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Tilman: must be under the tax 1 of next 3 years

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by justtxyank, Feb 6, 2019.

  1. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    Well they will be a lot closer if they dump Baldwin and Stauskas. Also the buyout market just got more targeted with the Shumpert trade. No guards or undersized 3s will come here so it will only be big men now.
     
  2. REEKO_HTOWN

    REEKO_HTOWN I'm Rich Biiiiaaatch!

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    Les left the NBA at the perfect time.

    1) sky rocketing contracts for max players (highest ever)
    2) highest value of franchises
    3) the beginning of the repeater tax
     
  3. don grahamleone

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    Yeah, but he also walked away right in time to avoid a championship.
     
  4. larsv8

    larsv8 Member

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    Repeating my comments from the Tilman buys the Rockets thread.

    http://bbs.clutchfans.net/index.php...-houston-rockets.285000/page-11#post-11293109

     
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  5. txn

    txn Member

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    "If they want to go $10 million over I don’t really care."" lol
     
  6. JVL713

    JVL713 Member

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    Hard to really blame Tilman for wanting to avoid the repeater tax. Like several have pointed out, virtually all owners do. But to come out and say it when we're in the heart of Harden's prime and still very clearly a piece or two away from truly contending...just looks bad.

    Spending 70 - 80% of his net worth (can't remember the exact figure) to be the sole purchaser of the team instead of putting together a group of investors felt like an unnecessary big ego move, and because of that the luxury tax falls entirely on him.
     
  7. BimaThug

    BimaThug Resident Capologist
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    A quick refresher on the "repeater tax" and how a team becomes subject to it:

    The repeater tax only applies to teams that have been taxpayers in three of the prior four seasons.

    In the Rockets' case, since they were not taxpayers in either 2016-17 or 2017-18, the soonest they would possibly become subject to the repeater tax is the 2021-22 NBA season. That would be the final year (player option) of Chris Paul's mega-deal but still within the Harden/Capela window.

    This is why Tilman Fertitta made the comment about not wanting to pay luxury tax in one of the next three seasons. Much like at least 25+ other NBA owners, he does not want to pay the repeater tax. IF the Rockets can somehow duck the tax completely this season -- which I think is unlikely but not outside the realm of possibility -- it would push the repeater tax consequences out until no sooner than the 2022-23 NBA season, by which time the Chris Paul deal will be off the books, Harden will either be in the last year (player option) of his own mega-deal or re-signed to a new deal, and the books may be much cleaner . . . but who knows?

    Hope this helps.
     
  8. steddinotayto

    steddinotayto Member

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    Thanks for the refresher, @BimaThug !
     
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  9. YOLO

    YOLO Member

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    good stuff. thanks for the info
     
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  10. heypartner

    heypartner Member

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    :(
     
  11. BimaThug

    BimaThug Resident Capologist
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    Yeah, I was not (fully) expecting this. But it could have been worse. They dumped Ennis without giving up anything and seem more willing to straddle the tax line all season than I anticipated.

    But still, SO many second rounders traded away. #SecondRoundPickGuy did not like today's moves.
     
  12. J Sizzle

    J Sizzle Member

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    Today was admission of Tilman's priorities for the team. Expectations have been adjusted accordingly.
     
  13. blackistan

    blackistan Member

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  14. Nook

    Nook Member

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    What would you have done?

    Doesn't make sense for this to be the season that the Rockets try to avoid the luxury tax due to the length of CP's contract and the increase in Harden's?
     
  15. BigBum

    BigBum Member

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    As a good businessman, Tilman will receive a portion of $150 million luxury tax income.

    Thunder 66 million
    GS 50 million
    Raptors 21 million
    Blazers 12 million
    Total $150 million (rounded)

    Heat and Celtics will get rid of luxury tax in a few weeks.
     
  16. heypartner

    heypartner Member

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    Thx for all the explanations in last few days. Sorry your Annual Draft Party is kinda busted this year. :(

    I assume if we want, as the roster stands now, we can convert House on last day of season and remain under the tax line. What would be the maximum portion of the MLE we could offer him on last day of the season, and still stay under.

    I ask, because to make up for losing one of those 2nds, I sure would like to lock up House as a future trade asset, and give him playoff exposure with Harden to increase his value...including ”free” minutes playing games on his 2-way once G-League season ends.

    As an aside, I guess Morey also has a spreadsheet of dates for using MLE and vet mins on each buyout candidate without going over tax line.
     
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  17. Sajan

    Sajan Member

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