FanPost

Detailed math 2.0

I learned a few things after my initial post: Unsigned second round draft picks don't count against the cap at all and exceptions only count towards total salary if you're UNDER the salary cap. I also learned that if you use the non-tax payer MLE, you end up with a a hard cap. Between Prokhorov's clear disregard for paying the luxury tax and the fact that four players alone would earn over $65 million a year, a hard cap is the last thing this team can afford (no pun intended). The loop-hole: the tax-payers MLE does NOT incur a hard cap.

So with that, the new plan is to get the total salary high enough to use the tax-payer MLE and still be able to sign veterans after that. Here is my earlier post if you'd like to see it: http://www.netsdaily.com/2012/7/2/3131846/detailed-math-for-getting-joe-johnson-dwight-howard-while-retaining

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.


Note: The players and salaries I suggest for the tax-payer MLE and the TPE's are just my suggestions. You can substitute the players with others. 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 figure it out, I'm sure the Killer B's can too.

Cap situation before at the very start of the season.

In this scenario, the Nets renounce the rights to Damion James, Shelden Williams, Sundiata Gaines, and Armon Johnson. The only players under contract are Jordan Farmar, Anthony Morrow, Johan Petro, MarShon Brooks and Jordan Williams. All the figures for salary and cap holds are from Shamsports.com

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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.

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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.

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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.

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Sign and Trade DeShawn Stevenson, along with Jordan Farmar, Anthony Morrow, Jordan Williams, Johan Petro and the Rockets' 2013 first for Joe Johnson

Since 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).


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Trade for Kenyon Martin (Signed by the Clippers to a $9.4 million deal over 3 years using the $3 million Traded player exception)

This is a sign and trade by the Clippers to the Nets. The Nets use the the larger of the two TPE's from the Gerald Wallace trade. While any player in a sign and trade needs to be on a minimum of a three year deal, only the first year needs to be guaranteed. Martin's contract would likely be guaranteed for only the first two years.

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Trade for Kurt Thomas using the $1.389 million traded player exception

Kurt Thomas's contract fits nicely into the the smaller trade exception. They drafted Meyers Leonard and are going after Hibbert in free agency. Hopefully, that makes Thomas expendable. It's the least they could do after the Wallace trade (even thought it seems to be working out well for us in this scenario).

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Sign Mirza Teletovic to a $9.4 million deal over 3 years using the tax-payer Mid-Level Exception

The type of MLE a team gets depends on what their total salary would look like AFTER they use the mid-level exception. If the team would be $4 million above the luxury tax (called the tax apron) after the use the MLE, they get the tax-payer MLE (up to a starting salary of $3 million, 3 years and %4.5 annual raises) instead of the non-tax payer MLE (up to a starting salary of $5 million, 4 years and %4.5 annual raises). Assuming the luxury tax remains at $70,307,000 (the least for next year), the apron would be $74,307,000. With a total salary of over $72 million already, the MLE would take them above the apron, "limiting" the Nets to the tax-payer MLE.

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Fill out the rest of the roster with veterans

Since the Nets used the tax-payer MLE instead of the non-tax-payer MLE, they are not subject to a hard cap. This means they can sign veterans to a vet's minimum contract instead of being restricted to players with 0 years of experience. Players like Tracy McGrady (an aging star), Adam Morrison (a once highly outed palyer that's been out of the league), and Jeff Foote (one of the better D-League players) all fit the bill.

Here's a link to the excel spreadsheet: https://www.dropbox.com/s/i0czzeoiqbyk85b/Dwight%20%26%20Joe%20Johnson.xlsx

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