Updated Salary Cap Scenarios

[lilfishi22]

The Conley trade is still interesting to me even with the much lower cap space. That would shore up our PG position for at least the next couple of seasons and with Oubre resigned, that would put us over the salary cap and makes the MLE ($8.6m) available for a PF. That could be a guy like Randle, Thaddeus Young, Aminu, Portis, Kleber and MAYBE Mirotic

The MLE is projected to go up to $9.2m since the projected cap is going up to $109m. From what I've gathered the cap is going up 7% and the MLE should do the same. At least that's what I've read.

Randle I think has outplayed an MLE type contract. I think he will likely see something in the $12m range. Young would be interesting, and Aminu would be a solid veteran to have as well.

But you cannot use the MLE if you are under the cap, right? The MLE is not an option for us this summer, unless it is greater than the cap space we have. If you use the cap space, you have to renounce the MLE, and if you use the MLE, you cannot use the cap space.

But we would be with a Conley trade and a resigned Oubre at $12m+?

[Qwigglez]

The MLE is projected to go up to $9.2m since the projected cap is going up to $109m. From what I've gathered the cap is going up 7% and the MLE should do the same. At least that's what I've read.

Randle I think has outplayed an MLE type contract. I think he will likely see something in the $12m range. Young would be interesting, and Aminu would be a solid veteran to have as well.

The next two dominoes if you will are the draft and Tyler Johnson. One would think he opts in for the 19.4m large - but if he does, do they ship him to Cleveland and than waive JR Smith. Or do you make the trade with the Grizzlies for Conley.

I think Aminu and Thad Young are good candidates. Bleber would be outstanding but I think the Mavs match his offer.

I keep seeing this. WHY would Cleveland trade JR Smith for Tyler Johnson? Why wouldn't they just waive JR Smith?

This would be like them wanting to sign Tyler Johnson for $15 million or whatever It makes zero sense so I don't understand it.

Is it something that makes sense like they can't waive JR Smith but another team can?

The Bucks pick certainly isn't worth like $15 million. Am I missing something?

I've read several articles that basically said the same thing

Smith’s deal was signed in 2016, under the old Collective Bargaining Agreement. That was before the CBA changed the rules regarding how partially guaranteed contracts are handled in trades, especially when it comes to salary-matching purposes. Even though the CBA has changed, Smith’s contract was grandfathered in, which allows the Cavs to take back a high-priced salary (more than $15 million) while the other team is only on the hook for $3.8 million.

Whatever team trades for Smith can also use the stretch provision afterwards and only have to pay around $1.3m per year for 3 years. If nobody trades for JR Smith, than the Cavs have to pay him so they might as well trade him and gain an asset or two back.

[Qwigglez]

Some more stuff on JR Smith contract

We have a trade chip in JR Smith, and his contract, where we can take on some money that other teams are trying to get some cap relief from,” general manager Koby Altman said recently. “We are actually the only team in the NBA that can provide guaranteed cap relief until July 1. We can guarantee that right now and we actually had a phone call yesterday on that trade chip, so, we’re going to keep on being aggressive adding those assets because we do eventually want to consolidate and be really good at some point.”

If Smith gets waived by June 30, a team could either leave the $3.8 million on its cap for the 2019-20 season or stretch it, spreading the guaranteed money across three years at a rate of $1.29 million. Financial flexibility can’t be easily attained prior to July 1. The Cavs provide that path. In most cases, the Cavs are seeking a first-round pick. If the selection is a late first, similar to the one they received from Houston, they would ask for a young player on a rookie deal or a second draft pick in the future. It’s all about adding assets (picks and players) for this lengthy rebuild.

[bwgood77]

The next two dominoes if you will are the draft and Tyler Johnson. One would think he opts in for the 19.4m large - but if he does, do they ship him to Cleveland and than waive JR Smith. Or do you make the trade with the Grizzlies for Conley.

I think Aminu and Thad Young are good candidates. Bleber would be outstanding but I think the Mavs match his offer.

I keep seeing this. WHY would Cleveland trade JR Smith for Tyler Johnson? Why wouldn't they just waive JR Smith?

This would be like them wanting to sign Tyler Johnson for $15 million or whatever It makes zero sense so I don't understand it.

Is it something that makes sense like they can't waive JR Smith but another team can?

The Bucks pick certainly isn't worth like $15 million. Am I missing something?

I've read several articles that basically said the same thing

Smith’s deal was signed in 2016, under the old Collective Bargaining Agreement. That was before the CBA changed the rules regarding how partially guaranteed contracts are handled in trades, especially when it comes to salary-matching purposes. Even though the CBA has changed, Smith’s contract was grandfathered in, which allows the Cavs to take back a high-priced salary (more than $15 million) while the other team is only on the hook for $3.8 million.

Whatever team trades for Smith can also use the stretch provision afterwards and only have to pay around $1.3m per year for 3 years. If nobody trades for JR Smith, than the Cavs have to pay him so they might as well trade him and gain an asset or two back.

I guess they can still waive him too and only owe $3.8 but they must have plenty of cap space to absorb salaries if they want to add draft compensation.

[lilfishi22]

The next two dominoes if you will are the draft and Tyler Johnson. One would think he opts in for the 19.4m large - but if he does, do they ship him to Cleveland and than waive JR Smith. Or do you make the trade with the Grizzlies for Conley.

I think Aminu and Thad Young are good candidates. Bleber would be outstanding but I think the Mavs match his offer.

I keep seeing this. WHY would Cleveland trade JR Smith for Tyler Johnson? Why wouldn't they just waive JR Smith?

This would be like them wanting to sign Tyler Johnson for $15 million or whatever It makes zero sense so I don't understand it.

Is it something that makes sense like they can't waive JR Smith but another team can?

The Bucks pick certainly isn't worth like $15 million. Am I missing something?

I've read several articles that basically said the same thing

Smith’s deal was signed in 2016, under the old Collective Bargaining Agreement. That was before the CBA changed the rules regarding how partially guaranteed contracts are handled in trades, especially when it comes to salary-matching purposes. Even though the CBA has changed, Smith’s contract was grandfathered in, which allows the Cavs to take back a high-priced salary (more than $15 million) while the other team is only on the hook for $3.8 million.

Whatever team trades for Smith can also use the stretch provision afterwards and only have to pay around $1.3m per year for 3 years. If nobody trades for JR Smith, than the Cavs have to pay him so they might as well trade him and gain an asset or two back.

I'm opened to it in theory but I still find it hard to reconcile giving up assets to salary dump an expiring contract. Generally teams have to give up assets to gain an expiring deal. Johnson has value as a contract and on the court and the only reason I'd give up assets to salary dump him would be if we knew what the number is for Milwaukee or Brooklyn to not match Brogdan and DLO. Even then max deals both either guys is a bit ehhhhh

[Qwigglez]

I guess they can still waive him too and only owe $3.8 but they must have plenty of cap space to absorb salaries if they want to add draft compensation.

True.

For the Cavs, yes, a Smith trade would mean taking salary back. But guess what else it would mean? It would mean another first-round pick. At least, that’s one theory. Without that, there would be little reason for the Cavs to trade Smith. They could just waive him and eat the $4 million themselves.

The Boston Celtics have three first-rounders, including a lottery pick. The San Antonio Spurs have two. Neither team intends to bring in more than one rookie next season. Remember, first-round picks receive guaranteed money. The last thing a contending playoff team wants is to tie up roster spots with a bunch of developing young guys.

But the Cavs are rebuilding. They are just fine with such an arrangement. The more young players to develop, the better... Could Smith end up being the asset that brings such a return? Altman and the Cavs sure seem to think so, and based on early accounts, they just might be right."

But it sounds like they will wait until the last minute (June 30th) to decide what to do with JR Smith. It's not like any free agents are heading to Cleveland to play with an injury prone Kevin Love. So it makes sense to me that they would eat a contract to gain an asset back.