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Resigning Capella will Cost rockets 125mil

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by Air Langhi, Jun 22, 2018.

  1. ThatBoyNick

    ThatBoyNick Member

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    Dump Anderson with 2 first if we have to, trade or have Nene retire, sign Ariza to 10 mill, sign Capela to 20 mill, Paul to 30 mill.

    Boom little to no tax!
     
  2. 1Deep

    1Deep Member

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    "Several" teams offering the max is unlikely but there will probably be at least 1.

    Phoenix..maybe Dallas if they strike out on Cousins.

    Morey has some tough decisions to make.
     
  3. luckyman76

    luckyman76 Member

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    This Reddit post is BS and overinflates these salaries and situations. Gordon and Anderson will likely be transformed into something else. Ariza will play for his current salary or not at all. Capela is NOT getting the max. Having said that we will be paying tax. This is the 1st year the Rockets will be in the tax and Cavs and Warriors are in the Repeater tax. I will repeat this but Tilman did not buy the Rockets without the ability to cashflow the business or he never would have been approved by the owners. I believe he was already a partial owner. Les was already in his 70s and divorced and sold at a perfect time. He was not willing or able to make the commitment going forward. I know how these deals go and all of this talk is ridiculous and impossible. Morey laid out, AT LEAST, the next 5 years likely payroll to him and probably up to the next CBA and likely implications along with projected revenues. Tilman bought this franchise only because of his likely ability to increase the valuation from his purchase price up to the $4B range. Most owners don't have $10B in cash freely laying around in a bank account and everyone leverages capital. Tilman will want Morey to get the best deals he can but will not compromise his future by being cheap and gutting the team to avoid the tax. Tilman will not pay tax for worthless Ryno but for LBJ, CP3, hell yeah. Ryno will not be on our books.
     
    Richie_Rich and HoustonCRT like this.
  4. TEXNIFICENT

    TEXNIFICENT Member

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    Phoenix has Ayton and other young bigs, I can't see them offering a max deal. Dallas? They are so far from winning a max deal for Capela would be silly. I dunno where all of the these teams are going to fall over themselves to pay Clint the max are going to come from, but we'll see.
     
  5. HoustonCRT

    HoustonCRT Member

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    I don't think Dallas has their pick next year so they'll be looking to be competitive.. Wouldn't be surprised if Cuban thinks Doncic will make Capela an all star.
     
  6. justtxyank

    justtxyank Contributing Member

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    I think cousins will be the first choice in Dallas but we’ll see.

    When parsons was entering RFA everyone thought he would work with us and wait on signing a deal to help us and then boom! Turned out he was a mega douche
     
  7. TEXNIFICENT

    TEXNIFICENT Member

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    He better make himself one first. Capela as anything other than a role player is a stretch. Reminds me when the Rockets signed Trevor Ariza the first time to be a primary scorer. It was a total failure.
     
  8. Rox11

    Rox11 Member

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    At this point just sign DJ....
     
  9. Rox11

    Rox11 Member

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    It’s more a move to tare apart houston...
     
  10. Os Trigonum

    Os Trigonum Contributing Member
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    OP still hasn't edited his thread title, that's booshit. c'mon OP. :rolleyes:

    [​IMG]
     
    Sanity2disChaos likes this.
  11. Air Langhi

    Air Langhi Contributing Member

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    Clutch's article does not really have the math in it. This post does so you can see the traches. You can see what amount of marginal salary will do to the overall payroll. You can't really do that with clutch's post unless you want to look up all the data. Maybe you aren't a math person but I am. Given there are a lot of Asians on the board maybe some of them will like to look at the data.


    So instead of actually reading the information this guy posted you want to **** on grammar or other meaningless stuff. The actual content of what this guy posted I think is interesting. Maybe some other people will to.


    If you break down the tax by levels 60% of the tax will occur when the payroll goes above 143 million dollars:

    Luxury Tax is 123 The rockets currently have 80 mil in guaranteed salary.

    Here are the people with guaranteed salaries:

    James Harden
    Ryan Anderson
    Eric Gordon
    P.J. Tucker
    Nene Hilario
    Chinanu Onuaku
    Zhou Qi
    Troy Williams

    Which totals up up to 80 mil.

    Even if you slot CP3 and Capela at 25 and 20 mil. you are already over and I don't know if cp3 would accept 10 million less than the max. In this case if ariza got 10mil you would be paying 25 in salary + taxes for him.

    If CP3 and Capela got 30 and 20 mil, 10 mil for ariza would be 35-40 mil,

    Even if you got rid of Anderson and you gave cp3 and Capela the max you are back at the luxury tax line and signing Ariza would cost you 20+ mil.

    To bring back the team as is without paying a lot of tax you have to get rid of Anderson + need to get cp3 or capela to take a paycut from what they could get.

    Here is break of how much of 116mil in tax is based on levels.

    Code:
    Bracket        Payroll    % of tax    Tax    Total
    $0-$5 million        128    6%    7.5    135.5
    $5-$10 million        133    14%    16.25    149.25
    $10-$15 million        138    25%    28.75    166.75
    $15-$20 million        143    39%    45    188
    $20-$25 million        148    57%    66.25    214.25
    $25-$30 million        153    77%    90    243
    $30-$35 million        158    100%    116.25    274.25
    
     
  12. justtxyank

    justtxyank Contributing Member

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    I'm glad you've discovered the luxury tax issues facing this team. You can join the list of people who have been making these posts over and over again since the middle of last season.
     

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