NBA Salary Cap Chat With Larry Coon 5/2/12

1. Lakeshow

   Is there a way for the Lakers to obtain Nash other than the mini mle. Could they (Lakers) hypothetically do a sign and trade with someone like Jordan hill (or anyone on roster) and Suns s&t Nash. I realize Suns would not want to do this but if they were going to lose Nash anyways then could they do it to at least get something in return. Thanks

   • Larry Coon

     There are two ways to interpret questions like this. The first is, “Is it POSSIBLE for Player X to end up on Team Y next season?” The answer is, sure it’s POSSIBLE. If the player wants to play there and potentially make an economic sacrifice to get there, there are ways to get it done.

     The second way to interpret it is, “Is it PLAUSIBLE that Player X will end up on Team Y next season?” The answer to that one is, probably not. The player would have to really want to go there, both teams would have to want to work something out, the player would likely have to be willing to take less money, and the teams would have to find a sign-and-trade that makes sense for everyone involved. That’s a lot of things that have to come together just right.

2. colincb

   The new CBA appears to result in more spending parity in the next few years. Doesn’t that hurt the league in helping small markets vs the big TV markets the league is so dependent on? Or will marketing opportunities trump pay levels for the elite players?

   • Larry Coon

     Yeah, that’s an issue that I’m curious to see played out. At the heart of the issue are competing interests:

     1. All 30 teams should be able to make a profit and compete for a championship.

     2. The league is more popular when stacked teams in big markets compete for a championship.

     I think the first goal above is the league’s main concern. And remember, the TV revenue is the same whether it’s LA vs. Boston in the finals or Indiana vs. Utah (although granted the league as a whole makes more money when it’s LA vs. Boston. One person told me the Lakers make more in a regular season game than the Pacers could make in a Finals game).

     What we’re seeing in the new CBA is a reset of the league’s economy. Both sides — players and owners — know this is going to happen. And since the players are making less overall (50% instead of 57%), they’re going to feel it in their pocketbooks.

3. John

   Ok, so I’ve got a question regarding changes from the old CBA to the new one.

   In the old CBA, say 2 teams made a trade on draft night. Team A agrees to send a draft pick to Team B for a player. Team B doesn’t have the cap space to absorb the player on Draft Night, but they will have the cap space on July 1st. So the two teams agree to the trade on Draft Night, then they would send the trade into the league for completion once the new years salaries are in effect.

   I had heard there was talk about closing that loop hole in the new CBA. Did that actually go through, or can a deal like I described above still happen?

   • Larry Coon

     I don’t think anyone has a problem with that. Teams discuss future deals all the time. Sometimes they have to wait for some event to happen, such as (as you said) the season rolling-over and contracts coming off the books. Nothing’s formalized on draft night.

4. Richard Gallina

   Would you say the Knicks are better off with Hedo Turkey Glue on the Knicks and 10 million in cap space along with their MLE Bi Annual and RFA Landry Fields or Amare their MLE and Bi Annual?

   • Larry Coon

     Sorry, I didn’t follow that.

     Are you proposing they trade Amar`e for Hedo? I don’t see that happening.

     And you seem to have them with both cap space AND exceptions. Teams never have both.

5. Brooklynstandup

   Should nets lose d will via free agency what’s the possibility of them trading for amare? And what would they offer

   • Larry Coon

     I don’t think any team wants Amar`e’s contract, and that includes the Nets. I still think they have their sights set on Dwight Howard.

6. Jake Jones

   Larry, name the top 5 players that will be amnestied this summer…

   • Larry Coon

     I think Michael Jordan wants to amnesty his entire team….

     Seriously, with a team like Charlotte, I don’t know if having someone like Maggette on the books for $10 million makes a lot of sense.

     Dallas with Haywood might be the surest thing.

     Denver with Chris Anderson? Detroit with Charlie V? Lakers with MWP? (I think they hang onto their amnesty for another year.) Philly with Elton Brand? Washington with Lewis? Those are the ones that jump out at me.

7. Laker's Fan

   Hi Larry-Ive heard LA is limited to a salary of the option amount HOU turned down for Hill. If that’s the case could they sign him for one year and then have his Bird Rights? Could they sign him to a multi-year deal where the salary balloons in the 2nd year?

   • Larry Coon

     You’re right — there are four seasons in rookie scale contracts for first round draft picks, with the last two seasons being team options. A team can’t turn down one of those option years and then re-sign him for more than the scale amount using Bird rights — that’d be circumventing the rookie scale system. So the Lakers can’t give him any more than he would have received had the Rockets picked-up his option.

     They could use his Bird rights to sign him to, say, a two-year deal starting at the max they can give him and with a 7.5% raise in year 2, with a player option. If he has a good year next year, the idea would be that he would opt out and then re-sign for whatever years and salary they negotiate.

     They can’t give him any sort of Balloon payment. They’re limited to 7.5% raises.

8. Dane M.

   Mr. Coon,

   Wondering you thoughts on the likelihood you see any of these four SGs heading to the Timberwolves in the offseason via unrestricted free agency.
   Ray Allen
   Jason Terry
   Landry Fields
   Courtney Lee

   Or is a trade more likely for the wolves to acquire a SG?

   • Larry Coon

     They won’t have a lot of money to throw at anyone. At this point they’re going to be right about at the cap level, so that leaves them with just the Non-Taxpayer Mid-Level exception (i.e., the same tool most of the rest of the league can either use themselves or exceed). Plus the T-Wolves are still building to contend, so I’m not sure guys like Allen or Jet really fit into their plan (plus if those guys go somewhere, it’ll be to win now). Fields is a restricted free agent, and the Knicks probably keep him. Lee will be restricted as well, but Houston could go either direction, so may or may not keep him.

     So given the chose between your list and a trade, I’d say a trade is more likely.

9. eddie pablo

   Had new York use their amnesty clause? If not should they use it on Amare?

   • Larry Coon

     New York used Amnesty on Chauncey Billups before this season, so they couldn’t use it on Amar`e even if they wanted to. And I sincerely doubt they’d want to, despite the issues they’ve had over the last couple of seasons.

     Incidentally, besides New York, the teams that have already played their Amnesty card are Orlando (Arenas), Golden State (Bell), Cleveland (Davis), New Jersey (Outlaw), Indiana (Posey) and Portland (Roy).

10. JD

    Will the Bulls get an injured player exception for Rose next year?

    • Larry Coon

      They could apply for one, but a league-appointed doctor would have to certify that Rose is more likely than not to be out through next June 15. We’ll know after his surgery how long he’s expected to be out, but through next June 15 is sounding pretty likely.

11. Justin

    If you could change anything about the new CBA, what would you change?

    • Larry Coon

      10 percent share of BRI for the media.

      Seriously, I think they did a lot to address “silly” trades where players get thrown-in just to make a deal work, but they didn’t do enough. There’s still going to be some of that going on, and I think they could have done more to address it.

      I also don’t like that they shortened extensions to four years (including years remaining on the current deal). I think they could have relaxed it to five, along with making it so the current season doesn’t count as one season after the team’s last game. Actually encourage players to sign extensions rather than hit the open market.

12. Abdullah (from Turkey)

    Hey Larry,
    I was wondering if you think OKC can hold onto Harden, considering that now they have two max contracts in their books. As a Celtics fan, I’d like to see him on my team, and I think we’d have a good chance to sign with him considering we’re gonna have a huge cap space for the next year and maybe the year after. Ainge may very well fill that cap space before Harden’s contract is up, but I believe he’s not going to sign any max contract to get a shot at Harden. (There were some rumors that he wanted to trade for Harden instead of Green last season, so he probably likes the guy). Thanks!

    • Larry Coon

      I’m REALLY interested to see what effect the new system and the revenue sharing will have on OKC. They’re like the poster child for the whole concept. The idea is that if teams manage their rosters well, they should have the ability to hang onto their players. And if they manage their rosters REALLY well, then they will have a LOT of expensive players, but should still have the means to keep them around. By Year 3 of the agreement, the league expects the Thunder’s net profit to be boosted by nearly 50% through revenue sharing, which will help a lot. Their goal is to try to find a way to avoid the luxury tax — or win enough and make enough to overcome the expense.

13. Alex

    Where do you see Amare next season? What would you see as a trade the Knick can make that will work with the salary cap (they have already used amnesty on Billups, so that not an option)?

    • Larry Coon

      I see Amar`e with the Knicks next season, unless they get really lucky. I think they try to find a way to make it work with him on the roster.

14. K.M.

    The Warriors tanked at the end of this season to great success, increasing their chances of “rescuing” their top 7 protected first rounder by a huge amount by finishing the year with a 5-22 record. Do you think the NBA will ever address this? My idea is seeding the non-playoff teams in the lottery by their record at the All-Star break, not at the end of the season. This would discourage blatant tanking and produce better basketball at the end of the season in my opinion. Could you foresee something like this being part of a future CBA, or does the NBA not care enough to change it?

    • Larry Coon

      Yeah, I can’t claim to have originated the idea, but I’ve always thought a “snapshot” date for draft ordering makes a lot of sense.

      But while it would address the problem to some extent, it still wouldn’t fix it. You just get teams swooning at an earlier point in the season.

15. John

    If a team is 10million under the cap and only needs 1 player to fill their roster can they sign a player for 12million or does it have to be 10 or less also is it possible for a team that has expired contracts that puts them under the cap to sign a player for a high value then resign the rest of their players

    (hypothetical Situation)
    ex: Lakers had 3 players committed to 60million could they sign another for player million then after that resign all their other plays

    • Larry Coon

      If you mean they have 12 and need a 13th, and have no other cap holds, then they can sign someone for up to $10.1 million.

      See “free agent cap holds” in my FAQ for more information on the system that keeps teams from spending when they have free agents with expired contracts.

      (By the way the new edition of the FAQ should be released by Sunday.)

16. Jon (NYC)

    How can the Knicks to keep Novak and Lin? Novak certainly will command more than the minimum.

    • Larry Coon

      They will need to use their Mid-Level for Lin, but the Gilbert Arenas provision protects them there, so they should be able to keep him.

      Except for Landry Fields, that doesn’t leave a lot for their other free agents.