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[ClutchFans] Houston Rockets Salary Cap Update: 2019 Offseason Pre-Draft Edition

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by BimaThug, May 11, 2019.

  1. BimaThug

    BimaThug Resident Capologist
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    TPEs don't count against the luxury tax unless/until they are used to acquire additional player salary. However, for purposes of determining whether a team is entitled to certain salary cap exceptions (such as the MLE or BAE), such TPEs are included in team salary.

    EDIT: Just to be clear, in order to clear "cap room" to sign free agents, TPEs need to be renounced.
     
    #61 BimaThug, May 31, 2019
    Last edited: May 31, 2019
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  2. xaos

    xaos Member

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    Doesn't have to be Bima, but I've wondered, how come Lakers are even in the discussion to trade for Anthony Davis? If you take all of their tradeable assets it still doesn't work salary wise? What am I missing?
     
  3. Deuce

    Deuce Context & Nuance

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    Lakers have salary cap space to absorb AD's contract. So the stuff sent back to N.O. is just value assets.
     
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  4. xaos

    xaos Member

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    Thank you. I was trying with ESPN trade machine and figured there was something simple not being considered.
     
  5. Corrosion

    Corrosion Member

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    What about signing him to a 1 year for the max allowed (I guess that's $16.2?) plus a team option for a second using his bird rights with the idea being to create a mid sized expiring to help facilitate incoming salary after December 15 ?

    Does that work within the CBA since its not technically a S&T?
     
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  6. BimaThug

    BimaThug Resident Capologist
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    If it’s not a S&T, they can re-sign Shumpert to a deal of any length with as much NG’teed salary as they want. However, if he’s re-signed to anything more than $13.2 million, there will be BYC issues preventing him from being dealt until January 15. Also, a one year deal would give him a veto right on trades as a One Year Bird player.

    Hypothetically, a mostly NG’teed deal paying Shumpert $13 million per could be a nice salary filler for trades come December 15, but I wouldn’t hold my breath on the Rockets giving him a deal that large, even if just for salary matching purposes.
     
  7. Corrosion

    Corrosion Member

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    I forgot about BYC …. I knew there was a catch. Doesn't that also change the money available to take back ?

    As for veto rights , I think you'd make it clear at signing this was your intent …. You want $13m pass on those veto rights otherwise go make the min somewhere.

    I cant see them giving him a deal like that , unless everything else failed …. The backup plan to the backup plan.

    They could also do something similar with GG and his early bird rights which let them pay him the league average , something like $9.6?
     
  8. BimaThug

    BimaThug Resident Capologist
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    Yes, BYC status (if they give Shumpert a > 20% raise, hence the $13.2 million figure) would cause his "outgoing salary" in trades to equal the greater of (i) his prior salary ($11 million) or (ii) 50% of his new salary. Hence, I don't see a scenario in which they'd re-sign him to more than $13.2 million. (I also don't see a scenario in which they'd re-sign him for close to that much, but you get the point.)

    Yes, they could do something similar with Green via Early Bird rights. We won't know the exact number until around July 1 (when the accountants are done crunching the numbers for the 2018-19 season), but expect the number to be somewhere in the $9-10 million range. Again, it would need to be a multi-year deal in order to avoid a veto right.

    You can make "wink-wink" deals all you like, but if a guy is a One Year Bird player, there is nothing to prevent him from changing his mind at the last minute and blocking a trade. What is the team going to do? Publicly admit to an illegal deal? That's why I don't see the Rockets putting themselves in that position.
     
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  9. Relativist

    Relativist Contributing Member

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    Would a two-year, mostly non-guaranteed deal be included in luxury tax calculations if waived after the Dec. 15 trade deadline? I know it's unlikely to happen, but if not, I wonder if there is any salary cap downside to such a deal for the first part of the season. I would hope Tilman would not balk at the cost of such trade filler, but I also appreciate that having said trade filler may not be very valuable.

    This is exactly the sort of scenario I was wondering about. Thanks for the discussion, guys.:cool:
     
  10. BimaThug

    BimaThug Resident Capologist
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    In your scenario, if Shumpert (or Green) were waived before the league-wide contract guarantee date (around January 7), then only the guaranteed portion of their contract would count against the cap/tax. This would include at least the prorated portion of their salary attributable to the portion of the season prior to them being waived.

    Also, in such a scenario, the players would (sort of) have a trade veto right, since their contracts would likely need to be amended to guarantee however much of their salaries as would be necessary to match salaries for trade purposes under the CBA. Such an amendment -- even though it would clearly benefit them financially -- would still need to be agreed to by the players.
     
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  11. Nook

    Nook Member

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    I thought that a deal for Shumpert (for trade purposes) had to be fully guaranteed the first year but subsequent years could be non guaranteed.
     
  12. BimaThug

    BimaThug Resident Capologist
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    That's for a SIGN-AND-TRADE. If the team signs and keeps Shumpert until he is trade-eligible on December 15, his first year salary does not need to be guaranteed. However, if the guaranteed amount needs to be increased to match salaries in trades later, Shump would need to agree to amend his contract to increase the guaranteed amount at that time.
     
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  13. Nook

    Nook Member

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    Thank you.

    Do you think a S&T is very likely, with the Rockets taking back a player on a longer guaranteed contract?
     
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  14. basketballholic

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    I'd think if we signed Shump for a possible deal after Dec. 15th (or January 15th) that the most logical contract would be multiple years with only first year guaranteed. And that first year might need to be relatively high to get him to agree to that sort of deal.

    This would be if we finished the rest of our business and didn't have to worry about a hard cap.

    For instance.... let's pretend he's agreeable to 2/24 guaranteed. If he is, then he would probably be agreeable to a 2/40 desk partially guaranteed. We guarantee him 23.1 million next season... with a partial guarantee of 1 million if he hasn't been cut by July 1, 2020. Then we guarantee him another 1-3 million if he hasn't been cut by Oct 1, 2020.

    That way at the deadline we've got a $23.1 million marker that would allow us to ingest a salary of up to $28.975 million (hmmmm), simply by sending out Shump and possibly a pick.... or maybe receive a pick back.

    And that contract also may need tradeable to a team with cap space along with a pick that works create a nice big TPE for future trade flexibility.

    You can skew those numbers however you like depending on what else we add to the roster in the form of expirings and what we could get Shump to agree to regarding partial guarantees on 20-21 season and whether we are hard capped or not.

    Shump's situation and future contract could turn into the swiss army knife of our salary cap and transactions this summer.
     
  15. studogg

    studogg Contributing Member

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    Given where we are with the ltax and no draft picks, our options are highly limited. Daryl likes to set his true roster post trade deadline. Signing a bloated one year - under the 13.2 - is a highly likely scenario if we don’t trade Paul or Capela.
     
  16. NewRoxFan

    NewRoxFan Contributing Member

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    Meanwhile we can sign what... a mid level exemption?

     
  17. J.R.

    J.R. Member

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    #77 J.R., Jun 29, 2019
    Last edited: Jun 29, 2019
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  18. Aruba77

    Aruba77 Contributing Member

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    Here is what things are projected to look like roster-wise as of now:

    1)CP3
    2)Chiozza
    3)Gordon
    4)Harden
    5)Frazier
    6)Green (assuming he resigns for min)
    7)Clark
    8)PJ Tucker
    9)House
    10)Capela
    11)Hartenstein
    12)Taxpayer MLE
    13)min (Shump?)
    14)min
    15)min
     
  19. Pat

    Pat Contributing Member
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    Meanwhile the Lakers have sucked for the last six years (and laughing stock of the league last couple).
    Rockets could do that too and have a ton of cap space in 2025, but I'm guessing that's not what any of us want.
     
  20. NewRoxFan

    NewRoxFan Contributing Member

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    If they win the NBA championship this coming season, and possibly the next after that... I don't know, I think I'd rather that. Seems to have worked for the Astros.
     

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