The guarantee was changed from 3.9 M to 4.4 M. So he pockets an extra 500k.
-
Changing RCF's index page, please click on "Forums" to access the forums.
JR Smith
- Thread starter Omar The Horse
- Start date
The guarantee was changed from 3.9 M to 4.4 M. So he pockets an extra 500k.
sailfish
The 52 year drought is over!
- Joined
- Aug 23, 2006
- Messages
- 6,939
- Reaction score
- 5,957
- Points
- 113
Ok. That makes JR’s deal slightly less attractive, but it makes sense for why he would agree to it.
Mr. MacPhisto
Lapsed Point Guard
- Joined
- Jun 29, 2008
- Messages
- 2,038
- Reaction score
- 2,050
- Points
- 113
Doesn't really change it much, depending on how a team would treat cutting him.
To save the most money, the receiving team would likely stretch what was owed over the max allowable timeframe - 3 years.
So a $1.3M annual cap hit versus $1.47M per year. The Cavs can still take back up to $18.5M by trading Smith, so a team can save $17M this upcoming season on the cap. For tax purposes, that's A LOT of money.
bigfoot5415
Hall-of-Famer
- Joined
- Jul 13, 2005
- Messages
- 15,642
- Reaction score
- 16,997
- Points
- 123
I honestly cant say I ever thought about stretching JR, but that even sounds like a better idea for a team looking to clear alot of space.
sailfish
The 52 year drought is over!
- Joined
- Aug 23, 2006
- Messages
- 6,939
- Reaction score
- 5,957
- Points
- 113
View: https://mobile.twitter.com/TheSteinLine/status/1145486547665530880?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet
With Minnesota looking to clear cap room for Russell and the Cavs having JR Smith’s contract, this situation is one that bears watching.
Edited- nevermind. Incredibly, the Warriors are trading for Russell.
With Minnesota looking to clear cap room for Russell and the Cavs having JR Smith’s contract, this situation is one that bears watching.
Edited- nevermind. Incredibly, the Warriors are trading for Russell.
Last edited:
Wulfgar1224
Sixth Man
- Joined
- May 16, 2008
- Messages
- 2,211
- Reaction score
- 1,191
- Points
- 113
I guess what I wonder about this JR business a the following: are the cavs in the repeater tax? If they are, are they really going to get an offer for JR that justifies paying a punitive tax. Wouldn’t it be more sensible to cut him and limit their liabilities?
Mr. MacPhisto
Lapsed Point Guard
- Joined
- Jun 29, 2008
- Messages
- 2,038
- Reaction score
- 2,050
- Points
- 113
They will be in the repeater tax, though the tax will be fairly low. The Warriors may pay about $150M in luxury tax next season. If the Cavs go $10M over the tax they will pay a little over $25M in taxes.
So a trade has to be worthwhile to them.
sailfish
The 52 year drought is over!
- Joined
- Aug 23, 2006
- Messages
- 6,939
- Reaction score
- 5,957
- Points
- 113
They may very well end up cutting him. They determined that paying him an additional $500k was worth it to extend the deadline. He’s most valuable in multi-player deals.
With regards to the repeater tax, I believe teams just have to drop below the luxury tax, even if it’s just briefly, in order to reset it.
inliner311
Hall-of-Famer
- Joined
- Feb 17, 2009
- Messages
- 12,760
- Reaction score
- 13,487
- Points
- 123
The Iggy to Memphis trade is what we should have been trying to do. The guaranteed money on JRs contract most likely would have caused problems with hitting the hard cap apron for the warriors. Iggy would have been a player that we could have waited a few weeks and just offered for free or for a small asset to whoever was left over with cap space. Iggy on a one year deal is more appealing than 90% of the player left currently on the market.
rastamon87
Sixth Man
- Joined
- Jun 10, 2009
- Messages
- 1,357
- Reaction score
- 1,509
- Points
- 113
I understand that the Cavs still has a month to find a JR deal... But with all the crazy transactions that already happended in less than 24 hours, it feels like they are gonna strike out and there would be no deal left that would be worthed to pay for the significant tax penalties... Lucky JR squeezed half a million for doing nothing and wait for another month before being waived...
2 Weeks actually. July 15th is the new date with a mutual option to push it back to August 1st. We should just cut him now if there are no deals to be made.
Just have to wait for FA to play out. Once the chips have landed, you will have teams looking to make trades, and money will become instrumental.
Hou, Por, GS, among others, are in need of cap space. I believe JR gets dealt in about a week.
Hou, Por, GS, among others, are in need of cap space. I believe JR gets dealt in about a week.
Mr. MacPhisto
Lapsed Point Guard
- Joined
- Jun 29, 2008
- Messages
- 2,038
- Reaction score
- 2,050
- Points
- 113
Extending the deadline at a cost of $500K is not a bad deal.
The luxury tax is at $132,627,000.
If we cut JR then we are at $123,734,282 with his guarantee.
Assuming we sign Garland, Windler, and Porter to their max rookie slots then it is $6,400,920 for Garland, $2,035,800 for Windler, and $1,936,440 for Porter.
That's $134,107,442 with no further moves, so we're in the tax if we just sign our rookies.
Now we have all season to move OUT of the tax. If you trade Clarkson for assets that total less than his salary, etc then you trim money off that.
We have five ending deals. I don't see them all getting flipped for future salary. I think maybe two will be. We could move other guys and swap out for fits on playoff teams. Let's say Denver would like to flip Plumlee for Tristan for a playoff run (they'd need to include one of their younger, low dollar assets in the deal to make it work) and they want to ship off a future draft pick or even a pick in the upcoming draft (which should fall in the 20s). In this case you could get a young asset that could grow like a Vanderbilt plus a late first while still maintaining cap flexibility AND saving money to get out of the tax.
If Orlando is in the mix, I could also see them moving Mozgov's deal for something that could help them in the short term for a run.
So if a great deal is there that makes it worth paying then you do it. I'd also love to try to get our picks back from NO in some way and could see Griff liking guys on our roster, especially since they could help grow a guy like Zion. So Tristan could be an option in a trade there for instance.
I don't expect Smith to be traded at this point, but I think Koby wanted to keep his options open.
I could also see a team with leftover cap space being intrigued by Clarkson's bench scoring ability. It's a question of if they'd part with good assets.
The luxury tax is at $132,627,000.
If we cut JR then we are at $123,734,282 with his guarantee.
Assuming we sign Garland, Windler, and Porter to their max rookie slots then it is $6,400,920 for Garland, $2,035,800 for Windler, and $1,936,440 for Porter.
That's $134,107,442 with no further moves, so we're in the tax if we just sign our rookies.
Now we have all season to move OUT of the tax. If you trade Clarkson for assets that total less than his salary, etc then you trim money off that.
We have five ending deals. I don't see them all getting flipped for future salary. I think maybe two will be. We could move other guys and swap out for fits on playoff teams. Let's say Denver would like to flip Plumlee for Tristan for a playoff run (they'd need to include one of their younger, low dollar assets in the deal to make it work) and they want to ship off a future draft pick or even a pick in the upcoming draft (which should fall in the 20s). In this case you could get a young asset that could grow like a Vanderbilt plus a late first while still maintaining cap flexibility AND saving money to get out of the tax.
If Orlando is in the mix, I could also see them moving Mozgov's deal for something that could help them in the short term for a run.
So if a great deal is there that makes it worth paying then you do it. I'd also love to try to get our picks back from NO in some way and could see Griff liking guys on our roster, especially since they could help grow a guy like Zion. So Tristan could be an option in a trade there for instance.
I don't expect Smith to be traded at this point, but I think Koby wanted to keep his options open.
I could also see a team with leftover cap space being intrigued by Clarkson's bench scoring ability. It's a question of if they'd part with good assets.