Hornets Summer 2016 Cap Situation

[yosemiteben]

Making a thread to pin this info to the top so it is easily accessible for reference for folks that want to spitball offseason moves. This was posted in the offseason thread but putting it here to keep it from getting buried. Use the offseason thread to discuss FAs, trades, etc., only use this thread if you have a correction to the salaries or other cap information.

2016 Committed Salaries
Kemba: $12M
MKG: $11.6M
Cody: $5.3M
Hawes: $6.3M
Frank: $2.7M
Lamb: $6.5M
Total: $44.4M
2016 salary cap: $94M

Cap Holds:
Big Al: $20.3M (eligible for Bird rights)
Batum: $19.7M (eligible for Bird rights)
Marv: $9.1M (eligible for early Bird rights)*
CLee: $10.8M (eligible for Bird rights)
Daniels: $1.2M (RFA) (eligible for Bird rights)
Hansbrough: $1M (eligible for non-Bird rights)
#22 draft pick: $1.2M
Empty Roster Spot: $543K per spot**
Total: $63.3M

Other FAs:
Lin: $2.2M player option (eligible for non-Bird rights)
Gutierrez: RFA (eligible for non-Bird rights)

Exceptions Available:
Non-TP MLE: $5.5M
$1.2M in trade exceptions


* can go $3.15M over cap to resign at $12.25M per year as long as signed to at least a 2 year deal.
** If a team has fewer than 12 roster spots accounted for by a player, an unsigned first-round draft pick, or free-agent Bird rights, then it incurs a cap hold equivalent to the rookie minimum salary ($543K).

[yosemiteben]

Renouncing Big Al's cap hold is going to be such a common theme in offseason proposals that I'm going to go ahead and post the impact of that for reference:

Expected 2016 salary cap: $92M
minus Committed Salaries ($44.4M) = $47.6M
minus Cap Holds ($63.3M) = -$15.7M
plus Big Al cap hold renounced = $4.6M in available cap space

If we retain all of our FAs using available Bird rights, other than Al, Lin, and Gutierrez, and hold on to our draft pick, we will have 12 roster spots filled, $4.6M in free cap space and the full non-TP MLE available.

Also renouncing one of Marv or Lee increases our available cap space to around $13-14M.

[spaceballer]

Correction: Hawes is getting $6,348,759 (due to the trade kicker triggered by LAC, which counts against the cap). So the $5.7M figure used above is wrong.

[HornetJail]

Very minor correction: we own the 22nd pick instead of the 21st.

[fatlever]

Can someone summarize the Marvin early bird and Lin non-bird situations from a $ point of view. I'm making myself a spreadsheet and I want to make sure I have all the money options correct.

[yosemiteben]

Can someone summarize the Marvin early bird and Lin non-bird situations from a $ point of view. I'm making myself a spreadsheet and I want to make sure I have all the money options correct.

With Marv, we can exceed the cap to sign him to a 2 year deal for not more than $12.25M per year, and his cap hold is only $9.1M. If we pay him more than $12.25M, we have to sign him with cap space.

With Lin, if he opts out of his contract, we can go over the cap to sign him to a deal that starts at $2.6M. If we want to pay him more than that, we have to sign him with cap space OR with the MLE if we are able to retain that.

[fatlever]

And the Marvin deal, if using early bird (ie any any salary between 9.1 and 12.25) is limited to two years? But we could still sign Marvin at his cap hold amount of 9.1 for more than two years, correct?

[yosemiteben]

His early Bird deal can be longer than 2, just no less than 2.

[fatlever]

His early Bird deal can be longer than 2, just no less than 2.

Ah, OK. Got it. Well in that case, doubt he goes for my suggested 4/38.8 deal.

[fatlever]

I do get a little nervous thinking about paying Marvin 12mil per season.

[BigSlam]

Can someone summarize the Marvin early bird and Lin non-bird situations from a $ point of view. I'm making myself a spreadsheet and I want to make sure I have all the money options correct.

Making a spreadsheet?

What up Sho?


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[BigSlam]

I do get a little nervous thinking about paying Marvin 12mil per season.

Makes me feel sick.

(and I LOVED Marv this year. Totally won me over).


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[fatlever]

Can someone summarize the Marvin early bird and Lin non-bird situations from a $ point of view. I'm making myself a spreadsheet and I want to make sure I have all the money options correct.

Making a spreadsheet?

What up Sho?


Sent from my iPhone using RealGM Forums

nothing fancy, just something to do some math when I plug in and/or remove players.

[fatlever]

Can someone summarize the Marvin early bird and Lin non-bird situations from a $ point of view. I'm making myself a spreadsheet and I want to make sure I have all the money options correct.

Making a spreadsheet?

What up Sho?


Sent from my iPhone using RealGM Forums

I just e-mailed it to you.

[BigSlam]

Can someone summarize the Marvin early bird and Lin non-bird situations from a $ point of view. I'm making myself a spreadsheet and I want to make sure I have all the money options correct.

Making a spreadsheet?

What up Sho?


Sent from my iPhone using RealGM Forums

I just e-mailed it to you.

NERD!!!!








(Thanks!!)


Sent from my iPhone using RealGM Forums

[Vanderbilt_Grad]

Don't the Hornets have a roughly $800K commitment to Harrison next year?

I've also seen MKG listed as having $13M each year without raises, which seems pretty Cho like to me.

[yosemiteben]

Don't the Hornets have a roughly $800K commitment to Harrison next year?

Good point. It's actually not guaranteed, but as it sits now is a cap hit.

[fatlever]

Don't the Hornets have a roughly $800K commitment to Harrison next year?

Good point. It's actually not guaranteed, but as it sits now is a cap hit.

That brings us down to 16.8 in cap space (with Lee and Al renounced). He just took 800K away from Lin. Guess we gonna have to cut that dude. Nobody takes 800K away from Lin but Lin himself.

[Mystical Apples]

Marvin's contract could be exceptionally valuable from the flexibility it provides. 4 years starting at $12 is rich but not awful given his significance on and off the court. I have doubts Cho goes the basic route though.

Cho could structure something with up to 7.5% descending annual values to compete with offer(s) going 3 years. Starting at $11 the total contract would be around $39 million over 4 years. Or the opposite route - starting lower at $9 with 7.5% raises (other teams can go 4.5%) still gets Marvin his $40 million and leaves a little extra cap space for 2017. Option 2 is a legitimate possibility if Marvin really wants to stay and the 4th year makes him financially whole.

The other possibility is renouncing Marvin's Bird Rights (or Courtney's or both) to remove a hold for a Restricted Free Agent offer sheet. If the other team matches Charlotte can reclaim their Bird Rights and proceed with Unrestricted Free Agents as planned. It would be little tricky but Marvin and Courtney are professionals - Cho cluing them beforehand would go a long way so long as he made it financially rewarding on the back end.

[HornetJail]

Don't the Hornets have a roughly $800K commitment to Harrison next year?

I've also seen MKG listed as having $13M each year without raises, which seems pretty Cho like to me.

I don't believe that's a guaranteed deal for Harrison. He can easily be cut if necessary (please)