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Luxury tax and this off season - impact on Artest

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by trugoy, May 26, 2009.

  1. trugoy

    trugoy Member

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    Right now we have 12 players under contract for next year for a total salary of $64,369,949.

    If I assume that Von Wafer is coming back for a really bargain price of $825k. basically the minimum, that puts salary at $65.2 million.

    The Luxury Tax threshold is estimated at between 69-71 million for next year. The MLE is $5.8 million.

    This means that in order for the rockets to sign Artest and stay below the tax, he really has to take a salary that is below the MLE, which of course he is not going to do, all indications are that he will want a significant raise no just on the MLE but on his current contract.

    Now the question is will Les go into the luxury tax just to keep this same group together, we aren't even talking about adding more pieces, but to bring the exact same team back, and pray that tmac will come back and push this team over the edge.

    My thinking is that Les will not do that. He has repeatedly said he will only go into luxury tax if we get a piece to push us over the edge. Hearing everything coming out of Les and Daryl, they are not relying on tmac being able to ever play again. So it makes no sense that they would sign artest and go into luxury tax on the hope that tmac can contribute.

    The conclusion is that the Rockets have to make a trade this offseason in order to bring artest back. I see no way that Artest will be signed back unless another trade is made to add a piece and reduce salary. And the only trade piece the rockets have that can do both is tmac.

    So by my logic, the only way artest will be resigned is if tmac is traded.
     
  2. Yao4REAL

    Yao4REAL Member

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    Well, everyone want to trade Tmac. I do think he is useless at this point. And it's best to trade him. I rather have Artest's fire and desire than McLazy on the court. If we lose Artest...guess what?? We're going back to square one again. Seriously, Artest give the Rockets that indimidation factor that we don't get from any one else. He basically make our team defense even tougher than it already is plus some.
     
  3. Marsarinian

    Marsarinian Member

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    My guess is, they get to keep Wafer and Artest, as well as get a back up center, and Morey will look to dump some salary sometime around the trade deadline.
     
  4. Carl Herrera

    Carl Herrera Member

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    We can always "Steve-Francis" Brian Cook during the season rather than trading anyone in the offseason. He's owed $3.5 mil. If you trade him mid-season, his new team will only have to pay a partial salary (under half if right before the deadline), Rockets can pay that team up to $3 million, so the other team actually makes some cash out of the deal, and maybe throw in a 2nd round pick.

    Les has shown an willingness to be above LT limit for a while as long as he's confident the team can get under it before season ends if needed.
     
  5. REEKO_HTOWN

    REEKO_HTOWN I'm Rich Biiiiaaatch!

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    I could have swore Artest had bird rights which would help us in the Luxury tax.
     
  6. bigred77

    bigred77 Member

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    Since it is my understanding that the luxury tax is not assesed on the total salary to start the season but only on what was paid at the end of the season (basicaly meaning you can go into the season in luxury tax territory and then make trades before the trade deadline to get below the mark) Couldn't the rockets just retain the same team that they started THIS season with and give the team half a season to see if they jell. If Everyone clicks and their leading the west by 5 games at the all-star break im pretty sure Les bites the bullit and lets it ride. Since this scenario is pretty unlikely IMO then they could always deal someone to get under the tax line.

    Also worth noting that there is virtually no chance Wafer signs for under 1 million per AND Ron signs for only the MLE. Morey would have to be declared the greatest snake oil salesman ever if this happened.
     
  7. hasan08

    hasan08 Member

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    Good post...is there anyway we can get a break down of the salary per players so we know how the payroll is at 65 million. Thnks...

    also You have a really good point but I have heard from a friend who works for the rockets and he talked to artests agent, They are really going for 10 million per year and I think daryl was looking to pay arnd 7-8 mill, 2 year contract.(heard that on the radio abt daryl wanting to pay that much)
     
  8. DieHard Rocket

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    My guess is they'll look to trade Mcgrady this summer, but chances are nothing of value will come up so they'll hold off. Cook and Barry have expirings as well so they'll find a way to dump those by the deadline.
     
  9. HowsMyDriving

    HowsMyDriving Member

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    my thought is that the entire go-forward plan is based on what Morey does with Tmac's expiring contract, so i expect him to try to move that contract asap so he isn't hamstrung by it.

    $23M is a full 1/3 of the salary cap/lux tax. so the players you would get back in a deal involving that contract could dramatically change the face of this team. depending what players you get back and what positions they play, some of the guys we have come to know and love during this years playoff run may become expendable/tradeable. this is a good thing though, because many of our players are currently highly valued due to their recent (and surprising) success.

    i dont think players like shane, luis, or chuck will ever have more value than they do right now, given their contract status and what they showed in the playoffs. maybe someone will make us a good offer for tmac's expiring and one of these players?

    having reasonable and productive contracts, a large expiring, and players with high value this offseason is a great foundation from Morey to work from. I'm hopeful he is able to put together some solid moves, move tracy, and get productive, versatile players back in the process.
     
  10. ROXTXIA

    ROXTXIA Member

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    I could see Tslack getting traded and maybe one of the players acquired from that team going to a third team that can absorb some of the excess $$$, or maybe even acquiring a Kenny Thomas-like contract that can get bought out and bring us to within arm's reach of Ron Artest-money.
     
  11. Cannonball

    Cannonball Member

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    We own Artest's "Bird rights" which means we're allowed to exceed the salary cap to re-sign him. It has nothing to do with the luxury tax.
     
  12. Rocketman2000

    Rocketman2000 Member

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    In a normal NBA, T-MAC expring contract would not be that big of a deal. But today economic tough times, I can see a Paul Gausol type trade for the Roxs if Morey works his magic right.

    There are teams the WILL have to give up legit talent to get their finances under control and what better way then to get an expiring 23 mil contract and a player that once healthy could give them some quality minutes.

    Just my two cents on the matter ... :cool:
     
  13. trugoy

    trugoy Member

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    It's one thing to unload a minimum contract at the deadline, but if you are 3+ million over the tax, it will be super difficult to get under.
     
  14. trugoy

    trugoy Member

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    It sounds like a good starting position, if that is the truth, then expect the dollars to go down and the years to go up if artest is finally signed.
     
  15. DcProWLer277

    DcProWLer277 Rookie

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    I believe we re-sign Artest for around what he makes now plus we have Cook and Barry expiring in addition to Mac to get under the LT by the deadline.
     
  16. SamCassell

    SamCassell Member

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    There are a number of sites listing salaries, but just to ball park it for you (in millions):

    Tmac ... 23
    Yao ... 16 1/2
    Battier ... 7
    Cook ... 3 1/2
    Scola ... 3 1/2
    Landry ... 3
    Hayes, Barry, Lowry ... 2 each
    Brooks, Dorsey ... 1 each

    McGrady and Yao take up 60% of the payroll next season. When you've got 2 max players, it makes it tough to pay the rest of your guys and stay under the luxury tax. And when one of those max guys can't be counted on for next season, well, it's an issue.

    I think luxury tax is going to be a problem for alot of clubs next season. Salaries for most players go up every year of their contract, but the luxury tax looks like it will be a lower number next year than it was this one.
     
  17. hasan08

    hasan08 Member

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    thanks for the numbers...man it really sucks to see that mcgrady makes so much money to do nothing...hurting our chance to have a valuable player for half the price and prolly be a championship contender
     
  18. Pizza_Da_Hut

    Pizza_Da_Hut I put on pants for this?

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    Ok, two things: If I had a way to give you Karma points I would, not only did you make a great thread, you used impact in noun form. Most people think it's a verb, it drives me nuts. Kudos.
     
  19. trugoy

    trugoy Member

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    glad the thread had an impact on you.
     
  20. FLASH21

    FLASH21 Heart O' Champs

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    All these threads are starting to look the same to me. Isn't there a convo (or haven't there been convos) discussing this matter on other threads.

    Any who, I'm pretty sure we are going to work on getting Tracy's contract unloaded at the deadline this coming season as many others have stated. No need to worry Morey the Master's got this mann! ;)

    He and Les have the vision of what they need to do to win a title and they are going to do everything possible to obtain that.
     

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