Cap Analysis of the Maynor Trade

by kris247 on Dec 22, 2009 6:52 PM MST Comment 16 comments

Today's trade sending Eric Maynor and Matt Harpring to Oklahoma City for the rights to the Thunder's 2002 pick, Peter Fehse, looks like a salary dump for the Utah Jazz. Let's take a look at how this move affects the salary cap for the Jazz, and what this might mean for future moves.

Since the Oklahoma City Thunder were under the 2009-10 NBA salary cap they were able to absorb the entire cost of both Maynor and Harpring's salary, without exceeding the cap. That allowed them to bypass the normal rule which dictates that all salaries in a trade are within 125% (plus $100,000) of each other, and send back only the rights to a second-round player who was drafted in 2002. Since the salary of a second-round pick is not guaranteed that means the Jazz take on no additional salary obligation for this year.

Prior to the trade the Jazz were obligated to about $85.1 million in salary. That number puts the Jazz well above the salary tax threshold which the league set at $69.92 million. Given the dollar-for-dollar tax for teams above that threshold the Jazz were on the hook for a tax payment of about $15.18 million. That tax goes goes the league office, who then distributes a share of it to each team who has not exceeded the salary tax level. So, that means not only would the Jazz have given up $15.18 million of their own revenue, they would also lose out any salary tax distributions that come from other teams above the tax.

Since the Jazz are clearly not receiving any basketball talent in return for Maynor and Harpring, it becomes evident that was made to dump salary, and to lower that tax payment. By subtracting Maynor's $1.32 million salary and Harpring's $6.5 million salary the total Jazz payroll now equals about $77.3 million. Still well above the tax threshold, but it reduces the Jazz's obligation to about $7.38 million. It also eliminates the remaining $5.3 million the Jazz owe to Maynor through 2012-13.

It's a little strange that the Jazz would give away Harp's expiring contract essentially for free. With the $6.5 million owed to him coming off the books at the end of the season his contract could have been a valuable bargaining chip as the trade deadline approaches. Teams looking to get under the cap to make a run at the elite 2010 free agent class probably would have been willing to throw actual basketball talent at the Jazz. Instead the Jazz have opted to give that bargaining power to OKC, who could potentially combine his contract (after a two month waiting period) with another expiring contract -- such as Earl Watson or Etan Thomas -- to go after a high salary player. (Bosh, anyone?)

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delete and ban this guy

by P_Dizzle on Dec 22, 2009 8:03 PM MST reply actions 0 recs

Who?

The more you try to erase me, the more that I appear.

by clarkpojo on Dec 22, 2009 9:14 PM MST up reply actions 0 recs

Technically Harpring can be traded to any team tomorrow if the Thunder wanted to do that.

But that’s the way the CBA works.

The hitch with trading Harpring is that he can’t be traded with any player (Maynor or any Thunder player on the roster) for the next 60 days.

No mistakes in the tango, darling. Not like life. Simple. That's what makes the tango so great. If you make a mistake, and get all tangled up, you just tango on.....

Oh, hes in the laegue two and Jayson Thomson and that Boggins dude on Milwokee, and Occur for the Jizz. Its a talented laegue.--Kfan in Korea

by pookeyguru on Dec 22, 2009 8:23 PM MST reply actions 0 recs

Yup, you’re correct. I could have been more clear about that. Harp can be traded straight up for another player (or players), but he cannot be combined with another player for 60 days after the trade becomes official. He also cannot be traded back to the Jazz for the remainder of the season.

by kris247 on Dec 22, 2009 10:26 PM MST up reply actions 0 recs

Actually, that is incorrect. Because the Thunder is under the salary cap, they can move Harpring with other players as soon as they want to.

The more you try to erase me, the more that I appear.

by clarkpojo on Dec 22, 2009 10:45 PM MST up reply actions 0 recs

Ya’ learn something new every day. Thanks!

by kris247 on Dec 23, 2009 8:13 AM MST up reply actions 0 recs

The amazing thing is...

The Jazz are probably going to make one or two more trades and conceivably get all the way under the luxury tax. They only need to shed $4.8 million, which is a couple million off our estimates, but is what is being reported by NBA analysts. Completely doable. I think Korver’s clock is ticking until he is shipped off Harpring style. Then the Jazz will not only avoid paying a luxury tax, but will cash in on everyone else’s tax payings.

This is actually a very smart trade if it allows the Jazz to get all the way under the luxury tax. Then we can make moves to spend more money next season one would think. I don’t think we are winning a title this year, so no reason to break the bank if we don’t have to.

But at least Jazz fans can’t use the huge payroll as an excuse for underachieving anymore.

The more you try to erase me, the more that I appear.

by clarkpojo on Dec 22, 2009 10:51 PM MST reply actions 0 recs

Great move if the jazz make another trade

I Hated this trade when I heard about it. I understand that the jazz arent willing to pay luxury tax, but wasnt harpring’s expiring contract the best trade piece the jazz had? and to also give up their promising 1st round pick all just to save money? I am worried that the jazz will do exactly what hollinger mentioned in his article and make another trade just to bring the jazz below the luxury tax level. this trade places the backup duties solely in ronnie price’s hands, and we all know how reliable he is at the point.

So we will learn alot about the jazz in the next month or so. Are the Jazz more interested in keeping a cheap, hardworking, overachieving, good (not great), playoff making (6-8 seed), but never championship-winning product on the floor; or is this just a move to free up space to add a piece that will make the jazz a legitimate contender in the west? Whatever the jazz decide, as long as boozer is involved in the trade I will immediately love the move?

by jake1ar on Dec 22, 2009 11:31 PM MST reply actions 0 recs

if this move is succeeded only by move(s) to dump salary

and not better the team, i am going to be quite, quite upset.

by moni on Dec 23, 2009 1:54 AM MST up reply actions 0 recs

You know it

This was only to dump salary. This is disturbing. Harpring sure, but with EM3? Hell to the no. I would’ve given them Harpring and Brewer.

by KaBar6 on Dec 23, 2009 7:44 AM MST up reply actions 0 recs

I am fine with the Jazz cutting some salary. I love Maynor and it's a tough blow.

But I believe the Jazz would have been willing to pay big money if this team were any good. I mean, we have been complaining all season like, “why are we paying $100 million for this average team” and now the office realized this and they are way ahead of the game on cutting salary. There are two or three teams that are pissed right now that the Jazz beat them to the punch. As crappy as it is, I would rather have this then just finish out the season doing nothing.

At least with this, I can believe that the Jazz are willing to spend money if the right winning team is available. I can believe that they will pay more money to go get one more scorer and let’s be honest, they are 250% more flexible to make trades not only this season, but in the offseason too.

The more you try to erase me, the more that I appear.

by clarkpojo on Dec 23, 2009 8:39 AM MST up reply actions 0 recs