Brendan Haywood's Trade Exception

[Paul]

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.

Nice post this does make a compelling case for ignoring Joe Johnson, but doesn't it also illustrate why the Nets would be so eager to get rid of him? Not sure what the Cavs can do but if they do get Johnson, they can at least save the money they would have paid JR by not re-signing him.

 

[cavsfever]

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.

NO, this post is just wrong. You can't just ignore the Haywood contract like you're doing. Given that we're using the Haywood contract the cost of acquiring Johnson is something like $5-6 million in salary ($25 million for JJ - $9 for AV - $10 for Haywood) plus $20-25 million in taxes for a total cost of around $30 million. Multiple previous posts have correctly made that calculation that the Johnson contract will cost us in the neighborhood of $30 million in the first year, not $79 million.

Plus AV's contract lasts for multiple years. We may have to pay tax in those years as well, which will offset Johnson's cost too. Over the long run getting Johnson could even turn out to be a wash financially if we can dump AV's contract on somebody else.

 

[Paul]

NO, this post is just wrong. You can't just ignore the Haywood contract like you're doing. Given that we're using the Haywood contract the cost of acquiring Johnson is something like $5-6 million in salary ($25 million for JJ - $9 for AV - $10 for Haywood) plus $20-25 million in taxes for a total cost of around $30 million. Multiple previous posts have correctly made that calculation that the Johnson contract will cost us in the neighborhood of $30 million in the first year, not $79 million.

Plus AV's contract lasts for multiple years. We may have to pay tax in those years as well, which will offset Johnson's cost too. Over the long run getting Johnson could even turn out to be a wash financially if we can dump AV's contract on somebody else.

I guess my feeling is that if we're so convinced that a rich man like Gilbert who actually has a chance to win a title and break decades long "curse" won't be willing to pay the extra money, then why are we so sure that the Nets, who have no shot at winning a title, would be willing to spend all that money on Joe Johnson if the Cavs give them a way out?

Yes I understand that the Nets don't want Andy but that's what makes it a TRADE. Each side is gaining something and sacrificing something, that's what makes for a viable trade. If it was totally one sided for the Nets there would be no interest from the Cavs to do it, and vice versa.

I'm not saying the Joe Johnson deal is likely or probable or however you might phrase it, but to refer to it as "dead" just because the sides allegedly haven't spoken recently about it seems just as unreasonable to me as stating that the trade will definitely happen. There's still some chance we can get the deal done and there could be some unexpected variation of the deal that none of us sees coming.

 

[Paul]

http://www.cleveland.com/cavs/index.ssf/2015/07/which_players_could_be_availab.html

Chris Fedor offers some scenarios for the Haywood contract.

 

[TitleTown]

http://www.cleveland.com/cavs/index.ssf/2015/07/which_players_could_be_availab.html

Chris Fedor offers some scenarios for the Haywood contract.

Why are you giving that hack free clicks? He should be ignored at all costs.

 

[All4One1ForAll]

At this point I think we're just getting a TPE. Could be useful at the trade deadline, but I'll admit I'll be slightly disappointed if that happens, as I was hoping to make a splash with the Haywood contract during the offseason.

 

[gratefuldead]

http://www.cleveland.com/cavs/index.ssf/2015/07/which_players_could_be_availab.html

Chris Fedor offers some scenarios for the Haywood contract.

i almost clicked the link, then i saw "Chris Fedor".

 

[iWx]

At this point I think we're just getting a TPE. Could be useful at the trade deadline, but I'll admit I'll be slightly disappointed if that happens, as I was hoping to make a splash with the Haywood contract during the offseason.

Yea it would be but then again the TPE could be a blessing in disguise if a injury happens before the deadline. I would rather get the TPE than see a trade centered around Crawford/Young. Adding Mo with Prince/Butler isn't the splash we was hoping for but it would be effective especially with the TPE is in our back pocket.

 

[Lyuokdea]

I'm just spitballing on ideas right now, but thinking about the OKC Situation, They will need to dump about 10M in salary in order to resign Kanter). We are in the best position to help them with that.

http://espn.go.com/nba/tradeMachine?tradeId=pk8u6og

Thunder Gets 10.2M in cap relief, gives up players they were going to give up anyway - Waiters still probably has some value to them, but they are going to have to give up something to get people to take on 10M in salary.

There have been rumors that the Pelicans are willing to part with Evans, since his efficiency dropped when Jrue came back, and he's playing out of position in NO. They get a replacement SG, and a backup PG, and a prospect at SF. They also get a bunch of 1 year contracts in exchange for Evans' two year contract, which gives them an extra 11M in salary cap room going into the Summer of 2016 (and lets them add another max alongside Davis). We could easily through in a second round pick, or the rights to Kaun, etc. Maybe make this a four way deal and trade the rights to Kaun for a protected pick elsewhere that then goes to NO.

 

[InBoobieWeTrust]

Tristan will ink soon.

Haywood chip will be cashed in next.

Haywood' deal will have big impact on bringing back J.R. and Delly.

Delly will have to play for relatively cheap since we have Mo now, however.

 

[Snarly]

Tristan will ink soon.

Haywood chip will be cashed in next.

Haywood' deal will have big impact on bringing back J.R. and Delly.

Delly will have to play for relatively cheap since we have Mo now, however.

Ideal as that is why I want that Haywood chip to fall soon. It has to be effecting Smith the most. Can't wait to see who we land as I think we are in for a surprise.

 

[Paul]

Tristan will ink soon.

Haywood chip will be cashed in next.

Haywood' deal will have big impact on bringing back J.R. and Delly.

Delly will have to play for relatively cheap since we have Mo now, however.

Please don't flame me but we NEED Delly back for his defense! He's very useful to stick on a point guard. People can argue that what he did against Curry was overrated but he did make a significant difference in the playoffs if you look at the big picture. He definitely did good work on Rose, Teague and Curry relative to what Mo Williams would have done!

 

[Snarly]

Please don't flame me but we NEED Delly back for his defense! He's very useful to stick on a point guard. People can argue that what he did against Curry was overrated but he did make a significant difference in the playoffs if you look at the big picture. He definitely did good work on Rose, Teague and Curry relative to what Mo Williams would have done!

Dude do not panic he will be back and will be in a role. This off season man, When I calm this storm. You know we got new blood here. Good luck Young bloods.

 

[Paul]

Dude do not panic he will be back and will be in a role. This off season man, When I calm this storm. You know we got new blood here. Good luck Young bloods.

Ya , hoping we can get Delly back for maybe 3 mil a year.

 

[Snarly]

Ya , hoping we can get Delly back for maybe 3 mil a year.

I am thinking about 2.5 to 3 million. That would be perfect.