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So we're paying tax?

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by DrNuegebauer, Feb 24, 2011.

  1. DrNuegebauer

    DrNuegebauer Member

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    Can anyone confirm?

    Looks to me like we're paying about $1.3mill in luxury tax.

    The only good news is that the 2 trades reduced the amount we would pay, effectively saving us around $5.2 million. That's cash that might well be put to good use in the future?

    And I suppose with Ming's $8mill insurance, it's not that big a deal
     
  2. JoeBarelyCares

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    I guess it wasn't cost-effective to dump Jeffries to Sacramento, as it would probably have cost us $3 million to save $1.3 million, plus Jeffries' remaining salary, plus the league redistribution amount? Maybe the math was a wash. Or maybe Morey was too busy at the deadline working the two other deals, that he didn't have time to worry about a salary dump.
     
  3. AvgJoe

    AvgJoe Member

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    we are buying out JJ...
     
  4. DrNuegebauer

    DrNuegebauer Member

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    Thankyou - good point.

    My numbers were wrong anyway - I forgot to take off Ish Smith's salary.

    So as long as we can pay Jeffries some $900k less than his full amount in a buyout (he'd almost get that much back for signing up with someone for the vets minimum anyway) we're tax-free!
     

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