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Brendan Haywood's Trade Exception

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2015/16 Committed Salary assuming LeBron, Love and Smith take their player options and Miller does not or retires: about $55.3 million

Qualifying Offers for TT, Shump and Delly: about $11.6M

Team Option on Mozgov: $4.95M

That puts us at about $72 million for the following 10 guys: Irving, Smith, LeBron, Love, Mozgov, AV, TT, Shump, Delly, Harris

With these 5 guys departing: Miller, Jones, Marion, Perk, Haywood

Only $72 million for those ten players? Better recheck your own envelope math. LeBron/Love/Irving alone cost a little over $53 million. I think the problem is HoopsHype doesn't show Kyrie's extension kicking in, which means you've been leaving out a huge figure in your projections.

LeBron: $21,573,398
Love: $16,744,219
Kyrie: $14,746,000

There's $53,063,617 already. Assuming JR opts in (unlikely), Miller opts out (unlikely, who else is giving him close to $3 million?), and Mozgov's team option is picked up (no brainer).

Andy: $9,638,554
Harris: $845,059
JR: $6,399,750
Mozgov: $4,950,000

Gets us to $74,896,980 on seven players alone, past your given salary of $72 million without even getting to our three restricted free agents (TT, Shump, Delly).

I tend to think that we'll probably try to get TT and Shump to take their qualifying offers for next year. This allows them to get bigger deals under the new TV money in 2016/17. Of course, they could trade out the bigger money then for guaranteed money now. I think the only way they sign long-term is if they NEED to and if that's the case we have some leverage there.

I think it's wildly unrealistic to expect Tristan and Shump to both sign qualifying offers for two primary reasons. I doubt we'd risk losing both of them for nothing next summer, and they're both going to be preferably looking to sign long-term contracts. Most players are always going to want the security of a multi-year deal, other than Greg Monroe it's recently been a route rarely chosen by guys with big offers already on the table.

We also just saw an injury prone 30-year-old center get a $10+ million a year contract from this front office earlier this season, courtesy of the team's win-now mode. I'm of the opinion both TT and Shump get similar $10-12 million a year extensions this summer, but factoring in their qualifying offers brings us to:

TT: $7,150,606
Shump: $3,898,691
Delly: $1,020,603 (125% previous salary)

$86,966,880 for the ten players alone- not adding Kyrie makes quite the difference.
 
When we did the framework of the Haywood deal, the following things had not been accomplished/done:

-Kyrie extension signed
-LeBron signing
-Love added
-Andy extended
-Moz, JR, Shump added

So given the salary scenarios that the post above have spelled out, it is hard to imagine us using the Haywood contract to add a player making a similar salary to his 10 million contract for next year.

Could we use it to add a pick and/or a player making in the 2-5 million range in a two team trade? Sure. Or just a pick via a 3 team trade? Hopefully

Of course if we lose in the final or win the finals, who knows what Gilbert might do in order to take that final step or ensure the championship continuity....
 
Yeah, this is really all contingent on how much money Dan Gilbert is willing to set on fire to win a title, or multiple titles if we win this year.

I do think it would be incredibly wise to lock in Shumpert and Thompson on deals now, though. Even if they look a little unappealing next year, they will be fair values when the cap skyrockets in a year. Plus, players on decent long-term deals can be trade chips in the future if we need a shake up.
 
All right, here are the numbers I am working with...Some of these numbers are likely understatements. LeBron, for instance, will likely sign another one year contract with a player option for a second year, and if he does his salary will be higher. Love may opt out and sign a new contract. Shumpert and Thompson are probably also too low.

LeBron James $21,573,398
Kevin Love $16,744,218
Kyrie Irving $15,856,500
Tristan Thompson $11,000,000 (notional; probably too low)
Anderson Varejao $9,638,554
Iman Shumpert $6,500,00 (notional; probably too low)
J.R. Smith $6,399,750 (player option)
Timofey Mozgov $4,950,000
Mike Miller $2,854,940 (reported today by NEOMG that he plans to opt in)
Matthew Dellavedova $1,147,276 (amount of his qualifying offer)
Joe Harris $845,059 (I believe this is fully guaranteed; Douglar's table says it's not)

Plus:

First Round Pick (estimated #24): $1,068,400
Taxpayers MLE: $3,376,000

That's $102,000,000 for 13 players. As I said, that figure probably understates the actual salaries for these player by probably $5M (at least). So let's say $107,000,000. And that's for just 13 roster spots. At a minimum the Cavs will sign a 14th player, and inevitably several additional players will cycle through the end of the roster, even if the Cavs are fortunate and have a much more stable roster next year.

That's why I think it's not reasonable to expect all these guys back AND also for the Cavs to use the Haywood contract, unless they can pull off a complicated multi-team trade where a 3rd or 4th team with capspace to absorb the salary the team taking on Haywood would be sending out, and the Cavs taking back something with little or no impact on their cap figure (presumably a pick or two). They would also earn a sizable TPE going this route.
 
All right, here are the numbers I am working with...Some of these numbers are likely understatements. LeBron, for instance, will likely sign another one year contract with a player option for a second year, and if he does his salary will be higher. Love may opt out and sign a new contract. Shumpert and Thompson are probably also too low.

LeBron James $21,573,398
Kevin Love $16,744,218
Kyrie Irving $15,856,500
Tristan Thompson $11,000,000 (notional; probably too low)
Anderson Varejao $9,638,554
Iman Shumpert $6,500,00 (notional; probably too low)
J.R. Smith $6,399,750 (player option)
Timofey Mozgov $4,950,000
Mike Miller $2,854,940 (reported today by NEOMG that he plans to opt in)
Matthew Dellavedova $1,147,276 (amount of his qualifying offer)
Joe Harris $845,059 (I believe this is fully guaranteed; Douglar's table says it's not)

Plus:

First Round Pick (estimated #24): $1,068,400
Taxpayers MLE: $3,376,000

That's $102,000,000 for 13 players. As I said, that figure probably understates the actual salaries for these player by probably $5M (at least). So let's say $107,000,000. And that's for just 13 roster spots. At a minimum the Cavs will sign a 14th player, and inevitably several additional players will cycle through the end of the roster, even if the Cavs are fortunate and have a much more stable roster next year.

That's why I think it's not reasonable to expect all these guys back AND also for the Cavs to use the Haywood contract, unless they can pull off a complicated multi-team trade where a 3rd or 4th team with capspace to absorb the salary the team taking on Haywood would be sending out, and the Cavs taking back something with little or no impact on their cap figure (presumably a pick or two). They would also earn a sizable TPE going this route.


So it looks like next year we will be well over the cap and hope that the salary cap just skyrockets the following year so we aren't penalized for being a repeat offender??
 
Only $72 million for those ten players? Better recheck your own envelope math. LeBron/Love/Irving alone cost a little over $53 million. I think the problem is HoopsHype doesn't show Kyrie's extension kicking in, which means you've been leaving out a huge figure in your projections.

LeBron: $21,573,398
Love: $16,744,219
Kyrie: $14,746,000

There's $53,063,617 already. Assuming JR opts in (unlikely), Miller opts out (unlikely, who else is giving him close to $3 million?), and Mozgov's team option is picked up (no brainer).

Andy: $9,638,554
Harris: $845,059
JR: $6,399,750
Mozgov: $4,950,000

Gets us to $74,896,980 on seven players alone, past your given salary of $72 million without even getting to our three restricted free agents (TT, Shump, Delly).



I think it's wildly unrealistic to expect Tristan and Shump to both sign qualifying offers for two primary reasons. I doubt we'd risk losing both of them for nothing next summer, and they're both going to be preferably looking to sign long-term contracts. Most players are always going to want the security of a multi-year deal, other than Greg Monroe it's recently been a route rarely chosen by guys with big offers already on the table.

We also just saw an injury prone 30-year-old center get a $10+ million a year contract from this front office earlier this season, courtesy of the team's win-now mode. I'm of the opinion both TT and Shump get similar $10-12 million a year extensions this summer, but factoring in their qualifying offers brings us to:

TT: $7,150,606
Shump: $3,898,691
Delly: $1,020,603 (125% previous salary)

$86,966,880 for the ten players alone- not adding Kyrie makes quite the difference.

Good catch on the Kyrie number for next year.... HoopsHype sucks.

I was using Spotrac for the longest but they seem to have screwed their site up. It's slow as hell and wasn't showing totals correctly or at all for a while on cap figures. I'd also prefer they only include obligated salary in their numbers and not things like team options or, at least offer two different totals. They at least have Kyrie's salary correct for next year though, which is more than I can say for Hoopshype.

I disagree on the Tristan and Shump situations though. I agree that "most players are always going to want the security of a multi-year deal" but this season may be the exception due to the new TV deal. I think most players that are young will try to go for less years in the hopes of attracting a new deal in the new TV deal market.

I don't think Shump will get anywhere near $10-12 million a year. That's Kyle Lowry(4/48) or Eric Bledsoe(5/70) money for a guy that's nowhere near that level of player. Even Trevor Ariza only got 4/32 this past year. Lance Stephenson got 2/18. Keep in mind that few teams have cap room and those that do are typically looking for the "franchise player" kind of guys to use it on. Eating up a big chunk of your cap on a defensive role player that's averaged about 26 minutes and 8 ppg isn't what you're looking for. Contenders that already have star players want guys like Shump and contenders generally are working with exceptions.

Iman has to convince someone to offer him that money and wait to see if the Cavs match or the Cavs would have to just overpay over the kindness of their hearts. I see him getting something like what guys like Jodie Meeks(3/18), Mario Chalmers(2/8), CJ Miles(4/18) and Tony Allen(4/20) got with their deals. Probably somewhere in the 4-6 million a year range sounds right if you look at similar contracts. There's very few guys, even young guys that are getting into the $10 million+ territory without being proven core players(starter, 1st/2nd option, etc.). Here's the guys currently making 9-12 million at the wing position: Gerald Wallace, Gallinari, Batum, Iguodala, Derozan, Stephenson and Deng. Everyone above those guys is an All-Star. Both of those guys are far superior players and were unrestricted free agents that have better negotiating position than an RFA. The 4-6 million range for SGs(excluding rookie deals) is: Vince Carter(3/12), Jared Dudley(5/21), Miles(4/18), Ben Gordon(2/9), Allen(4/20), Jason Terry(3/15), Lou Williams(3/15), Nick Young(4/21), Jamal Crawford(4/21), Courtney Lee(4/21), PJ Tucker(3/16) and JR Smith(3/18). I think he's much closer to this group. Nearly all the guys above 6 million are clearly superior players.

For Thompson, that's probably on the high end for him but possible and we sort of set the precedent with Andy which is essentially 2/20(he'll never see that third year NEVER). Being a younger guy he's somewhat appealing to the building teams but not as appealing as someone like a Greg Monroe, for example that can be a primary scorer. What Thompson does well, is primarily high-level role player stuff that contenders would appreciate more. An important thing to keep in mind is that the PF market is pretty saturated this year with unrestricted guys(all things being equal, teams will go for them first) like Aldridge, Millsap, Monroe, Tyson Chandler, Asik, Amir Johnson, Ed Davis, Amare Stoudemire, DeAndre Jordan and possibly guys that could become UFAs like Brook Lopez, Jeff Green, David West and Thad Young. It's tough to find a lot of comparable guys that have signed recent contract but if you look at PF/C deals out there these are the guys making between 10-12 million average:

Randolph(2/20)
Bargnani(5/50)
Duncan(3/30)
Favors(4/47)
Varejao(2/20)
Deandre Jordan(4/43)
Javale McGee(4/44)
Kevin Garnett(3/36)
Andrew Bogut(3/36)
Vucevic(4/48)
Horford(5/60)
Pekovic(5/60)
Noah(5/60)
Gortat(5/60)

Nearly all of those guys are better players, a true center or both(Bargnani excluded). All the guys above that tier are All-Stars or borderline All-Stars. I'd say he's probably closer to the 8-10 million tier:

Asik(3/25)
Jordan Hill(1/9)
Millsap(2/19)
Jeff Green(4/35)
Ryan Anderson(4/34)
Dirk(3/25)
Gibson(4/33)
Channing Frye(4/32)
Markieff Morris(4/32)

and more likely somewhere between that andlike what Spencer Hawes and Josh McRoberts got at 4/22 or Jason Thompson and Amir Johnson got at 5/30. I'd say for Thompson market value would be somewhere between 5-8 per for 4 years so 20-32 mil. It's possible he could eek $10 million out of us but he's not in a good position to do so THIS year. We can always offer him market value and give him the option of taking the qualifying offer to get a bigger deal next year. If he wants guaranteed money, he takes the market deal. If he wants every last penny, he takes his $6.7 mil next year and then tries again as a UFA. There's very little he can do to build a market for himself THIS year. Teams will focus on higher priority players and UFAs first. Few teams will want to tie up their cap space waiting on him when the market is saturated with better or comparable UFAs at his position. Few teams will want to pay him as a true center(cuz he's not one). He can threaten to walk next year but the Cavs will still be able to pay him more than anyone and will be in a better position next year.

Shump actually would be more likely to draw an offer since there's less wings on the market and his price will be cheaper. However, nobody is going to pay him Kyle Lowry or Eric Bledsoe money. Eric Bledsoe couldn't even get someone to offer him that in an offer sheet. If he really wants paid this year, he could probably fetch something like 3/18 or 4/20 on the high end.

I think both guys would be better off taking the QO and playing out the deal. I understand that, like you said, guys have rarely done that in the past but this offseason isn't going to be like past offseasons. A lot of guys of all types of situations are going to be trying to get as much as they can in the short-term without locking themselves in to a deal that will be below market in a year or two. For Thompson and Shump, that's probably going to be their QO.
 
Yeah, this is really all contingent on how much money Dan Gilbert is willing to set on fire to win a title, or multiple titles if we win this year.

If Cleveland wins it all this season, then Dan Gilbert will spend it. I predict he'll also be one of the few owners to work with the NBAPA to get that 40%+ cap increase in 2016.
 
I think both guys would be better off taking the QO and playing out the deal. I understand that, like you said, guys have rarely done that in the past but this offseason isn't going to be like past offseasons. A lot of guys of all types of situations are going to be trying to get as much as they can in the short-term without locking themselves in to a deal that will be below market in a year or two. For Thompson and Shump, that's probably going to be their QO.

I just don't think the early 20-somethings looking for their first real payday are the ones looking to maximize their short-term earnings; these guys are signing extensions of their paltry rookie contracts. It's vets already coming off max rookie extensions like Love and Aldridge that are more likely to fall into the group of players waiting for the windfall of cash in the summer of 2016 over taking the money now.

Shump's also only made a little over $7.5 million so far in his career - I personally don't see him, coming off a major knee injury, turning down big money this summer. You're right that $10-12 million is too high, $8-10 million is more realistic (although we'd agree still pricey). Both sides could benefit from that; Shump gets some financial security over the next few years while the Cavs get a contract that progressively looks better as the cap rises.

Tristan's the trickier scenario; we've all spent years debating what his extension is going to look like. Years. If one of Shump/TT take the qualifying offer it's probably going to be TT - he'll sit untouched in restricted free agency all summer if he's really holding out for a max contract.

That'd help keep the space necessary to use Haywood's contract to acquire another piece, but if we want to retain our current team it's doubtful we'll have the space to absorb salary this summer. Gotta agree with @kovanovich on this one, at this point it's more likely Haywood's contract is just insurance against Love walking.
 
So it looks like next year we will be well over the cap and hope that the salary cap just skyrockets the following year so we aren't penalized for being a repeat offender??

Yes, incremental tax rates and then repeater rates start to come into play. Coon describes the process in his FAQ #21.

The upshot is the penalty is extremely onerous for teams well into the tax, and it's even more so for teams that are subject to the repeaters tax (defined as being a taxpayer in 3 of previous 4 seasons). Cavs thus won't be subject to the repeaters tax till 2016-17.

I had speculated earlier in the season that the Cavs may have been trying to stay out of the tax this season, mainly to avoid the repeater tax down the line (in 2016-17). By my calculations, there was no reasonable way they were going to avoid the tax in 2015-16, though with the rising cap/tax threshold, it was conceivable they could avoid it in 2016-17. Some have estimated a salary cap over $80M in 2016-17, with a tax threshold close to $100M. It's still possible they could avoid the tax that year, but especially with the Varejao contract, I think it's extremely unlikely. But I think it is reasonable to assume they will want to be as close to the tax line as possible.
 
Yeah, this is really all contingent on how much money Dan Gilbert is willing to set on fire to win a title, or multiple titles if we win this year....

Gilbert understands Return On Investment. If the Cavs even get close to a finals championship this year, he goes from having a $300-400M team last year to $1 billion team with LBJ and company, and then a $1.3 billion team after the end of this year as a real contender.

All by paying a $75M salary this year...

Looking to next year, assuming we did not win a championship, and we win 2+ championships in the next 5 years, which is realistic in my view with this team, the Cavs franchise is now worth $2.5+ billion with the recent TV deal, if not more.

I think you get my drift on ROI. From $300M to $2.5 billion +++ and the legacy of taking a "small town" team to winning multiple championships.

$50M in luxury tax is chump change for that ROI.
 
What if Haywood retires at the end of the season? Does that screw us out of being able to use his contract in a trade? Seems like a legit possibility he retires IMO.
 
What if Haywood retires at the end of the season? Does that screw us out of being able to use his contract in a trade

I believe that's correct, but I don't think it would be considered to be good form in terms of Haywood's agent's relationship with teams, and some other parties might balk. If the Cavs don't alienate him, then there would be no harm for Haywood to retire after he's waived next July. The longer he waits, the longer he might accrue certain types of benefits (health insurance or whatever). He could also want to continue playing -- if he wants to retire, the Cavs could make him sit out a season before returning to the NBA.
 
Interesting thought..not an expectation but a hypothetical...

Let's say,for the sake of argument, we retain the entire roster as-s, after a deep finals/title run. JR,Shump,Tristan all come back and Varejao returns healthy...

Certainly I wouldn't expect Gilbert to want to spend more money, but maybe he would be willing to be ultra-aggressive, and take on some dead salary for one season(cap expands following year) in order to maybe obtain some kind of future asset. Draft pick(s) or a project young player with big upside in exchange for taking on money using Haywood's contract...


Longshot, but that would be an exciting and good (but expensive)way to make up for a lot of the war chest that we've spent this year and to help rebuild that stash. I could see him doing it given the right opportunity.
 
I can see someone like Igoudala being available as a replacement for Shawn Marion and a back up for LeBron next summer.

I think he's overpaid but his contract has 2 years left after this year and GS wants to keep Draymond.

They'll probably dump Lee and Igoudala.
 
But why does our 4th big have to be in his prime?
So I guess we should have been okay with Haywood, too, event though he's not in his prime…it's not a matter of being in one's prime or not in my opinion. It's a matter of "can he play or can't he." In this case, I don't think Perkins brings anything to the table that Haywood didn't bring - which is frankly nothing in both cases, and neither of them should see any playing time unless it's an absolute blowout with 2 minutes left in the game.
 

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