A misconception about the poison pill contract

The rule applies because Lin has an early qualifying veteran free agents exception. The early bird rule stipulates the maximum that can be offered is 175% of the salary (if above MLE) and MLE (league average salary) otherwise.

If Lin had full bird rights Morey could have structured a 8/8/8 deal.

Houston pays Lin 5/5/15 but that isn't important, because it's just money out of Houston's operating revenue. The amount that applies to the cap, and thus limits what moves Houston can make is 8/8/8 this is because of another rule where Lin's salary is averaged out in terms of the cap when he signs an offer sheet as a restricted free agent but does not apply to the matching team.

So the Knicks pay 5/5/15 to their cap and to Lin. Houston pays 8/8/8 to the cap and 5/5/15 to Lin

 

Thanks man. That clears things up. Also, thanks aelliott for the answer

 

The intent is to help you keep your own RFA. The intent was to close a loop-hole that Washington used to steal Arenas from Golden St.

Golden State was powerless to outbid Washington. A team with a good RFA would NEVER be able to match anyone who could pay more than the Early-Bird exception. The important word in the previous sentence is NEVER be able to match. Asik would already be a Rocket without the rule. But now, the Bulls can exceed the Early-Bird and match.