UPDATED: For the details released on the JJ trade, the Brook Lopez Base-Year-Contract situation (thanks to fly57 for pointing it out), and the S&T 3 year minimum
With NI confirming reports that the Nets are interested in getting BOTH Dwight and JJ, a lot of us have been curious to find out if it could be even possible to get the two of them together. Here it is. I will detail how we can get Joe Johnson AND Dwight Howard AND still use our MLE, and BAE exceptions, all the while retaining Deron Williams AND Gerald Wallace!
Cap holds are shown in yellow. The salary cap and cap space are shown after each transaction, as is the depth chart. The parenthesis around the cap space indicates a negative number, i.e. above the cap. The Nets need to remain above the cap (at least $58,044,000) while remaining below the luxury tax (at least $70,307,000) to retain the use of the MLE and BAE. Once these exceptions are used, the Nets have a HARD cap of $4 million over the luxury tax ($74,307,000).
Cap situation before at the very start of the season.
Note: I may have an optimistic outlook on the players and salaries for the MLE and BAE. You can substitute the players with others (Novak for Teletovic for instance). The main point is that they can be used at all while getting Dwight and Johnson and retaining Deron and Wallace. Also, I'm not paid at all to know this, so if I can, I'm sure the Killer B's can too.
In this scenario, the Nets renounce the rights to Damion James, Shelden Williams, Sundiata Gaines, and Armon Johnson. They also renounce the two trade exceptions from the Gerald Wallace trade. The only players under contract are Jordan Farmar, Anthony Morrow, Johan Petro, MarShon Brooks and Jordan Williams. Since the Nets are over the Luxury tax line, they'd only get the Tax-payer MLE. All the figures for salary and cap holds are from Shamsports.com
The order of next six transactions does not matter.
Re-sign Deron Williams to a max deal.
This does not affect our cap situation so it's best to handle it first. The first year of the deal starts at $17,177,795 with 7.5% raises each year.
Re-Sign Gerald Wallace to a $40 million deal over 4 years.
This is the reported agreement reached with Gerald Wallace. Assuming 7.5% increases each year, the first year salary would be about $8,950,000.
Sign and Trade Brook Lopez and Kris Humphries, along with MarShon Brooks, the rights to Bojan Bogdanovic, the Nets 2013 and 2015 first round draft picks for Dwight Howard.
Dwight Howard's salary for this season is $19,536,360. According to Larry Coon, (http://www.cbafaq.com/salarycap.htm#Q81) that means we have to send out at least $5 million less than the incoming salary, i.e. $14,536,360. MarShon Brooks makes $1,160,040. Remaining $13,376,320 would have to be made up with Kris Humphries and Brook Lopez's contracts. There is one caveat, since Lopez is getting a raise over 20%, he's considered a base year player and only half his salary counts towards outgoing salary, but all of his salary counts towards incoming salary for Orlando. Assuming Orlando is under the luxury tax, the max Orlando can accept in a trade is $24,536,360. The math is as such: $13,376,320< (Half of Brook Lopez's 1st year salary + Kris Humphries' first year salary)<$24,536,360. There are a ton of different options, but here is one example: if Brook Lopez signed to a deal with a starting salary of $12 million, Kris Humphries first year would have to be at least $7,376,320. Any sign and trade has to be at least 3 years in length, but only the first year of the deal has to be fully guaranteed.
Now that the Nets are under the luxury tax, they get the Non-tax payer Mid-Level Exception and the Bi-Annual Exception.
Re-sign Gerald Green to a $12.8 million deal over 4 years using part of the Mid-Level Exception (MLE)
Using the MLE, the Nets would be limited to 4 years and 4.5% annual raises. The first year salary is $3 million dollars.
Sign Mirza Teletovic to an $8.5 million deal over 4 years using the remainder of the MLE
The MLE can be split to use amongst several players, but the total combined salary of those players can not exceed $5 million dollars. The contract would also be limited to 4 years and 4.5% annual raises. The first year salary is $2 million dollars.
Sign Kenyon Martin to a $3 million deal over 2 years using the Bi-Annual Exception (BAE)
Once a team uses the MLE or BAE they have a hard cap of $4 million above the luxury tax (called the luxury tax apron) (http://www.cbafaq.com/salarycap.htm#Q25). The BAE can be for up to $1.957 million. To make sure we are under the luxury tax apron after the next transaction, the starting salary must be less than that. The remainder of the BAE ($457,000) is renounced so it does not count against the cap.
Sign and Trade DeShawn Stevenson, along with Jordan Farmar, Anthony Morrow, Jordan Williams, Johan Petro and the Rockets' 2013 first for Joe Johnson
This trade has to happen after the Nets use their exceptions because it takes them over the luxury tax. Since the Nets would be over the luxury tax after the trade and because Joe Johnson makes more than $19.6 million, the maximum incoming salary would be 125% + $100,000 of the outgoing salary. That means the Nets need to come up with $15,722,116 in salary to make this trade work. The combined salaries of Jordan Farmar ($4.25M) , Anthony Morrow ($4M) and Johan Petro ($3.5M) and Jordan Williams is ($762,195) is $12,512,195. That means DeShawn Stevenson's starting (and likely only guaranteed) year salary would have to be at least $3,209,921 ($15,722,116 minus $12,512,195).
Fill out the rest of the roster with scrubs
With the hard cap of $74,307,000, the Nets would have to fill the rest of the roster with players with 0 years of experience. Hopefully, the D-leaugue scouting comes in handy.
Here is a link to download the excel spreadsheet: https://www.dropbox.com/s/cmm3me0mvna0h5o/Dwight%20%26%20Joe%20Johnson.xlsx