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Plans for Cap Space in Summer 2013

Discussion in 'Trades, Free Agency, & the Draft' started by wuck, Feb 22, 2013.

  1. wuck

    wuck Hustling on the inside Staff Member

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    I imagine this has been discussed in one of the 2014 threads, but I have a question about 2013 cap space flexibility.

    Yesterday's non-trades suggested that teams were reluctant to part with assets (picks or the right player) and/or the Cavs were reluctant to pick up long-term contracts (perhaps especially contracts extending into the 2014-2015 season). Since the Cavs didn't take back any contracts at all, the end result, whether intentional or not, is that the Cavs are going to have a lot of cap space in 2013. If Speights takes his player option, then the Cavs will only have commitments to Varejao, Irving, Thompson, Waiters, Gee and Zeller. Their contracts add up to $27M total plus another $5M (or more) spent on the upcoming 2013 draft picks. Douglar calculates our current 2014 commitment at $23M because of Varejao's partly guaranteed contract.

    So....how much flexibility does that give the Cavs in terms of signing 2013 free agents? Do the Cavs have to sign complementary players (like Livingston) for shorter term contracts in 2013 with a 2014 option to retain significant flexibility in 2014? Or can they afford a slightly bigger longterm splash without messing up their 2014 plans? I'm talking $5m/year longterm contract or something in that range.

    I realize that Varejao's health and his trade potential might come back into play here but I'm assuming he won't be traded for now. I'm just wondering if the cap space available in 2013 is enough to do much this off-season without messing up plans for 2014.

    If this question has been discussed a lot somewhere else, just point me to that thread/post.
     
    Last edited: Feb 22, 2013
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  2. *L-Train*

    *L-Train* NBA Starter

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    i think this is a very good breakdown of the numbers:

    http://www.fearthesword.com/2013/1/23/3908142/state-of-the-cavaliers-salary-obligations-and-future-draft-picks


    as for 2013, they don't HAVE to sign anybody there is a minimum payroll (90% of the cap) but if they don't meet that number this rule wil come into effect:

    http://www.cbafaq.com/salarycap.htm#Q15



    is that an ideal scenario? probably not but my guess is they'll either sign somebody to a one year deal or use one of their picks to aquire a solid player who has an expiring contract (not saying it's gonna be him but let's say Indiana decides to get rid of Granger, the Cavs have enough cap space to absorb his contract and could offer picks in return).

    there's also the possibility that a star hits the market and a package of Andy and TT would probably be solid start


    as for signing a player to a long term deal in 2013 (you mentioned 5mio/yr) it's possible but there are a lot of factors that come into play (their draft picks over the next 2 years + will they pick up Gee's and Andy's options in 2 years?). that's why i was all for trading Speights, if you break down the numbers it's a lot closer than i originally thought (in terms of going into 2014/15 with the ability to sign a player to a max. deal) and i really don't want to be in a position in 2 years where you have to decline Andy's option because you gave Speights a long term deal...



    what's also tough to predict is how the salary cap will look like in 2 years. right now it's set at $58.044 million but that number could easily increase to over 60mio in 2 years...

    http://www.cbafaq.com/salarycap.htm#Q13

    as you can see it's pretty complicated to predict that number... :chuckles:
     
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  3. Henry Tuttle

    Henry Tuttle Sixth Man

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    Not sure exactly how the numbers break down, but I'd like to see the Cavs pursue someone like Earl Clark or Martell Webster (both unrestricted) at a reasonable price as long as it doesn't inhibit any future plans.
     
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  4. Jack Brickman

    Jack Brickman Preview Team

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    I think it really depends on who is available and who would be willing to come here. If you can lock down a guy you think will be a solid role-player to a reasonable contract longer term, it wouldn't be terrible to do so as long as we maintain our max cap room going into the summer of 2014. I haven't taken a look at the guys available this summer but I'm sure there are at least a few guys worth taking a look at.
     
  5. beefstew

    beefstew Situational Stopper

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    I think Earl Clark is going to be looking for a payday after some of the games he has had this season.
     
  6. ajz20

    ajz20 Draft Guru

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    I would love to sign two vets to one year deals who can defend and knock down open jumpers. I would be willing to do multiple years for one player is he is the right fit long term (not sure if anyone in his FA class fits that criteria, but as a whole I think we should stick to one year deals!) No way Grant over pays know after he has been patient all this time!
    If the Spurs can't afford to keep a guy like Gary Neal, I would be willing to offer an over paid one year contract. You keep your flexibility for 2014-2015 and you add someone who has been in the Spurs system who can play, that is the type of situation I am looking for.

    Anyone who is willing to do a one year deal, is a "good locker room guy: who can help us get to the playoffs should be considered.

    Sign two vets, draft two solid rookies, Speights picks up his option and you resign Livingston and Elllington, and you get Andy healthy. That should be a playoff worthy roster. I dont think that is asking a ton either!
     
    Last edited: Feb 22, 2013
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  7. pinoycavsfan

    pinoycavsfan Situational Stopper

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    are the cavs interested in al jefferson / milsap?
     
  8. cavsfan1985

    cavsfan1985 ^ kind of a big deal!

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    Can you front load deals? Like give a player 4 years 8 million but have it all in first year?
     
  9. Amherstcavsfan

    Amherstcavsfan Duh

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    I'm pretty sure there has to be a minimum limit every year, but you can front load it by a certain amount, yes.

    I'd like to see the Cavs try and get a 6th man type SF. I'm not sure who that player is, but a good, solid 6th man type who can easily be replaced would be my top target.
     
  10. Zone

    Zone whatever

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    Salaries can't increase/decrease by more than 7.5% (if he's your own FA) or 4.5% (signing someone else's FA) from year to year
     
  11. MirORich

    MirORich All-Star

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    I say we add quality depth and the draft picks for 2013 and then maintain space for one MAX deal in 2014. Not specifically for you know who, but just for the concept of an ELITE FA signing or the ability to trade for one using mostly future draft picks and a young player or two. I also believe there is no one in the 2013 FA market worth anywhere near the max for the Cavs.

    I am totally up for offering up to a 1 year max deal to any FA from a list of Jefferson, Milsapp, Bynum, Josh Smith, Iguadola, if for some reason any of them can not find a suitable long term situation(i.e. long term max deal) with another team and want to re-set their FA for 2014. Their may be some surprising bargain shopping to be had if the majority of teams want to conserve as much space for 2014 as they can(much like teams began maintaining cap space as early as 2008 for the summer of 2010)

    I am also open and intrigued at the concept of offering a large deal to Pekovic for two reasons. One I see him as a massively talented post player who if we signed, could be a great fit but also if Minnesota matches, how much money do they want to tie up in their front court with a Rubio extension waiting in the wings. i.e. If Pek signs a near Max deal from us or another team and Minnesota chooses to match, Uncle Wes(Love) becomes a serious trade possibility for us.

    So much of course depends on who we draft with our pick this year, if we go small with someone like McLemore or Oladipo, we'll need to add a presence at both the SF position and the front court. If we draft a SF like Porter or Shabbaz, we'll want to concentrate on resigning Livingston and adding a quality big or two. if we end up with a Noel, Len, or Zeller. The SF position becomes the most critical.

    Whatever route we take, I think we need to understand that while they won't deviate from their main plan, Gilbert and Grant see 2013-2014 season as a season to begin winning and prime Kyrie and the kids up for legit top 4 seed contention in the East in 2014 and beyond
     
  12. MirORich

    MirORich All-Star

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  13. MirORich

    MirORich All-Star

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    I'd like to see them:

    Let Miles go

    Tender and keep Ellington

    Have a 5 man big rotation. I do not trust Andy's health enough to only have a 4 man big rotation. In my opinion, Andy needs to be on a 20-24 minute per game leash, not to protect against injury, but because I just don't think this team can rely on him to be healthy for a full year and we need to have 4 NBA quality bigs on the roster next year at all times. I see Tristan earning and receiving 36+ mpg next year and then a rotation of Zeller, Andy, and two other guys(Speights, a FA signee, a draftee like Noel/Len) divvying up the other 60 PF/C minutes per game. This also makes it feasible to trade Andy mid point of the season, IF its a deal that makes sense.

    If we don't end up with Porter or Shabbazz in the draft, I'd like us to go hard after a SF who can finish, shoot, and allow Gee to be an energy guy off the bench. Unfortunately, there's not much at that position in FA next year short of Iguadola(who's more of a SG and will want a long term deal anyways) and maybe Al-Farouq Aminu(who's had a pretty decent year in NO and also rebounds/defends well for the position) and is still only 22

    If we're going to make a major veteran talent acquisition in 2013 its more than likely going to have to come via trade. 2014 presents many more options on the FA market and probably on the trade market, as once the major FA stuff shakes down, a lot of teams who missed out will be scrambling to figure out what to do going forward.
     
  14. adam81king

    adam81king Situational Stopper

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    That's not true. I give you Jeremy Lin, Omer Asik and Landry Fields as recent examples.

    I don't know the facts and figures, but I'm pretty sure that the total value of a deal has to AVERAGE those increases, but the payout can be spread out based on salary cap space available by the team making the signing. I think a team can frontload a contract similarly, but opposite, of what the Rockets and Raptors did.
     
  15. TheISHT

    TheISHT Gold Star Member

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    Go balls to the wall for Dwight or if Bynum looks healthy, go after him second.
     
  16. SuperSurge

    SuperSurge Slice & Dice Staff Member

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    Sign a scrub to a one year max contract so that we can trade the expiring for whatever we want.
     
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  17. wuck

    wuck Hustling on the inside Staff Member

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    Lin and Asik are special cases. If the Knicks or Bulls had matched, they would have had to pay the huge balloon payment at the end of the contract. But the Rockets are charged an average of the contract over three years (not the big balloon payment). It's known as a poison pill contract and can only be offered in a small number of cases. Much more info about it can be found in the links below. It can't be used across the board. More discussion on front-loading contracts can be found in the Speights thread (and the basic response, I think by KI4MVP, is that heavy frontloading is prohibited, perhaps in all cases, as part of the new CBA). So, heavy frontloading or heavy backloading is not something that is simple to do, nor is it available to all teams. It may allow low-salary teams to poach players from high-salary teams in some rare cases.

    http://management.fortune.cnn.com/2012/07/17/jeremy-lin-houston-rockets/

    http://offthedribble.blogs.nytimes.com/2012/07/17/questions-abound-with-lin-in-the-balance/
     
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  18. oasis05

    oasis05 In the Rotation

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    Cap space should go to displacing gee at small forward and Zeller/Speights/Varejao at center. Cavs need to get bigger at both positions. Obviously Oden is on the mind, but in my mind Earl clark is a guy who could blow up with some opportunity. He should be available in the off season. Sort of a small forward power forward tweener. I'd rather give him 5 million than speights.
     
  19. adam81king

    adam81king Situational Stopper

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    Not sure if you were trying to correct me, or provide evidence to my statement, but it sounds like the articles stated exactly what I said--that the players are offered salaries averaging a certain number with appropriate raises, but paid out depending on cap space. Obviously teams over the cap can't sign free agents above the exemptions, and I'm assuming the Cavaliers will still be under the cap (by significant amounts) the next two summers, so the fit into your "low-salary teams" scenario.
     
  20. wuck

    wuck Hustling on the inside Staff Member

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    Your post made it sound like it is easy to frontload or backload a contract in the new CBA. Neither is true. There are major constraints.

    The "poison pill" contracts (like Asik and Lin) can only be offered to a subset of players -- roughly five percent of the league. Specifically: "They must be restricted free agents -- players who can receive offers from other teams, but must automatically re-sign with their original team if that team decides to match an outside offer. Of these restricted free agents, only those who are either second-round draft picks or undrafted free agents with under three years of experience can receive a poison pill deal." Not many of those players are good enough to be pursued in this way, and most teams can't afford to offer such a contract. It is true that the Cavs could do so with their current cap space.

    Frontloading a contract is less viable with the new CBA:

    "Teams are allowed to offer the players they sign a bonus worth as much as 15% of the total compensation1 (the total compensation includes the signing bonus itself, but excludes any incentive compensation). A signing bonus is paid up-front, but it is charged to the salary cap across the guaranteed seasons in the contract (not including option years or years following an ETO), in proportion to the percentage of salary in each of those seasons that is guaranteed."

    http://www.cbafaq.com/salarycap.htm#Q73

    ---
    Teams also can't significantly front load a contract--as a non bird free agent, the maximum it could decrease from year to year is 4.5%.

    http://www.cbafaq.com/salarycap.htm#Q53


    A backloaded poison pill contract is possible for a very small group of players. I don't know of conditions in which a contract under the new CBA can be significantly frontloaded (in a way that helps low-salary teams take advantage of free space now and save space for later). Maybe there are some, but Coon's CBAFAQ is a tough read.
     
    Last edited: Feb 24, 2013
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