Connect with us

Houston Rockets

Shifting Perspectives on 2015-16 Salary Cap May Impact Rockets’ Immediate Plans

Cap concerns might sway the Rockets to make a move sooner rather than later. David Weiner explains why.

Published

on

Houston Rockets Salary Cap Projections

Updated: November 24, 2014

Much has been made recently about the NBA’s new national television contracts and their massive impact on the NBA’s salary cap in future years.

This season’s maximum team salary cap is $63.065 million. Several months ago (before the new TV deal was signed), the league released a projected $66.5 million salary cap for the 2015-16 season. The new deal, which does not kick in until the 2016-17 season, could increase the salary cap that year to as high as $85-90 million!

In order to address what could be a problematic one-year spike in the salary cap, the league has proposed one or more proposals to the player’s union in order to “smooth” the salary cap increase over several seasons. This issue must be collectively bargained with the player’s union, so any failure to agree by those two sides would likely result in that one-year spike.

Changing Cap Projections

For several months (both before and after the size of the TV deals was known), many league executives have been preparing as if the 2015-16 salary cap would be artificially increased in order to reduce the year-to-year increase caused by the new TV revenues.

However, whether based on perceived resistance from the player’s union on the league’s “smoothing” proposals (one or more of which allegedly call for the salary cap to only increase at around the rate at which Basketball Related Income (BRI) has increased over the past several seasons) or on an inability for the league to come up with a “smoothing” proposal that objectively makes sense for all parties, things don’t seem to be looking very good for teams (like the Houston Rockets) hoping for a big jump in the salary cap for the 2015-16 season.

Zach Lowe, Grantland’s lead NBA writer (and, in my opinion, the best national NBA writer in the business), wrote in a November 5 article about the increasing likelihood that the new TV deal would not lead to an increase in the salary cap for next season:

“No one knows what will happen to the cap in 2015-16 and 2016-17, the first year of the league’s mammoth new national TV contract, but the league’s most recent projections for 2015-16 remain in the range of $66 million to $68 million, per several league sources. It appears unlikely the league bakes any of the anticipated TV money into the cap figure a year early, meaning the 2015-16 cap will sit right around where the NBA had projected it.”

In a subsequent piece from November 17, Lowe reiterated this assumption:

“There is some opportunity cost in forfeited cap space this summer, assuming that the 2015-16 cap sticks around the projected $66 million–to–$68 million range. That is what almost all team executives anticipate now.”

Potential Impact on Rockets’ Plans

The Rockets currently have about $55.9 million in guaranteed salary committed for next season (not including cap holds, incomplete roster charges and other cap considerations). However, with a beefed-up 2015-16 salary cap that includes some early incorporation of new TV money, Houston would be in position–with only a couple of minor trades–to create enough cap space to either offer a max (or at least near-max) contract to a major free agent or be able to trade for almost any player under contract (perhaps dangling that New Orleans pick on or after draft night as bait).

Unfortunately, if the cap stays at the currently-projected $66.5 million, things do not look nearly as rosy for the Rockets in 2015 free agency.

Assuming that the Rockets waive all non-guaranteed salary for next season (namely, Kostas Papanikolaou and Tarik Black), renounce their rights to Jason Terry and Francisco Garcia, keep Patrick Beverley‘s cap hold on the books (which cap hold assumes that Beverley meets the “starter criteria” enabling him to get a higher qualifying offer from Houston) and otherwise do not make any trades (I know, unlikely, but still), Houston would be in line to have less than $7.2 million in cap room next summer.

That’s a nice amount of cap room, but it’s not enough to add that third star that Rockets GM Daryl Morey has been after since landing Dwight Howard in July 2013. The Rockets would need to clear out Trevor Ariza‘s salary (taking little to no salary back) to even approach the type of room they could create if a “smoothing” proposal were adopted. While Ariza is by no means completely “off-limits” in trade, he is an integral part of the team Houston is trying to build and is an ideal fit starting next to James Harden.

This relatively recent shift in perspective by many league executives on the projected 2015-16 salary cap may be a large factor in the Rockets’ apparent willingness to trade for Corey Brewer, whose contract includes a $4.9 million player option for next season. It could also be a reason why Houston might be trying to exert additional pressure on other teams to cough up a star (or near-star) player sooner rather than later (see Dragic, Goran).

Conclusion

Whether Morey is among those league executives starting to lose hope that a “smoothing” proposal can be swept through league and player’s union approval in time for next summer’s free agency/trade season is anyone’s guess. But if he is, then this shift could ultimately be the deciding factor in whether the Rockets choose to bite the bullet and make potentially cap-clogging moves in the next few months.

Continue Reading

Houston Rockets

Poison Pill: The Impact of Recent Extensions on the Rockets’ Trade Options

Published

on

Just before the start of the regular season, the Houston Rockets signed Jalen Green to a three-year, $105.3 million extension and Alperen Sengun to a five-year, $185 million extension, locking up two key pieces of their rebuild. These extensions eliminated any meaningful salary cap room for Houston in the summer of 2025. However, since the NBA is trending away from key players changing teams via free agency (recent examples such as Paul George and the Rockets’ own Fred VanVleet notwithstanding), Rafael Stone and his team likely viewed the extensions as worth the risk.

The Rockets have positioned themselves as one of the league’s most interesting trade teams, as they boast a unique combination of good young players, premium future draft picks, and expiring salaries. But signing Green and Sengun to those extensions made trading each of those players this season significantly more difficult.

Article VII, Section 8(g) of the 2023 NBA Collective Bargaining Agreement – you know the one! – is more commonly known as the Poison Pill Provision, which relates to the trade treatment of players recently signed to rookie scale extensions. If a recently extended player is traded prior to the July 1 in which the extension kicks in, then while the player’s outgoing salary would be the same as his then current cap figure, the player’s incoming salary to the acquiring team would instead be the *average* of the player’s then current salary and all salaries during the extension. This makes any trade made under the Poison Pill Provisions exceedingly difficult.

Using Green and Sengun as examples, their respective outgoing and incoming salaries would be:

Jalen Green
Outgoing Salary for Houston: $12.5 million
Incoming Salary for Acquiring Team: $29.5 million

Alperen Sengun
Outgoing Salary for Houston: $5.4 million
Incoming Salary for Acquiring Team: $31.7 million

These vast discrepancies in outgoing and incoming salary treatment make Green and Sengun very difficult to trade, as most NBA trades must fall within salary-matching rules. While there are possible trade scenarios involving numerous players and salaries that could allow for Green or Sengun to be traded, most of those scenarios are unrealistic and/or would involve three or more teams and the expenditure of additional assets to get those additional teams to take on salaries.

The Rockets don’t seem to have much desire to move either Green or Sengun right now. However, if they do decide to move either of them, it would most likely not be until next July, when the Poison Pill Provision is no longer applicable and those players can be traded at their new extension salaries.

Continue Reading

Houston Rockets

Houston Rockets Draft Decisions: Who Will Be the #3 Pick?

Published

on

By

Houston Rockets Podcast

It’s officially NBA Draft Week!

The weeks of speculation are coming to an end as we’ve just about arrived at the 2024 NBA Draft. The Rockets hold picks #3 and #44 and could be quite active on the trade market.

Dave Hardisty and David Weiner paired up on the ClutchFans podcast to discuss the options before the Houston Rockets as they approach the June 26th NBA Draft. Is it really down to Donovan Clingan and Reed Sheppard as options? The pair also discuss trade-down options and whether Devin Carter could be intriguing to Ime Udoka. And are the Rockets a darkhorse for a Paul George trade?

The podcast premieres at 8:00am CT! Come join us!



CLUTCHFANS PODCAST: SPOTIFY | APPLE

Continue Reading

Houston Rockets

Podcast: Houston Rockets options with the #3 pick of the 2024 NBA Draft

Published

on

By

Houston Rockets 2024 NBA Draft prospects Zaccharie Risacher Stephon Castle Reed Sheppard Donovan Clingan

The offseason is now underway.

The forecast looks good for the Houston Rockets, but… there’s pressure as well this offseason because there are a handful of other West teams that might have rosier futures. Ime Udoka wants to win and win big. As we are about five weeks away from the NBA Draft, what are the Rockets looking to do this summer?

David Weiner joined Dave Hardisty on the ClutchFans podcast to discuss the Rockets shockingly landing the #3 pick and their options in this draft, including Reed Sheppard, Donovan Clingan, Zaccharie Risacher, Stephon Castle, Matas Buzelis and others. They also discuss the possibility of some big game hunting in Houston.


CLUTCHFANS PODCAST: SPOTIFY | APPLE

Continue Reading

Houston Rockets

Podcast: Steven Adams, Mikal Bridges and Trade Possibilities for the Rockets

Published

on

By

Houston Rockets Trade Deadline 2024

The Houston Rockets already made one deal, acquiring center Steven Adams from Memphis for a handful of second-round picks, but we still have several days left before this Thursday’s NBA Trade Deadline.

Are more deals on the way?

Rumors of interest in Mikal Bridges have swirled, with the Rockets holding precious (and unprotected) first-round picks from Brooklyn. They also could use some help inside this season, which Adams can not provide. Shooting is always in demand.

David Weiner joined Dave Hardisty on the ClutchFans podcast to discuss the Adams trade, its impact on the Rockets in 2024-25 and beyond, the Mikal Bridges rumors, the Brooklyn picks, other trade possibilities and options for Rafael Stone moving forward. Also discussed is the play of Houston’s core 6 prospects: Amen Thompson, Cam Whitmore, Alperen Sengun, Jabari Smith Jr., Tari Eason and Jalen Green.


CLUTCHFANS PODCAST: SPOTIFY | APPLE

Continue Reading

Houston Rockets

Rockets trade for center Steven Adams

Published

on

By

Steven Adams Houston Rockets

The Rockets made a surprise trade on Thursday, sending the contract of Victor Oladipo and three second-round picks to Memphis for center Steven Adams.

The deal came together quickly and the Rockets had a small window to get it done, hence why this trade was made with a week to go until the trade deadline.

The Price

When you consider that Memphis did this for cost savings primarily and that Adams would not play for any team in the league this season, the price seemed a little high to me. The Rockets gave up the OKC second-round pick this year, which is no big loss, but they also give up the better of Brooklyn’s or Golden State’s second-round pick this season. That’s a pretty good pick (likely in the late 30’s). They also give up the better of Houston’s or OKC’s second-round pick in 2025. If things go as planned for the Rockets, that pick should be in the 45-55 range.

But they didn’t sacrifice a first-round pick, which would have been brutal, and they were not going to use all those seconds this season. So it’s just a matter of opportunity cost — who else could they have gotten for this package?

My understanding is they (particularly Ime Udoka) are very high on Adams.

The Rockets also did this move for cap purposes as well. By moving out the Oladipo contract, which was expiring, and bringing in Adams’ deal, which is signed for $12.4M next season, the window for the Rockets to put together a trade package for a star player is extended out until the 2025 trade deadline. They continue to wait to see which players, if any, shake loose here and become available. They want flexible (see: expiring) contracts that they can combine with assets and this gives them another year to be in that position.

The Trade

It’s not often that the Rockets acquire a player I had not considered beforehand but that’s the case with Steven Adams. The Rockets sorely need a big with size that provides more traditional center strengths, making Clint Capela, Robert Williams, Nick Richards or Daniel Gafford potential candidates, but Adams was overlooked for a few reasons.

First, the 30-year old big man is out for the season after knee surgery cost him the entire 2023-24 campaign, so the Rockets won’t get any benefit from this trade this season. Secondly, Adams is not your traditional center either when it comes to rim protection.

But what Adams does do, he’s really good at and he has some of the same strengths of Brook Lopez, who the Rockets tried to sign in the offseason. Adams is quite possibly the strongest guy in the league and a legitimate 6-foot-11 with a 7-foot-5 wingspan. He’s an outstanding screen-setter, something that could really benefit the likes of Fred VanVleet, Amen Thompson and Jalen Green. He was also an elite rebounder last season, finishing 6th in the league in caroms at 11.5 a game despite playing just 27.0 minutes a contest.

After watching Jonas Valanciunas absolutely bully the Rockets inside on Wednesday, it should be apparent by now to everyone that this was a pretty big need.

In 2021-22, the Memphis Grizzlies finished #2 in the West at 56-26. Their top two players in Net Rating that season were Dillon Brooks (+11.0) and Adams (+8.3), key cogs in a defense that held opponents to 108.6 points per 100 possessions. They’re both now Houston Rockets.

So this adds another trusted vet to Ime Udoka’s rotation.

The question is will the 30-year old Adams return to form after the knee injury? Adams sprained the posterior cruciate ligament in his right knee a year ago, which cost him the end of that season and the playoffs. He tried rehabbing it and it never got better, so surgery became the option just as this season was kicking off.

I like to think the Rockets did their due diligence on that, despite the short time it took for this deal to come together, but that’s unclear.

If he does bounce back, then Udoka has a big man he can turn to reliably in situational matchups or on nights when the younger bigs struggle. He wouldn’t be Boban or even Jock Landale in that scenario — he’s going to play, so the frontcourt depth in 2024-25 should be better. In the end, they got a starting-caliber center who will have no problems coming off the bench, and that’s what they were looking for.

Continue Reading

Trending