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Cavs 2018-2019 Team Salary and Trade Assets

buzzdog

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ajz20

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Is this the thread where trade assets are updated? It is really stinks we don’t own our second rounders over the next few drafts, can somone post an update? Last time we were taking we complied extra ones and twos. Mr Altman has a ton of work to do!
 

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Outgoing:
  • 2019 first round draft pick to Atlanta top 10 protected in 2019 & 2020; if not conveyed in 2020, then Cleveland owes 2nd round picks in 2021 & 2022 [Atlanta-Cleveland, 1/7/2017]
  • 2019 second round draft pick to either Orlando, Sacramento, New York or L.A. Clippers [Cleveland-New York-Oklahoma City, 1/5/2015]
  • 2020 second round draft pick to Charlotte [Cleveland-Orlando, 2/18/2016]
  • 2024 second round draft pick swap with Utah if Utah has a worse pick [Cleveland-Sacramento-Utah, 2/8/2018]
So Cavs might not have a second round pick until 2023.

Incoming:
  • 2024 second round draft pick from Miami top 55 protected [Cleveland-Miami, 2/8/2018]
Draft rights:
  • Edin Bavcic - drafted 2006
  • Renaldas Seibutis - drafted 2007 (Active in Europe)
  • Sergiy Gladyr - drafted 2009 (Active in Europe)
  • Milan Macvan - drafted 2011 (Active in Europe)
  • Chukwudiebere Maduabum - drafted 2011
  • Ilkan Karaman - drafted 2012
  • Arturas Gudaitis - drafted 2015 (Active in Europe)
  • Sir'Dominic Pointer - drafted 2015 (Canton Charge)
 

Douglar

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Incoming:
  • 2024 second round draft pick from Miami top 55 protected [Cleveland-Miami, 2/8/2018]
  • 2020 Utah Jazz second round pick [Cleveland-Utah - Korver 11/29/2018]
  • 2021 Washington Wizards second round pick [Cleveland-Utah - Korver 11/29/2018]
 

Douglar

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Notes on John Henson's contract:
  • $250k if an All-Star (unlikely)
  • $500k if DPOY (unlikely)
  • $350k if All-Defense 1st team (unlikely)
  • $250k if All-Defense 2nd team (unlikely)
  • $500k plays at least 75 games (likely bonus for 2019 unlikely for 2020)
  • $250k plays at least 60 games (likely bonus for 2019 unlikely for 2020)
 

Douglar

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12/31/2018 Cavs Sign Patrick McCaw
 

6.19.2016

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Helpful guide posted by one of the Reddit Cavs posters:


Can anyone confirm whether we, in fact, managed to squeeze under the tax line and avoid repeater penalties for this past season? I thought spotrac and overthecap had slightly different calculations.
 

Douglar

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The Cavs total salary was $124,623,505 this year, but that's the salary cap total.

The luxury tax total is a little different. It does not include vet minimum salary paid by the league instead of the team, and a couple other things.

For example, Channing Frye's salary counted as $2,393,887 towards the salary cap but only counted as $1,512,601 toward the luxury tax. I think they also got some savings on Stauskas.

I see the Cavs total taxable salary as $123.6 Mil, and the tax line was $123.7 Mil.

So unless they screwed something up and I screwed something up, I think they made it under the bar.

 

bigfoot5415

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The Cavs total salary was $124,623,505 this year, but that's the salary cap total.

The luxury tax total is a little different. It does not include vet minimum salary paid by the league instead of the team, and a couple other things.

For example, Channing Frye's salary counted as $2,393,887 towards the salary cap but only counted as $1,512,601 toward the luxury tax. I think they also got some savings on Stauskas.

I see the Cavs total taxable salary as $123.6 Mil, and the tax line was $123.7 Mil.

So unless they screwed something up and I screwed something up, I think they made it under the bar.

So if I understand this correctly, a team could bring in 9 stiffs at the minimum & potentially 3 max players without paying into the tax?

Tax teams FYI:
https://www.yardbarker.com/nba/articles/five_teams_finish_2018_19_season_in_tax_territory/s1_14822_28853357
 

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Exceptions:
  • Trade Exception (Sam Dekker, expiring 12/7/19) — $2,760,095
  • Trade Exception (Rodney Hood, expiring 2/4/20) — $266,728
  • Trade Exception (Wade Baldwin, expiring 2/7/20) — $1,544,951
  • Trade Exception (Nik Stauskas, expiring 2/7/20) — $1,512,601
  • Projected Taxpayer Mid-Level Exception — $5,711,000
Free Agents (with Cap Holds)
  • Declined First: Marquese Chriss —$4,078,236
  • Non-Bird: David Nwaba — $1,890,751
  • Channing Frye — $1,618,486
  • Nik Stauskas — $1,618,486
Draft Rights:
  • Second-rounders: Arturas Gudaitis (2015-47th)
  • Sir’Dominic Pointer (2015-53rd)
  • Ilkan Karaman (2012-57th)
  • Milan Macvan (2011-54th)
  • Chukwudiebere Maduabum (2011-56th)
  • Sergey Gladyr (2009-49th) Retired
  • Renaldas Seibutis (2007-50th) Retired
  • Ejike Ugboaja (2006-55th) Retired
  • Edin Bavcic (2006-56th) Retired
Future Draft Coming:
  • 2021 — Receive a protected (lottery protected in 2021, top-10 protected in 2022, conveys in 11-24 range in 2023, top-eight protected in 2024, otherwise converts to 2024 and 2025 second-round) first-rounder from the Milwaukee Bucks (George Hill), two years following Milwaukee’s obligation to the Phoenix Suns.
  • 2022 — Receive a second-round from the Washington Wizards (Sam Dekker).
  • 2022 — Receive a second-round from the Houston Rockets (Alec Burks).
Future Draft Owed:
  • 2020 — Owe first-rounder (top-10 protected, otherwise converts to 2021 and 2022 second-rounders) to Atlanta Hawks (Kyle Korver).
  • 2020 — Owe second-rounder to Charlotte Hornets (Brendan Haywood, Anderson Varejao, Channing Frye, C.J. Wilcox, Miles Bridges).
  • 2024 — Utah Jazz can swap second-round with the Cleveland Cavaliers (George Hill).
 

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Cavs 2019-2020 Salary

Color Key:
Red = Team Option
Orange = Not Fully Guaranteed
Green = Qualifying Offer
Blue = Player Option or Early Termination Option

Shaded = Taxable salary

Contracts:
PlayerAge2019-202020-212021-20222022-23
1Kevin Love3028,942,83031,258,25631,258,25628,942,830
2Tristan Thompson2818,539,130
3J.R. Smith3315,680,000
4Brandon Knight2715,643,750
5Jordan Clarkson2713,437,500
6Larry Nance Jr.2612,700,00011,700,00010,600,0009,600,000
7John Henson299,732,396
8Matthew Dellavedova269,607,500
9Darius Garland196,392,7606,712,2007,031,8808,860,169
10Collin Sexton204,764,9604,991,8806,349,6718,570,467
11Cedi Osman242,907,1433,633,929
12Ante Zizic212,281,8003,872,2155,634,072
13Dylan Windler232,033,1602,134,8002,236,4404,032,301
14Kevin Porter191,934,0402,030,7602,127,4803,840,101
15Open
16Two Way
17Two Way
Current Total:$144,596,969$66,334,040$65,237,799$63,845,869
Guaranteed Total:
Salary Cap:$108,000,000$117,000,000
Luxury Tax Line:$132,000,000$143,000,000


Salary Notes:
  • Smith has a 4.4 Mil guarantee for 19-20. Contract becomes fully guaranteed on 8/1
Depth Chart:
  • PG: Darius Garland / Collin Sexton / Dellavedova
  • SG: Brandon Knight / Jordan Clarkson / Kevin Porter Jr
  • SF: Cedi Osman / Dylan Windler / JR Smith
  • PF: Kevin Love / Larry Nance Jr.
  • C: Tristan Thompson / Ante Zizic / John Henson
Transactions/Edits:
 
Last edited:

bigfigga12

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(Warning....Long)

I have a question regarding JR Smith’s potential deal and rumored trade relative to the Cavs tax situation, and the time frames which are crucial and essential to understand relative to the framework of a deal getting done.

I have somewhat an understanding regarding the NBA and it’s current CBA’s outline of luxury tax which requires any NBA team to pay :

  • For teams between $0 and $4,999,999 over the cap, the tax rate is $1.50 for every dollar over the cap.
    • The incremental maximum for this level is $7.5 million.
  • For teams between $5,000,000 and $9,999,999 over the cap, the tax rate is $1.75 for every dollar over the cap.
    • The incremental maximum for this level is $8.75 million.
  • For teams between $10,000,000 and $14,999,999 over the cap, the tax rate is $2.50 for every dollar over the cap.
    • The incremental maximum for this level is $12.5 million.
  • For teams between $15,000,000 and $19,999,999 over the cap, the tax rate is $3.25 for every dollar over the cap.
    • The incremental maximum for this level is $16.25 million.
  • And for teams $20,000,000 over the cap or above, the tax rate is $3.75 for every dollar over the cap, and increasing $0.50 for each additional $5,000,000 over $20,000,000.
* Repeater tax offenders are charged at even a higher multiple than these.

What I don’t understand is why everything you read regarding the Cavs mulling over the pain threshold of a potential JR Smith trade comes across as so final in its final tax bill/cost due for Dan Gilbert and the Cavs to pay if such a deal does occur.

It’s no secret the cost associated with potentially taking back bad salary in a JR deal due to all the luxury tax penalties associated would come at a high cost, but if I’m not mistaken, that only would occur if the Cavs did nothing else to it’s roster or payroll until the last day of next season.

The Cavs are currently a little over 5 million over the apron, and this doesn’t include the cap holds of the most recent 3 1st round selections once they all sign.

We have read ad nauseam the Cavs must find a deal receiving enough assets and value back in return to stomach paying all these potential penalties associated with bringing back the bad salaries to match JR’s outgoing.

This end number owed would in fact be at least 3x’s the amount of the $ brought back....versus just releasing JR and saving the boat load of $ getting out of the tax apron would bring.

Which brings me to my question... every year the NBA luxury tax bill is assessed and applied on the very last day of the NBA season, usually around April 10-11.

This would mean Dan Gilbert has already received and most likely paid the Cavs 2018 bill a few months ago now already back in April 2019.

Wouldn’t any JR deal, or any scenario for that matter which causes the Cavs to go deeper in the tax only require the Cavs to owe and pay/settle this final tax bill (combining its dollar amount over the tax and penalties applied to that number over the apron ) ONLY if the Cavs roster, and in particular it’s payroll , stay the exact same for the next 9 months or until the last day of next season in April 2020?

I ask this because everything I read regarding this situation comes across as if any JR deal will cost the Cavs the guaranteed salary taken back in trade plus all the penalties once the deal is consummated...like Dan Gilbert will immediately receive the bill and owe it by the end of the month.

Once the deal is done, the Cavs are on the hook of the tax penalties associated....is the way this is presented everywhere you look.

Hypothetically let’s say the Cavs trade JR for like salary (15.8 million) and remain the same 5 million over the apron they are today, and then go over even further after signing their draft picks to let’s say 12 million over the threshold in total once all is said n done.

Won’t they have then until next April 2020 to maneuver their payroll and roster to get under that number, until the next tax bill is assessed??

With this scenario, wouldn’t they have approximately 9 months to trim 12 million off their payroll if it comes to that point today or here soon??

Between potentially moving Kevin Love, and the massive amount of expiring contracts the Cavs have on their roster next season, one would assume it should be fairly easy for the Cavs to maneuver under the apron # by next April 2020 and reduce their payroll by 12 million .

Especially if their motivation is centered on getting under the apron and reset their repeater tax penalty team status.

To me it wouldn’t make sense to make the impending tax penalties a JR deal potentially would bring TODAY if they did nothing to the roster the next 9 months a huge detriment or roadblock in making a deal, at least not as much as it would be have they not have the time they do to maneuver under where they need to be by NEXT APRIL 2020.

What am I missing here?
 
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Douglar

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Won’t they have then until next April 2020 to maneuver their payroll and roster to get under that number, until the next tax bill is assessed??
Cavs have that time to get under the luxury tax, yes, but other teams are not going to take salary from the Cavs just to help them out. If the Cavs make a move that puts them far into the tax, they want assets that are worth more than what it would cost to get them out of the tax. If they get a first round pick for going way into the tax, they don't want to go so far into the tax that they have to give up 2 first round picks to get back under the tax.

And if they get stuck over the tax, is it worth the value of the assets? Cavs were able to stay under the tax last season and spend $5mil for the #30 pick. If the Cavs end up $10 Mill into the tax, it is going to cost them 3.5x that amount. What pick is worth $35Mil ??

Also, trades are also a little tougher when you are over the tax line. Cavs have a number of vets with expiring contracts this year. They should be able to swap them for assets with a longer shelf life (draft picks, young talent) near the trade deadline as teams decide to make a playoff push. There are some scenarios where that's going to be harder to do if the Cavs are over the tax limit.
 

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