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Rockets luxury tax watch 2019: What we are doing and why it matters

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by justtxyank, Feb 7, 2019.

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  1. justtxyank

    justtxyank Contributing Member

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    After the trades yesterday and the James Ennis trade, the Rockets have moved to less than $2 million over the luxury tax threshold.

    With Nene, Stauskas and Baldwin all having fully charges against the tax, look for them to be heavily shopped over the next few hours to duck the tax fully for 2019.

    Additionally, with Clint Capela likely to miss some bonuses (credit to Bobby Marks) they have even more room.

    Any buyout candidates would be really pushed to take the minimum so the charge isn't full against the LT and then we'd dodge the tax entirely this year. This is because the veteran's minimum receives a subsidy from the NBA so the full salary doesn't count against the tax. Meaning that we swapped one guy making $1.5 million for another guy making the same WITH the subsidy it would actually be less money owed by us.



    Pretty amazing really that we've come to this point considering what was expected about the tax prior to this season.

    @BimaThug correct me if I'm wrong on any numbers or machinations here.

    Basically, they are going to go all out to get under the tax this year.


    From @The Cat on why this is beneficial



    Edit: I've added some notes for more info
     
    #1 justtxyank, Feb 7, 2019
    Last edited: Feb 7, 2019
    Vivi, BaselineFade, B-Bob and 39 others like this.
  2. Slam Dunk

    Slam Dunk Contributing Member

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    I miss Leslie Alexander.
     
    #2 Slam Dunk, Feb 7, 2019
    Corrosion, saleem, PhilCollins and 3 others like this.
  3. durvasa

    durvasa Contributing Member

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    "Luxury Tax Watch." What an exciting trade deadline for Rockets fans.
     
    #3 durvasa, Feb 7, 2019
    B-Bob, saleem, SC1211 and 26 others like this.
  4. RudyTBag

    RudyTBag Contributing Member
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    As long as we get that fat 9 million MLE this offseason I’m happy.
     
    #4 RudyTBag, Feb 7, 2019
    ghettocheeze, Rudyc281 and JuNx like this.
  5. jakedasnake

    jakedasnake Member

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    At the 2 yard line...come on Morey you can do it!
     
    #5 jakedasnake, Feb 7, 2019
    clutchdabear, heypartner, Riz and 1 other person like this.
  6. baller4life315

    baller4life315 Contributing Member

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    Great info, thanks!
     
    #6 baller4life315, Feb 7, 2019
    daywalker02 and Riz like this.
  7. justtxyank

    justtxyank Contributing Member

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    We won't because next year we'll be back to a potential tax team again.
     
    #7 justtxyank, Feb 7, 2019
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  8. thekad

    thekad Member

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    Will Timan use another first round pick to dump Nene or will he downgrade Gordon to Replacement Level Player #13 to slide under the tax?

    This trade deadline is so exciting I’m on the edge of my seat.
     
    #8 thekad, Feb 7, 2019
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  9. fryjol7

    fryjol7 Member

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    As a working person, cant really blame them, they are doing their jobs, and are doing it very well if you look at the cold numbers.

    But as a fan, its sad that we get all dreamy about super rosters all year long and then we face the same reality year after year. Hard to justify not going all in at the same time your best player is having an all time scoring spree.
     
    #9 fryjol7, Feb 7, 2019
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  10. RayRay10

    RayRay10 Houstonian

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    Because he didn’t want to pay the tax either?
     
    #10 RayRay10, Feb 7, 2019
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  11. RudyTBag

    RudyTBag Contributing Member
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    Pretty sure we still get it...
     
    #11 RudyTBag, Feb 7, 2019
  12. Bobsputin

    Bobsputin Member

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    Seems like we have a lot of TPEs. I know you cannot stack them to sign a player, but can you use them in any of the following ways?

    Using a $1M TPE for examples.

    1. Combine TPE with vet min deal of $2.2M (made up #) so league pays $1.5M, TPE covers rest so it has no effect on cap?

    2. Do Unused TPEs drop lower your cap space?

    3. Can you trade a TPE for say draft picks? (Betting no and getting late for this).


    Just trying to think of a way to use them.
     
    #12 Bobsputin, Feb 7, 2019
  13. justtxyank

    justtxyank Contributing Member

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    No if you use the full MLE you are hard-capped at the tax apron for that year.
     
    #13 justtxyank, Feb 7, 2019
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  14. onreego

    onreego Member

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    It's basically a gamble on how long Harden can be this dominant. With better management of CP3's playing time and health next season and using the non-tax MLE they're probably banking on bringing some decent help. Also, possibly dangling Gordon, picks, and fillers for Beal during the summer.
     
    #14 onreego, Feb 7, 2019
  15. justtxyank

    justtxyank Contributing Member

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    1) Nope
    2) Nope
    3) Only if a player came back with the pick
     
    #15 justtxyank, Feb 7, 2019
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  16. Nimo

    Nimo Member

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    One way to add cheap talent to surround Harden with, 1st round draft picks

    oh wait, never mind :D
     
    #16 Nimo, Feb 7, 2019
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  17. justtxyank

    justtxyank Contributing Member

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    If they were to use the non-tax payer MLE next year they'd be capped at the tax apron which would be very difficult to do.
     
    #17 justtxyank, Feb 7, 2019
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  18. Amel

    Amel Contributing Member

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    STOP CRYING ABOUT THIS

    Tillman was clear, we can go 10M over if it gets us a championship. This Ennis move gives us some flexibility, more to come.
     
    #18 Amel, Feb 7, 2019
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  19. Sajan

    Sajan Member

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    Does anyone know what years we have paid the tax and how much?
     
    #19 Sajan, Feb 7, 2019
  20. Matt78777

    Matt78777 Contributing Member

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    This clinches it: I have tickets to the Rockets-Mavs game coming up. I plan on rooting for "luxury tax savings" and drinking beer before going to the game to avoid paying $15 per beer, therein realizing my own luxury tax savings.
     
    #20 Matt78777, Feb 7, 2019
    B-Bob, Richie_Rich, Artie_Fufkin and 6 others like this.
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