Rockets and Luxury Tax - How to Avoid; Worth Paying?

http://www.elperiodico.com/default....ioma=CAS&idnoticia_PK=635697&idseccio_PK=1011

McGrady + Lowry +/ White (non-guaranteed) → rights to Rubio + Q-Rich + Cardinal + Wilkins + Atkins ($760k guaranteed)

If T-Wolves are able to sign Hollins their team salary will be at the salary cap figure ($57M). The above deal, not including White, has the T-Wolves taking on an extra $2.3M.

Rockets save around $5M in total if they waive Atkins. This places them under LT.

T-Wolves get a star name to help sell tickets or save $10M via insurance money if McGrady misses half the season.

Rockets would be in the position to offer a package of Brooks + Landry + expiring filler (Q-Rich or Wilkins or Cardinal or Cook) for an elite vet from a third team.

 

This cant get any easier Bima, Battier for Jordan and Davis of the clipps. The rockets get a young big who may take over full time duties and a 2 guard in davis that expires at the season's end.

 

I appreciate OP's efforts, but I've never understood why people spend so much time fretting about luxury tax. It's one thing to say "We shouldn't sign Player X because it would hurt our salary cap situation, which will hurt the team in the long run." It's another thing to say "We shouldn't sign Player X because, even though it wouldn't hurt our salary cap situation, it just wouldn't be right to spend that much of Les' money."

 

Thats Ricky Davis, people Rockets would have to add in another player for the roster space I believe.

What about Barry instead of Dorsey? Or is there too much difficulty in doing anything with Barry

 

I can't see Les taking on the tax. It would be so ironic if he did ... to finally do it on a season the team has no chance at being a contender.

 

if barry retires does that go against luxury tax?

 

thanks for the insight, you truly are one learned man when it comes to the cap and stuff, glad your on this forum.

 

There is also the chance that McGrady can get shipped out in a deal where the other team takes on a little more salary this year, getting the insurance payments on Tmac to help that out.

This in exchange for the fact that he'll come off the books of the team that gets him next year...EVEN IF he gets re-signed by that team, it will be for much less than he's making now, hence a savings nevertheless.

Sorry, since BimaThug admitted to being bored, I'll admit to believing that whatever deal Morey wants to pull might be currently hindered by WHEN a player can be traded (Landry, Sep. 25; Thabeet, Aug. 18; Josh Smith, even if not to keep, Aug. 13, etc). Just like Donte Green(e?) last year.

 

Whatever deal that Morey makes for Tracy, you can book it right now that it will involve the acquisition of another franchise player, either directly or indirectly. Since the number of franchise players is limited to less than a dozen, if even that many, and since most of them are non trade-able, it's far more likely that Tracy is traded for an expiring contract or players that could be used in trade bait if packaged with someone like Brooks or Ariza. What I'm getting at is that it's highly unlikely that Tracy is traded for an older veteran, and I would be surprised if that happened.

 

Yao/McGrady... injuries... insurance paying salary... Les is in the clear....

Les doesn't care, thats why he pushed for the injury exception, gave Morey reign to buy picks (contracts), etc...

 

Exactly. All Les needs to do is make Tmac come back as late as possible if he needs to save money.

 

Personally Bima, I like it when you get "bored". Some people just don't get the importance of this. You bring knowledge that alot of people (no not all of you) just cant offer. It gets my mind thinking about realistic trades, moves and such. How many Yao vs Mac wars can we have. To those of you sleeping on real issues, wake up. There is another side to all of this. It's not as easy as "hey, why don't we trade Cook, Barry and Dorsey for LeBron" But maybe that's just the mood I'm in

 

Excellent thread, as always, Bima. Another factor is the cost to dump a player. Typically, this could be up to $3 million (i.e. pay off the player's salary or more), plus a 2nd round pick. With Les paying on average $2 million per 2nd round pick this past year, the combined costs might make trying to get under the tax threshold too expensive.

 

Daryl Morey last week:
http://bbs.clutchfans.net/showpost.php?p=4693644&postcount=61

 

I think trading Cook to a team under the cap is a given, probably something like Cook/Dorsey/Cash to Memphis for the right to switch second round picks in 2011 or something. Then send White somewhere for a second rounder and it's done.

Here's a question: What is the deadline for getting under the luxury tax threshold?

 

I always bring up that scenerio because the rox can get a 21 yr old big in de andre jordan who at his young age is a shot blocker/rebounder and finisher. Davis is really just a throw in of a guy who can play and only makes 2m. They get a stabilizing guy like shane who can back up thornton and dunleavy loves him. We get a guy who can be our future starting center not only this year, but for years to come if yao never comes back or is limited to 25 mins a night.

I personally don't think Mcgrady will be traded this year unless somehow the rockets can get Martin. No bosh,no wade, no superstar that people think a team will unload on the rockets. People can dream and have opinions on how badly someone wants that contract, but why would phoenix give up amare for tracy when right now they're probably in the playoffs? Why would toronto give up bosh when they can let his contract expire just like tracy's will? I could go on and on but people will just say they trust its going to happen.

 

I think the most important question is : What's the deadline for getting under the luxury tax?