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Salary Cap Question

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by DaneB, Jun 1, 2018.

  1. DaneB

    DaneB Member

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    I found this interesting article explaining why the Dallas Maverick should trade for Ryan Anderson:

    https://thesmokingcuban.com/2018/05/30/dallas-mavericks-should-explore-trading-for-ryan-anderson/

    It brings up an interesting concept that I haven’t seen discussed here much. The idea of dead money/dead cap value. Supposedly his contract only has a. dead cap value of 61.264 M vs. his actual contract amount of $80 M?

    I confirmed this by going to spotrac:

    http://www.spotrac.com/nba/houston-rockets/ryan-anderson-6133/

    The way they describe this, it’s as if we are essentially trading Anderson for a one year rental and then any team can waive him in his final year without taking a hit on the final 20M?!

    Can any capologists out there confirm this? If it’s true, then I think we easily get the job done. Seems hard to believe as I would think more of us would know about this...but then again the CBA can be confusing...
     
  2. Reeko

    Reeko Member
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    Anderson’s contract, however, features a rarity in deals of his nature. The Rockets are on the hook for another $20 million next season, and the final $21 million the year after that. But, Anderson only carries a dead money charge to his name for next year, and not the year after. This means that if the Mavericks took on Anderson to their payroll, they would have to eat the deal for one year, but could waive him at the end of next season and get his $21 million entirely off the books without a penny in dead money.

    I’ve never heard of this. Can somebody confirm?
     
  3. clutch citizen

    clutch citizen Contributing Member

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    Seems like Morey’s burner website.

    sounds like they’re describing a non guaranteed contract, but I don’t think that’s the case with Ryno
     
  4. hizzobbes

    hizzobbes Member

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    I have no idea if that's how it works or not, but if so, it makes me feel a whole lot better about this summer.
     
  5. Clutch

    Clutch Administrator
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    There are a couple of problems in the article.

    I've never heard of Anderson's money in 2019-20 being non-guaranteed or a team option. It's fully guaranteed.

    "ONE first round pick? Hmm, that's asking a lot. How about two second round picks? No? Damn, you drive a hard bargain. OK, you win, Mark. One first round pick it is."

    The Rockets can trade their 2019 first round pick once the 2018 Draft is completed. They just can't trade future consecutive first round picks. So after June 21, the Rockets' 2019 first rounder is on the table (and almost assuredly will be dealt this offseason).
     
  6. topfive

    topfive CF OG

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    That article reads to me like they're saying the Mavs could waive Ryno before his final year, and while they'd still be on the hook for paying that $20+M salary, it wouldn't count against their cap. Not sure how accurate that is, but essentially that means Cuban would be paying $40+M for a year of Ryno's "services." That's insanely steep. If they waived him and he resigned elsewhere, his salary with the new team would be deducted from the Mavs obligation.

    Still, that seems like the writer's pipe dream (and I mean that in the sense that he was high AF when he wrote the article). I see no incentive whatsoever for Cuban to do that. Is a very late 1st-rounder and a couple of late 2nd-rounders worth THAT?

    Might need @BimaThug to sort this out, but I found some info on this website.

     
    #6 topfive, Jun 1, 2018
    Last edited: Jun 1, 2018
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  7. glimmertwins

    glimmertwins Member

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    That almost sounds to me that Anderson is an asset for a team wanting to maintain flexibility to free up cap space on the dime if an opportunity pops up. In that case, I could see some value in Anderson to those teams trying to swing big on FA like Cuban is always trying to do.
     
  8. topfive

    topfive CF OG

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    Good point. Hadn't thought of that. With that in mind, a big-spender owner with a currently weak team would be a pretty good choice.

    I don't know the Mavs' cap situation, but if Ryno's salary put them into luxury tax territory, that big-name FA Cuban takes a swing at could cost him a pretty penny.
     
  9. Rox>Mavs

    Rox>Mavs Contributing Member

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    get this done before they figure out it's fake news.
     
    amaru, kjayp, Corrosion and 3 others like this.
  10. heypartner

    heypartner Contributing Member

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    For whatever reason, I think Spotrac has an error in that last row, as they correctly state "Dead Cap" in previous years.

    Most important is Spotrac correctly states the contract is fully guaranteed:

    Ryan Anderson signed a 4 year / $80,000,000 contract with the Houston Rockets, including $80,000,000 guaranteed, and an annual average salary of $20,000,000. In 2017-18, Anderson will earn a base salary of $19,578,454, while carrying a cap hit of $19,578,454 and a dead cap value of $61,264,637.
    It is also correct to say in 2017-18 the dead cap value is $61m, since we already paid one year. That's the way fully-guaranteed contracts look on Spotrac -- dead cap goes down each yr equal to already paid salary, and each yr totals remaining left.

    I don't know why they go from $80m, to $61m, to $41m to blank, but that "blank" last year looks like an error given all the other correct info posted on that contract page. I mean, check out the Harden contract pages. That's all messed up.

    Check out PJ Tucker's contract page for the way partial guarantees look. Notice his first year doesn't say $32m, but rather just the $26m guaranteed. Whereas Anderson's page says $80m to start = the whole guaranteed portion.
     
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  11. DaneB

    DaneB Member

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    How depressing...Looks like we're stuck with Ryan's contract unless we can sucker a team into taking it...:(
     
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  12. BimaThug

    BimaThug Resident Capologist
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    Ryan Anderson's contract is fully guaranteed. Any article or website saying otherwise is woefully mistaken.
     
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  13. heypartner

    heypartner Contributing Member

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    Not that Bima needs any help on his reliability, but just to bury this notion before we see repeated references to this article





    http://www.basketballinsiders.com/houston-rockets-team-salary/#
    https://sports.yahoo.com/nba/teams/hou/salary/

    btw: Willing to bet if that is a Spotrac error for $0 Dead Cap for last year, this will not be the only article misreading that, spawning new threads in the GARM on the same mistake. fwiw: I put in an email to Spotrac that they might have the Dead Cap number wrong for the last year, so maybe they will fix it.
     
  14. heypartner

    heypartner Contributing Member

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    Wow...that was quick. Spotrac fixed the error based on an email I sent less than 20 minutes ago. @DaneB

    @BimaThug Spotrac is awesome. Thanks for sharing that as you goto a few years ago. I need to become a premium member now.

    [​IMG]

    [​IMG]
     
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  15. Toffeeone

    Toffeeone Member

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    It doesn't matter I have faith in DM
     
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  16. Rox>Mavs

    Rox>Mavs Contributing Member

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    stop toying with my emotions. I'm frail these days.
     
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  17. Corrosion

    Corrosion Member

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    If this is factual …. it sounds just like something Morey would do in leaving himself a way out of a contract - adding value to garbage.
     
  18. Corrosion

    Corrosion Member

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    I don't think so ….. while it appears to be a horrible deal , think about how teams are built above the cap - if aren't over the cap you aren't being competitive. The more you are over the cap the more you can get over the cap - every deal allows you to increase your salary intake by roughly 20%.
    For instance , the Rockets are over the cap and have to send out ~$28.8m to bring in Lebron's $35m.
    A team who thinks they might be a contender and have a chance to land a big free agent after the 2019 season might not be scared to take that deal as they can use it to facilitate bringing in a star to bolster their core in the future (either at the 2019 deadline or offseason). They make the deal for Ryno while under the cap then use whatever bird rights they have and exceptions putting them over the cap - then that $20m expiring is an asset they can use to bring in a big fish via sign and trade. They are getting an asset from the Rockets to take the bad contract then using the contract when its less toxic to acquire another asset.

    Teams that suck can afford to be patient ….
     
  19. Carl Herrera

    Carl Herrera Contributing Member

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    Ryan Anderson needs to join Kyle Korver in his off-season training regiment. Somehow 37-year-old Korver looks less washed than 30-year-old Anderson.
     
  20. glimmertwins

    glimmertwins Member

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    That's probably because he does that crazy ass training where he treads water in the ocean, then dives below the water. moves a very heavy rock as far as he can before returning to the top for air.
     

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