Salary Cap Chat With Larry Coon 11/30/11

1. Jose Capote

   What can the heat do with the MLE and can they sign Nene for eight million four for years if they trade Miller to Denver? Thanks for the help Larry. And happy XMas to u and the family..

   Go LBJ and the Heat

   • Larry Coon

     I assume if they trade Miller to Denver, then salary has to come back to Miami.

     The Heat are over the cap, even if they amnesty Miller. The most they could offer — unless they do something drastic — is the midl-level, which likely won’t be enough for Nene.

2. adrian

   Do you think the 2 years lag time to the new luxury tax is too long/short?

   • Larry Coon

     I think it’s reasonable. It’s an accommodation to allow teams to transition to the new rules. Two years should be enough.

3. David

   The Rockets could have north of $8 million in cap room if they just renounce their rights to all free agents and waive non-guaranted contracts; however, they still have a $7.35 million trade exception from the Battier trade.

   1. Houston can still elect NOT to use its cap room and retain all of its exceptions (the MLE, BAE and TPEs), even if its payroll is below $50M, right?

   2. With Nene asking for more than Houston can offer (even if they amnesty cut Thabeet) and no other attainable free agents being worth the money to destroy their cap flexibility for 2012 (when they expect to have a TON of cap room), wouldn’t it be more prudent not to opt for the cap room now?

   • Larry Coon

     I think it ‘s worth at least talking to Nene to see where he’s at. Perhaps the Rockets can make a move or two to clear up more room. If it looks like they can get it done, they can renounce everything right before they sign him. Otherwise, they just hang on to their exceptions.

4. Erik

   Have you heard how the new CBA plans to calculate the cap, or what the cap is projected to be throughout the first six years? And will max salaries continue to be based off a cap of a lower percent of BRI?

   • Larry Coon

     The agreement between the two sides was pretty vague about the formulas for the cap & tax, just saying that they would be set “in relation to the projected escrow level in the same proportions as under the 2005 CBA.” I’m waiting for specific wording to come out, because this leaves a lot of wiggle room.

     For max salaries, the agreement says they will be “the same as under the 2005 CBA.” This is good news for players like Kobe Bryant — for a time, the league wanted to eliminate the provision where a player could receive 105% of his previous salary, even if it was over the league-wide maximum. For a player like Kobe — with an extension kicking in this year — restoring the 105% provision saved him millions.

5. matt

   Hey Larry love your insight! Wondering if you could explain how a team like Denver can save it’s cap space (in Nene walks as expected)for future contract extensions for some of their current young players and/or future FAs, with there being the increased salary spending minimum for each team? Basically, how can teams save cap space for the future, while meeting the required spending floor today? Thanks!

   • Larry Coon

     One advantage of the new CBA for teams is shorter contracts & smaller raises. That by itself will help to free up future cap space.

6. SenseiOfSoul - Chicago

   Of all the possible destinations Dwight Howard could land, how come there has been no mention of Boston? Don’t get me wrong, I’d love to see him in a Bulls uni. LAL,NETS,LAC? Meh. Dwight obviously wants to win. Boston is a great place to do that as the organization has the titles to prove it. They also have The expiring deals of Ray Allen, KG, and J.O. is probably going to retire. They also have a young and very competetive PG with a championship experience in Rondo, and a veteran in Pierce. Doc Rivers is a head coach any superstar would respect (Can the same be said out west with Mike Brown or VDN?). If Howard signs as a FA, they can resign KG and Allen to vet minimums and then extend the title window while having the two most important positions (PG and C) filled for years to come.

   • Larry Coon

     If the Magic deal Dwight, then it’s time to rebuild the franchise. Rondo could be a part of that, but the Celts really don’t have any other young assets to be part of a rebuilding process (plus, the Magic will want to package Turkoglu in any deal for Howard). I don’t see how it makes sense for the Magic. They already have — supposedly — an offer from NJ of Lopez and two firsts. That makes more sense, and I’m sure the Magic can do better still.

7. Brian

   How long can a team “save” the amnesty rights? Only a contract that current team made prior to new CBA or can also be a contract prior to CBA for a player acquired after CBA??

   • Larry Coon

     Right. The player must be on the team’s roster right now. Anybody signed later, or anybody the team trades for after business resumes on the 9th, can’t be amnestied. Teams have only one amnesty for the entire CBA, but they can use it prior to any season.

8. matt

   Is Miami as interested in Nene as he appears to be for them? If so, do you see anyone on the Heat, outside of the big 3, the Nuggets would be willing to acquire via sign-and-trade?

   • Larry Coon

     I’m sure Miami would LOVE to have Nene, but all they have to offer is the mid-level. Nene opted out of a big paycheck, and he needs more than that. Scanning through Miami’s roster, I really don’t see a logical trade — except maybe with Bosh. I assume that’s a non-starter for the Heat.

9. Vince

   what is the most realistic way for the Clips to get both CP3 and D12? and how do they do it. thanks larry

   • Larry Coon

     You want both? Why not hold out for a 2010 do-over and getting LeBron James at the 3 while you’re at it?

     The Clippers’ best assets are the Minnesota #1 and Eric Gordon (assuming Blake Griffin is untouchable). Both the Magic and the Hornets would ask for both assets. The only way the Clips could land both players if they split them up — say, the pick to Orlando (with Chris Kaman) and Gordon to New Orleans (with Mo Williams). Does either team take that deal? Multiply the chances of each team saying yes together, and you have the chances of both happening.

     I think the Clips might have the means to land one or the other, but it’d be a stroke of lightning if they somehow got both.

10. Ernie Grunfeld

    Can’t my Wizards offer a better package than this purported offer from NJ? Javale McGee, take on Turkoglu, a couple 1sts (this year’s will be high), and some combo of young players (Booker, Blatche, Crawford, Veseley, etc)?

    • Larry Coon

      I think they can, and I think it’d be necessary. If the Magic decide to move Howard, it’d be to the highest bidder. It’d be up to each bidding team to weigh the risk of Howard leaving and bid accordingly, but I still think the Magic can get a great deal by trading their superstar.

11. Jack

    I noticed that players who are traded must wait 6 months before signing an extension with their new team. Does this create a new January 1 trading deadline for the big players like Dwight and CP3 who are potentially hoping for max contracts with new teams?

    • Larry Coon

      Yep. One possibility for moving elite players is to do a straight trade, without an extension. If the trade occurs on or before Dec. 30, then an extension can be signed with the new team before the end of the season.

      Of course, this carries a lot of risk — the new team inherits the same contract situation as the old team. For example, in the case of Howard & CP3, both could opt-out next summer and take their talents elsewhere. This is going to lower the players’ trade value.

12. spanky

    Larry, can you comment on stories out there that the Knicks can’t make a legitimate play for Paul, either this year or next? Thanks and keep up the fantastic work

    • Larry Coon

      The problem is that they changed the sign-and-trade and extend-and-trade rules so that the contracts are smaller & shorter. With an extend-and-trade the total contract — including the remaining years on the current deal — can be only three years, and for a sign-and-trade it’s four. Both allow only 4.5 percent raises, as opposed to 7.5 percent with a Bird re-signing.

      So the days of a player like Melo getting the best of both worlds — the contract he wants with the team of his choice — are essentially over. Now, the player will effectively be forced to choose between the money and the team. if the Hornets trade him to New York, then he’s not going to get the contract he wants.

      If it’s a free agent signing then, per John Hollinger, the most they can offer is about $13.5 million. Will that be enough, when he can likely get a bigger deal elsewhere? Plus, CP3 would be joining a team that’s been stripped-down in order to make room for him.

      The two teams could pull off a Melo-CP3 trade, I guess, but the whole point is to create a New York Big 3 to match Miami’s

      Can NY get him? Possibly, but sacrifices have to be made somewhere. So I don’t think that puts the Knicks in the driver’s seat.

13. Blake

    Lets say POR uses it amnesty on Roy, and let say SAC puts in a bid of 4mil a year and gets him. If SAC a year or two from now traded Roy. Then his outgoing cap number would be at 4mil, correct?

    • Larry Coon

      I don’t think those details have been worked out yet. I imagine what you say will be correct, but we just won’t know for sure until there is an actual CBA.

14. Kyle

    What are the chances the Bulls can land Arron Afflalo? Brandon Roy?

    • Larry Coon

      From what I hear the Nuggetshave no intention of unloading Afllalo cheaply. I think he’s more likely to remain in Memphis, the aborted trade last year notwithstanding.

      If Roy is amnestied then he’d certainly be a secondary waiver claim, and the Bulls don’t have the cap room to make an offer.

15. Steve

    Hi Larry,
    If a player is amnestied (like Roy for example) how does the reduced contract with the new team effect the previous teams cash obligation to the player?
    Any effect on their tax or cap?
    Thanks

    • Larry Coon

      I heard from one source — but I haven’t confirmed with the league — that amnestied players will count toward the team’s (85% of the cap) minimum salary obligation.

      Amnestied players will not count against the team’s cap or luxury tax.

16. o2cats

    When can teams sign a player that they have claimed, and won the bid, of an amnesty player. Would it be something similar to any FA signing, like the old 90 day/Dec 15th rule, obviously pushed out, or more restrictions likely?

    • Larry Coon

      If a team wins the bid for an amnesty player, it’s more of a waiver claim than a signing. They inherit the contract, rather than sign a new contract. The rules for a trade after a waiver claim are similar to the rule for a trade after a trade — the player can’t be aggregated with other players for two months.

      But keep in mind that the league may enact special rules for amnesty that change the way things work — like preventing teams from trading a player for three months after an amnesty claim.

17. Tripletotheh

    Do you think the nets have a better chance of getting D12 than the Lakers? And will the Lakers pursue D12, If so whats the package the Lakers will offer for him. And when do you think they will offer it?

    • Larry Coon

      You have to think the Lakers offer Bynum. After that their trade assets start to get a little thin. Does Bynum plus Odom for Dwight and Hedo tempt them? Is that the best deal the Magic can get? If Bynum was healthier it might be a no-brainer, but his injury history might give them pause. And of what real value is a 32-year-old Odom for a team that will be rebuilding?

18. kristov

    A team with 68 million in salaries uses the full MLE which brings the team salary to 73 million.With the luxury tax apron would future trades by this team be limited to outgoing salary + 1.037 million?

    • Larry Coon

      Right. This is the one case where a true hard cap exists in the NBA.

      Teams over the apron can’t use the big MLE. They also can’t work around this rule by using the MLE first and then going over the apron. If they spend the full MLE, uses their bi-annual exception, or (starting year 3) gets a player via sign-and-trade, then the apron becomes a hard cap.

19. Ryan

    Larry, according to Ken Berger of CBS Sports, he tweeted that the Spurs are one of six teams that have expressed early interest in Caron Butler, according to sources. If true, does it mean that they are also trying to trade or cut Jefferson? Keep up the good work, Larry!

    • Larry Coon

      Yep, they could be looking at Butler as a cheaper alternative. Jefferson makes nearly double what Butler would get as an MLE signing.

20. Josh

    Larry,

    Do you think the Jazz use the Amnesty on Okur since he is actually tradeable? If they used the Amnestied on Okur would that signal that they may be targeting a top tier free agent?

    • Larry Coon

      According to Brian T. Smith, the Jazz aren’t planning to amnesty Okur.

21. Alex

    Sounds like Ainge may take a shot at CP3 with the straight trade idea, understanding that Boston would be able to throw a lot more money at him in 6 months to change his mind.

    • Larry Coon

      Yeah, but do you want to trade for a superstar who, at the time of the trade, doesn’t want to be there and can leave at the end of the year?

22. John

    Would the lakers be able to use the MLE to get Marc Gasol?

    • Larry Coon

      Not a chance. He’s restricted. Even if he did somehow sign for the MLE, the Grizzlies would send Jerry Buss a bottle of champagne in thanks before matching the offer and snatching him back.

23. Otis Smith

    If I really am forced to trade Dwight, what is the best, realistic, package I could obtain? (A real team with real players and not just the type of assets would be nice; please)

    • Larry Coon

      Is there something out there that’s better than packaging Dwight with Hedo and asking the Clippers for the Minnesota pick, Eric Gordon and Chris Kaman?