I will use parts of an earlier post since the CP3, Gallinari and Nader scenario is much the same as the CP3 and Hayward scenario.
Chris Paul + Jimmy Butler + Danilo Gallinari + Abdel Nader + Waived Salary = $101,147,231
Chris Paul + Jimmy Butler + Danilo Gallinari + Justise Winslow + Kelly Olynyk + Abdel Nader + Waived Salary = $126,815,117
Chris Paul + Jimmy Butler + Danilo Gallinari + Justise Winslow + Kelly Olynyk + Tyler Herro + Bam Adebayo + Abdel Nader + Waived Salary = $133,909,397
Chris Paul + Jimmy Butler + Danilo Gallinari + Justise Winslow + Kelly Olynyk + Tyler Herro + Bam Adebayo + Abdel Nader +
Derrick Jones Jr. + Udonis Haslem + Duncan Robinson + Kendrick Nunn + KZ Okpala + Waived Salary = $140,907,332
79. What roster size limits exist? What is the Inactive List? What is Injured Reserve? Do any other such lists exist?While individual teams are only required to carry a minimum of 14 players (13 active and one inactive, or 12 active and two inactive), the NBA also guarantees a league-wide average of at least 14.5 players per team (not including Two-Way players), however the average must be under 14.5 in two consecutive seasons for a violation to occur.
Chris Paul + Jimmy Butler + Danilo Gallinari + Justise Winslow + Kelly Olynyk + Tyler Herro + Bam Adebayo + Abdel Nader
Derrick Jones Jr. + Udonis Haslem + Duncan Robinson + Kendrick Nunn + KZ Okpala = 13 players
Since there are only thirteen players, Miami needs to sign another player making the rookie minimum to be CBA compliant.
Chris Paul + Jimmy Butler + Danilo Gallinari + Justise Winslow + Kelly Olynyk + Tyler Herro + Bam Adebayo + Abdel Nader +
Derrick Jones Jr. + Udonis Haslem + Duncan Robinson + Kendrick Nunn + KZ Okpala + minimum salary = 14 players.
So we have reached CBA compliance in regards to roster size.
Chris Paul + Jimmy Butler + Danilo Gallinari + Justise Winslow + Kelly Olynyk + Tyler Herro + Bam Adebayo +
Derrick Jones Jr. + Udonis Haslem + Duncan Robinson + Kendrick Nunn + KZ Okpala + minimum salary + Waived Salary = $141,805,642
20. Other than financial penalties, are there restrictions on taxpaying teams? What is the "Apron?" What is the hard cap?In other words, when a team is below the Apron and uses its Bi-Annual exception, receives a player who is signed-and-traded, or uses its Mid-Level exception to sign a player to a contract larger than allowed by the Taxpayer Mid-Level exception, the team becomes hard-capped at the Apron for the remainder of that season. This eliminates any potential loophole where a team could first use one of these exceptions and subsequently add salary to go above the Apron, since the reverse -- adding salary first and then using the exception -- would be illegal.
Jimmy Butler moves to Miami and Sixers acquire Josh Richardson in sign-and-trade with HeatCode: Select all
Season Tax Level Apron
2017-18 $119,266,000 $125,266,000
2018-19 $123,733,000 $129,817,000
2019-20 $132,627,000 $138,928,000
With the hard cap at $138,928,000
$138,928,000 - $141,805,642 =
$2,877,642If a team is hard-capped, it cannot exceed the Apron under any circumstance. If the team subsequently needs to sign a player (for example, to replace injured players) it must first create room under the Apron by waiving player(s) with non-guaranteed salary, waiving player(s) with guaranteed salary and utilizing the stretch provision, trading downward in salary, etc. A team that is hard-capped can sign players to non-guaranteed contracts for training camp or the regular season, but must rid themselves of such players before their salary would take the team above the Apron. A team subject to the hard cap can also sign players to Rest-of-Season contracts during the season, as long as the salary pro-ration keeps the team below the Apron.
To get around the hard cap issue, they would need to stretch waive enough salary from the Nader, Jones, Haslem, Robinson and Nunn group to carve out space underneath the hard cap. Once they waive a player to carve out more space under the hard cap, then the roster count falls back to 13 and another rookie making the minimum salary needs to be added to bring it back to 14.
There is a problem with a stretch waive strategy to reduce the team salary during the season.
64. What happens when a player is released? What are waivers? What is the Stretch provision?Individually negotiated revisions to the payment schedule are not allowed. For contracts for with more than $250,000 of remaining guaranteed salary, the guaranteed salary for the remaining seasons2 is "stretched" and paid in equal amounts over a greater time span, as follows:
* If the player is waived from July 1 to August 31, then his remaining salary is paid over twice the number of years remaining on his contract, plus one. For example, if the player is waived on August 1 with two seasons remaining on his contract at $10.2 million and $10.3 million, respectively, then his remaining salary is paid over five years (two seasons times two, plus one), in even amounts of $4.1 million per year.
* If the player is waived from September 1 to June 30, then the current season is paid per the normal payment schedule, and any remaining years are stretched over twice the number of years remaining plus one as described above. For example, if the player is waived on December 1 with two seasons remaining on his contract at $10.2 million and $10.5 million, respectively, then the current season (at $10.2 million) is paid normally, and the final season (at $10.5 million) is stretched over three years (one season times two, plus one) and paid in even amounts of $3.5 million per year.
Alternatives to reduce the team salary such as trading down in salary and waiving any players with partial guarantees would weaken the roster.
Here is an example of what the roster would look like with trade downs in salary from the Nader, Haslem, Robinson, Nunn and Jones tier of salaries
Chris Paul + Jimmy Butler + Danilo Gallinari + Justise Winslow + Kelly Olynyk + Tyler Herro + Bam Adebayo +
KZ Okpala + rookie minimum salary + rookie minimum salary + rookie minimum salary + rookie minimum salary + rookie minimum salary + rookie minimum salary = 14 players
There is CBA compliance in regards to roster size.
Chris Paul + Jimmy Butler + Danilo Gallinari + Justise Winslow + Kelly Olynyk + Tyler Herro + Bam Adebayo +
KZ Okpala + rookie minimum salary + rookie minimum salary + rookie minimum salary + rookie minimum salary + rookie minimum salary + rookie minimum salary + Waived Salary = $138,579,047
$138,928,000 - $138,579,047 = $348,953
Those moves gets the Miami team salary underneath the hard cap.
Trading Olynyk instead of trading multiple lower salaried players would be another path to getting under the hard cap, but there could be a decent sized chunk of salary coming back unless Miami sent compensation to minimize the incoming salary.