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K.J. McDaniels Offer Sheet Discussion Thread

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by BimaThug, Jul 2, 2015.

  1. BimaThug

    BimaThug Resident Capologist
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    I figured it would be helpful to start a separate (hopefully SINGLE) thread for all things relating to any offer sheets that might be thrown K.J. McDaniels's way and whether/how the Rockets should match them.

    A quick primer on K.J. McDaniels's free agency:

    The Rockets have extended a qualifying offer to McDaniels in the amount of $1,045,059 for one season. This offer was extended in order to make him a restricted free agent. It is unlikely that K.J. accepts this offer (although don't completely rule this out), but it still needed to be EXTENDED in order to keep the right of first refusal that comes with restricted free agency. McDaniels can accept this offer at any time, unless the Rockets rescind the offer first.

    As a one-year veteran who has been extended a qualifying offer, McDaniels is subject to what is commonly known as the "Gilbert Arenas Rule." Because he has only been with the team for one year, the Rockets only have Non-Bird rights to him, which only allows them to offer McDaniels up to the qualifying offer amount . . . unless the Rockets instead use cap room or another salary cap exception (like the MLE) to re-sign him.

    However, so long as the Rockets do not use the Non-Taxpayer MLE elsewhere (and also stay under the apron level, which is required in order to use the Non-Taxpayer MLE in the first place), the Arenas Rule allows the Rockets to match any offer for McDaniels. However, as Rockets fans learned in 2012 with Daryl Morey's wizardry with the Omer Asik and Jeremy Lin contracts, offer sheets can be structured in a way that can make matching painful.

    Max Offer Sheet Amount:

    FWIW: The max offer sheet that K.J. McDaniels can be signed to (assuming a $69.1 million cap) is 4 years, ~$47 million. If matched, it would hit the Rockets' books as follows (all figures are approximate):

    2015-16: $5.5 million
    2016-17: $5.7 million
    2017-18: $17.6 million
    2018-19: $18.3 million

    Of course, it is unlikely that a team will extend such an offer sheet to McDaniels. BUT, if a team did extend it, that team would need to have at least around $12 million in cap room (the average salary across the entire deal) to do so; and the cap hit on its books would be at that same nearly $12 million figure in each year of the deal.

    Also, my math may be off a little. But there it is.


    Discuss amongst yourselves . . .
     
    1 person likes this.
  2. larsv8

    larsv8 Contributing Member

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    Can't see any way McDaniels sticks around.
     
  3. Voice of Aus

    Voice of Aus Contributing Member

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    id match that contract if he got maxed and ship him out before the salary jumps up
     
  4. basketballholic

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    Can't see any way he doesn't. Can't see him getting more than around 2/4. And that's match-able.


    McDaniels is the main reason I've been advocating trading for a point guard for some time as opposed to bringing Llull over. Of course if some team offers him ridiculous money then we've gotta let him walk. But I just can't see that happening.

    I'm hoping for a point guard trade. Something small like perhaps Cory Joseph signed-and-traded by the Spurs to us for non-guaranteed and a future second rounder. Or perhaps somehow get one of Dennis Schroder, Tyler Ennis, or CJ McCollum in here for our 2016 first rounder.

    McDaniels has too much potential in our system to let him walk if we can sign him to a reasonable deal.
     
  5. micah1j

    micah1j Member

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    considering word is he wants 10-15 million over 3 years, same as #8 pick then Rockets should be able to get a deal done easily within MLE, if we don't get Aldridge.
     
  6. sugrlndkid

    sugrlndkid Member

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    KJ played his cards right...and who thought a 2nd year 2nd round pick has a chance to make more dough than his 1st round counterparts.
     
  7. BimaThug

    BimaThug Resident Capologist
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    FWIW, the maximum contract for the 8th pick this year pays less than $9 million over the first three seasons.

    $10-15 million over three years is actually closer to the rookie scale salary for the #1 pick in the draft.

    I'm not saying that McDaniels can't ask for it or that he won't get it. But at least those are the facts.
     
  8. basketballholic

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    I can't imagine a single team in the league, including the Sixers, being willing to pay McDaniels $5 million per season. I think he maxes out around 3/9 or possibly 2/5.
     
  9. coachbadlee

    coachbadlee Member

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    I say the latter.
     
  10. Airdough

    Airdough Member

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    If Smith is brought back at am amount above 2.5MM, does that entire amount count against the MLE or just the difference? Is it possible to split the MLE between KJ and Smith, sign and trade for Stuckey using KPap contract, resign Brewer to an Affalo like deal, and use other assets like Jones/Prigs/Capela/DMo to acquire 3 and D upgrades for the bench.

    Given the current salary structures, roster construction, and no bi annual exception, the Rockets appear land locked in ways to improve the roster.
     
  11. malakas

    malakas Member

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    I can. I think of the top of my head the following teams : charlotte lakers knicks bulls philly pistons (who have done nkthing so far in fa) orlando blazers celtics toronto

    Now have to check what type tbey can offer bit i know orlando and pistons and ohilly have capspace to burn. And they will.

    Even if it doesnt fit their needs its an invesent on a young player with potential. This is the season to take a chance of you can lock him for 5 per.
     
  12. malakas

    malakas Member

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    You have to spend everything that you gonna match out of the mle pot.
     
  13. BimaThug

    BimaThug Resident Capologist
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    The entire amount of Smith's contract would count towards the MLE (or cap room) if he gets even a penny more than the max Non-Bird amount (~$2.49M). Also, everything else you describe above is possible.

    But this would be a question better posted in the "Paging BimaThug" or other threads. Let's try to keep this discussion on point. Thanks.
     
  14. mercy road

    mercy road Member

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    While KJ performed well for the Sixers for a rookie, it is impossible to gauge how good a player is on a team as bad as the Sixers. The Rockets just pretty much shut him down. There is probably little interest around the league right now because of the paucity of information. He may just slide under the radar and the Rockets can negotiate a reasonable contract with him.
     
  15. arabrocket

    arabrocket Member

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    The sixers can't sign him anyway since they just traded him for us.
     
  16. basketballholic

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    Sure they can. His contract expired.
     
  17. Airdough

    Airdough Member

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    Thanks, I just saw the decision to either keep or let KJ walk as a catalyst for other moves the Rockets could pull off.
     
  18. glimmertwins

    glimmertwins Member

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    I think if we have learned anything from FA so far it's that teams are operating under new TV deal financial constraints so be prepared that the deals KJ might field will likely be scaled to the huge jump in cap that is coming.

    It's tough though because KJ played limited minutes mostly on a bad team and is coming off an injury. Essentially he is an unknown quantity in the same way a rookie is so his pay scale might be similar to that of what he would make if he were in this past draft BUT there is always a team with nothing to lose willing to pay a little more to take a gamble on a player and there is a REAL smell of desperation coming from a number of teams out there right now who have struck out time and time again in FA. I'm surprised the Knicks and Lakers aren't slobbering all over themselves to take a chance on KJ and are willing to overpay.
     
  19. Space City

    Space City Member

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    At first I thought it ridiculous to use the MLE to sign McDaniels when the gaping hole at PG given our depth at SF. However, with the possibility of Brewer leaving for the outrageous amount of money FAs are getting, retaining KJ may now be a bigger concern.

    Now I think of it as possibly being KJ vs Papa. We could either (a) use the MLE to sign a PG and retain Papa, or (b) use the MLE to retain KJ and use Papa in a trade or S&T for a PG. It may not ultimately come down to this as they could end up both leaving or both staying, but I wouldn't doubt the FO has thought about this.
     
  20. Airdough

    Airdough Member

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    If anyone else in free agency is getting a 1+1 deal with a large salary in year one, then KJ would be a great candidate. The Mavs could step in to grab him if they have concerns about Parsons and or want to go small more often. The Lakers could view him as another young prospect which to gauge to see if he could be part of their core.
     

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