How valuable was the 6 million trade exception part of the Ariza trade?

Opps, just find that the TE can't be used for signing free agent. But it's my idea that the TE can be used as trading asset in next season.

 

Correct! and we need to remember the reason we got the TPE is also to save on tax so if we acquire a player who makes say $6 million because we are over the salary cap we would paying $12 for him. With that said it seems as it could be a bad idea to get another star player (using all our expirings) AND taking on an unwanted contract using the TPE, it would have to make that "star player" very worth it IMO.

 

If it were 12-14m,then it would be great, but since its only 6.3m, not so much. I for dont think they will use it until next season if they use it then. They've let smaller ones expire because they were so close to the cap. Now if gortat shakes loose and orlando feel the florida kid is ready for a backup role, the rockets could aboorb his mle contract.

 

I am of the opinion Morey will use it for EVIL.

thats what I thunk

 

It helps us target a big man at the trade deadline if it looks like Yao isn't holding up. Also, I think it is better than Ariza in any potential trade for a star. Presumably, one of the things any team trading a star player wants is cap relief (see Iggy and Brand). The Chris Paul rumors centered around unloading a guy like Okafor. If the Nuggets trade Carmelo, they would want immediate cap relief (why pay anymore than you have to for a rebuilding season). Say we trade for Carmelo, before the Ariza trade, we would have to trade Battier, Jefferies, and Ariza just to match Carmelo and Andersen's contract (the valuable pieces that we would be trading either are on rookie contracts or are draft picks). I don't think they want 3 forwards, no immediate cap relief, and having to be on the hook with a player for another 3 years. Ariza, at 25, is a guy entering his prime, a guy you want to begin your reign of contention. He is not a guy you want to be put on a rebuilding squad where he is given a larger role. No, what you want when you are rebuilding is his contract as immediate cap relief, to use in the future on players that fit your plan, as oppose to "best we can get now."

 

When does the TE expire?

 

1 year from the trade date.

 

I personally don't think we will use the TE UNLESS we are one of the top 5 teams in the league and contending next year, and a very nice piece is available at the trade deadline that Morey thinks can potentially put us over the top. Say what you want, but I'm still a bit skeptical that less TRULY is willing to go over the cap, once again, unless we are near a ring.

 

LES* is what I meant

 

Are you saying the trade exception is more useful for trading for a star than Ariza would be? If so, I disagree. For one Ariza is a young player with a reasonable contract of length, who most likely would play the same position as the star player we would be taking from the other team (a wing). One team obviously had interest in him, I think it follows that other teams would have too. Second and most importantly, the trade exception cannot be used on a superstar because they make too much.

Wait, like the Hornets?

 

This is what I think we should do. I don't know the rules about trading a guy you just traded for, but anyways here it goes. If we are really going to trade for Melo and keep Martin, Battier and Jared is surely going to go with other assets. But we can keep Battier if we traded the exception to the Pacers for Jeff Foster's expiring 6 mill contract and then flip him plus Jared, draft picks and Jordan Hill or whatever.

 

Personally I hope they use it to get a guy like Okafor or maybe even Diop when Charlotte realizes they're out of it this season. I know Okafor is overpaid but he brings a strong defensive presence that this team would need if Yao is done.

I would rather them trade away expiring contracts (Battier/Jeffries) and some draft picks for a big man than trade away a key piece of this team (Brooks/Kmart/Scola) for Melo.

 

Yes and No. By the letter of the law that is a true statement but realisitcally it isn't.

The variable here is that the NBA trade rules allow each team in a trade to break a deal up in to one or more trades for the purpose of salary matching. The iteresting part is that each team involved in the trade is allowed to break the trade up differently than the other teams involved.

A great example is the McGrady/Francis trade. From Houston's perspective they broke the deal up into 3 separate trades but from Orlando's perspective it was just one big trade. Larry Coon's FAQ breaks down this very trade from both team's perspective.

So, even though the TE can't be combined with players it can in reality be used in a multi-player deal. Here's an example:

Let's hypothetically say the Rockets decide they want to do a trade where Denver receives Jeffries, Battier and picks for Anthony and Anderson. From a straight salary perspective the Rockets would be sending out $14.2M in salary and taking back $21.6 in salary. The difference in salary is obviously above the allowable 25% so that deal isn't legal.

But, with the TE the deal could be restructured into a legal trade as follows:

From the Rockets perspective it's actually two deals 1) Battier and Jefferies for Anthony - the salaries are within the allowable 25% so that part is legal. 2) the 2nd part is using the TE to cover Anderson's salary (which is also legal) . From Denver's perspective it's just one deal where they send out $21M in salary and only take back $14M in return - since you are always allowed to take back less salary then the deal is legal from Denver's perspective.

So by using a TE, the deal that wasn't legal suddenly is allowed. It certainly isn't applicable to all deals but in the right situation it can be useful (even in multiplayer deals).

 

If Yao goes down again I could see us using it to go after a Backup center like Gortat or Jeff Foster or even Zaza Pachulia

 

Right idea but wrong players.

When you use the TE, the salary of the player/players you acquire must completely fit under the TE (rather than within 25% as in a normal trade). Both Foster and Gortat make over $6M so they couldn't be acquired using the TE.

 

Marcin Gortat was signed to the exact same salary last summer as Trevor Ariza. Since the Magic matched the Mavericks' offer sheet for Gortat, Marcin only gets 8% annual raises. This means that the 2010-11 salaries for Gortat and Ariza are exactly the same. Therefore, Gortat would fit perfectly into the Ariza trade exception, leaving $0 remaining of the trade exception if it is used on him.

You're right about Foster, though. His salary ($6.655M) is too large to fit within the trade exception.


As far as how I think the Rockets will actually use the Ariza trade exception, they will either (a) use it in a major trade (or series of trades) for a star player or (b) failing that, use a portion of it at the February trade deadline to eat the salary of an under-the-cap team's scrub on an expiring contract in an effort to dump a guy like Jeffries and get below the luxury tax threshold. Basically, something akin to the Jeffries/pick/cash-for-Telfair deal with Minnesota that I proposed earlier. The best part of that deal is that the Rockets would also generate an even larger trade exception in the amount of Jeffries's salary ($6,883,800) to use anytime until February 2012, barring any prohibition under the new CBA.

 

We can't pay the diffrence the te does not cover? By the way zaza makes less then 5 mil a year.

 

Thanks for the break down Bima. I agree about the salary dump. I only see my idea happening if Yao gets hurt early in the season and Les gives Morey a direct order to get another center and try make the playoffs
No mater what.

 

I don't think Les would be that short-sighted. Besides, that's why he just opened his checkbook for Brad Miller. Remember, at the time that signing vaulted the Rockets WAYYY into luxury tax territory without any guarantee of lowering salary later. I think he felt that Brad was somewhat worth that gamble. With Miller, Hayes and Hill, I think Les would just go to war with that platoon on a Yao-less Rockets team with no real championship aspirations and then possibly consider using cap room to sign a free agent (or facilitate a trade for a player under contract) next summer, again assuming that Les wants to cut ties with Yao (doubtful).

 

That makes sense.