How costly is it to trade RLEC?
I am no expert on the salary cap or how the luxury tax works, but this is what rolled around in my grey matter today.
If Miles' contract moved Portland into the luxury tax area, then the RLEC is very valuable asset to Paul Allen.
With the insurance kick back from RLEC of around 5 million, the Miles hit is reduced to around 3 million. That is a huge savings.
Then I traded RLEC for a big time player. Here it is Redd for RLEC. (Milwaukee wouldn't do this, it's just an example of the financial impact of a trade.)
The Blazers would have to pay Redd's contract (15 mil.), then would have to match dollar for dreaded dollar.
So if this trade or something similiar happened, the grand total cost is 35 million dollars to Paul Allen.
5 mil. (if RLEC is kept) + 15 mil. contract + 15 mil. tax payment.
If I am in error, please let me know. Again I am no expert -- but if this is true -- Paul Allen has to think long and hard about trading RLEC.
35 million dollars?