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So now, what do we do with the MLE?

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by rofflesaurus, Jul 8, 2009.

  1. DrNuegebauer

    DrNuegebauer Member

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    Theo Ratliff to a veterans minimum contract.

    He'll be good for 15-20 minutes per game - and gives us a genuine shot-blocking option.

    Better than wasting money on a young guy who can't play - or a stiff who offers nothing. With Scola and Landry as our primary bigs we need to add a shotblocker like crazy! Ratliff can provide that presence, and is a veteran defensive presence in the block when we play the teams that actually have decent Cs.

    It'd be a passable option to start the season with I guess.

    Then give Von $2m per for 3 seasons (second 2 at team option)

    Then give Jermaine Taylor the "Dorsey deal" (if Taylor shows anything in summer league).

    We'd still have about $3million of MLE left to use during the season (if required).
     
  2. BimaThug

    BimaThug Resident Capologist
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    Based on my calculations, with the luxury tax threshold and the MLE amount now finally determined, and with the signing of Ariza official (using the DPE, which is exactly equal to the MLE), the Rockets as currently constructed are about $1,430,231 over the luxury tax threshold.

    The question then becomes: "How much is Les Alexander willing to pay for the Rockets to use all or any portion of the MLE?"

    Keep in mind through all of this that, as it now stands, the Rockets could conceivably get back below the luxury tax threshold at the February trade deadline simply by dealing Brian Cook (or even Brent Barry) plus a pick/cash to a team like the Grizzlies. What this means is that, even though the Rockets have technically (temporarily) dipped into luxury tax territory, they really haven't . . . yet.

    In addition to the 100% (dollar-for-dollar) luxury tax itself, the deterrent to most teams going over the tax threshold by even one penny is that only non-tax paying teams get a 1/30th share of all luxury tax revenues from the tax-paying teams. Today, it was learned that the non-tax paying teams would each get over $2.9M in such revenues. However, this number is expected to decrease dramatically next year, since the Knicks (annually the #1 tax payer) have drastically reduced total team payroll. Some experts think that each non-tax paying team will only get about $1.4M next July. However, with the Mavericks (annually the #2 tax payer) signing Gortat to the full MLE and doing the S&T for Marion, this figure could jump to about $1.7M or so.

    So, is Les willing to pay double the MLE, plus lose out on another $1.7M or so in shared luxury tax revenues, to add to this team? We're talking about a financial commitment of up to $13M for next year.

    Well, if the T-Mac and Yao contracts are being paid 80% by insurance while they're out with injuries (as is being reported?/speculated? by Jonathan Feigen), then Les is actually saving a bundle. 80% of Yao's salary alone is equal to about $13M. If T-Mac misses even 30 games next year (a very aggressive estimate, given Tracy's injury), Les is off the hook for another $7M in insurance payments.

    Bottom line: The Rockets may not want to spend money if it constrains their salary cap situation for 2010. But from a purely financial standpoint for NEXT YEAR ALONE, it looks like the insurance savings on Yao's and T-Mac's contracts alone would be enough to offset the luxury tax implications of spending the entire MLE this summer.
     
    1 person likes this.
  3. B-Bob

    B-Bob "94-year-old self-described dreamer"

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    Wow -- thanks for the reality check. It's obvious who we'll be signing with the MLE.

    [​IMG]
     
  4. DrNuegebauer

    DrNuegebauer Member

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    Thanks Bima - nice work there.

    I think the other thing worth considering is that Morey is a shrewd dealer, and Battier is a valuable asset to a team looking to contend this season! We could potentially move him and save as much as $1.7 million. I'd suggest Morey would bring back expirings or non-guaranteed contracts (which might make the savings greater), plus some sort of draft pick compensation (several seconds?)

    Then dumping Cook onto, say, Memphis, gives us another $3.5million worth of 'tax avoidance'.

    Bottom line here: if we are currently projected to be $1.4 million over, dealing Battier and Cook figures to bring us $3.8 million under the threshold - so spending that much of the MLE would still see the tax revenue roll in AND generate some genuine savings from the insurance (to be utilized buying draft picks again?)
     
  5. joesr

    joesr Member

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    Center

    Everyone is saying a 2 guard.....but Lowry and Brooks played quite well together I thought (meaning on the court at same time). Why cant brooks just perma play the two? Iverson lite, yeah?

    Why cant we let our rookies prove a point?
     
  6. djohn2oo8

    djohn2oo8 Member

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    A center is coming through trade, via Morey
     
  7. REEKO_HTOWN

    REEKO_HTOWN I'm Rich Biiiiaaatch!

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    I would love to get Wafer back but he needs to understand that we need a Center. Take the Veterans Min. and maybe Morey cuts you a bigger deal next season. He will play a ton of Mins. and run all he wants.
     
  8. tharges

    tharges Member

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    Trade T-mac/Rook or future draft pick to Detroit for Prince/Hamilton and sign Chris Mihm or Brian Skinner at center to combo w/Hayes.

    Or work a trade with Chicago for Heinrich/Noah for some combination of T-mac and a rook.


    Options.......Heinrich can be the SG and Brooks the point. Noah is active and can shot block, him and Scola would be awesome.
     
  9. Rox Addict

    Rox Addict Contributing Member
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    Here we go again with the Heinrich love on this board ..... We need a center its common sense that we have to get a center cause the Rockets do not have one.
     
  10. worzel gummidge

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    A vet PG to backup the Rockets young points... Pablo Prigioni. That'd be also an instant pick and roll added to the Rockets arsenal (with Scola).
     
  11. s3ts

    s3ts Member

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    NO VAREJAO

    What is up with these kids wanting Varejao?

    We still have Scola and he's better and stronger than Varejao. Scola might even flop better than him. Varejao is this 7 ft kid who falls down like a p***y every time he's touched by someone of smaller size.
     
  12. Dubious

    Dubious Contributing Member

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    Originally Posted by BimaThug
    Bottom line: The Rockets may not want to spend money if it constrains their salary cap situation for 2010. But from a purely financial standpoint for NEXT YEAR ALONE, it looks like the insurance savings on Yao's and T-Mac's contracts alone would be enough to offset the luxury tax implications of spending the entire MLE this summer.


    It very well could be that management thinks it needs to share the insurance money with the Fans that have paid to see Yao and Tracy and won't get their money's worth. So we could see The Rockets go over the cap to put on a credible level of entertainment.

    A short term contract player that brings his own level of excitement.

    (Wafer?)
     
  13. worzel gummidge

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    Varejao would be playing center. I doubt Morey would want to use the full MLE though. They'd far over LT too much to be able to easily trade back down.
     
  14. s3ts

    s3ts Member

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    Oh yeah, and remember the last game of the 07-08 Playoffs where he selfishly went for a finger-roll lay-up in the last seconds of the game for a possible lead against the Spurs, which ended up being an airball. At the moment, LeBron James was WIDE OPEN.



    At least Scola can finish when he's that close to the damn rim.
     
  15. s3ts

    s3ts Member

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    Sorry, it was 06-07 playoffs.
     
  16. rockets934life

    rockets934life Contributing Member

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    Not really actually, they are barley over and if they want to get back under then they just need to give away Barry and Cook at the deadline. Now also remember with Yao being out for the year his insurance kicks in along with TMAC's insurance so Les wont be paying a big chunk of cash so maybe he will be willing to spend a bit on Tax.
     
  17. ctry2582

    ctry2582 Member

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    Just say no to Hinrich, Prince + Rip and AV
     
  18. JayGoogle

    JayGoogle Member

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    <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/kNtwNpbPOCU&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/kNtwNpbPOCU&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>

    He's restricted, and he doesn't fill a need but IF Battier is going to be traded than yeah...he would.
     
  19. emmanuelb

    emmanuelb Member

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    von von von get it done
     
  20. crash5179

    crash5179 Contributing Member

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    Imagine this line-up:

    Brooks
    Wafer
    Ariza
    Landry
    Whoever at Center: Dorsey maybe or Scola


    Would that be the fastest line up in the NBA? Rocket Ball? Fast Breaks?
     

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