[ClutchFans] The Chandler Parsons Contract: Salary Cap Implications of Exercising or Declining the T

He's a keeper.

At his young age, he's already our team's leader. Many nights he's the one who wants most to win. Pay him, Les.

 

I agree Id even trade Howard just to keep him if he wanted top Dollar, no bs

 

Some of these posters will have you thinking Chandler Parsons is on the level of Larry Bird or Jerry West lol. He couldn't even outplay Batum in the playoffs when it mattered most. Calm down guys.

 

Thanks, Bima, great article. So with the corrected numbers, what is the projection of cap space the Rockets could clear this summer (while retain H & H, of course)?

 

Just one small additional note that might not seem important but it could become important later.

If the Rockets do indeed go through with not exercising the team option on Parsons' contract and they make him a restricted free agent with the $2,875,130 qualifying offer, they do have until July 23rd to rescind the qualifying offer and still retain Parsons' birds rights.

Why is that important? Well, it's an extra $1,114,780 of wiggle room under the cap that the Rockets may need to push a contract offer up closer to a true max deal for a superstar they are trying to sign. They could simultaneously negotiate with Fegans/Parsons and the other player(Lebron/Bosh/Melo/Dirk) and finally reach agreement on 2 contracts, one for the other player, and one for Parsons. They would in turn, remove the qualifying offer from Parsons, thus lowering his cap hold back down to $1,760,500 and yielding up the extra $1,114,780 that they need to give the max free agent, then immediately sign the max free agent, and then immediately sign Parsons to his negotiated deal within seconds.

http://www.cbafaq.com/salarycap.htm#Q44


Here's the language explaining withdrawing a qualifying offer and the maintaining of Bird's rights which yields the lower cap hold.

This may not seem real important right now but going from $19 million starting salary to $20 million starting salary may be necessary to get the deals done.


And......you can pretty much bank on the fact that if the Rockets actually do go through with not exercising Parsons' option and making him a restricted free agent....that they already have deals in place to clear cap space and add a max free agent (or possibly a couple non-max free agents). It is simply unreasonable to believe that the Rockets would restrict Parsons and pay him this summer without already having trades in place to acquire a superstar through trading from him directly or by signing him outright.

 

I hope the Rockets keep him, contending teams are able to keep their better players.

DD

 

He's our Kawhi (to a lesser extent).

 

That's a good catch, basketballholic. Basically, the Rockets are losing at most ~$800,000 in cap room with this move. And, of course, a shot at 2015 max cap space.

More than anything, it says Morey is going all in this summer: Love, Melo, Bosh, Dirk, Lowry. I wouldn't be upset with any of them. Love is the best player, but the hardest to land. Bosh is maybe the best fit, but perhaps the worst player of the five slightly. Dirk gives the smallest window, but he's easily the second best player. Lowry is the smallest upgrade, but lets the Rockets keep Asik. Then there's Melo who has been attached to Houston more than any of the others. The next thirty days will be very interesting.

 

If the Rockets makes Parsons unrestricted even for one single minute, Dan Fegan, or any competent agent, is going to be prepared to use that opportunity to drum up a higher offer for Parsons and perhaps have Parsons leave the Rockets. And any competent GM is going to be prepared to make an offer if he wants to steal Parsons from the Rockers.

Sure, the Rockets can first reach a verbal/under the table agreement with Parsons at a (lower) price based on his restricted status and conditioned upon that Parsons allows HOU to let him become unrestricted for a moment without him going out and solicit another offer so they can sign a big $ guy with the extra cap room first, but such an agreement is of questionable utility. If Parsons gets a substantially higher offer on an unrestricted basis from, say, the Lakers than what he "agreed to" with Houston, will he actually turn down extra money?

Carlos Boozer did not.

 

The chances of that are incredibly low. I wouldn't pass up Carmelo Anthony based on the possibility Parsons is going to scoff at Houston's goodwill in letting him out of his contract early so he can go play in Cleveland or Milwaukee for an extra million.

 

are u a wizard?

 

Kevin Love is not better than Carmelo Anthony. I could see saying Love is a better fit in Houston argument but Love still has lots to prove.

 

My thoughts on a trade are this:

If Morey is going to make a trade for Love or Melo with Melo not exercising his early termination option and opting out or with Miami for one of Lebron or Bosh with them not exercising their opt out...then he really can't afford to give Parsons big money this offseason. All those guys will essentially be able to walk away in 2015 if Morey trades for them with one year left on their deals. He'll have to let Parsons play out his deal by exercising the team option so he has Parsons on a minimal cap hold next season JUST IN CASE our acquisition decides to walk away from us and we have to scramble to go after LaMarcus or some other free agent(s).

For instance, Love on a one-year expiring deal could play out his deal and walk to the Lakers next summer just like Dwight did here. The only way we could get another superstar if we have signed Parsons to a big money deal is through a sign-and-trade of Love to LA and a sign-and-trade of the other superstar here. The Lakers have no incentive of giving us a sign-and-trade without us sending them a substantial asset and then we would also have to likely give Portland (or some other team) an asset to get them to sign-and-trade their superstar to us in 2015. That doesn't seem Morey-esque to me. That's why I don't see Morey letting Parsons go through restricted free agency and paying Parsons this summer while simultaneously trading for a guy that has one year left on his deal.

That's why I say the only way Morey lets Parsons go through restricted free agency this summer is if he already has deals in place to clear out Asik and Lin and sign someone outright and he knows that someone is coming. He'll have to have those trade deals pretty much in place and already agreed to prior to July 1. And if they are agreed to...he can't then step out of them after the moratorium and execute a direct trade with the Knicks for a re-signed Melo. Not without giving the Knicks an incentive to sign-and-trade Melo to us.

You see........hence....the rumor that we are going to restrict Parsons. It sends the distinct signal that Morey has deals in place or at least is comfortable he has deals he can do to send Asik/Lin/Jones/DMo out of here and and create the cap space to sign a free agent outright. This is all designed to get the Timberwolves and Knicks to the table to execute a deal prior to July 1 or at least get a deal cemented together prior to July 1 before he locks in with the team(s) he is sending our salaries and assets out to and it is designed to send the signal to Lebron and Bosh (2 potential free agents still playing ball that we are logically interested in) that they need to let Morey know that they want to come here. I'm sure Morey prefers Lebron over everybody. And I THINK Morey probably prefers Bosh over Melo as well. And I'm pretty sure he prefers Love on a 1-year deal over everybody but Lebron.

That is why the rumor that the Rockets are going to restrict Parsons means Morey has found teams that are willing to take Lin and Asik off our hands and clear our cap and he is going to cement the deal if he gets no response by the draft or June 30th OR Morey at least wants teams and players to think that he has deals for Asik and Lin that yield up the needed cap space to sign a superstar free agent so he can get both parties to the table and get a deal hammered out.

 

The spurs are the model franchise,but by luck and shrewdness,they have been able to compete for basically 2 yrs. 25 yr old parsons is better than a 25 yr old manu. Even when manu had the chance to leave,the spurs started a yr ahead cleaing room to match. When manu became free,he wasn't worth 9m per yr,but he was raised groomed by the spurs. That matters.

There is something said when a players are drafted,groomed,and excel for your team. A lot of guys aren't worth their contract and by todays standard,Parson is a 10m type of guy. What it does is show your commitment to players. If you work hard and get better,you will be rewarded. Parsons is a top 5 or 6 sf in the league. Lebron,durant,melo,and I I guess you can count paul george,that's it. He's better than everyone else unless someone want to push batum and that's a wash at best. When someone comes with a legit offer,just pay. If its r****ded like the Lin contract,you think about it,but you might have to walk. There aren't many sf that can give you what parson gives on a nightly basis. I would argue if the pg situation was better, he probably could give even more.

 

I always thought that there is no room for Parsons if there is a third star on this team. Hell, there is no room for anything except for rookie contracts and Beverley type value deals.

 

It's going to be a lot of complaints this year if parsons signs a contract with the rockets this summer & doesn't play like a Paul George type of player.

I remember last year how he started the season struggling and everyone was critizing his shot & D on a 900k contract. Everyone upset about him running his mouth how he was batter than batum & didn't play like it. Then the last shot to lillard 1st round exit.

now people are like 40mill 4yr is a good deal for parsons early, even when we can ride him one more yr for cheap, this will be interesting which is a understatement.

Motley has a lot to think about unless he really just likes parsons

 

I would attribute that to wear and tear of the season. He had the most min I believe on our roster. McHale played him heavy min even when he had a bad back.

However, you do Nic Batum a lot of disservice. Batum is a good player. If Parsons ends up on his level, he'll be part of the core of this team. He knows how to blend his game with the superstars.