The Celtics will be "Hard-Capped" for 2013-2014 if a sign-and-trade is used in the PP-KG trade

by **gyso** Mon Jul 01, 2013 9:16 am

The Celtics will be hard-capped if Keith Bogans is sent to Boston via sign-and-trade as part of the Celtics - Nets deal. Here's what Larry Coon has to say about this:

Coon, Larry (2012); \"NBA Salary Cap/Collective Bargaining Agreement FAQ" wrote:

89. Can a free agent be signed and immediately traded?

•Starting in 2013-14, the team receiving the player cannot be above the "apron" ($4 million above the tax level) after the trade 1, 2.

and

2. A different team salary definition is used for determining whether a team is above or below the apron -- see question number 14 for details. Starting in 2013-14 if a team acquires a player in a sign-and-trade, the apron ($4 million above the tax line) effectively becomes a hard cap for the remainder of that season.

The footnote text is quite specific, "Starting in 2013-14 if a team acquires a player in a sign-and-trade, the apron ($4 million above the tax level) effectively becomes a hard cap for the remainder of that season." If we are under the apron, we can use the non-taxpayer's mid-level exception as well as the bi-annual exception. If we are too close to the apron ($4mil over the luxury tax level) then we may not even be able to use those exceptions.

We need to shed some salary after the trade goes down on July 12th. There was something I read somewhere that Kris Joseph can't be signed until the 12th, so "The Trade" (tm) is going to be held up another couple of days. I hope that the salary shedding process does not include any of the recently-added future first round draft picks. It will be interesting to see how Danny does it.

http://www.cbafaq.com/salarycap.htm#Q89

gyso

by **sinus007** Mon Jul 01, 2013 9:53 am

Gyso,
What about that trade exception that I read: if they structure the trade in certain way Celtics can get $7.3M of trade exception?
Thanks.

AK

by **bobheckler** Mon Jul 01, 2013 10:19 am

If I thought Danny was done, that might be an issue. I do not believe that.

The rumors have been flying about a sign-and-trade with Atlanta for Smith. Suppose we give up more salary, but within 25%, than Smith's salary. That would bring our team payroll down. We don't have a legit center. Suppose Danny does the same thing there?

It ain't over 'til it's over and Danny isn't near being 'over'.

bob

.

by **gyso** Mon Jul 01, 2013 11:59 am

sinus007 wrote:Gyso,
What about that trade exception that I read: if they structure the trade in certain way Celtics can get $7.3M of trade exception?
Thanks.

AK

sinus,

I read about the TE. If it is true, the Celtics would get a TE of $7.3M, which they could use anytime for one year, after which if it is not used, it expires.

The TE has to be used in a way that leaves the Celtics under the apron (AKA Hard Cap) after the trade is complete. If the Apron is at $74.3M (the number from last year), the Celtics would have to start at under $67.0M before using the TE.

If we can get our salaries under $67.0M, we could use the TE on someone like Gortat. What incentive would the Suns have to use the TE on Gortat? Just getting a TE of their own may not be enough and they may want a draft pick for their efforts. Would having Gortat on the Celtics be worth one or more of the first-rounders that Danny had accumulated so far?

gyso

by **gyso** Mon Jul 01, 2013 12:10 pm

bobheckler wrote:If I thought Danny was done, that might be an issue. I do not believe that.

The rumors have been flying about a sign-and-trade with Atlanta for Smith. Suppose we give up more salary, but within 25%, than Smith's salary. That would bring our team payroll down. We don't have a legit center. Suppose Danny does the same thing there?

It ain't over 'til it's over and Danny isn't near being 'over'.

bob

.

bob,

I agree that Danny hasn't even started yet. Danny will certainly have some chips to trade with after the 12th.

gyso

by **gyso** Tue Jul 16, 2013 7:03 am

Here is a link to a site that shows the current Celtic salary structure:

http://www.hoopsworld.com/boston-celtics-team-salary

With Kris Joseph waived (again), that leaves us with 14 players having guaranteed contracts. Shavlik Randolph is unguaranteed. Colton Iverson and Phil Pressey are yet unsigned. Danny is not finished yet.

Our team salary stands at $75.5M, the hard cap is at $75.75M, so we are right up against that.

We have a trade exception (TE) of $10.3M that expires on July 12, 2014. I don't expect that we will use the TE this season unless we shed some salary first. There will be two very small windows to use the TE next summer. The first one is between the end of the season and the day the draft takes place. The first window may still be governed by the hard cap, since it takes place within the 2013-2014 salary cap year (July 1 - June 30). The second window spans two days, between the end of the July moratorium (the 10th) and July 12th and is not governed by the hard cap. (unless we trigger it again).

We may even pick up a second TE by trading Kris Humphries and his amazing expiring contract (tm), but Danny may surprise me and keep him. As I stated earlier, Danny is not finished yet.

gyso

by **bobheckler** Tue Jul 16, 2013 10:38 am

I'm expecting Hump to be gone by the trading deadline. There'll only be $6M left on his contract and he's a rugged, Kurt Rambis type of player. Perfect for a team that is gearing up for a playoff run and wants to strengthen their rebounding. It'd be better, from our perspective, to move him sooner, but I don't see him as a $12M player and I doubt anybody else does either. A $6M player for a few critical months? Yeah, that's easier to picture. A trade exception would work perfectly. We get the salary relief without continuing to have to cut players to make 15.

Gerald Wallace will be the hard one to move. He's a good player, and has had some good years, but the 3 years left on his contract makes him tough to dangle as bait.

Now we can speculate why the PP/KG trade went down a few days later than we thought. Danny wanted the extra days to use that trade exception next year.

bob

.

by **tjmakz** Tue Jul 16, 2013 11:52 am

bobheckler wrote:I'm expecting Hump to be gone by the trading deadline. There'll only be $6M left on his contract and he's a rugged, Kurt Rambis type of player. Perfect for a team that is gearing up for a playoff run and wants to strengthen their rebounding. It'd be better, from our perspective, to move him sooner, but I don't see him as a $12M player and I doubt anybody else does either. A $6M player for a few critical months? Yeah, that's easier to picture. A trade exception would work perfectly. We get the salary relief without continuing to have to cut players to make 15.

Gerald Wallace will be the hard one to move. He's a good player, and has had some good years, but the 3 years left on his contract makes him tough to dangle as bait.

Now we can speculate why the PP/KG trade went down a few days later than we thought. Danny wanted the extra days to use that trade exception next year.

bob

.

Bob,

Very few teams have cap space that could absorb Humphries contract.
Even though Humphries will have only $6m left on his contract 1/2 way through the season, the cap hit for the acquiring team is the full $12m.
Brandon Jennings is finding out the hard way that no team can sign him to a significant contract due to cap restraints.

Ever since the night of the draft it was stated that I believe Bogans couldn't be re-signed until 7/12. So that is why the trade was delayed past 7/10.

by **gyso** Tue Jul 16, 2013 12:34 pm

The thing that held up the trade was Kris Joseph's contract. The Nets had to wait for a full three months to pass after he signed with the Nets on April 12, 2013 before trading him.

http://www.nba.com/dleague/springfield/brooklyn_nets_sign_kris_joseph_2013_04_12.html

Look at this one for an explanation:

http://www.netsdaily.com/2013/6/30/4480218/nets-celtics-will-have-to-wait-until-july-12-to-complete-the-trade

by **tjmakz** Tue Jul 16, 2013 12:51 pm

gyso wrote:The thing that held up the trade was Kris Joseph's contract. The Nets had to wait for a full three months to pass after he signed with the Nets on April 12, 2013 before trading him.

http://www.nba.com/dleague/springfield/brooklyn_nets_sign_kris_joseph_2013_04_12.html

Look at this one for an explanation:

http://www.netsdaily.com/2013/6/30/4480218/nets-celtics-will-have-to-wait-until-july-12-to-complete-the-trade

Good catch gyso.
Thanks.

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