Miami sheds 2010 Salary and goes under the luxury tax limit

Beasley · Post #1 » by **Beasley** » Sat Jan 9, 2010 9:19 am

http://img31.imageshack.us/img31/3443/tradewp.jpg

The Lakers also receive a 2nd round draft pick and cash considerations

The Clippers also receive a 2nd round draft pick and give up nothing (a top 50 protected 2nd round pick)

Miami reduces their 2010 obligations by around $3.5M - $4m ($2M from Cook and approx $1.5M - $2M) which is guaranteed to James Jones (who effectively is an expiring contract) even once his team option is declined. They also go under the luxury tax threshold. Thoughts?
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Hallstar · Post #2 » by **Hallstar** » Sat Jan 9, 2010 1:52 pm

don't see Heat moving Wright just to get under tax

Fido · Post #3 » by **Fido** » Sat Jan 9, 2010 2:39 pm

Jones & Cook for Morrison? wow....

shrink · Post #4 » by **shrink** » Sat Jan 9, 2010 3:15 pm

I think its a good trade if MIA can afford to be without Wright. MIA saves:

$3.4 mil salary reduction
$2.9 mil lux taxes saved
$4.5 mil lux share recovered
$10.8 mil in savings

Is that savings worth those players for MIA?

There's a 13-man roster minimum, but 10-day contracts became available January 5th. I do like the basis for this deal though - that's a lot of money.

Beasley · Post #5 » by **Beasley** » Sat Jan 9, 2010 3:38 pm

Hallstar wrote:don't see Heat moving Wright just to get under tax

Well due to the luxury tax system, and ignoring payments thus far, they save 2 x his salary = about $5.6M. Plus around $4.4M of payments distributed from teams over the luxury tax = $10M.

Is Dorell Wright worth $10M? No. I would prefer it if they could dump James Jones instead, but they'd have to give up a pick, and there aren't many teams with a trade exception who could and would take back Jones.

Beasley · Post #6 » by **Beasley** » Sat Jan 9, 2010 3:49 pm

shrink wrote:I think its a good trade if MIA can afford to be without Wright. MIA saves:

$3.4 mil salary reduction
$2.9 mil lux taxes saved
$4.5 mil lux share recovered
$10.8 mil in savings

Is that savings worth those players for MIA?

There's a 13-man roster minimum, but 10-day contracts became available January 5th. I do like the basis for this deal though - that's a lot of money.

Yeah it's about a $11M saving together with the Morrison trade, PLUS they also reduce their 2010 cap space by around $4M. Nothing to sneeze at. And they aren't really losing anyone from their 8-man rotation. Whilst Wright has been showcased in the last few games, Udonis Haslem, Joel Anthony and Mario Chalmers are normally the first 3 guys off the bench.