gambitx777 wrote:Sluggerface wrote:gambitx777 wrote:Well, I don't see the reason why we can't cut some guys on the one year deals? Like tim, or mac, and we let go of ochefu ? we need another big? Zimmerman would be perfect! hes pretty solid and we would get him for nothing.
Luxury tax payments.
we are already in the tax dude. cutting the player and paying them the money or keeping them it don't make a difference. and honestly the cutting one dude, and adding 1 or 2 500000-1000000 contracts is really not that much of a hit to us. not only that but i highly doubt we finish the season with out trading smith/mahinmi or gortat. which will make up for that. Bro at this point eat the tax money we need some youn players up front zimmerman is a first round tallent.
We're in the tax already, yes, & that's kind of the point. If you cut player X, who has a $2m guaranteed contract, & replace him with player Y, whom you pay $1.5m, you are paying both players' salaries & $1.50 in tax per $1 of total salary over the tax level.
Practically speaking, what that means is that if you cut McCullough & sign Zimmerman for lets say $1m, you've raised your overall salary costs by $2m.
Unless of course, the new signing takes you past $5m in salary over the tax level. In that case, all your tax payments (not just the new guy) are now $1.75 per $1 over the limit. At that point, Zimmerman's $1m contract has cost you closer to $4m. At $10m over the tax level, per $ payments go up to $2.50. & continue to rise at intervals.
Hence "adding 1 or 2 500000-1000000 contracts is really not that much of a hit to us" is completely wrong, gamby. Two $10m contracts would cost the Wizards over $100m. The following year, as a repeat offender, those 2 contracts would cost us $120m.
Right now, we're at $125m for 14 players. Once we add a 15th player it'll be $126.5m. To trade Gortat & get back under the tax limit, we'd have to take back a player who makes only @$5.5m. That means our trading partner would have to be able to absorb Gortat & stay under the tax.
A trading partner like that is desirable -- lots of teams will be looking for that trading partner. The result is that trading partner is in a position of power, can pick & choose, & can cut a deal very much in its favor.
Nor are we in a position to be under the tax next year, as far as I can tell. & certainly not the following year. Not without breaking up the team.
Edit: in the above, I didn't count gamby's zeros accurately. No, a 500k or 1m contract is not that big a hit. Yet, it does threaten to increase our tax payments -- not just for the new contracts but for all the $$ over the tax limit.
As to "zimmerman is a first round talent" -- he was picked #41 in 1016, & he's been cut by two teams. I think he has potential, & he's only 21, but the higher the cost of bringing him on, the lower the attractiveness of doing it.