MagicFan41 wrote:rcklsscognition wrote:Nets & Magic could just make separate trades to stay within the rules of the new CBA. If NJ has the capspace, they'll find a way to take on the extra salary.
What exactly do you mean by this? Can you clarify and/or give an example? They don't have any cap room anymore this year...
This is the trade:
NJ sends- Okur (10,890,000), Humphries (8,000,000), Lopez (3,076,983), Brooks (1,110,120), Mayo (5,632,636) + Picks
ORL sends- Hedo (10,600,000), Dwight (17,885,400), Duhon (3,460,000)
NJ out= $27,709,739
ORL out= $31,945,400
Difference is $4,235,661
New CBA says that..."Taxpaying teams can acquire no more than 125 percent plus $100,000 of the salaries they trade away (same as 2005 CBA). Non-taxpaying teams (based on their post-trade salary level) can acquire up to the lesser of 150 percent plus $100,000, or 100 percent plus $5 million of the salaries they trade away. The cash a team pays or receives in trade is limited to $3 million annually.
The Nets are not a taxpaying team. This trade is allowed under both instances of the new CBA rules, either 100% +5 million ($4,235,000) or 150% + $100,000 ($41,664,608).
What I mentioned about the multiple trades is that they could take advantage of that rule if necessary. Say they didn't have Mayo, so NJ is sending out only $22,077,103. They could cut that trade into 3 parts and take advantage of the rule. They could acquire 150% on each trade.
Trade 1- Hedo for Humphries- NJ out 8,000,000, in 10,600,000 (works under both rules)
Trade 2- Dwight for Okur+Lopez- NJ out $13,966,000 (100% +5 mil)
Trade 3- Duhon for Brooks+Jones- NJ our $2,353,200 (150% + 100k)
The scary thing is that the figures on the Nets work out nearly perfectly to take on Dwight Hedo and Duhon for expirings and young guys from NJ. The figures come out within a few hundred dollars.
Post trade Nets stand at ~62 million in team salary, way under the luxury tax.