Nets back in Hunt for Howard

[Admin]

I wonder what the rule is when 1 of the teams are a tax payer? I guess they'd have to take back less salary in deals.

[thecampster]

Now that might be the case as I haven't seen much on the new CBA and the trade machine hasn't updated from the 125k rule previously used.

Hah...the kid is redeemed

[Nicholasp27]

They haven't signed the Russian yetThey can trade for howard BEFORE they do the signings of the other guys

[thecampster]

I wonder what the rule is when 1 of the teams are a tax payer? I guess they'd have to take back less salary in deals.

All basic information on the new CBA is there.

http://espn.go.com/n...mpares-last-one

Trade rules

• 2005 CBA: Teams over the cap can acquire no more than 125 percent plus $100,000 of the salaries they trade away. A team can receive up to $3 million cash in any trade.

• 2011 CBA: Taxpaying teams can acquire no more than 125 percent plus $100,000 of the salaries they trade away (same as 2005 CBA). Non-taxpaying teams (based on their post-trade salary level) can acquire up to the lesser of 150 percent plus $100,000, or 100 percent plus $5 million of the salaries they trade away. The cash a team pays or receives in trade is limited to $3 million annually.

• Who benefits? The relaxation of the salary matching requirements will facilitate player movement. The addition of the provision that allows teams to acquire up to 100 percent plus $5 million of the salaries of its traded players will also reduce "trade ballast" -- extra players thrown into a deal merely to make a trade legal. The number of crazy trades should therefore be reduced.

The limitation of cash in trades (to $3 million annually) will have a big effect on draft-pick trades. It is now common for first-round picks to be sold for up to $3 million each prior to the draft. By limiting teams to $3 million annually, these trades will be reduced.

Edited July 5, 2012 by thecampster

[thecampster]

Trouble for Brooklyn getting Dwight part 2.

Contract extensions

• 2005 CBA: Players coming off their rookie scale contracts can extend for five additional seasons. All other veterans can extend for five total seasons, which includes the seasons remaining on their current contracts.

• 2011 CBA: Players coming off their rookie scale contracts can extend for four additional seasons, although the team can designate one player who is eligible for five seasons at the maximum salary. A team can have only one designated player on its roster at any time. All other veterans can extend for four total seasons, which includes the seasons remaining on their current contract. The extension in an extend-and-trade contract is limited to three total seasons, which includes the seasons remaining on the current contract.

• Who benefits? The teams benefit here, just as they do with shorter free-agent contracts -- teams' future salary commitments are reduced. In addition, limiting extend-and-trade contracts to three seasons (including the seasons remaining on the player's current contract) helps reduce situations like the one the Nuggets were in last season with Carmelo Anthony.

Brooklyn just did this for Williams I believe. Brooklyn can only offer 4 years, while if Atlanta trades for Dwight, they can offer 5.

Edited July 5, 2012 by thecampster

[Diesel]

This is Stern's view of the CBA when it comes to his favs...

[Jody23]

Trouble for Brooklyn getting Dwight part 2.

Contract extensions

• 2005 CBA: Players coming off their rookie scale contracts can extend for five additional seasons. All other veterans can extend for five total seasons, which includes the seasons remaining on their current contracts.

• 2011 CBA: Players coming off their rookie scale contracts can extend for four additional seasons, although the team can designate one player who is eligible for five seasons at the maximum salary. A team can have only one designated player on its roster at any time. All other veterans can extend for four total seasons, which includes the seasons remaining on their current contract. The extension in an extend-and-trade contract is limited to three total seasons, which includes the seasons remaining on the current contract.

• Who benefits? The teams benefit here, just as they do with shorter free-agent contracts -- teams' future salary commitments are reduced. In addition, limiting extend-and-trade contracts to three seasons (including the seasons remaining on the player's current contract) helps reduce situations like the one the Nuggets were in last season with Carmelo Anthony.

Brooklyn just did this for Williams I believe. Brooklyn can only offer 4 years, while if Atlanta trades for Dwight, they can offer 5.

I hate to say this, but if the Magic and the Hawks made a trade anyway, I really believe Dwight would be spiteful enough to walk away despite Atlanta's capspace.

[Admin]

Hah...the kid is redeemed

Ha I wouldn't go that far.

And it appears that I was half right since it didn't change for tax paying teams LOL.

[Admin]

Fanatic, thank you as always for the great information.

[Kimsey]

If I'm Orlando I trade Dwight, Hedo, and Anderson for Bynum and Pau. Orlando than hold their own auction for Pau between mostly Memphis and Minny and sign Bynum long term.

[Jody23]

If I'm Orlando I trade Dwight, Hedo, and Anderson for Bynum and Pau. Orlando than hold their own auction for Pau between mostly Memphis and Minny and sign Bynum long term.

Unless Dwight agrees to re-up with L.A., it ain't happening.

[Vol4ever]

I dont think LA is interested in Dwight for all the manuevering it would take. They have said that they will go with the roster they have now that Nash is in the fold. They may bring in Battier to fill out the roster.

Edited July 6, 2012 by Vol4ever

[thecampster]

Another caveat is that things are different with offer sheets. When you match an offer, that player cannot be traded to the team that tendered the offer for one year no matter what. Also, the player whose offer sheet was matched cannot be traded to any team without his consent for one year.

I'm not sure what you mean about trading bird rights, this is permitted by the NBA. When a player is traded, their "bird rights" are unaffected so essentially they cary over. Now you cannot trade the "rights" like the rights to a draft pick because bird rights are not rights at all. Bird rights are really an exception to the salary cap. Calling them rights is misleading but then again someone should tell me what the definition of "is" is...

Trading bird rights per the definition out there is trading your "right to sign" a player. So for example, Vlad is a current free agent now. We can't trade our bargaining position with Vlad. This is why we couldn't trade Vlad and Damp in sign and trades together. Their deals are separate, so when signing the first player (let's say Vlad) we have to complete the paperwork stating we'll trade him "signed" and "Damp" signed. But Damp is not signed at the time of the Vlad deal. In essence, by including Damp's name on the contract before Damp is resigned, you are trading based on a contingency. Damp is not an asset at the time.

Think of this in terms of basic accounting. You have assets and debits. Free agent cap holds are technically debits without being an asset. In your case, I know I'm preaching to the reverend here but for everyone else, I'll just lift and post from Wikipedia the basics. $100 says most will skip over it and post nonsense.

http://en.wikipedia.org/wiki/NBA_Salary_Cap#Sign_and_trade_agreements

Free agency

[edit] Types of free agents

There are two types of free agency under the NBA's Collective Bargaining Agreement: Unrestricted and Restricted.

[edit] Unrestricted free agent

An unrestricted free agent is free to sign with any team.

[edit] Restricted free agent

A restricted free agent is subject to his current team's Right of First Refusal, meaning that the player can be signed to an offer sheet by another team, but his current club reserves the right to match the offer and keep the player. An offer sheet is a contract offer of at least 1 year made to a restricted free agent. The player's current club has three days to match the offer or loses the player to the new team; the CBA prior to 2011 allowed seven days.^[14]

For first-round draft picks, restricted free agency is only allowed after a team exercises its option for a fourth year, and the team makes a Qualifying Offer at the Rookie-scale amount after the fourth year is completed. For any other player to be a restricted free agent, he must be at most a three-year NBA veteran, and his team must have made a Qualifying Offer for either 125% of his previous season's salary or the minimum salary plus $175,000, whichever offer is higher.

Teams are limited from offering anything more than the average salary to a restricted free agent with two years or less experience.^[15] A player's original team can use the Early Bird exception or their Mid-Level exception to re-sign the player.^[9] Before the 2005 CBA, the original team could only use an exception to re-sign a player who had been drafted in the first round. The 2005 CBA allowed teams to use exceptions on non-first-round picks, with the extension named the "Gilbert Arenas Rule". In 2003, Gilbert Arenas, who had been a second-round pick in 2001, signed a six-year, $60 million contract with the Washington Wizards after his original team, the Golden State Warriors, were unable to match the offer since they were over the salary cap.^[16]

[edit] July moratorium

During a period in the beginning of July, trades cannot be made and most free agents cannot be signed. The salary cap for the upcoming year is not set until the league's audit is competed by the end of the period. Contracts that are allowed during this period include:

[*]Rookie scale contracts to first round draft picks.

[*]A second round draft pick can accept a required tender, which is a one-year contract that teams are required to offer in order to retain their rights to the player.

[*]A restricted free agent can accept a qualifying offer from his previous team.

[*]A restricted free agent finishing the fourth season of his rookie scale contract can accept a maximum qualifying offer. The actual amount is not determined until the end of the moratorium.

[*]Teams may sign players to contracts of one or two years for the minimum salary.^[9]

During the moratorium, teams are restricted from commenting on deals.^[17]

[edit] Rookie scale salary

First-round draft choices are assigned salaries according to their draft position. The first overall pick receives more than the second pick, the second more than the third, and so on. Each contract is for two years, with a team option for the third and fourth seasons (the previous CBA provided for three year contracts with an option for the fourth season), with built-in raises every year to compensate for increases in the average salary. A team may elect to exceed rookie scale for a drafted player that was unsigned for which they retained his draft rights three seasons after the draft. The contract would be for at least three seasons, with a maximum value up to the team's available cap room.^[18]

In 2005, the scale for lottery picks was as follows:

[edit] Options

Many NBA contracts are structured with options for either the player or the team. An option simply gives the party that controls the option the right to extend their contract for one more season at a salary no less than the prior year's amount.

[edit] Sign and trade agreements

Main article: Sign and trade

When a team is willing to sign an upcoming free agent, but the player's current team wants something in return, it might be in the best interest of both clubs to execute a sign-and-trade deal. This occurs when one team signs one of its free agents and immediately trades that player to another team. A sign-and-trade is beneficial to both the player and the teams; the player receives a bigger contract than he might ordinarily get from a team that he would like to play for, while the trading club gets something in return for a free agent, and the recipient of the trade gets the player they desire. Sign-and-trades are a reality in the NBA because of the CBA's rules: unlike baseball, where teams losing free agents are compensated with draft picks or cash, NBA teams that lose free agents receive no compensation.

When a team initiates a sign-and-trade agreement, it must trade the signed player immediately; teams cannot renege on the arrangement and keep the player for themselves, using the other team's financial situation to leverage the signee into a more favorable deal for themselves. Also, the contract signed before the trade must be for at least 3 years, with the first year guaranteed.

If a newly-signed player is not part of a sign-and-trade, his new team cannot trade him until December 15 of the calendar year in which he was signed or three months after the date on which he signed, whichever arrives later.

[edit] Trading and the salary cap

[*]Teams below the salary cap may trade without regard to salary, as long as they don't end up more than $100,000 above the cap following a trade.

[*]Teams above the cap (or teams below the cap but would end up more than $100,000 over the cap following a trade) cannot acquire more than 125% plus $100,000 of the salary they trade away. Under the 2011 CBA, teams that remain below the cap even after the trade can acquire the lesser of 150% plus $100,000, or 100% plus $5 million, of the salary they trade away.^[6] There is no lower limit—teams may divest themselves of as much salary as they wish in a trade.

[*]No free agent signed in the offseason can be traded until December 15 of that year or until three months have passed (whichever comes later), a rule that prevents teams from signing free agents with the intent of using them strictly as trade fodder. For draft picks this moratorium lasts 30 days.

[*]If a team acquires a player in a trade, they are allowed to trade that player straight-up for another individual player immediately. However, if they wish to package that player with another and make a trade, the team must wait 60 days before doing so.

The tight salary-matching rules of the 2005 CBA often required what NBA cap analyst Larry Coon called "trade ballast"—extra players added to a deal solely for salary matching, who would typically be waived by their new teams. Under that CBA, such players were restricted from rejoining their original teams for 30 days during the season or 20 days in the offseason. This led to what Coon called "wink-wink deals where players are traded with the full expectation of returning later." A notable example of such a deal occurred in the 2009–10 season, in which the Cleveland Cavaliers included Žydrūnas Ilgauskas in their trade with the Washington Wizards for Antawn Jamison. The Wizards waived Ilgauskas a week later, and he re-signed with the Cavs after the 30-day waiting period passed. Under the 2011 CBA, a player acquired in a trade and waived by his new team cannot re-sign with his original team until one year after the trade or July 1 after the expiration of his contract, whichever is sooner.^[6]

[edit] Base year compensation

Certain players in the first few months of a new contract are subject to base year compensation (BYC). The intent of BYC is to prevent teams from re-signing players to salaries specifically targeted to match other salaries in a trade (in other words, salary should be based on basketball value, not trade value). A BYC player's trade value as outgoing salary is 50% of his new salary, or his previous salary, whichever is greater. BYC applies only to players who re-sign with their previous team and receive a raise greater than 20%. It also applies only when (and as long as) the team is over the salary cap. Under the 2011 CBA, players subject to BYC cannot be traded before January 15 except in a sign-and-trade, and BYC is only applied to outgoing salary in sign-and-trade deals.^[6]

[edit] Waivers

NBA teams can release a player to the waiver wire, where he can stay for 48 hours (during the regular season). While he is on waivers, other teams may claim him, for his existing salary. If he is not claimed, he is said to have "cleared waivers", and is treated like any free agent, able to sign with any team (with the special restriction noted above for players who were traded and then waived).

[edit] Released players

Released/waived players with guaranteed contracts continue to be included in their former team's payroll. Players whose contracts are not guaranteed are included in team salary in the amount they made while they were with the team. Players on non-guaranteed "summer contracts" are not included in team salary unless they make the regular season roster.

If another team signs a released player who had a guaranteed contract (as long as the player has cleared waivers), the player's original team is allowed to reduce the amount of money they still owe the player (and lower their team payroll) by the right of set-off. This is true if the player signs with any professional team—it does not even have to be an NBA team. The amount the original team gets to set off is limited to one-half the difference between the player's new salary and a pro-rated share of the minimum salary for a one-year veteran (if the player is a rookie, then the rookie minimum is used instead).

[edit] Stretch provision

Both the 2005 and 2011 CBAs contain a so-called "stretch" provision regarding payment of guaranteed money to waived players and its effect on the salary cap.

Under the 2005 CBA, players and teams could alter the schedule of payments to waived players by mutual agreement. The remaining guaranteed salary was equally spread across the remaining years of the player's contract.^[6]

The 2011 CBA dramatically changes this regime. While contracts signed under the 2005 CBA remain under the original scheme, different rules apply to new contracts. When a team waives a player signed under the 2011 CBA, it can spread the remaining guaranteed salary (and its accompanying cap hit) over twice the remaining length of the contract, plus one year. According to Coon, "if a team has an underperforming player with one season remaining at $12 million, the team can waive him and stretch his salary across three seasons at $4 million per season."^[6]

[edit] Amnesty clause

Each team is allowed to waive a player without having their salary count toward the salary cap or luxury tax. One player can be waived prior to the start of any season through 2015–16, but each team is restricted to one "amnestied" player during that time. Only players signed prior to 2011–12 are eligible.^[19] Teams can claim an amnestied player at a reduced rate, with the waiving team responsible for paying the balance of the contract. The team with the highest bid acquires the player. If unclaimed, the player becomes a free agent.^[6] Teams over the salary cap can only acquire an amnestied player if he becomes a free agent, and the offer would be limited to the veteran's minimum contract.^[20]

Under the 2005 CBA, one player could be waived prior to the start of the 2005–06 season and not count toward the luxury tax. Unlike the 2011 CBA, the player still counted under the salary cap.^[6] The 2005 amnesty provision was derisively named the "Allan Houston Rule", but his team, the New York Knicks, used the exception on Jerome Williams.^[21]

[edit] Luxury tax

While the soft cap allows teams to exceed the salary cap indefinitely by re-signing their own players using the "Larry Bird" family of exceptions, there are consequences for exceeding the cap by large amounts. A luxury tax payment is required of teams whose payroll exceeds a certain "tax level," determined by a complicated formula, and teams exceeding it are punished by being forced to pay one dollar to the League for each dollar by which their payroll exceeds the tax level.

While most NBA teams hold contracts valued in excess of the salary cap, few teams have payrolls at luxury tax levels. The tax threshold in 2005–06 was $61.7 million dollars. In 2005–06, the New York Knicks' payroll was $124 million, putting them $74.5 million above the salary cap, and $62.3 million above the tax line, which Knicks owner James Dolan paid to the league. Tax revenues are normally redistributed evenly among non-tax-paying teams, so there is often a several-million-dollar incentive to owners not to pay the luxury tax.

The luxury tax level for the 2008–09 season was $71.15 millon.^[2] For the 2009–10 season, the luxury tax level was set at $69.92 million.^[3] The luxury tax level for the 2010–11 NBA season was $70,307,000.

The 2011 CBA instituted major changes to the luxury tax regime. The dollar-for-dollar tax provisions of the previous CBA remain in effect through the 2012–13 season. Starting in 2013–14, the tax changes to an incremental system. Tax will be assessed at different levels based on the amount that a team is over the luxury tax threshold. The scheme is not cumulative—each level of tax applies only to amounts over that level's threshold. For example, a team that is $8 million over the tax threshold will pay $1.50 for each of its first $5 million over the tax threshold, and $1.75 per dollar for the remaining $3 million. In addition, "repeat offenders", subject to additional penalties, are defined as teams that paid tax in four of the five previous seasons. As in the previous CBA, the tax revenue is divided among teams with lower payrolls.^[22] However, under the new scheme, no more than 50% of the total tax revenue can go exclusively to teams that did not go over the cap; the use of the remaining 50% has not been specified in the new agreement.^[6]

[edit] Tax levels from 2013–14

Amount over tax threshold Standard tax Repeat offender tax $5 million or less $1.50 $2.50 $5 million to $10 million $1.75 $2.75 $10 million to $15 million $2.50 $3.50 $15 million to $25 million $3.25 $4.25

[phoostal]

Now that was information overload. Thanks

[NJHAWK]

The Magic can play hardball with Dwight as well. They can tell him play this year and if you want to be there so bad sign there for the mle next year because they have no room to sign you. We dont want an injured soft Lopez and the rest of the junk the Nets are offering.

[Joker]

The Nets are officially out of the Dwight running. Their owners said it tonight on Russian TV. Face the facts guys, Dwight will be a Laker. As soon as Nash was traded there. I knew it was over.

[KB21]

The Nets are officially out of the Dwight running. Their owners said it tonight on Russian TV. Face the facts guys, Dwight will be a Laker. As soon as Nash was traded there. I knew it was over.

I know some of you simply do not want to get your hopes up, but Atlanta has a great chance of getting Dwight. The general feeling that is out there is that Dwight does not want to go to LA and will not sign an extension if traded to LA. New Jersey cannot afford him at this point, and they have nothing the Orlando Magic will want in a trade. Orlando probably values Andrew Bynum above all others as trade options, but again, Dwight will not sign an extension with LA. This is where Josh Smith and Atlanta enter the picture. Dwight and Josh have talked in the past about possibly playing on the same team in the future. At that time, the Atlanta Hawks were not the model for a stable organization in the NBA. The ownership group didn't know what they wanted to do, and there was no true commitment to winning. That has now changed with Danny Ferry in town. The commitment level from ownership on down has changed. The Hawks have the money available and the ammunition to make a major move to bring Dwight back home. What gets glossed over is the fact that Dwight has stated in the past that Phillips Arena should be "his house", but the lack of commitment to winning from the Hawks left coming home not a desirable option. The Hawks have switched gears though. Two years ago, when they foolishly gave Joe Johnson that horrific contract, I was saying on various blogs that Atlanta should let Joe walk and focus on building around Josh Smith. At the time, I said Atlanta should gear themselves up for a run at Dwight Howard in 2013, and that would have been impossible to do with Joe still on the books. Danny Ferry will put the full court press on Dwight Howard, and it will start by giving Josh Smith the appreciation he deserves. I can see the Hawks finally taking measures to promote him as an All Star player and potential All NBA player. That appreciation will spill over, and Josh sees the moves that have been made as moves that needed to be made for this team to become a championship contender. He can convince Dwight that the team has changed course, and the allure of playing at home will ultimately be too much for Dwight to pass on. Here's the thing. Where else is he going to go? As I said, LA isn't trading Bynum without assurance that Howard will sign an extension. New Jersey isn't an option unless they find some amazing loop holes in the CBA. IMO, Atlanta has the best offer to make Orlando for Dwight Howard that gives Orlando a player they can build around in Al Horford, and I also think Atlanta has the best allure for him.

[Admin]

You make excellent points KB... I sure hope you're right! And I do remember you were one of the few who suggested we should let JJ walk.

[KB21]

You make excellent points KB... I sure hope you're right! And I do remember you were one of the few who suggested we should let JJ walk.

I think we can make a case that Chris Paul will want to come as well. Back before the 2005 draft, it was reported that Chris Paul BADLY wanted to be drafted by the Hawks. He's from North Carolina, and I believe he basically considered the Hawks his hometown team. With the new direction of the team and the potential of pairing Chris Paul up with Dwight Howard and Josh Smith, Danny Ferry may be able to strike that interest back up with Paul. Think about it. Paul, Howard, and Smith together, just the three of them, would likely account for somewhere between 40-45 wins combined, give or take a few win shares. That trio would eclipse the LeBron James, Dywane Wade, and Chris Bosh trio when it comes to creating wins. The Hawks would have to be considered among the favorites to knock off the Heat, even if they are only able to resign guys like Anthony Morrow to go along with John Jenkins to round out the rest of the team.

[Admin]

My only concerns with Paul and D12 are health related. Paul seems to get banged up a lot and D12 could have this back thing become a long term nightmare to deal with. Regarding signing them I think there's a great chance and I think if we show Smoove the love he deserves and market him as an all-star it will look great for our organization. I would absolutely expect Morrow back with the team since he's good friends with D12. He and Jenkins should be able to hold down the SG spot quite well with Smoove D12 and CP3 around them. Just gotta find a quality SF to round out the starting lineup.