No one in Oklahoma City is saying so, but rival teams keep insisting that the Thunder are poised to...

No one in Oklahoma City is saying so, but rival teams keep insisting that the Thunder are poised to present an offer sheet to Jazz restricted free agent Millsap that Utah can't afford to match. The Jazz are projected to be some $3 million into luxury-tax territory next season before even accounting for Millsap, after Carlos Boozer, Mehmet Okur and Kyle Korver all declined their opportunity this week to become unrestricted free agents.

The most frequently cited counter to that idea is that the Jazz will match any reasonable offer to Millsap because they plan to trade Boozer between now and February.

Thanks to UtesFan89 for the heads-up Marc Stein: The latest chatter on free agency - ESPN

about 1 year ago Basketball John 20 comments 0 recs |

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Calling Clark for an explanation

What are the rules about salaries and trades. If we go over the cap by signing Millsap, but then trade Boozer, do salaries in the trade have to match? Is it possible to trade two players (and their salaries) without them matching? We hear the term “salary-dump”, but how does it work? How can we rid ourselves of Boozer or AK for financial reasons in order to sign Millsap? (I heard one possibility of enticing a trade with our knicks pick. I think I’d only do that for someone like Bosh, Aldridge, Bill Russell…)

I'll make it coach.

by MTN on Jul 1, 2009 10:03 AM MDT reply actions

the Jazz are already over the cap which was set at $58.68 million last season and should go down for this upcoming season.

the threshold that the Jazz are looking at is the luxury tax which was at $71.15 million last season. this too is expected to go down (we’ll know on the 8th).

currently, the Jazz are on the hook for $72.05 million + Maynor & Suton’s contracts.

each dollar paid over the luxury tax is essentially doubled. if the tax is $70 million and your team salary is $78 million, you pay an $8 million dollar tax that goes into a pool AND is split amongst teams that did not go over the luxury tax. this was a cut of $3 million this past season.

Trades have to be within 125% of each other. Kirilenko, for example, makes $16,451,250. so he can be traded for anything that goes between $13,161,000 to $20,564,062.

“salary dump” is a media phrase. Jamal Crawford for Speedy Claxton (who may never play again) & an unproven guy (Acie Law) on a rookie contract is a “salary dump” because you supposedly only made the deal to get rid of Jamal’s salary and got nothing worthwhile in return.

other factors are guys like Ben Wallace who are willing to get “bought out of their contract” at a reduced rate. so you can trade AK for Ben (b/c Ben makes $14 million – you’ve saved $2.451 million just from the trade) then buy him out for $8 million dollars, saving an additional $6 million. you essentially have waived the player and paid him $6 million.

another common factor is the non-guaranteed deal. if the contract is not guaranteed or partially non-guaranteed, (Sasha Pavlovic) you can waive this player & only have to pay the guaranteed portion.

last factor is an injured player (Speedy Claxton). insurance company pays his contract instead of the team, BUT unlike the previous “factors”, this does not result in any cap savings.

by homer simpson on Jul 1, 2009 10:44 AM MDT up reply actions

Trades have to be within 125% of each other.

Isn’t that out the door if you trade with a team below the cap level, like Detroit or Memphis or OKC?

True Blue Jazz
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by UtesFan89 on Jul 1, 2009 10:50 AM MDT up reply actions

doh. you’re right.

by homer simpson on Jul 1, 2009 10:53 AM MDT up reply actions

Amnesty Clause

“This new provision grants teams a one-time exception to waive a player without paying any further luxury tax on the player’s contract, regardless of how long or how rich the contract is.”

http://sports.espn.go.com/nba/columns/story?columnist=stein_marc&id=2112912

by Brigadier Pudding on Jul 1, 2009 10:20 AM MDT reply actions

that’s no longer in effect

This was a one-time opportunity for teams to waive one player and avoid having that player count in the team’s luxury tax computation. Teams had the opportunity to use this provision between August 2nd and 15th, 2005 (right after the CBA went into effect). It could be used only for players signed or acquired prior to June 21, 2005, or for players already waived when the current CBA went into effect. A team could waive only one player using this provision.

http://members.cox.net/lmcoon/salarycap.htm#Q18

by homer simpson on Jul 1, 2009 10:46 AM MDT up reply actions

so we're screwed

by Brigadier Pudding on Jul 1, 2009 10:48 AM MDT up reply actions

it depends. can the Jazz stand to pay the tax for 1 season?

because by the ‘10-’11 season, they’ll have $34 million coming off the books Okur, Boozer, Harpring, Korver, Fesenko. if the Jazz can gut out 1 season, they can keep the team in tact – if they can move Kirilenko, they could even resign Boozer and Okur to long term deals if they choose to.

http://hoopshype.com/salaries/utah.htm

by homer simpson on Jul 1, 2009 10:53 AM MDT up reply actions

How much tax though

if the limit is at $70 million, and the Jazz sign ‘Sap & a PG, they’ll up up at over $80 million.
That’s 10 million in taxes, plus the loss of the NBA’s distribution cash. Don’t know if they can afford that.

True Blue Jazz
Bucco Ball
I'm on Twitter
RIP Nick Adenhart. 4/9/09

by UtesFan89 on Jul 1, 2009 11:01 AM MDT up reply actions

you could also look at it this way.

they are already probably over the tax (unless they find a way to shed some of their contracts for smaller ones). so they already aren’t getting the NBA distribution money ($3 mill this past season).

if you lose Millsap, you’ll need a 13th roster guy anyway so that’s at least another $800,000 or whatever the minimum salary is these days. doubled by the tax, that’s another $1.6 mill.

are they looking to sign a PG? i thought Maynor was going to fill that back up role?

by homer simpson on Jul 1, 2009 11:03 AM MDT up reply actions

j-slow loves his 3rd PGs

As for over… currently they’re over 3 million (so let’s say 6 with the tax) plus the 1.6 you mention.
That’s about 5 million over for the Jazz.

Sign ‘Sap, and it goes from 5 to 15. It’s still a jump

True Blue Jazz
Bucco Ball
I'm on Twitter
RIP Nick Adenhart. 4/9/09

by UtesFan89 on Jul 1, 2009 11:11 AM MDT up reply actions

yeah, it’s a question of whether they could afford an $80-85 million dollar roster and $10-15 million in taxes, even for 1 season. but yeah, $90-100 million is steep even for a year.

they could waive Matt Harping. turns out he’s non-guaranteed. saves $6.5 mill. (or doubled up $13 million)

http://www.hoopsworld.com/Story.asp?story_id=9137

If you choose Sap over Boozer, the Mavericks have Jerry Stackhouse’s non-guaranteed deal of $7.25 million ($2 mill guaranteed). you’d also need to add $2.61mill more in contracts (Barea & George?). which would save another $7-8 million. (or doubled up $14-$16)

http://www.hoopsworld.com/Story.asp?story_id=9182

if you value Sap over Kirilenko, the Warriors with Maggette & Claxton’s contract would save $3 mill (doubled up $6 mill). plus insurance will be paying Claxton’s $5 million. so there is a total savings of either $8 mill or $11 mill. with their PG glut, you could also find creative ways to add Acie Law or a sign & trade with RFA CJ Watson.

by homer simpson on Jul 1, 2009 11:50 AM MDT up reply actions

Re: signing 'Sap

Good point by 1280 AM (Gave up on 1320 and Locke & all, I did).

Counting the luxury tax & the NBA distribution money the Jazz give up by going over and signing ’Sap, signing him is essentially costing you $25 million+. Is he worth that much?

True Blue Jazz
Bucco Ball
I'm on Twitter
RIP Nick Adenhart. 4/9/09

by UtesFan89 on Jul 1, 2009 10:32 AM MDT reply actions

Right, but

Is that under the assumption that we still have AK and Booze? Can’t we try to trade AK or Booze for within 125%, but for someone who might take a buyout or a waiver? And if we do that, couldn’t we get down below the cap? I say waive Harp (by which I mean offer him a coaching job), trade Booze for Big Ben and then buyout Big Ben. Would that get us the room to sign Millsap?

I'll make it coach.

by MTN on Jul 1, 2009 12:48 PM MDT up reply actions

We'd have to find a taker

if Phoenix is serious about rebuilding, they won’t want either. If not, maybe they’d take AK. Maybe. I’m not sure how many other players out there have similar contracts & mind-sets.

As for Harp, I don’t know what type of buy-out he’d require.

If I’m doing the math right and the Jazz want to stay under the cap, they’d have to lose like $13 million. That’s what… Booze + Fesenko or something? Throw in the buy-out for Wallace (if it happened), and you’d probably be looking at Booze for Wallace (who’s bought out) and then waiving CJ or something.

True Blue Jazz
Bucco Ball
I'm on Twitter
RIP Nick Adenhart. 4/9/09

by UtesFan89 on Jul 1, 2009 1:25 PM MDT up reply actions