Salary Cap Chat With Larry Coon 1/25/12

Larry Coon the noted author of the CBAFAQ, will answer your Salary Cap and Collective Bargaining Agreement questions. Larry will answers your questions about the Salary Cap, NBA trades and the new CBA at 3:00pm

  1. JT

    Larry, have you seen any details of the new revenue sharing program?

    • Larry Coon

      Just what was published in the SBJ. I’m still working on the CBA — I’ll try to get my hands on the revenue sharing plan afterward.

      According to SBJ, teams will contribute about 50 percent of their local revenue (i.e., not national TV revenue), minus expenses, into a pot (but not more than 50 percent of its profits). They then get to draw an amount equal to the average team payroll. So teams like the Lakers will contribute much more than they receive, and conversely teams like the Bucks will receive more than they contribute.

      Under this plan, when fully implemented in 2013-14, teams like the Lakers would pay up to $50 million, and teams like the Bucks could receive about $16 million.

      The plan also makes teams responsible for doing well in whatever market they are in. If they don’t generate enough revenue relative to the size of their market (i.e., they are underperforming), then their contribution is adjusted. This way, teams can’t go through a season without even trying, then sit back & reap the revenue sharing benefits.

      Here’s the SBJ story: LINK

  2. Josh

    Larry,

    In efforts to trade Devin Harris and if the Jazz think they have a real shot at the playoffs do you think a trade of Harris, Bell and GS 1st Pick for Nash could happen? I get that we would be renting Nash for the year but it may make sense for a playoff run…

    • Larry Coon

      I think neither Harris nor Bell get Phoenix excited. Harris especially is having a bad year, and unless you’re arguing that a change of scenery would do him good, I don’t see why Phoenix does that. The GS pick is nice (especially since the Warriors are 5-11 right now), but it’s top-7 protected this year & next. I think Phoenix can do better for Nash.

  3. James

    Hey larry, thought i would get my question in early in hopes of getting it answered as your the only guy that really can answer it, What i want to know is that if suppose Lakers traded away Gasol and Bynum for Howard in a 3 team trade and got Howard and an expiring back, wouldnt amnestying Peace and fisher not picking up option be enough to sign Deron?, i was told somewhere is they did that they would lose Howard rights, is that true?
    Thanks

    • Larry Coon

      In your scenario they’d be left with Blake, Kobe, Goudelock, McRoberts & Walton for about $41.5M. If they let Caracter, Ebanks & Morris (restricted free agents) go, they’d free up their salaries, but add in roster holds, so it’s pretty much a wash. So we’ll add them back in, which bumps the total to about $44.6 million.

      That’s without Dwight. I assume the intent would be re-signing him (or getting him to pick up his option, at least), so let’s put him in for $19.5 million. Now we’re at $64.1 million, and we’re already way over the cap.

      The only way they could clear cap room would be to renounce Howard — and as you say, they’d lose his Bird rights. And even then they’d be at about $50 million after you add in cap holds, which isn’t nearly enough to offer Deron.

  4. Shahin O.

    Hey Larry!

    I know this would be a crazy idea but (as a Lakers fan) what about this trade to get them BOTH Dwight & Deron… AND help the Nets and Magic who are sure not to keep/get either:

    Lakers get:
    – Dwight Howard, C (from Magic)
    – Deron Williams, PG (from Nets)

    Nets get:
    – Andrew Bynum, C (from Lakers)
    – Jameer Nelson, PG (from Magic)
    – MAYBE: J.J. Redick too (from Magic)

    Magic get:
    – Pau Gasol, PF (from Lakers)
    – Brook Lopez, C (from Nets)
    – MarShon Brooks, PG/SG (from Nets)

    I know the Nets would have to be at the point where they’d finally accept Deron’s leaving and Dwight’s not coming (if they both pipe up about it openly)… but just how crazy am I with this deal? They still get lots of quality players for losing their current franchise stars.

    -Shahin

    • Larry Coon

      The first premise in this scenario is that both the Nets and Magic decide to trade their all-stars.

      The second premise is that they decide not to trade with each other — the Nets’ first option is to pair Dwight with Deron in New Jersey, So this plan would have to fall apart (and I’d need to hear a plausible explanation for why it’d fall apart).

      The third premise is that this would have to be the best deal the Nets could make for Deron. It seems they could do a lot better than package him with Lopez and Brooks for Bynum (an upgrade over Lopez, but for various reasons, not that much of an upgrade) and Nelson (no longer the player he was a few years ago). I think the Nets can do better.

      Fourth, you’d have to overcome Orlando’s resistance to dealing Dwight to LA.

  5. Scott

    Mi Williams is playing great right now, but does he finish the season on the Clippers?

    • Larry Coon

      Chris Paul’s injury shows how valuable depth can be. You can say that if Eric Bledsoe comes back healthy it could make Mo expendable, but I think the team likes the flexibility it has. That’s not to say that if a great deal presents itself they’d say no….

  6. Tom

    Can teams use multiple Trade Exceptions to get one single player?

    • Larry Coon

      Nope. A trade exception can’t be combined with anything else (including another trade exception) to get one player. So, for example, the Lakers’ $8.9 million exception from the Lamar Odom trade couldn’t be used to take back Hedo Turkoglu (who makes more than $11 million) if Orlando wanted to send him out in a Dwight Howard trade. Any player they acquire with a trade exception has to make the amount of the exception or less.

  7. Damir

    Should the Mavs clear off their whole roster except Dirk, to get D12 and Dwill this summer, and if so, what’s the best way to do so?

    • Larry Coon

      That’s what appears to be their Plan A. If they amnesty Brendan Haywood, trade Shawn Marion, waive Vince Carter & Lamar Odom (who are on partially guaranteed contracts), then they’d have about the right amount of room to go after both. Their only carry-over players would be Dirk, Beaubois (who likely could also be traded to clear additional room), Dominique Jones, Sean Williams and Brandan Wright. The latter two could also be waived, but it wouldn’t clear much extra cap room, due to the roster holds it’d generate.

      If this opportunity avails itself, then it’d be a no-brainer. It’s easier to fill in a supporting cast later, than it is to land two all-stars, one of them the best center in the league.

  8. Ravi

    What team do you think is currently in the best position cap-wise going into the offseason?

    • Larry Coon

      If Deron Williams leaves, then NJ will be in a great position, cap-wise. And if he stays, then they’re still far enough under the cap to land a max player like, oh, Dwight Howard.

      And as I said, Dallas is competitive now, and has the ability to rebuild on-the-fly by positioning themselves to land two max guys.

  9. o2cats

    Are you planning on publishing an update to your Salary Cap FAQ page? I am sure I am not the only one that referenced it often. Until them I have been using “TentativeDeal 11-26-11″, but there are obviously changes, 5 year rookie ext,, etc. It also lists bi-annual exceptions, but I have not seen one used. Do you know if they are still in the new deal?

    • Larry Coon

      I’m working on revisions to the FAQ now. I don’t have a timeframe for when I’ll be finished, because it mainly depends on how much time I have to work on it, and the availability of the right people to answer questions. Hopefully it’ll be done soon.

      The Bi-Annual exception IS in the new CBA. Teams can only use it if they are not over the tax “apron” ($4 million above the tax line), and haven’t used the taxpayer mid-level ($3 million) exception or the $2.5 million exceptions for teams that had cap room.

      The Bi-Annual is $1.9 million this season, and increases every season to $2.479 million in 2020-21.

      As with the last CBA, teams can’t use the Bi-Annual in consecutive seasons (which includes this season if they used it last season).

  10. Craig

    I love the dream scenarios (Deron, Howard) as much as the next guy but lets talk lesser names. Do the Lakers have any interest in Luke Ridinour?

    • Larry Coon

      If we’re talking about lesser names the Lakers should be interested in, then I say they go talk to Atlanta about Kirk Hinrich. He’s about ready to play, would help them a lot, and would fit within the Odom trade exception.

  11. Brian

    I know its more of a risk, but in the long run, NJ could be best suited by not trading for howard, and giving up assets instead hoping to sign him outright..

    • Larry Coon

      Of course. But they’d rather do a deal and have him as THEIR free agent this summer (or even picking up his 2012-13 option), and have the home field advantage via Bird rights, than to compete with teams like Dallas in the open market. Plus if Dwight is already in NJ, it makes Deron more likely to stay.

      In the best of all worlds they pull off what you suggest. But there’s a lot more risk involved.

  12. Aman

    Toronto Raptor question here. From a cap perspective what is the best strategy for the Raptors as to how they employ their amenesty? Do they use it on Calderon or use his expiring contract as trade bait next year?

    • Larry Coon

      It’s better to trade a player than to amnesty him, because you no longer have to pay him. That’d be their first choice.

  13. Craig

    If the Lakers miss out on Howard or Deron, do you anticipate the Lakers will look to make a trade with the Pacers (Granger & a slew of PF’s) or the Rockets (Lowry, Scola)using Gasol as the main chip?

    • Larry Coon

      It’s pretty clear that Gasol isn’t fitting into Mike Brown’s offense very well, and we know they tried to trade him once already this season (the failed CP3 deal). I think a deal to Houston for Lowry & Scola would be interesting, but I also think Houston would be reluctant to part with Lowry (who wasn’t a part of the original CP3 deal). Scola isn’t having a great year, but I think if the Lakers have the opportunity to flip Gasol for those two, they take it.

      I don’t think your deal makes a ton of sense for the Pacers, either.