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Ryan Anderson and the Repeat Offender Tax

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by ghettocheeze, Jul 21, 2018.

  1. ghettocheeze

    ghettocheeze Member

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    Here's some New Math:

    $119,433,580 (Rockets Active Roster)
    + $5,337,000 (Carmelo Anthony Taxpayer Mid-Level Exception)
    + $4,700,000 (Capela Qualifying Offer)
    = $129,470,580
    OR
    + $20,000,000 (Capela New Deal)
    = $144,770,580

    NBA Luxury Tax Threshold: $123,733,000

    Now, the important question is... whether the Rockets want to become taxpayers starting this season or delay it for at least a year and push it to 2019 and beyond?

    The benefits are enormous.

    The Repeat Offender Tax is a massive multiples range starting at 2.5X and going up to 4.25X. Being $20 million over the luxury tax threshold will cost the Rockets... $45,000,000 in 2018 and $65,000,000 in 2019.

    Now, this is the crux of the argument for dumping Ryan Anderson this season to delay becoming a taxpayer for as long as possible.

    Also let me be clear: Tilman Fertitta is NOT CHEAP.

    He bought the Rockets with the willingness to pay the luxury tax to keep them in contention with the Warriors over the next 3-5 years of the Harden-Paul era. Now, paying a huge tax bill made sense when we where pursuing our 3rd superstar in LeBron, George, Butler, etc.

    However, it would be in the Rockets best interest this season to get rid of Anderson's albatross contract, re-sign Capela, and get under the tax threshold so they can cross it starting in 2019 and become a Repeat Offender in 2020.

    This would save Fertitta and the Rockets about $110 million in taxes alone over the remainder of Anderson's final 2 years.

    Final Math:

    $119,433,580 (Rockets Active Roster)
    + $5,337,000 (Carmelo Anthony Taxpayer Mid-Level Exception)
    + $20,000,000 (Capela New Deal)
    - $20,421,546 (Ryan Anderson)
    = $124,349,034

    Bottom line: No matter how you feel or do not feel about Fertitta and his money, it's worth thinking about this from a financial perspective.
     
    #1 ghettocheeze, Jul 21, 2018
    Last edited: Jul 21, 2018
    roslolian, kjayp, dlite316 and 11 others like this.
  2. Fullcourt

    Fullcourt Contributing Member

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    There isn't an avenue to get rid of his contract without taking back salary anymore. Even with your final equation, it was still over the threshold, and that's not including the salary we'd take back in a potential deal.
     
  3. Ziggy

    Ziggy 99ers STAND BY
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    Prove it.

    Currently, yes, you work to avoid the repeater. If you rewind to before Ariza left, I'd pay it. You took the Warriors to 7 and you have the oldest roster in the league (emphasis on Chris Paul) so you'd think the time to go all-in would have been THIS season... what would you even be waiting for.
     
    da_juice, treyk3 and hajkov like this.
  4. rockets1995

    rockets1995 Member

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    You wish to trade Ryan Anderson? It ain't happening bucko. It is impossible to move him when NOBODY WANTS HIM. Stop making useless threads.
     
    FartWaffles likes this.
  5. pippendagimp

    pippendagimp Member

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    Ryan Anderson is not walking through that (exit) door

    :(
     
    GotGame15, dc rock and coachbadlee like this.
  6. REEKO_HTOWN

    REEKO_HTOWN I'm Rich Biiiiaaatch!

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    Anderson is getting dumped before draft day next year. I'd bet my first born on it.
     
  7. Wulaw Horn

    Wulaw Horn Member

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    He's tradeable. Anybody is. You just might not like the sweetener you have to attach to Sacramento to send him out without taking money back.
    Also, I'm almost positive that if the Rockets were within a million dollars of getting below the tax threshold Morey finds a way to get that done. You could just as easily pay CC $18.5 million this year and 21.5 million in year 4 of a 4/80 deal if he'd take that (4/80 that is)

    Final follow up- tax bill is done at the end of the season, right? I could totally see Anderson being easier to move at the dealine as the team getting him back then is only on the hook for about 29 million or so as he'd be down to less than 1.5 years on the deal, right?
     
    ghettocheeze and kwakmeister like this.
  8. Zboy

    Zboy Contributing Member

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    Positive vibes.

    We need positive vibes.
     
  9. ApacheWarrior

    ApacheWarrior Member

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    I believe the repeater tax hits a team when a teams goes over the luxury tax 3 years in a 4 yr span.
    14/15.......Rockets under
    15/16.......Rockets over about $3 M
    16/17.......Rockets under
    17/18.......Rockets under

    18/19 ? (If over this year, it will be 2 out of 4 years).....

    Signing players with “Bird Rights” allows Rockets to go over luxury tax this year (if it was 3 out of last 4 years over
    the luxury tax).Correct me if I’m wrong @BimaThug or anyone who knows for sure.

    I was hoping Kings would trade for Ryan Anderson.....but it looks like they are moving on by signing Bjelica to
    3 year deal/ $20 M.....unless Rockets possibly taking back Koufos......Bjelica himself?

    Atlanta took back one 1st rounder for the untradeable contract of Melo ($27 M). Of course they had to
    take back Schorder (spelling?). Could 2 first’s get it done w/Ryan?
     
    #9 ApacheWarrior, Jul 21, 2018
    Last edited: Jul 21, 2018
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  10. elmotsangtt

    elmotsangtt Member

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    Get Zach Randolph from kings with ryno.
     
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  11. BigMaloe

    BigMaloe Contributing Member

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    We just gonna assume capelas salary, assume melos salary and then assume you are telling us actual factual.

    Yet your calling it repeater tax when this will be our first year in the tax?

    No....

    This isn't reddit, we don't need constant reminder threads that Ryan is overpaid
     
    Corrosion, ApacheWarrior and Why not? like this.
  12. BimaThug

    BimaThug Resident Capologist
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    Repeater tax only applies to teams who have been taxpayers in 3 of the prior 4 years...meaning it would need to be the 4th out of 5 years.

    The Rockets won’t pay the repeater tax until at least 2021-22.
     
    Deuce, ApacheWarrior, jch1911 and 2 others like this.
  13. hashmander

    hashmander Contributing Member

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    i always find the comments about the owners and their money weird. stan kroenke is the majority shareholder of arsenal (65+%) and the owner of multiple american pro franchises and only with the american teams is it referred to as "his" money. for example arsenal bring in revenue and they run the team with that money. aren't the rockets the same? the only way the owner's money comes into play is if the team is running a deficit and someone has to make up the shortfall (the owner).

    for 2016/17 rockets had revenues of $296m and an operating income of $95m. i'm sure those numbers will be higher for 17/18. if the tax bill is higher in the future it will mean less operating income generated by the club, but it won't mean that fertitta will have to dip into his bank account to cover a shortfall.
     
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  14. vick

    vick Member

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    Buy out and waive him. Over a 3 year period.
     
  15. ApacheWarrior

    ApacheWarrior Member

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    Yeah the Kings are maneuvering for something.

    Bigs of Kings: 1) Zach Randolph 2) Skal 3) WCS 4) Bagley 5) Koufos 6) Harry Giles 7) Deyonta Davis

    I expect someone to be traded or released with the signing of Bjelica........or could it be Ryno released after
    acquiring him?
     
  16. Gorilladunks

    Gorilladunks Member

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    Ive already brought this up many times on here. If Clint takes the QO , my guess is morey will want to get under tax line. I guess nobody wants to listen lol. Too boring of a topic and a long term plan which a majority never care to think about. If Clint takes the QO , my guess is morey will want to get under tax line.

    Nice topic OP to bring to light. It makes alot of sense if Clint takes the QO
     
    ghettocheeze likes this.
  17. Gorilladunks

    Gorilladunks Member

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    yeah but wouldnt you want to make that extend one more year if possible.
     
  18. RocketsFido

    RocketsFido Member

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    More reasons that if we lose out on this short title window, it'll because of that ugly Ryno contract.

    If only Ryno can be moved for a disgruntled star like Butler. It's crazy but they're paid the same and Butler would actually be able to guard Warriors wings.
     
  19. ThatBoyNick

    ThatBoyNick Member

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    @ghettocheeze

    It's impossible to subtract Anderson's entire contract. No team has enough cap to absorb his entire contract, the team with the most space is the Kings with 8 mill in space, meaning we'd have to take back at least 12 million dollars.

    Point is, it's impossible to get out of the luxury tax for this upcoming season unless we don't re-sign Capela along with making some trades.
     
  20. coachbadlee

    coachbadlee Member

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    Wait a minute. So this thread has nothing to do with us being repeatedly offended by Ryan Andersons gameplay?
     
    ghettocheeze likes this.

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