Brendan Haywood's Trade Exception

[Chris Parker]

I thought Windy and others have said that the Nets are on board with the deal and it's the Cavs that aren't willing to pull the trigger yet?

What I've heard from reporters other than Windy is that the deal is dead and has been dead for almost a week. The Cavs don't want to trade Wild Thing and the Nets don't want to receive him, but that's the only way the deal works. That's why I've been saying for several days that it was HIGHLY unlikely

 

[ajz20]

I thought Windy and others have said that the Nets are on board with the deal and it's the Cavs that aren't willing to pull the trigger yet?

There have been many reports to conflict that statement. Huge mistake to assume that windy knows all.

 

[Scar4343]

What I've heard from reporters other than Windy is that the deal is dead and has been dead for almost a week. The Cavs don't want to trade Wild Thing and the Nets don't want to receive him, but that's the only way the deal works. That's why I've been saying for several days that it was HIGHLY unlikely

Cool, thanks Chris! I'm not one that was too stoked about the deal to begin with. I'm in the minority I'm sure but I'd rather have JR Smith and Andy than Johnson and no Andy.

 

[Scar4343]

There have been many reports to conflict that statement. Huge mistake to assume that windy knows all.

Never said Windy knows all.... just was asking a question to clarify what had changed from what Windy reported. I'm probably the biggest Windy critic there is.

 

[ACisKING]

Since the cap is $70 million instead of the anticipated $67 million (and the luxury tax is higher too), doesn't that further decrease the value of the Haywood contract? Teams that were just over the cap or facing the luxury tax may not need the cap relief anymore.

 

[ajz20]

Since the cap is $70 million instead of the anticipated $67 million (and the luxury tax is higher too), doesn't that further decrease the value of the Haywood contract? Teams that were just over the cap or facing the luxury tax may not need the cap relief anymore.

Yeah the truth is we have not been able to find a good deal for us. If we had the trade would have been made. Some of us have insisted that the Haywood contract has really been over valued for the fanbase. They tried to trade him in February several times and that is a fact. There is just nort that many teams that have to drop salary right now. Those deals such the Splitter trade and the phx Morris trade have already happened. We may need some luck here because the narrative that we are choosing from all of these seculant offers on the table is laughable .

 

[CalBuckeyeRob]

The real value of Haywood is insurance. If the team gets everyone back plus the addition of Mo Williams there are few minutes to distribute to another guy anyway. But if JR goes, they can use it to find the best JR clone and fill a spot that their cap status would not permit them to fill.

 

[I'mWithDan]

How much extra money does Joe Johnson really cost us? Unless you want to cut Haywood, and pocket that money, it was going to get spent somewhere. Joe Johnson's contract is also expiring after this season, Varejao's isn't. That could potentially save us a few million next year to put toward Mozgov.

It's going to cost us a lot. The cap going up 3 million helps because it pushed the tax line higher.

The ballpark right now is:

LeBron - $24 million
Love - $18 million
Kyrie - $16 million
TT - $15 million
AV - $10 million
Shump - $10 million
Moz - $5 million
Miller - $3 million
Delly - $3 million
Mo - $2.5 million
Harris - $1 million
Christmas - $1 million
Empty Roster - $3 million

Tax line: $85 million
Payroll: $111.5 million
Over: $26.5 million
Tax bill: $70 million
Total: $187.5 million

So if we add Johnson, the math gets CRAZY. We send out Andy ($10 million) and get back Johnson ($25 million). That’s a difference of $15 million in salary and an ADDITIONAL $64 million in luxury taxes. So acquiring Johnson costs us $79 million dollars. You want to write that check?

Every dollar we add beyond the $111.5 number above, we pay $4.25 in luxury taxes. That’s why it is insanely unlikely we make that trade. Just resigning J.R. in to one of those empty roster spots is going to cost us $5 million in salary and about $20 million in taxes.

People on the board are WAY underestimating the cost here. The tax line pushing up $3 million saved Gilbert some $12+ million in tax payments.....which just underscores how crazy the implications of adding money are.

 

[Derek]

It's going to cost us a lot. The cap going up 3 million helps because it pushed the tax line higher.

The ballpark right now is:

LeBron - $24 million
Love - $18 million
Kyrie - $16 million
TT - $15 million
AV - $10 million
Shump - $10 million
Moz - $5 million
Miller - $3 million
Delly - $3 million
Mo - $2.5 million
Harris - $1 million
Christmas - $1 million
Empty Roster - $3 million

Tax line: $85 million
Payroll: $111.5 million
Over: $26.5 million

Tax bill: $70 million

Total: $187.5 million

So if we add Johnson, the math gets CRAZY.

We send out Andy ($10 million) and get back Johnson ($25 million).

That’s a difference of $15 million in salary and an ADDITIONAL $64 million in luxury taxes.

So acquiring Johnson costs us $79 million dollars. You want to write that check?

Every dollar we add beyond the $111.5 number above we pay $4.25 in luxury taxes.

That’s why it is insanely unlikely we make that trade. Just resigning J.R. in to one of those empty roster spots is going to cost us $5 million in salary and about $20 million in taxes.

People on the board are WAY underestimating the cost here.

So your plan is to just waive Haywood and save the money?

 

[I'mWithDan]

So your plan is to just waive Haywood and save the money?

No, I'm pointing out that we're likely targeting guys in the same salary range as J.R. for that roster spot.

Expecting us to acquire a $25 million dollar contract, when we're only sending out $10 million in real dollars, is a completely unrealistic expectation. The tax implications of that are insane.

 

[Derek]

No, I'm pointing out that we're targeting guys in the same salary range as J.R. for that roster spot.

Expecting us to acquire a $25 million dollar contract, when we're only sending our $10 million in real dollars, is a completely unrealistic expectation.

We're sending out more than that though. The Haywood contract is going to get used, which means that we will be spending that money one way or another.

Acquiring Joe Johnson instead of somebody else really only moves our cap number up about $5 million, and with the luxury tax is still a chunk of change, I get that. However, it's only a difference of $79 million if you're planning to cut Haywood and pocket that money.

 

[Kbiz]

So, at this point, if we do not trade Haywood, he turns into a trade exception for us once the season starts, correct?

 

[Huber.]

We're sending out more than that though. The Haywood contract is going to get used, which means that we will be spending that money one way or another.

Acquiring Joe Johnson instead of somebody else really only moves our cap number up about $5 million, and with the luxury tax is still a chunk of change, I get that. However, it's only a difference of $79 million if you're planning to cut Haywood and pocket that money.

Still, paying 46 million to get Joe Johnson on this team makes me want to vomit.

 

[I'mWithDan]

We're sending out more than that though. The Haywood contract is going to get used, which means that we will be spending that money one way or another.

Acquiring Joe Johnson instead of somebody else really only moves our cap number up about $5 million, and with the luxury tax is still a chunk of change, I get that. However, it's only a difference of $79 million if you're planning to cut Haywood and pocket that money.

Haywood is $0.....we don't pay him anything until August 1st. His contract is nothing, so you can't account for it in our total salary or tax payments because there is a 0% chance we hang on to him.

The only way you could try to mitigate the acquisition of Johnson is through the money we would pay J.R. So if we assume J.R. gets $5 million next season ($21 million in taxes) it would still cost us $10 million in salary and $43 million in additional taxes for Johnson, bringing the total cost of his acquisition down to $53 million.

That is still stupid to pay that for him.

 

[Real Deal]

If Gilbert allows the Johnson trade then I feel bad for the Casino players, the jackpot switch will never get flipped.