[Yahoo!] Carmelo privately expressing more enthusiasm to join Rockets than Knicks

lol i like this reporting from fanhouse

 

just saw the fanhouse article was from sam amick...he likes to make stuff up from time to time.

 

yea you're right, that's pretty dumb, not take on sizeable contracts but scola is a-ok lol

 

the guy says earlier in the article that some trades he proposed were 100% made up by him. I think that Rockets trade is one of those.

 

So lets all break this down now:

Here are a list of his preffered destinations that he would sign a long term contract with : NY, NJ, CHI, and HOU.

New York apparentley doesn't have the assets, more specifically, the draft picks, to get the deal done. Also, they aren't being aggresive in their pursuit.

New Jersey isn't willing to give up either big man in Favors or Lopez, something that is the centerpiece in any Melo deal.

Chicago, same as NJ, isn't willing to give up their prized young big man in Noah, they are supposedly working on a contract extension.

That leaves Houston as the only place worth doing business with. With these recent reports, I think the thing that's stalling the discussions are the draft picks involved.

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The only thing that makes me ponder Scola is that he would generate a market share amongst mexican spanish speakers (he's definitely more likable than Ginobli and the Gasols are too upper class spaniards), as the salary cutting seems more about cost saving than straight cap relief, and it could set them up for the future.

I'm probably completely wrong, but I do see *some* business sense in targeting Luis.

 

We already broke it down. And this is not necessarily true about the extension. I think the only team you can say he would definitely sign an extension with is NY. Maybe Chicago. New Jersey and Houston are not guarantees.

 

I doubt he wouldnt up here, with Houston it's $64m over 3 years with no state income tax.

So take his federal income tax (35%, ignore the lower brackets for simplicity sake due to how much is top bracket), and no state, you've got $41.6m over 3 years.

Now let's take signing FA with NYK, with an expected top end of about $15m in the new CBA.

You've got $45m over 3 years, now let's take 35% federal, 8.97% state (it went up 2.5% this year), then 3.65% city tax, total $23.57m

Do you really think he's going to leave that much on the table for a team that likely won't even be as competitive?

 

Luis can't be dealt before Dec 15.

 

Do you thnik Morey would be sure that Melo is explained this situation? I ask sincerely, cause I really don't understand why would Melo prefer to earn less, and go into a far less competitive team, just for living in NY and keep his wife happy....

Perhaps if he's very well explained the cons of going to NY...it would work better for Houston?

 

Too much math and numbers for me haha but I get what you're saying. Guess we'll just have to wait and see what happens.

 

Don't know if this was posted (and God I hate the NY Post), but...

http://www.nypost.com/p/sports/knicks/knicks_bid_too_lo_H4vYhEl6HVLbU4l6sMxFAN

If all Denver wants are picks can't we give them the best ones? It also sounds like Denver is running out of options and their leverage and their leverage is going out the window. Other GMs have all said that they are not giving up their better players in a trade (i.e. Noah, Favors, Martin). Now the question becomes who has the best package, that does not include any of those guys?

 

SpearsNBAYahoo

 

i know Noah has a "high ceiling" but if im a Bulls fan, id make Noah available in a deal for Melo 8 days a week

 

Sorry to burst your bubble (well just a little). First off 35% + 8.97% + 3.65% = 47.62% multiplied by $45 million is $21.429 not $23.57. Also, I used to prepare tax returns for a living, and one big FEDERAL tax deduction is state and local taxes. Using your state and city tax rates, you get to deduct 8.97% and 3.65% of your federal income subject to tax so (100% - 12.62%) * 35% = 30.583% add back the state and city and you have an effective tax rate of 43.203% for NY which becomes more like $19.44 million total on $45 million whereas in Houston it would be 35% federal only which is $15.75 million (a difference of $3.69 million). Now the question becomes can he make that up in endorsements...

 

I would think that New Jersey's 2011 first round pick (even with Melo on the Nets in 2010-11) would be at least comparable to the 2011 pick the Rockets will have. Heck, the Nets have the advantage of making their pick completely unprotected, whereas that Knicks' pick is top-1 protected.

If the Nets are, indeed, offering a package that would include both Derrick Favors and an unprotected 2011 first round pick, that's probably better than whatever the Rockets are offering.

That said, I bet the Nets want protection on that first rounder.

 

Umm, the values were after tax, not the tax burdens (whats 21.43 + 23.57, could it be 45....)

Second, The issue is If traded to X, and then signs with FA to Y, whoever he's traded to, its a 64m 3 yr extension, whoever he signs FA with, it's expected to be about 45m FA contract.

But yeah i got the deductible wrong silly mistake really, been a while since I've been in the US (I have citizenship of 3 countries, mother and father born in different countries to each other and me, lol)

 

I'm still not sold that the Nets will offer Favors.Avery Johnson said he wants to keep him, and earlier in the summer team officials said they wouldn't include him in a deal for Chris Paul.

With all the given trade rumors being mostly speculation, I am more inclined to believe quotes coming straight from the Nets camp, as opposed to "insider sources."

 

Agreed. My main point was that a 2011 Nets first rounder will probably work out being as good as the 2011 pick the Rockets could offer. That's all.

***CORRECTION***: The Nets owe a 2012 (top-7 protected) first rounder to Golden State. I believe that hampers their ability to offer a 2011 first rounder to Denver.

Yet ANOTHER advantage that Houston has in offering up an enticing trade package for Melo!

 

Oh wow. Things keep looking better and better.

I think the main attraction with our first round picks are the fact that they are coming from NY. Whichever team Carmelo gets traded to will most likely not be a lottery team, making the picks coming directly from that team less valuable. But, if the Nuggets were to trade with us, they wont have to worry about that.