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Rockets sign Marketing deal with East West Bank after adding Lin

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by pnr, Sep 20, 2012.

  1. heypartner

    heypartner Member

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    I know what you are trying to say, but you can't really compare a Full Bird player's contract (Conley/Dragic) to an Early Bird contract (Lin). If Lin were on the open market like Conley/Dragic, he would have a higher ave salary than he does now -- or he needs a new agent. I think that is pretty reasonable to say.
     
  2. sidestep

    sidestep Member

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    It should be noted that IF there are no luxury tax implications for the third year, then it is actually cheaper for the franchise to structure the contract as 5-5-15 instead of 8.3 each year. Because money makes money. The 5-5-15 structure lets the franchise hold onto 6.6 million (2 * 3.3) during the first two years, which can be invested, or used to acquire more assets, during that time period instead of dispensed. Compared to the 8.3 per year structure, the 5-5-15 structure is equivalent to having an interest-free loan of 6.6 million for first two years.
     
  3. sidestep

    sidestep Member

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    To be clear, I'm not saying it could have been structured as 8.3 per year. 8.3 per year is how it is counted for Houston in terms of luxury tax implications, but the actual structure is better than a theoretical 8.3 per year.
     
  4. heypartner

    heypartner Member

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    You're over-thinking this. And no, it doesn't work that way.

    Les pays the money out as 5-5-15. 5-5-15 is actual salary payments made. This is paid by anyone -- Rockets or Knicks or anyone we trade him to. The 8.3, 8.3, 8.3 is merely Lin's cap hit to team salary, not his actual salary payments.

    So, there is no investment or income statement accounting win for Les based on the 5-5-15 structure. That is his real salary payments, and they are not adjusted for any team, us or Knicks.
     
  5. heypartner

    heypartner Member

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    I understand now. You're just talking theoretical. The first post seemed to say otherwise. So ignore my previous response, as this post by yours clarifies your first post.
     
  6. kastuul

    kastuul Member

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    I am not sure it is a mistake for letting Lin walk.
    It can be a win-win situation.

    The Knicks are one of the richest team in the league.
    The reason must not about money.

    Houston is definately a better place for Lin development. No more dramas.
     
  7. CXbby

    CXbby Member

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    Exactly. Which is why he is technically underpaid, just as many rookies and max contract players are, constricted by CBA imposed artificial caps. Of course, whether he is actually over or under paid in reality will be based on his production the next 3 years, which is yet to be seen. But given solely what we know now, Lin being overpaid is entirely a myth.
     
  8. Alex L.

    Alex L. Contributing Member

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    Lin is like the blonde secretary with long legs. "Oh, she must have been hired because she's pretty and sexy. Let's overlook her real work ability."

    The kid can play, is very good at it, and is getting better everyday. Don't doubt him because of his marketability. Beauty bias is a form of discrimination too.
     
  9. Alex L.

    Alex L. Contributing Member

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    I believe the Knicks had given up on Lin before Houston changed the offer. The Knicks just used the increased offer as an excuse to blame Lin. Lin won the ESPY award when the offer was still at $28.8 for four years. The Knicks didn't say anything on their website. No congratulations, no bragging, no nothing. When Lin won the NBA social media awards earlier, the Knicks were all over it.
     
  10. kastuul

    kastuul Member

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    I don't think the Knicks wanted to keep Lin from the beginning.
    They wanted Lin to be their backup more than starting PG.

    They were chasing Steve Nash, and Kidd told media he want to play last 6mins.
    Larry Brown said Lin is a good backup PG. To a certain extent, he represented Woodson.
    Stephen A had source in the Knicks and he keeps badmouthing Lin.
     
  11. kuku

    kuku Member

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    Here's the new CBA on max contract, which hasn't changed since 2005:

    The maximum amount of money a player can sign for is contingent on the number of years that player has played and the total of the salary cap. The maximum salary of a player with 6 or fewer years of experience is either $9,000,000 or 25% of the total salary cap (2010–11: $14,511,000), whichever is greater. For a player with 7–9 years of experience, the maximum is $11,000,000 or 30% of the cap (2010–11: $17,413,200), and for a player with 10+ years of experience, the maximum is $14,000,000 or 35% of the cap (2010–2011: $20,315,400).

    Lin's 8.33/ year is not max contract under CBA; it's 14.5 million/year! Morey couldve offered 10 million/year and Lin's contract would look like: 5, 5, 20. This wouldve guaranteed Knicks not matching.
     
  12. heypartner

    heypartner Member

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    5, 5, 20 is not correct. You are misreading the rule.

    The 3rd yr it is allowed to be as high as it would have been based on the 1st yr being the max (with max raises = 4.5%). $20m is way more than a <7yr max player could make in their 3rd year of contract.

    Had Lin been an unrestricted free agent, here is Lin maximum salaries (with 4.5% being the max raise under CBA rules for MLEs leaving their team)

    2012-13 = $13,668,750 (max pay for <7yr player)
    2013-14 = $14,283,843 (1st year times 4.5% raise)
    2014-15 = $14,926,616 (2nd year times 4.5% raise)

    Notice how that 3rd yr is $15m.

    Lin's 3rd year is identical to the 3rd year any player could have made.

    5, 5, 15 is the max contract for 3 years.

    Your mistake is assuming the 3rd year makes up for lost wages had he been paid max the whole time. That's incorrect. The 3rd yr is his max for 2015 had the 1st yr started at max.

    Morey paid the maximum under NBA rules for 3yrs.
     
  13. sidestep

    sidestep Member

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    Thanks heypartner for working out the exact figures. Nice post.
     
  14. kuku

    kuku Member

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    Slightly confusing at first, but that retricted and unrestricted set differences in max contract and thanks for pointing it out.
     
  15. heypartner

    heypartner Member

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    Thanks for the thanks above. Please understand I and many others were here for Yao. You can't imagine those conversations

    Just for the record, Lin is my favorite rockets player and I don't understand why other long term fans like me create bull**** about this in the garm.U

    Lin is the ROCKETS
     
    #55 heypartner, Sep 21, 2012
    Last edited: Sep 21, 2012
  16. stl1622dc

    stl1622dc Member

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    Next marketing deal for Lin and/or Rockets? :)

    [​IMG]
     
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