Post#20 » by mizzoupacers » Sat Jul 25, 2009 4:36 am
^ Boston is already over the luxury tax threshold. So if they use their exception to sign Daniels outright--the exception is for $1.9 million--then they would also have to pay an additional $1.9 million in tax. So Daniels costs them $3.8 million.
But let's say Boston makes it a sign-n-trade, and ships out a guy or two like Allen whose minutes Daniels would be taking anyway. The salaries would have to nearly match, since both Boston and Indiana are over the salary cap. So in a sign-n-trade, Boston's payroll basically stays the same, rather than increasing by $3.8 million--they are sending out about as much salary as they are bringing in, and they are not saddling themselves with any additional luxury tax.
Of course, I'd hope a good part of that savings would be passed on to the Pacers in cash as part of the trade. Boston would still come out ahead financially, plus they'd upgrade their roster. And Indiana would have the incentive they need to take on a salary like Tony Allen's, rather than just add a minimum wage guy like Stephen Graham--if you're Indiana, why not take the better player that is being paid for by your trading partner?
That's why a Daniels sign-n-trade has the potential to be a win-win trade.