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Changes, changes, changes - Part I

I say Part I because I assume that more trades will take place before the NBA trade deadline passes tomorrow afternoon…..

But just in the last week, we’ve seen:

- Toronto go from a team that was destined to be well over the cap this summer now become a team that, depending on what they do with Marion and Graham, could have some cap room to play with.

- Miami go from a team that many thought would make a bid for Carlos Boozer this summer to a team that sees Jermaine O’Neal as their primary big man for the next year and a half.

- New Orleans go from a team that was going to be a tax payer in 2009-10 to a team that will be just over the cap.

- Oklahoma City go from a team with a huge amount of cap space this summer to a team with a lot of draft picks and the MLE to help them round out their young team.

 

Thinking about some of the implications league-wide, you have to consider things like:

Does Miami's deal change Boozer's mind about opting out? If so, doesn't that probably make Milsap available? Before, Utah might have been contemplating letting Boozer go and keeping Milsap at a cheaper rate. But now.....

And OKC was set to be one of the biggest potential spenders this summer in the FA market. Does that give KP more ammunition not to make a trade? Since his 'competition' for FA players who would want more-than-MLE money has now become one less team?

 

Very interesting developments to say the least. And there’s more to come, I bet……

5 recs  |  Comment 26 comments

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I think if Darius Miles stayed off the cap

you eat RLEC and use the capspace for trades or signings this offseason. With D-Miles back on, I would say just forget cap space and trade RLEC before the deadline.

Want more aggressiveness? Try less Baylesslessness.

by prezofdeath on Feb 18, 2009 11:26 AM PST reply actions   0 recs

I'm still not convinced

that the league might not give the Blazers that cap space again in appeal. We’ll see…..

by Storyteller on Feb 18, 2009 11:33 AM PST up reply actions   0 recs

I'd like..

to at least see the league let the Blazers trade the contract as an expiring when the time comes.

"Well, Travis just showed us that we can go to Travis Outlaw." - Nate McMillan

by 12sharks on Feb 18, 2009 11:40 AM PST up reply actions   0 recs

Will never happen

You don’t trade contracts, you trade players. Portland waived Miles. You can’t trade a waived player.

But, yes, it would be nice…..

by Storyteller on Feb 18, 2009 11:46 AM PST up reply actions   0 recs

Really??

Considering that Darius has actually played pretty well in stretches, what basis for appeal is left? I don’t think the Blazers can argue that the signing wasn’t legit.

Is the argument just that the Blazers already made plans in reliance on having the cap space, and it would be unfair to change that mid-stream?

Q: Is Greg favoring his knee?
Frye: He favors dunking on your head, that's what he favors.

by KP Corleone on Feb 18, 2009 11:44 AM PST up reply actions   0 recs

Intent of the CBA

The section of the CBA that comes into play was intended to prevent a team from waiving a player, having him declared to have a career-threatening injury, then re-sign him to a lesser deal that counts less against the cap. According to what I’ve read by people who know more than me, although this clause is the only relevant one in the Miles case, it wasn’t intended to cover a case where a different team signed a player who had been declared to have a career-threatening injury.

It might seem like a loophole, but intent is very big in CBA interpretation. There’s a whole section of the CBA that does nothing more than proclaim that teams cannot try to use the words of the CBA to circumvent the intent of the CBA.

by Storyteller on Feb 18, 2009 11:51 AM PST up reply actions   0 recs

Didn't realize that was the issue

I’m actually a labor attorney, so I run into this kind of thing from time to time. Is the CBA language ambiguous at all?

Q: Is Greg favoring his knee?
Frye: He favors dunking on your head, that's what he favors.

by KP Corleone on Feb 18, 2009 12:30 PM PST up reply actions   0 recs

Here's what it says:

http://nbpa.com/cba_articles/article-VII_4.php

(h) Long-Term Injuries. Any player who suffers a career-ending injury or illness, and whose contract is terminated by the Team in accordance with the NBA waiver procedure, will be excluded from his Team’s Team Salary as follows:

    (1) Beginning on the first anniversary of the injury or illness, the Team may apply to the NBA to have the player’s Salary for each remaining Salary Cap Year covered by the Contract excluded from Team Salary.

    (2) The determination of whether a player has suffered a career-ending injury or illness shall be made by a physician selected jointly by the NBA and the Players Association.

    (3) Notwithstanding Section 4(h)(1) and (2) above, the career-ending injury or illness of a player who plays in more than ten (10) games in any Season shall not be deemed to have occurred prior to the last game in which the player played in such Season.

    (4) Notwithstanding Section 4(h)(1) and (2) above, if after a player’s Salary is excluded from Team Salary in accordance with this Section 4(h), the player plays in ten (10) NBA games in any Season, the excluded Salary for the Salary Cap Year covering such Season and each subsequent Salary Cap Year shall thereupon be included in Team Salary (and if the tenth game played is a playoff game, then the excluded Salary shall be included in Salary retroactively as of the start of the Team’s last Regular Season game). After a player’s Salary for one (1) or more Salary Cap Years has been included in Team Salary in accordance with this Section 4(h)(4), the player’s Team shall be permitted at the appropriate time to re-apply to have the player’s Salary (for each Salary Cap Year remaining at the time of the re-application) excluded from Team Salary in accordance with the rules set forth in this Section 4(h).

by Storyteller on Feb 18, 2009 1:23 PM PST up reply actions   0 recs

Hmm. The language isn't ambiguous on its face.

But the bargaining history is pretty clear that both parties only contemplated that the player would play ten games for the same team?

What gave Miles the right to sign with another team? Does the CBA address whether an injured player must/can be released?

If the CBA doesn’t address the issue of a release, it could be argued that there is a latent ambiguity, at least.

Q: Is Greg favoring his knee?
Frye: He favors dunking on your head, that's what he favors.

by KP Corleone on Feb 18, 2009 2:39 PM PST up reply actions   0 recs

Miles was waived and cleared waivers

So any team was free to sign him, per (h) in the above section.

This passage says that the only way for Portland to get cap relief was to release him (ie, have contract terminated).

As for the history of bargaining, I can only go on what others with more knowledge have written. Larry Coon – who wrote the FAQ on the CBA – said months ago that he was led to believe that this section was intended to cover circumvention by a team looking to re-sign its own FA and that the idea of a team signing another team’s FA in this situation was never contemplated.

by Storyteller on Feb 18, 2009 2:57 PM PST up reply actions   0 recs

Also, the league and players approved the doctor,

whose diagnosis the Blazers relied on to make their decision. In other words, the condition was misdiagnosed and the Blazers suffered (capwise) for it.

Koponen - PG of the future. For Italy, that is. Book it.

by Blazerholic on Feb 18, 2009 12:40 PM PST up reply actions   0 recs

League Doctor

This is the part that bothers me the most about all of this. This was a league approved physician that made this diagnosis but yet the only ones taking a hit are the Blazers. I’m not saying they got screwed over or anything but the conspiracy theorist in me thinks the league has it out for the last remaining Pacific Northwest team and was hoping this would all happen.

I also believe in Bigfoot, Loch Ness Monster and the free lunch.

by bigdaddy4838 on Feb 18, 2009 1:41 PM PST up reply actions   0 recs

I could believe in the first three

but I totally put you in the looney bin when you mentioned you believe in the F.L.

Want more aggressiveness? Try less Baylesslessness.

by prezofdeath on Feb 18, 2009 1:49 PM PST up reply actions   0 recs

I agree it's not over just yet

I have a friend who is involved with the Blazers legal team, and the Miles issue is still ongoing…

by levelhed on Feb 18, 2009 12:11 PM PST up reply actions   0 recs

Inteeerrrresting....

Good points all around. The rapidly changing landscape undoubtedly alters the probabilities regarding who will and won’t be available.

I would still be a little surprised if Utah lets Milsap go for less than $8 mil, though, even if Booz doesn’t opt out. He’s worth it, no question. But would that put them in luxury tax hell? If so, how’s the market doing in Utah – can their owner afford it?

I thought OKC was still a player in the FA market. Espn said they were going to have a “huge dallop” of cap space to work with. But you’re the authority on these issues, as I understand it. Are they really capped at the MLE?

As for Toronto, word on the street is they’d like to sign Marion to an extension, which would probably render them a non-player, as well.

So potentially, over the past week or so, we’ve seen OKC and Miami drop out of the free agent picture (MLE notwithstanding, of course), and no new additions presuming Toronto signs Marion.

Not sure how this would impact the analysis with respect to SFs, though. I’m not aware of anybody hitting the market this summer who the Blazers might be interested in, unless Artest gets a labotomy between now and then. Am I missing somebody?

The spot where the Blazers WOULD have the opportunity to step in and improve would seem to be back up power forward. People tend to minimize that spot on the depth chart, but take it from a Cavs fan who recognizes Varajeo’s value – it can be critical. Milsap and Lee would both be great (Milsap being the clear preference in my book), and there may not be much competition for them.

Is that more important than upgrading the three spot? Probably depends what you think of Webster and Batum…

Q: Is Greg favoring his knee?
Frye: He favors dunking on your head, that's what he favors.

by KP Corleone on Feb 18, 2009 11:33 AM PST reply actions   0 recs

I have OKC as having some cap space

but I don’t think it’ll be more than the MLE, so I don’t see them renouncing the MLE to get that cap space.

They’ve got $48.5 in guaranteed salaries (including $760,000 for Chucky Atkins).

Plus cap holds for their own (probably high lottery) 1st round pick, the 1st round pick they get from Denver, the 1st round pick they get from San Antonio, and for last year’s 1st round pick, Ibaka.

With the cap holds, that’ll put them near $53 million in team salary. I don’t expect the cap to go up from $58.7 million and it might even go down. So, based on that projection, I see them with right around MLE-level cap space.

by Storyteller on Feb 18, 2009 11:45 AM PST up reply actions   0 recs

Wouldn't Utah be more screwed right now if Boozer would not opt out?

They could lose Millsap, AK or Okur in the process.

Brandon is one of those quiet assassins. - Chris Paul

by Norsktroll on Feb 18, 2009 12:01 PM PST up reply actions   0 recs

I'm trying to figure out how bad of a contract is just too bad to take back..

It seems like most of the best possible trades out there involve getting the player we would want (like Hinrich or Wallace or Lee) and taking back a bad contract that we wouldn’t want (like Noccioni, Nazr, or Curry) for RLEC and filler…

The difficulty seems to usually hit when trying to guess at the extensions that Portland will offer.. specifically to Roy, LMA, and Oden. On the one hand.. if things don’t turn around then there won’t be any insane FA class of 2009 or 2010 or for awhile because the market will only be able to sustain a couple of max or near max guys..

Of course.. the unknown isn’t just the value of those players contract but the luxury tax mark and salary cap itself…
Still.. is there a simple way to project how much we’d hurt if we still had Nazr on our books going into the 2010 offseason when LMA and Roy’s large extensions are in effect?

"Slum dunk? You just go to the rim, and crush.. crush the ball in the rim."
- Nic Batum

by idoltime on Feb 18, 2009 12:06 PM PST reply actions   0 recs

A question for you guys, doesn't the MLE drop in number if the salary cap and luxury tax drop?

If the Cap and Tax drop by three million does anyone know how low the MLE will be?

I personally believe teams will be reluctant to throw money at players this off season, either becasue they are hoping for better times financially or they just don’t have the money. I am curious if a guy like Anderson Varejao would be available for a long term MLE deal.

I also think a lot of guys that were going to opt out including Boozer will try to wait out next year in hopes the economy starts to rebound and there will be more suitors available for them.

This is what Lucas would do. http://www.youtube.com/watch?v=P0aPkIE2qK0

by 123_G.O._RipCity on Feb 18, 2009 12:52 PM PST reply actions   0 recs

The MLE is the contractual equal to the average NBA salary

For the current season it’s $5.585 million. It does not go down directly in lock step with to the cap and tax. But if the cap and tax drop, in following years the average salary is likely to decline a bit as well, even though the rookie scale (and some other salary agreements) will still go up as agreed. What might be more interesting is that with a dropping cap, our free cap space even if we let get Raef come off the books and renounce the rights to Frye and Ike could be not much more than the MLE. Which in turn makes trades now before the deadline a bit more interesting.

2010 could be even worse for some teams trying to get under the cap (and tax), while in 2011 there could be an economic improvement yet then the negotiations about the new CBA start with results that are pretty unpredictable I would assume.

Brandon is one of those quiet assassins. - Chris Paul

by Norsktroll on Feb 18, 2009 1:01 PM PST up reply actions   1 recs

I totally forgot that it is the equal to the average NBA salary

Thanks Norsktroll

This is what Lucas would do. http://www.youtube.com/watch?v=P0aPkIE2qK0

by 123_G.O._RipCity on Feb 18, 2009 1:13 PM PST up reply actions   0 recs

Different calculations

Salary cap and tax threshold are set by a percentage of expected league wide income (also known as BRI – Basketball Related Income).

The MLE is set at 108% of the previous season’s average player salary.

So, it’s possible that the MLE could go up even if the salary cap goes down.

by Storyteller on Feb 18, 2009 1:27 PM PST up reply actions   0 recs

Any chance

of Miami getting Boozer via sign and trade with Utah, giving up Jermaine?

When I rule the world, everyone will know how to use Excel.

by jscot on Feb 18, 2009 1:29 PM PST reply actions   0 recs

Very slight chance, IMO

O’Neal makes so much more than Boozer, Utah would probably be taking on more salary than they give out (Boozer + filler), meaning they’d be even more above the tax threshold. I don’t see Utah doing that.

by Storyteller on Feb 18, 2009 1:36 PM PST up reply actions   0 recs

Any free agents we would want

I’m firmly in the use RLEC now boat, but I could be swayed if we could improve the team with a deal available this summer that wouldn’t be available now. Right now RLEC has maximum value.

by boppitywop on Feb 18, 2009 6:08 PM PST reply actions   0 recs

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