financially) for $5 million in Year 1 and $5.225 million in Year 2, without any obligation to chip in on paying the Year 3 salary if they are traded after Year 2.

    My only concern with this development is that it makes dumping either player (in the event that they grossly underperform through Year 2) much more difficult, since most teams won't want to pay either player $14.9 million if they suck, and the Rockets would be unable to chip in more than ~$3.3 million cash to help make the salary dump more palatable (i.e., they'd have to throw in picks to entice a team to take those contracts).

    Still, those contracts are pretty damn awesome from a time value of money standpoint.
     
    #111 BimaThug, Dec 21, 2012
    Last edited: Dec 21, 2012
  12. Joe Joe

    Joe Joe Go Stros!
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    Thanks
     
  13. BimaThug

    BimaThug Resident Capologist
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    Sorry, just getting around to seeing these questions. Will try to answer them as best I can.

    No, I don't think so. If the Rockets want to simply cut White, then either (a) the contract is voided and White gets no further income (something that does not commonly happen) or (b) the Rockets just waive him but owe him his fully guaranteed salary for this year and next.

    If Royce is traded, the receiving team faces the same decision of (a) or (b). In fact, the Rockets did this back in 2007 with Vassilis Spanoulis, who VOLUNTARILY wished to void his contract so that he could go back to play in Greece. The Rockets traded Spanoulis's voidable contract to the Spurs in a salary dump of Jackie Butler, in the process also receiving the draft rights to some guy named Luis Scola.

    But Royce is unlikely going to voluntarily void his contract, so the present situation is not quite the same as the situation with Spanoulis. I'm guessing that a "trade-and-void" for White is not a viable option for the Rockets.

    (dobro, I hope this answers your question as well.)

    Absolutely LOVED that Rocketscast Live. Morey actually (sort of) answered my question (and had a good laugh at his and my expense as well) about trading at under full value to level off the roster. (In retrospect, I see why Morey literally couldn't answer the question, since it's possible that a roster-balancing trade would not be necessary if Douglas, Delfino and Cook were all healthy and playing well this season. I mean, why trade for less than full value just to have a player at another position when you don't need one? So, good job accurately answering my question with a "I honestly don't know how to answer that question.", Daryl!)

    Anyway, I think Morey's comments should be taken with a grain of salt. Sure, I believe him when he says he doesn't feel the need to make a trade (other than for a star player); but he also doesn't want to tip his hand or lessen the value of his current players in trades. There's just no upside in saying anything else.

    FWIW, I agree that I'm happy to just let this young roster develop, without the need to trade "for the sake of trading" unless there is a legit star out there that is being acquired (or significant draft considerations that would help facilitate such a trade for a star player).

    And yes, they were just joking about bringing back Jeffries, although I can think of worse additions for the veteran's minimum.

    I don't see why the Rockets couldn't do that. However, the Rockets would probably need to wait long enough for the team to agree with Hamilton on a buyout, then waive him, before being able to proceed with a trade for Teague. Remember, Hamilton is owed $1 million in 2013-14, so doing a buyout (like they did with Fisher) will minimize the cap impact next season.

    Also, there remains the possibility of just holding onto Hamilton and then using his partially-guaranteed contract as a trade asset on draft night. Some teams might actually have a use for Hamilton as a veteran bench scorer; and $5 million isn't too egregious a price tag for Hamilton's services. If Houston could get a late first rounder from a contender (who doesn't care to have a guaranteed contract for a youngster who can't help them win right now on their books) AND wipe Hamilton's salary completely off its books for 2013-14, that might be even better than a buyout.

    Sorry for digressing. Anyway, yes, it could be done as two separate trades; but the TIMING of it all would necessitate a waiting period to negotiate a buyout before making the move for Teague. With Chicago having the extra roster spots, I don't see how your proposal would be too big a problem to pull off as two separate traded over the course of, say, a week.
     
    1 person likes this.
  14. Yao4REAL

    Yao4REAL Member

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    Rockets should trade Parsons for Iman Shumpert but i doubt the Knicks are going to give him up...but hey you never know. Parsons is a Knicks' killer so they might like him. Iman is a hell of a player and penetrate and attack the basket just like Harden and i think he fits way way better than Parsons.

    While we're at it...i heard the Knicks are planning to trade Amare. Now i know this is probably a stupid trade but whatever. Why not have them include Iman + Amare for Parsons. That's one way for them to give up Iman. I see the lineup of Lin, Harden, Iman, Amare and Osik more potent than the one we have now. Pick n roll w/ Amare...OMG....compare that to pick n roll w/ Patterson. No comparison. Iman attacking the basket compare to Chandler...no comparison. Iman has unbelievable ball handling skills and he's responsible for the Linsanity taking off too.
     
  15. just a word

    just a word Member

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    thank you for answering my question!
     
  16. Knickskiller

    Knickskiller Member

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    Shumpert is sweet. but i am beginning to like parsons also
     
  17. dobro1229

    dobro1229 Contributing Member

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    Ha... well after the news that came out it might no longer be relevant. Or at least I hope not. I guess my main concern is how Morey deals, or would have dealt with that roster spot had he needed it to take on an additional player in trade come February.

    It would have been a huge shame if we were in February, Royce was pretty much still a lost cause, and Morey had to give up another player like Machado in a deal other than him just to get the deal done because of the max roster spots allowed.

    So I was curious how the contract voiding worked from a litigation standpoint, and if its something the Rockets could do just whenever they needed to in this case, or if its such a long drag out process that it might actually be better for Les & Morey to just eat his salary and waive him if a deal came around that was too good to be true and they needed the roster spot.

    Again, hopefully this isn't relevant anymore and he makes himself into a halfway valuable player for this team.
     
  18. Knickskiller

    Knickskiller Member

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    lol harden is the Real Uncle Drew.
     
  19. teebone21

    teebone21 Member

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    shumpert just game back from major injury and you think we should trade for him ????:rolleyes:
     
  20. BimaThug

    BimaThug Resident Capologist
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    Please keep random trade proposals (as opposed to proposed trades that are brought up to discuss the salary cap effects on the Rockets) in the Random Trade Proposal thread and out of this one. We're trying to keep this thread on point. Thanks!
     

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