The Current Finacial Situation 9/25/10

[Jazz4ever]

Ok, so we don't trade for Diaw. Do we gamble and hope we get a better deal come the deadline, when we're desperate to get closer to the LT threshold? I have a feeling Jazz fans are going to kick themselves we didn't get this done. At least with this dump we're getting someone serviceable (I know, even that's a stretch).

We could trade CJ and Price, that would get us closer, and make us worse. We could trade Millsap too! Memo's worthless this year, he's not going anywhere.

Or keep the current team and cripple the franchise. What's it going to be folks?

Its not crippling at all if the Jazz make the Western Conference Finals. This team will be pretty damn good, imo.

 

[NUMBERICA]

While you can't structure a budget on an assumption of a deep playoff run, the difference between AK and Diaw in the playoffs is likely a playoff series in size. If not more.

 

[franklin]

Really? So let's see...

With Diaw:

8 players $68M in salary. 5 players to the min 13 and about $2.5M to spend on those 5 players to be bellow the $70.3M LT level for this year (used for simplification). That's about 500K per player.

With AK:

$58.8M for 7 players. 6 players to 13. about $11.5M to spend. Avg per player $1.9M. That leaves space for a couple of veterans and an actual draft pick.

I think you're confusing the salary cap with the LT threshold. The Jazz can't simply spend up to the LT like you're suggesting. The CBA won't allow them to. Like I said, they have to sign league minimum guys next year regardless.

 

[franklin]

Yes, math does "****ing suck," because a $9 million salary next year isn't conveniently booted or mooted away as you suggest.

And what "move" do you suggest that the Jazz would make with the second year of Diaw's deal--a shimmy-shimmy? The macarena? If they traded it away, chances are that they would get near the same dollar amount in return, especially given that Diaw isn't a marquee player. ("Marquee" is French, btw. So is "Diaw")

Or are you suggesting that the Jazz would make a move if Diaw wasn't here? If it means dipping into LT territory, they'd likely avoid it, and they definitely wouldn't spend upwards of eight figures on a backup big, although they did for Memo, who should be a backup. So the second year of Diaw's deal can't just be handwaved away. Add back a minimum contract if you want--or an MLE deal at most--because it is arguable that Diaw would fill a required roster spot for next year.

So, using your numbers, with Fes, the floor is $16.5 - $9 million = $7.5 million.

Do you wanna apply a discounted cash flow model to it, too :roll:?

Silly debate in any case, because a floor of five million or six million is plenty for a small-market and/or only semi-contending team to pull the trigger.

Any funny money up to 18 or 20 is only Greg gravy.

You're argument is fine as long as the Jazz don't add another impact player next year regardless of what happens with AK or Diaw this year. If they do, like just about everyone alive thinks they'll try their damnest to do with AK's bird rights, then you wouldn't count next year's salary in the figures. It's hard to play 82 games with a seven man roster plus a bunch of nobody's to fill up the bench.

And it's well over $2 on top of the $16.5 if you count the **edit**. That puts the savings at over $9.5 including Diaw's contract next year.

 

[Hitman]

You're right about Quinton Ross. He signed a contract for more than one year with Dallas. Elson and Watson I'm assuming are under 1 year contracts altough nothing is being mentioned yet.

When Elson signed it was reported as a "multi-year deal", although "...as per team policy terms were not disclosed". Watson hasn't actually signed yet so we know nothing about his offer, but my assumption is the opposite, I think his offer is a multi-year deal (it may not even be the vet minimum, we still have some MLE money available).

In regards to cap hit Section 3. Determination of Salary (f) of the CBA states that:

(f)
One-Year Minimum Contracts.
Except where otherwise stated in this Agreement, the Salary of every player who, after the date of this Agreement, signs a one-year, 10-Day or Rest-of-Season Contract for the Minimum Player Salary applicable to such player shall be the lesser of (1) such Minimum Player Salary, or (2) the portion of such Minimum Player Salary that is not reimbursed out of the League-wide benefits fund described in Article IV, Section 5(k)(2).

So I believe I was correct when I stated that they only count as a two year veteran as far as cap hit. And it makes sense cause the idea is to protect veterans.

You're right, my bad.

 

[Hitman]

BTW, everyone is using the wrong figures for Paul Millsap's contract. I had the exact figures once but I've lost them and my Google-fu isn't strong enough this morning to find them again, so I've attempted to reverse-engineer them from the known facts - 4yrs/$32M, $5.6M signing bonus, signing bonus was maximum allowed to another team's RFA (17.5%), first-year salary (excluding signing bonus) was $6.3M, total salary (excluding signing bonus) over last three years ~$20M. These are rough figures, and if anyone has anything better then let us all know!

Actually paid:
09/10: $5.6M signing bonus + $6.3M annual salary
10/11: $6.55M annual salary
11/12: $6.8M annual salary
12/13: $7.05M annual salary

Salary for cap purposes (Annual salary + pro-rated signing bonus of $1.4M):
09/10: $7.7M
10/11: $7.95M
11/12: $8.2M
12/13: $8.45M

 

[sirkickyass]

BTW, everyone is using the wrong figures for Paul Millsap's contract. I had the exact figures once but I've lost them and my Google-fu isn't strong enough this morning to find them again, so I've attempted to reverse-engineer them from the known facts - 4yrs/$32M, $5.6M signing bonus, signing bonus was maximum allowed to another team's RFA (17.5%), first-year salary (excluding signing bonus) was $6.3M, total salary (excluding signing bonus) over last three years ~$20M. These are rough figures, and if anyone has anything better then let us all know!

I knew the $6.55 cited by Hoopshype was incorrect.

I was using the number $7.6 million (which is close to your rough estimate) because that was what was available from several sources (including the ESPN trade machine) and seemed close to what I remember the number being when we figured out the exact cap figure at one point in the past.

 

[NotDeadYet]

I let the Millers worry about the $$$ side of things, but it looks to me like it's the doubling of the LT overage that's the backbreaker. The question is how big a hit can the Miller's absorb THIS year, not what the total expense would be spread into next year with Diaw. Only the Millers know the answer to that...