CP3/Rockets Negotiations

[OptionZero]

Looks like the starting point for any new contract with Houston will be the maximum contract for CP3.

Woj on his latest pod (audio link)

“When the Rockets made that deal for Chris Paul, knowing they would re-sign him [once he hit free agency], they made a conscious decision that they were gonna have to live with [paying him] $46, $47 million a year salary when he’s not nearly the player anymore in his late 30s, but, ‘we’re gonna make a run at it now, we wanna win a championship now.

“We’ll deal with it [Paul’s contract] later.’ We’ll see how that plays out in their contract talks [with Paul] here in free agency. Chris Paul didn’t turn down $200 million from the Clippers because he thought that somehow the Rockets were gonna talk him into saving them luxury tax money. I don’t imagine it playing out that way.”

(Transcription from Clutch Points)

CP3 is eligible for a starting salary of $35M due to his tenure. With max raises over 5 years he will earn $265M total, including $53M in his final year, age 38.

Another team can only offer him 4 years, $157M



EDITORIAL:
Negotiations probably started under the table last year before the trade ever happened. I can't see those negotiations being a promise to take a paycut from Cp3; more likely a promise of the max from HOU. Remember, Cp3 opting in allowed houston to trade for him but also was already a paycut since his PO was less than his max

He's the head of the players association - can he really take less the the most he can get?

He helped negotiate modification of the over 36 rule to the over 38 rule, which in summary makes him eligible for the max when he previously was not.

If this is true, HOU is ****. They have a number of free agents:
Capela (RFA, gonna get a BIG raise since he was making nothing on a rookie deal as 25th pick)
Ariza
LRAMM (will get a raise bc he played for only the min)
Gerald Green (minimum last year, likely earned a raise)

I have them at $78M in guaranteed money before cap holds or re-signing the above or CP3. the cap is $101M.

Their 2018 first round pick goes to ATL.
Their two 2018 second rounders go to PHI and a collection of 4 other teams.

Their future picks beyond that are unencumbered.

Good luck Morey.

[vxmike]

That Max for CP3 will quickly be the worst contract in the NBA.

[JB2]

CBA president better not take anything less than the max

[Forte IV]

If CP wants the Rockets to be competitive the next few years he signs a front loaded deal.

[RightToCensor]

CBA president better not take anything less than the max

Or what

[Freighttrain]

Can they even sign LeBron if they max CP3? And I agree, that max contract for CP3 is going to turn out ugly.

[Effigy]

Another team can only offer him 4 years, $157M

I'd offer him 4 years, $160 million. Why bid against themselves? Literally nobody can offer him more money or a better winning situation. Plus no state income tax in Texas. He's going to what, turn that down to make less money on a worse team out of spite?

[Kurosawa0]

I could see Paul taking a bit less, but he's still going to get a big payday. Houston has to do it though. It'll suck at the end of the deal, but what's the alternative?

[RB34]

His play definitely warrants a fat payday but I can’t see him ageing gracefully, he’s just too banged up.

[Soulcatcher33]

That Max for CP3 will quickly be the worst contract in the NBA.

No, it won't. He's still got a good 3 years of all star basketball in him. He was a top 10 player in the league this past season and he's not gonna drop off from that quickly especially when you consider he doesn't rely on athleticism out there.

[CIN-C-STAR]

Sign him for 5 years and $200 million. He gets substantially more than he could anywhere else, the team pays him a salary a little more commiserate with his likely production (and if they're smart, give him tons of rest during the regular season).
Rockets can still bring back Capela, but likely have to say goodbye to Ariza unless their owner is feeling really generous. Gerald Green et al won't be back, but there might be other players in a similar situation looking to hook onto a contender to replace them. Have to be opportunistic. Morey is definitely that.
They return next season slightly worse, but maybe injury luck sides with them next season, instead of against them. They would still be legit contenders, imo, though obviously not favorites.
Like Adam Silver said, if you want parity, it would take a hard cap (and that ain't happening).

[CIN-C-STAR]

Another team can only offer him 4 years, $157M

I'd offer him 4 years, $160 million. Why bid against themselves? Literally nobody can offer him more money or a better winning situation. Plus no state income tax in Texas. He's going to what, turn that down to make less money on a worse team out of spite?

Yes, he will, if the team straight up lied to him.
It seems very, very likely the team had an understanding with him when he played for less this past season so he could join them without them blowing up the roster, that he would get his payday the next season, when the team had Bird Rights to sign him over the cap.
If that was all a smokescreen and they reneg now, you can bet his representation won't be shy about putting the team on blast about it among league circles, and that Paul wouldn't be too happy about it either.
There's always joining Lebron in LA, anyway, and as far as fallback plans go, that's a pretty good one.

[OptionZero]

Can they even sign LeBron if they max CP3? And I agree, that max contract for CP3 is going to turn out ugly.

Harden is making $30M
CP3's cap hold is $36M (roughly the same as his max)
10 roster charges @ 800k = $8M

Total = $74M

Lebron's max is $35M

Cap = $101M

So . . . if i did that right, even if HOU renounced every free agent and traded every non Harden/CP3 player for nothing back except air, they still would not be able to offer Lebron the max. This is the exact scenario the salary cap was intended to prohibit, actually (maxing out 3 dudes)

[OptionZero]

Another team can only offer him 4 years, $157M

I'd offer him 4 years, $160 million. Why bid against themselves? Literally nobody can offer him more money or a better winning situation. Plus no state income tax in Texas. He's going to what, turn that down to make less money on a worse team out of spite?

Yes, he will, if the team straight up lied to him.
It seems very, very likely the team had an understanding with him when he played for less this past season so he could join them without them blowing up the roster, that he would get his payday the next season, when the team had Bird Rights to sign him over the cap.
If that was all a smokescreen and they reneg now, you can bet his representation won't be shy about putting the team on blast about it among league circles, and that Paul wouldn't be too happy about it either.
There's always joining Lebron in LA, anyway, and as far as fallback plans go, that's a pretty good one.

CP3 opted in to a $24M player option from his LAC contract in order to get traded to HOU.

He would have been eligible for the $35M max if he opted out.

In other words, CP3 already took a $11M pay cut to go to HOU.

[CIN-C-STAR]

Can they even sign LeBron if they max CP3? And I agree, that max contract for CP3 is going to turn out ugly.

They'd probably have to gut the team -- like give up Ariza and Capela, and use future picks to send out Anderson, and more -- and then sign Lebron, and then sign Paul using his Bird Rights.
It's theoretically possible, but they wouldn't be adding Lebron to the same team, just to Harden and CP3.
Not that that's a bad thing at all, but anyone who thinks they can just sign Lebron without sacrificing much don't understand how the CBA works.
Not all teams get a $25 million spike in the cap at the perfect time to add another superstar in free agency

[CIN-C-STAR]

I'd offer him 4 years, $160 million. Why bid against themselves? Literally nobody can offer him more money or a better winning situation. Plus no state income tax in Texas. He's going to what, turn that down to make less money on a worse team out of spite?

Yes, he will, if the team straight up lied to him.
It seems very, very likely the team had an understanding with him when he played for less this past season so he could join them without them blowing up the roster, that he would get his payday the next season, when the team had Bird Rights to sign him over the cap.
If that was all a smokescreen and they reneg now, you can bet his representation won't be shy about putting the team on blast about it among league circles, and that Paul wouldn't be too happy about it either.
There's always joining Lebron in LA, anyway, and as far as fallback plans go, that's a pretty good one.

CP3 opted in to a $24M player option from his LAC contract in order to get traded to HOU.

He would have been eligible for the $35M max if he opted out.

In other words, CP3 already took a $11M pay cut to go to HOU.

Exactly. So why would he take another pay cut for them?
Especially since it's being reported (by WOJ) that it was understood that he would get paid by Houston this offseason, in part because he sacrificed financially last offseason in order to join the team?
He won't. The man will get paid, and he should.

[OptionZero]

Can they even sign LeBron if they max CP3? And I agree, that max contract for CP3 is going to turn out ugly.

They'd probably have to gut the team -- like give up Ariza and Capela, and use future picks to send out Anderson, and more -- and then sign Lebron, and then sign Paul using his Bird Rights.
It's theoretically possible, but they wouldn't be adding Lebron to the same team, just to Harden and CP3.
Not that that's a bad thing at all, but anyone who thinks they can just sign Lebron without sacrificing much don't understand how the CBA works.
Not all teams get a $25 million spike in the cap at the perfect time to add another superstar in free agency

A few posts up i did the math. I don't think its possible without CP3 and LBJ both taking pay cuts.

[OptionZero]

Also fun for Houston:
James Harden's supermax extension kicks in 2019 and he will be making $37M and more each year.

If they max out CP3, the two of them will combine for something like $70-$80M

[lakers2020]

If I were Morey I may want to GM for another team. There's not much he can do after CP3 signs. Sucks that the new ownership was left this predicament.

[Jedi32]

His team was one win away from the finals. You have to go all in when you're that close.