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How the Trade affects the Rockets Salary going into the Summer

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by crash5179, Feb 20, 2010.

  1. crash5179

    crash5179 Contributing Member

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    Here is a look at the Rockets Salary going forward with the current team and what it will look like going into this summer’s free agency. We already know Daryl Morey plans to be a player in this summer’s free-agency market via a sign and trade. Its common knowledge that with the trades DM made that the Rockets will be above the salary cap.

    Luis Scola is coming off his 3rd year but not coming off a rookie scale contract and less than average NBA Salary therefore his cap hold is calculated at 200% of his final salary.
    Kyle Lowry and Hilton Armstrong are coming off 4th year rookie scale contract and make less than the average NBA salary therefore his cap hold calculated at 300% of his final salary.

    Code:
    [b]Salary including cap holds for summer 2010[/b]
    [b]Player	        2009/2010	2010/2011	2011/2012[/b]
    Yao Ming	$16,378,325 	[b][color=purple]$17,686,100[/color][/b] 	N/A
    Kevin Martin	$9,680,170 	$10,600,005 	$11,519,840 
    Shane Battier	$6,939,200 	$7,429,500 	N/A
    Jared Jeffries	$6,466,600 	[b][color=purple]$6,883,800[/color][/b] 	N/A
    Trevor Ariza	$5,854,000 	$6,322,320 	$6,790,640 
    Brian Cook	$3,500,000 	N/A	         N/A
    Luis Scola	$3,284,667 	[b][color=red]$6,569,334[/color][/b] 	N/A
    H Armstrong	$2,801,198 	[b][color=red]$8,403,594[/color][/b] 	N/A
    Jordan Hill	$2,483,280 	$2,669,520 	$2,855,760 
    David Andersen	$2,314,815 	$2,500,000 	$2,685,185 
    Chuck Hayes	$2,147,750 	[b][color=blue]$2,334,125[/color][/b] 	N/A
    Kyle Lowry	$2,034,996 	[b][color=red]$6,104,988[/color][/b] 	N/A
    Aaron Brooks	$1,118,520 	$2,016,692 	$2,976,636 
    [color=green]Brent Barry[/color] 	$1,062,800 	N/A	          N/A
    Jermaine Taylor	$725,000 	$780,871 	$884,293 
    Chase Budinger	$725,000 	$780,871 	$884,293 
    [color=green]Mike Harris[/color] 	$82,306 	N/A	          N/A
    [color=green]Will Conroy[/color] 	$43,319 	N/A	          N/A
    [color=green]Garrett Temple[/color] 	$26,917 	N/A	          N/A
    #14 2010 draft*		        $1,519,400 	$1,633,300 
    #10 2011 draft*			                $1,923,600 
    Total salaries:	$67,668,863 	$82,601,120 	$32,153,547 
    L/T Threshold	$69,920,000 	$66,000,000*	
    			
    Salary Cap	$57,700,000 	$54,000,000*			
    Blue - team option     			
    Red - Salary Cap Hold  			
    Purple - Early termination			
    Green - not on team			
    * - Estimate			
    

    Code:
    [b]Salary including estimated salaries for restricted free agents summer 2010[/b]
    [b]Player	        2009/2010	2010/2011	2011/2012[/b]
    Yao Ming	$16,378,325 	[b][color=purple]$17,686,100[/color][/b] 	N/A
    Kevin Martin	$9,680,170 	$10,600,005 	$11,519,840 
    Shane Battier	$6,939,200 	$7,429,500 	N/A
    Jared Jeffries	$6,466,600 	[b][color=purple]$6,883,800[/color][/b] 	N/A
    Trevor Ariza	$5,854,000 	$6,322,320 	$6,790,640 
    Brian Cook	$3,500,000 	N/A	         N/A
    Luis Scola	$3,284,667 	[b][color=red]$4,105,834[/color][/b] 	N/A
    H Armstrong	$2,801,198 	[b][color=red]$992,268[/color][/b] 	N/A
    Jordan Hill	$2,483,280 	$2,669,520 	$2,855,760 
    David Andersen	$2,314,815 	$2,500,000 	$2,685,185 
    Chuck Hayes	$2,147,750 	[b][color=blue]$2,334,125[/color][/b] 	N/A
    Kyle Lowry	$2,034,996 	[b][color=red]$2,975,165[/color][/b] 	N/A
    Aaron Brooks	$1,118,520 	$2,016,692 	$2,976,636 
    [color=green]Brent Barry[/color] 	$1,062,800 	N/A	          N/A
    Jermaine Taylor	$725,000 	$780,871 	$884,293 
    Chase Budinger	$725,000 	$780,871 	$884,293 
    [color=green]Mike Harris[/color] 	$82,306 	N/A	          N/A
    [color=green]Will Conroy[/color] 	$43,319 	N/A	          N/A
    [color=green]Garrett Temple[/color] 	$26,917 	N/A	          N/A
    #14 2010 draft*		        $1,519,400 	$1,633,300 
    #10 2011 draft*			                $1,923,600 
    Total salaries:	$67,668,863 	$69,596,471 	$32,153,547 
    L/T Threshold	$69,920,000 	$66,000,000*	
    			
    Salary Cap	$57,700,000 	$54,000,000*			
    Blue - team option     			
    Red - Estimated Salary  			
    Purple - Early termination			
    Green - not on team			
    * - Estimate			
    
    Based on where the Rockets are salary cap wise and where they will be in two years I believe Morey will play hard ball with Luis and Kyle in order to make it possible for the team to get below the Luxury Tax Threshold prior to next seasons trading deadline. Knowing that Morey has every intention of re-signing both players and that few teams will be able to offer more than the MLE I just don’t see Scola or Lowry having much leverage. DM is likely banking on his ability to move Jeffries contract at the trade deadline to get the Rockets back under the Luxury Tax Threshold. He can not use Jefferies contract to get under the salary cap if he offers too much to Lowry and Scola. Of course there is the possibility that either or both could be part of a sign and trade.

    Hilton Armstrong will have a very big cap hold based on the fact that he is a 4 year veteran coming off a rookie scale contract. He has been a 4 year scrub and hardly worth the 2.8 million he is being paid but if he can show enough heading into the summer DM might be tempted to offer him the vets minimum just under 1 million a year for a 4 year vet. This could allow DM to cut Chuck who is scheduled to make 2.3 million next season which could be important next February when the Rockets are trying to get under the Luxury Tax Threshold.

    What is DM willing to offer in a sign and trade this summer? Hard to know for sure or who will be available. Lebron, Wade, Bosh, Amare? Obviously the Rockets have some interest in Amare but I believe that Bosh is their real target providing he is willing to leave Toronto. Looking at the team and knowing that 1st round picks equal guaranteed money for un-proven talent I would think the Rockets would be more than willing to offer up it’s 2011 and one of it’s 2012 draft picks to a team as sweetener in a deal. The chance for a team to have multiple lottery picks in two straight years would seem to be appealing on the surface.
     
    #1 crash5179, Feb 20, 2010
    Last edited: Feb 20, 2010
  2. white lightning

    white lightning Contributing Member

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    Isn't Jordan Hills 11/12 salary a team option?
     
  3. BimaThug

    BimaThug Resident Capologist
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    Thanks for the info, crash.

    I actually have an article that Clutch is going to put up on the front page either tomorrow or Monday. It contains a detailed salary cap and luxury tax analysis, including the issues the team faces with Chuck Hayes's team option, restricted free agency (for Scola, Lowry and Armstrong), the draft, outside free agents, sign-and-trades and the luxury tax picture next year.
     
  4. Yak

    Yak Member

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    Sounds informational to say the least.
     
  5. crash5179

    crash5179 Contributing Member

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    sweet!
     
  6. crash5179

    crash5179 Contributing Member

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    That is correct.

    The Rockets hold team options for Hill for the 11/12 season and the 12/13 season.
     
  7. LCII

    LCII Contributing Member

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    It'd be masterful if Morey can pull of a S&T for a player of Bosh's caliber and only be at $3-4 million above the LT. We'd probably end up having the most talent per dollar out of all the teams in the league.
     
  8. Sooner423

    Sooner423 Contributing Member

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    Nice write up, but I think Scola will command 6-8 mill per year.
     
  9. crash5179

    crash5179 Contributing Member

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    I think if he were an un-restricted free agent you might be right. I just don't think any GM is going to waste their time trying to sign either Scola or Lowry this summer because they know DM will match. Plus there are not that many teams that will be able to offer that kind of money.

    Just based on how DM handled the Landry situation a couple of years ago I don't think he will get into a bidding war with himself. I think when its said and done both Scola and Lowry will be signed for one year at or very near the qualifying offer for restricted free agents.
     
  10. thumbs

    thumbs Contributing Member

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    I don't want to lose El Skol! but Luis deserves a big payday. I hope we can figure out how to pay him at least as much as Shane Battier. IMO he gives us far more bang for the buck than any current Rocket including Brooks.
     
  11. Sooner423

    Sooner423 Contributing Member

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    You could be right. The restricted status is a huge deal. Another factor is the impending lockout. Other GM's may not go all out for some of the lesser free agents.
     
  12. crash5179

    crash5179 Contributing Member

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    I agree. I just think his big pay day is coming in 2011 but you never know. If some other GM offers him 6.5 mil for 5 years the Rockets still win because they get out of the 6th year plus all the other team can offer is an 8% increase every year. If the Rockets offer him a 6.5 mil a year salary he would expect all 6 years and the full 10.5% increase a year due to the Rockets bird rights.

    The more likely scenario if another team makes Scola an offer would be 5.5 mil (the MLE) for 5 years and an 8% a year increase per year. Of course Morey would need about 5 seconds to match that offer.
     
    #12 crash5179, Feb 20, 2010
    Last edited: Feb 20, 2010
  13. DaDakota

    DaDakota If you want to know, just ask!

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    The Rockets made TONS of money this year because insurance paid for Yao and some of Tmac's salary.....

    They probably had their most profitable year EVER....and can afford to take a lux tax hit next year.

    DD
     
  14. crash5179

    crash5179 Contributing Member

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    I agree that they can afford to but if at all possible they will avoid it. We have seen Morey do this every year.
     
  15. ABforPresident

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    If we can get Bosh, then I could care less if Scola goes unsigned
     
  16. JoeBarelyCares

    JoeBarelyCares Contributing Member

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    Good thing they can, since by taking on Jeffries deal and going over the LT next year, this deal will cost Les twice Jeffires' salary ($13.8 million) next year, plus the loss of the kickback ($4 million).
     

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