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Crispee, Achebe, other cap experts!! what up with TRG's article?

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by barbourdg, Aug 5, 2001.

  1. barbourdg

    barbourdg Member

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    ARTICLE ARCHIVE
     

    ------------------------------------------------------------------------
    August 3, 2001

    Jackson Likely Will Remain A Warrior
    By TRG (with BskBALL)

    The Rockets now say they are not looking at Marc Jackson as an option because they can't afford to offer him a contract.  What?  Didn't we just CLEAR some cap space by trading Hakeem and getting a trade exception?  Well, it's more complicated than that.  It's always more complicated than that, actually.  I e-mailed my "evil twin," BskBALL and asked him if he could grace us with his in-depth knowledge of the cap and the CBA and explain why the Olajuwon deal killed any chance of Marc Jackson coming.  Here's what he said:

    "The Rockets were over the cap when they signed Hakeem, meaning the compensation they get back from Toronto is not spendable cap space... its a trade exception. 

    The Rockets did not renounce any of their free agents, including Hakeem which in addition to their $21.6 million committed to active roster players... they had roughly $30 million in free agent rights... meaning at the time they inked Hakeem, they were over the cap by $6.6 million. 

    The trade exception, is only good in a future trade... Toronto passed it to Houston when they dealt him.... They currently hold $6.6 million in traded player exceptions and sit at roughly $39.9 million, the most they could offer Marc Jackson is $2.6 million, or their median exception of $4.5 million, either way Golden State can match that... Golden State can not sign him using the median exception and trade him, they have to keep him,  the most the can sign him and trade him for is $525,000... so there is no way Houston can get Jackson unless Golden State agrees not to match rights.
     
    In order for any exception to become cap space, you must fall the amount of that exception below the cap."
    Is that clear as mud now?  So basically by signing-and-trading Hakeem instead of just letting him go, we got a little more money for him, a couple of draft picks for us, and lost our cap maneuverability.  This does, however, explain the interest in Jelani McCoy, who would, or at least SHOULD, be happy with $2.6 million.  Then again, why not just keep it and use Cato more with Mo and Bull backing him up at the 5?  That would get us a pretty high draft pick next summer.
    Then could we please get a REAL center?????
     
  2. ROCKET!!!

    ROCKET!!! Member

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    barbourdg,
    Yea, I saw this on his site. I immediately dismissed this to his lack of knowledge regarding the cap.

    We CAN sign Marc Jackson in several ways. It depends on how the Rocks handle the signings.

    1. Clearly the easiest is, if GS does not match it, is the $4.5 mil exception. From previous reports GS decided not to match Indy's offer of the same. If signed with the exception, it becomes a direct hit to the cap as committed salary. This is the best scenario for us!
    2. The Rocks can renounce the trade exception/Carlos salary and other commitments enough to drop us below the cap ($42.5) and sign a limited number of players up to the cap limit. This is not recommended as we loose all flexibility here.
    3. S&T with GS. They sign Jackson with their exception and send him to us for a portion of the $5.1 mil trade exception (yes, you can subdivide the trade exception).
    4. S&T with GS for like salaries or additional players with matching salaries within 15%(GS has zero cap space and only player exceptions).
    5. Prioritized signing by the Rocks. Tricky, but easily acheivable (eg. sign Mo T first, then renounce players to offset increase above the cap). Complete all desired signings before jumping below the cap to sign Jackson. This scenario would definately mean kissing SA goodbye either through signing with another team or a Sign & Trade where we take on less salary than we give (this would be difficult at best as few teams have space remaining this late in the game - only Chicago comes to mind and that is if they renounce Holbeirg).

      [/list=1]

      There are other options similar to these, but quite honestly, I'm tired and don't feel like researching the numbers right now. Bottom line is.....as usual TRG is out to lunch. Signing Jackson is easily achievable.
     
  3. NIKEstrad

    NIKEstrad Member

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    and people wonder how misinformation spreads.

    Golden State can't S/T with their MCE. Common misconception. Golden State can't really S/T at all with him. Not sure if it'd be considered tampering if we sent Golden State a pick for not matching an offer (not sure why we'd do this since we could offer more than them, unless we can get him starting at 3 mill or something to that effect)

    It is correct that at this current time we cannot put out an offer right now for more than the MCE. But, that is taking into account all of our free agents, and their unrenounced rights. We can get under the cap by renouncing players fairly easily. Bskball makes it sound like it's too late to renounce them. The Rockets have no reason to renounce anyone or anything until they decide what route they plan on taking. Once we make our renouncements of guys like Los and Bullard (assuming he's dandy with the 1 mill min), we'll be pretty close to the ~12 mill exceptions threshold, where we lose them.

    What TRG also fails to mention is you can renounce an exception.

    ROCKET!!!-I disagree that renouncing is less desirable than using MCE. If you use MCE on Jackson, you can not resign Mo Taylor to anything more than the million dollar exception without renouncing your trade exceptions/extra fat. Which leaves you back where you started, except you're susceptible to GS matching.

    Remember, the exceptions count against your salary number. So even if you stay within 6 million of the cap, to avoid automatically defaulting your exceptions, you cannot use that 6 million AND your exceptions.
     
  4. mfclark

    mfclark Member

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    Hakeem's cap figure of nearly $22 million placed the Rockets over the cap. Trading him to Toronto cleared that figure, plus allowed the Rockets to receive a trade exception equal to his year one salary.

    With all of the players under contract totaling about $22 million, Eddie Griffin another $1.67 million, Matt Maloney's waived figure of $2.5 million, and the unrenounced cap hit of the free agents totaling just over $14 million, the Rockets are about $3 million under the cap. Adding in the sum of all exceptions, the Rockets are about $10 million over the cap.

    Thus, the Rockets can renounce all exceptions ($1.3, $4.5, and the trade exception) and sign a player for about that $3 mill figure, acquire a player via trade with the exception for about $6.5 million (maybe a center), or use the midcap exception to sign a free agent and cut Mo loose.

    Thus, unless Golden State doesn't want to match an offer for Jackson and the Rocks want to lose Mo, Jackson won't end up in a Rockets uniform. Perhaps another center using the trade exception, but that's it - the $4.5 exception will have to go to Mo and early Bird rights to Moochie.

    For once, BskBall is pretty much correct! Dang, surprises me.
     
  5. heypartner

    heypartner Member

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    I agree with NIKE; there is a lot of misinformation here. As he says, you may not sign-n-trade a player who is signed with an exception.

    Nothing has changed at all from our old discussions about getter Webber. We will do #2 in ROCKET!!'s post, because it achieves plenty of cap room and thus maximizes flexibility. Anything an exception can do, can be done with capspace.

    We will clear a buttload of capspace just like we were planning to with Webber. With our capspace, we can easily afford Mo and still outbid for Marc Jackson....I mean, we were talking about giving $12.5m to Webber, right!!!! Using the Trade Exception, the Million Exception and the Mid-Level gains nothing.

    Keep it simple guys: exceptions and capspace cannot co-exist...and spending an exception (merely to say you used it) and then going under the cap later to get Mo', achieves nothing that couldn't have been done by just clearing the capspace to begin with.
     
  6. Achebe

    Achebe Member

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    cap expert? :D

    I just retype whatever aelliott's posted before (sometimes I get it wrong, but that's due to a lack of memory.. or when I just make stuff up).
     
  7. heypartner

    heypartner Member

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    Are you saying that we can only get $3m under the cap. RealGM has the Rockets at $9.5m over the cap, as you state. We can renounce Rogers, Bullard and Mo and get $12.5 under the cap, by the mere fact the exception go away then.

    With $12.5m, we will sign back Mo, and shop for a Free agent. When the shopping is done, we will sign moochie and shandon to early birds and sign Bullard to the veteran's minimum.

    How did this confusion set it that we won't have over $12m in caproom anytime we want it this Summer???? We've been talking about this for 6 months now.
     
  8. ROCKET!!!

    ROCKET!!! Member

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    Nikestrand/Hp,
    I am looking for it now, but I recently saw something about trading an exception signed player for a trade exception.

    Of course, HP is right as I mentioned above the MCE would have the same net effect against the cap. HP I defer to you on that one. Clearly that is much easier.
     
  9. ROCKET!!!

    ROCKET!!! Member

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    HP

    BTW, I don't know if you saw my post in another thread, but once again.....great job with the site!!!
     
  10. treeman

    treeman Member

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    crispee,

    Really just a side note, but didn't we decline Los' option before the bidding started? Doesn't that equate to renouncing? I know I saw the press releases; I thought he was already gone (off the payroll) :confused:
     
  11. NCSTATEFAN

    NCSTATEFAN Member

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    I am not a cap expert, but from the wording of the rules, it appears the trade exception is used to not penalize a team by allowing them to maintain cap space above the league cap. Example, Vancover trades Big Country to the Clips for a future 99th round draft pick : ) Rather than the Grizzles losing the additonal 11 million in cap space, they are awarded a trade exception. Now if the Grizzles have a player on the last year of the contract that same season with no bird rights, it will either have to get below to cap to sign him, or let him go. Now once that team drops below the league cap, it loose the ability of maintaining their 53 million cap space allocation, since the league cap is set at 42 million.

    Now back to the Rockets, the only reason why the Rockets were awarded the trade exception is because they were already ABOVE the cap.

    The BsktBall interpretation could be correct, although, I feel I am right, they are wrong : )
     
  12. mfclark

    mfclark Member

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    No, the Rockets can get to more than $3 million under the cap - I just neglected to mention that the free agents could be renounced. In some cases, they might be - but in others, probably not. For example - Bullard will not be renounced, the Rockets already plan to use his bird rights.

    If Shandon, Mo, and Moochie are coming back, it'll take using Early Bird rights on Moochie, full bird rights on Shandon, and the exception on Mo; if you renounce them all, I don't see them all getting the deals from the Rockets to stay, especially with others not being renounced, like Bullard.
     
  13. heypartner

    heypartner Member

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    mfclark,

    Bullard and Rogers combined are a $7.3m cap hit. Seven Million and Three Hundred Thousand!!! If you ignore Mo's cap hit of $2.7m from the calculations (because that hit converts to his new salary when we sign him), we have $12.5m is cap room to spend on Mo and a free agent. Moochie and Shandon can wait andl take Early Bird contracts after we sign any Non-Qualifying Free Agents. btw: you are incorrect saying Shandon is a Full Bird.

    imso, you are also incorrect saying Mo will take the Mid-Level exception. If Mo' was willing to take the exception, he already would have. And further, your scenarios leave us incapable of clearing capspace for competing for guys like Marc Jackson. Do you not believe CD and other quotes saying that we are now evaluating Marc Jackson?

    $12.5 million is available if you are willing to lose Rogers and Bullard. We must and will clear that caproom to keep and improve our team this year, especially after losing Dream. You'd be seriously restricting your options not to clear that capspace.

    btw: Bullard will then be signed back to the vet minimum of $1.3m (which is all he deserves). Renouncing vets and signing them back to low contracts is a common practice.
     

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