Lins and Asik Salaries?

8 mil is what will be counted against the cap each yr for 3 yrs.

we are actaulyl paying them 5/5/15.
if knicks or bulls matched then the 15 mil would hit their cap

 

Yes the poison pill is to pay them 15M in the 3rd year no matter how good or bad they play. So even though they only get 5M this year, the average they are getting throughout the contract is 8M. I think there's a term in NBA rule that a team can avoid exceeding cap by averaging out players' contract. So in the 3rd year, assuming every player still has the contract and salary Houston will still have the same cap space as of this year. From the way Lin and Asik have been playing and used during the losing streak, they are overpaid.

 

they are on the salary cap at 8m per year... 5m 5m 15m is what bulls and knicks would have to have them on their books at

 

I didn't understand it either until I researched it.

In a nutshell:
Team offering a RFA can average salary for salary cap purposes.
Team matching offer takes salary cap hit based on each year's salary.

Hence the poison pill the Rockets put in for Asik and Lin doesn't hurt the Rockets but would cause a huge penalty tax for their old teams.

 

The Contract offers to Lin and Asik were 5/5/15M.

The actual way the cap hit is calculated is subject to WHO is doing the paying.

This falls specifically under two rules under the new CBA, the Gilbert Arenas provision and the Restricted Free Agency rules.

The MOST any player can be paid in their first 4 years in the league is $5M per year. After the 4th year, they can be paid up to the contract maximum allowed under the CBA based upon their years of experience.

As Lin and Asik were completing their Sophomore years, the MOST they could be paid in year 3 and 4 in the NBA was $5M per year. However, ANY team could offer them a contract during Restricted Free Agency up to 4 years in duration.

This meant that the maximum contract that could be offered to Lin OR Asik under Gilbert Arena's and RFA was $5/5/15/15 on a 4 year deal assuming that the bidding team ALREADY has sufficient Cap Space to meet the maximum calculated salary. Matching their salary potential to their years of play in the NBA it works out to $5M in year 3, $5M in year 4, $15M in year 5, $15M in year 6.

The tricky part here is how the Cap hit is actually calculated.

For teams MATCHING a RFA contract, the cap hit is AS IS. That means that $5/5/15/15 is treated as $5/5/15/15 on their cap hit. This includes luxury tax implications.

For the team BIDDING on a RFA contract, the cap hit must be AVERAGED over the life of the contract.

IN other words, a $5/5/15/15 contract is actually $40M/4 years, or $10M/year against the cap. And a $5/5/15 contract is actually a cap hit of $8.3M/year.

So, in the case of Lin and Asik, though their pay checks are actually $5/5/15M, for the Rockets the cap hit is $8.3M/year. Even though they were required to have $15M in cap space in order to construct that contract, the actual cap hit once signed is $8.3M/year.

In terms of the Cap Hit to the Receiving team in case of a trade, the Cap Hit is whatever the Cap Hit would be for the ORIGINATING Team.

In other words, If the Knicks or Bulls had matched, then the Contract would be treated as trading $5/5/15M. However, if the Rockets are trading them, it is treated as $8.3/8.3/8.3M, even though the ACTUAL amount of money paid out to the player would still be $5/5/15M.

So, if the Rockets were to trade Asik OR Lin as an expiring in the 2014 off season, it would count as $8.3M against the Cap of the receiving team, HOWEVER the actual payroll hit in terms of checks cut to the player would be $15M in their 3rd year.

 

I'm thinking it's going to be difficult to trade Lin or Asik.

 

LOL if you put either of them on the block right now they'd get calls from almost every team in the league with good offers. Both are playing well at their salaries.

 

You are nuts. Calls from almost every team? Lin and Asik were both available last summer, did every team in the league go after them? No they did not. This season many people think Asik has been a pleasant surprise, so it wouldn't suprise me if Asik could be traded fairly easily. Lin has been a disappointment with the Rockets, whether you want to blame the coaching or Lin himself is up to you. But, I don't think every team in the league would be contacting the Rockets with good offers for Lin. Do you really believe that?

I also think it will be more difficult to move either Lin or Asik as they near the end of their contracts. Teams would be forced to pay them 15 million in the third year. If the Rockets wanted to trade either of these guys, right now would probably be the easiest time to move them. I'm not saying we should trade them, just that it gets more difficult as time goes on because of the way the contracts are structured 5/5/15.

 

Agreed...at least the knicks won't. Also true that the earlier to trade them the easier.

 

Asik would get interest IF he was made available, but Lin has to be the right situation to garner interest. GM's arent dumb enough to not see what is going on here in the Houston.

Towards the end of the season its possible that Lin might be playing consistent enough to garner some interest in the Summer, but a trade deadline deal will almost certainly not happen in the next few weeks. Teams will take a chance on a inconsistent prospect, but not one that is making 8.3 mil for the next two more seasons after this one. They will absolutely have to be 100% sure, that he can play at a high level consistently.

As for Asik, what team wouldn't want a true center like Asik? In a world where Andris Biedrins is making more than 9 million a year this year and next, Asik's 8.3 is very reasonable. The more, and more he improves offensively, that value sky rockets.

If the Rockets make a move to acquire a max salary player, its almost certain that the two names that will be brought up most by the other team will be Omer Asik and Chandler Parsons.

 

Maybe a bit off-topic. Many people are not happy with Lin because he is not performing at 8 mill per year level. But they forgot Lin didn't ask to be paid that amount. The Rockets offered Lin that amount and constructed the contract that way (5,5,15 mill) for the pure purpose of scaring the Knicks to not match. Lin was a Restricted Free Agent. The only way for a team who wants to snap any RFA is to make an inflated big contract that his original team finds it hard to match and swallow. That's the way we got Asik too.

Unlike Dragic or Harden who demanded certain amount of money for their respective contract, Lin and Asik didn't have any leverage as to how much they wanted to be paid because the Rockets was the only team that made an offer to him (in Lin's case, although several team including the Mavs, Raptors showed interest and contacted him, he only chose one team, the Rockets to meet).

Lin said a few times that he would have preferred to stay in NY (because of the chance they gave to him and because of the huge support he got from that city and from fans and he loved playing for them in MSG). [Asik also said he loved Chicago and felt comfortable staying there, but he didn't have choice either when it came to where he can stay due to his RFA status.] Lin probably would have been content being paid 3-4 mills a year to stay in NY had the Knicks made him an offer before the free agency started. (Let's face it, Lin had a much more off-courts chances to make plenty of money from Asian market)

Now, Lin is in a awkward situation where he is not being able to put a level of performance at the paid price. He is at huge pressure to live up to his contract which he did not ask in the first place. To make things worse, he is not being used to his strengths and is often played out of his natural position on this team. Talking about the pressure and frustration Lin must have felt. I feel pity for him.

 

How much or how his contract is structured has nothing to do with his performance on the court. He's getting 25 million over three years, I doubt he cares how it's paid out. Come on, stop trying to dream up excuses for his poor performance this year. I don't feel sorry or have any pity for Jeremy Lin. He's very wealthy and he's a pro basketball player, it doesn't get much better than that, and I'm sure he would say the same thing.

 

You totally missed the point of my post.

 

Response

I like Lin, but no way do I feel sorry for the dude. I wish I was in his shoes playing in NBA, because I would be jacking up every shot I can like Harden.

 

Well what was the point of your post, no need to roll your eyes. You seem to be saying poor pitiful Jeremy has it so bad because the Rockets gave him this huge contract. No one forced Lin to sign the contact the Rockets offered him. He could have signed a contract with any other team that wanted him. You say Lin would have been happy to make 3 million to play for the Knicks? Well why didn't he go to the Knicks and say I'll play for 3 million? He didn't do that, he made the decision to sign with the Rockets for 25 million. What am I missing?

 

I believe it was reported that the rockets would pay them the average of 8/8/8. I just cant find it now, it was an espn article about the poison pill contract.

 

Fair and accurate comments.

 

Just tell me please. If you were Lin, would you sign the Rockets' offer?

 

So a restricted free agent cannot get a offer sheet from their own team? He can only receive offer sheets from other teams and the original team can only match? (not a sarcastic question)