Draft and Cap Question

[FreeBalling]

I was wondering if someone (DAT2U) with a good insight to our cap situation could elaborate on the article below. EG &Co. had to know that this issue was coming and I'd hate to just trade the draft pick because Mr.. Polin wont spend to improve the team. (Key part is in bold below.)
I also heard something like this on the John Thompson show yesterday and almost drove my car off the road in my Wizards Road Rage.

Trade now, or trade later?
http://www.dcexaminer.com/sports/39544837.html
By Kevin Dunleavy
Examiner Staff Writer 2/13/09

As deadline looms, that is the question for Wizards

Nobody likes to pay taxes, not even a millionaire like Abe Pollin. But if his Wizards don’t make a trade before next season, they will likely exceed the NBA luxury tax threshold and Pollin will have to reach for his checkbook.
The options for Wizards President Ernie Grunfeld — trade now, before Thursday’s league deadline, or wait until the offseason.


As the trade deadline looms, Caron Butler, above, and Antawn Jamison are two veterans the Wizards might look to move. Getty Images
With Washington (11-42) out of the playoff picture at the All-Star break, this would normally be an opportune time to sell off veterans. But few of the Wizards have value other than Caron Butler and Antawn Jamison. And Grunfeld doesn’t appear ready to break up his Big Three (Butler, Jamison, and Gilbert Arenas), just yet.

Complicating the problem for Washington is the state of the economy. With so many owners losing money, there are many more sellers than buyers. Even if the Wizards were willing to trade Butler or Jamison, now is not a good time to do it.

One trade rumor, getting more mileage in Chicago than here, has former Wizard Larry Hughes coming back to Washington for Mike James and Etan Thomas. Such a move would improve the Wizards’ badly struggling backcourt, but would do little to relieve Washington’s fiscal quandary.

How did the Wizards get here?

Last summer, when they signed Arenas and Jamison to long-term contracts, their deals were structured with the expectation that the luxury tax would increase. But with the economy in free fall, league executives believe that the tax threshold will drop, for the first time in league history, next year.

The Wizards are committed to more than $75 million in salaries for 2009-10. This year’s tax threshold is $71,150,000, thus the necessity of a trade. If the Wizards intend to sign a top lottery pick, they’ll need to find even more in salary space. Last year’s top pick, Derrick Rose, is making $4.8 million from Chicago. Memphis pays No. 3 pick O.J. Mayo $3.9 million.

Keeping Arenas, Jamison, and Butler together, signing a top lottery pick, and staying within the tax threshold might be a feat for a magician, not a general manager.

Before Thursday’s trading deadline, Grunfeld might receive an offer he can’t refuse. But don’t count on it. His best chance to improve the Wizards will be in the summer when he knows their draft position, has a better idea for who will be available, and has a clearer view of the status of Arenas.

[Soup's Uncle]

Yeah...We have quite a few threads will all this stuff. Draft Thread, Tank Thread, Trade Thread.

[fishercob]

A thoroughly uninformative piece from Mr. Dunleavy.

[LyricalRico]

This link will tell you all you need to know about the Wiz cap and luxury tax issues:

viewtopic.php?f=35&t=851721&start=285

[keynote]

You can also find out more information about the Wizards Draft Cap here:

http://wizardsstore.seenon.com/detail.php?p=57627

[FreeBalling]

You can also find out more information about the Wizards Draft Cap here:

http://wizardsstore.seenon.com/detail.php?p=57627

Thanks all for the info, Keynote - that made me LOL. Tks.

[drewd]

Cavs Fan here, I'm just saying Thank you guys for the Your Top 3 Pick in the upcoming draft!

And because of that we will take Jamison, Butler, and Thomas contracts off your hands!

[Benjammin]

Cavs Fan here, I'm just saying Thank you guys for the Your Top 3 Pick in the upcoming draft!

And because of that we will take Jamison, Butler, and Thomas contracts off your hands!

Thanks for giving me another person to put on my ignore list. I will miss your trolling and insipid posts vociferously.