Teletovic Signing Precludes Howard Trade?

[Nanogeek]

John Hollinger is claiming that if the Nets use the non-taxpayer MLE to sign Teletovic then that will preclude the Nets from trading for Howard because it will put them above the hard cap that applies to teams that use the non-taxpayer MLE. I am not sure I agree with his analysis but here's the link. Its an insider article so I can't copy its contents here.

http://insider.espn.go.com/nba/story/_/ ... d-brooklyn

[624]

There's no way we would eliminate the possibility of Howard for Teletovic. Billy's not that stupid.

[AntwanBoldin]

Yea there has to be a way.

[PetroNet]

he is wrong.... we'd have a scrubby bench... but it wouldnt be difficult at all... assuming orlando would take a package of lopez/hump/brooks/picks

Deron Williams: 17,391,300
Gerald Wallace: 8,988,764
Mirza Teletovic: 5,000,000
Reggie Evans: 1,550,387
Joe Johnson: 19,752,645
Tyshawn Taylor: 500,000
Total: 53,183,096

Sign and trade for Howard would Add: 19,261,200

Total w/ Howard: 72,444,296

would leave roughtly 1.9 million to sign players to vets min/use TPE

once we hit 74,300,000 we'd only be able to sign rookies to the minumum. our backups would look something like: Taylor, rookie, Julian wright, evans, sheldon, rookie, rookie

[SpeedyG]

From what I've read, using the non-tax MLE sets a HARD CAP at $4M over the lux tax. So, I'm assuming, hard cap means no signings, not even minimum guys.

[PetroNet]

From what I've read, using the non-tax MLE sets a HARD CAP at $4M over the lux tax. So, I'm assuming, hard cap means no signings, not even minimum guys.

correct... only rookie minimums.

that hard cap would be approx. 74.3M

[AntwanBoldin]

There has to be a way.

Get Orlando to trade us 4 scrubs, get Wallace or deron to take a cut. Something

[Lil VanGrizz]

The issue would be the not taking back Turkey with Howard. The Magic won't do it unless that happens.

[SpeedyG]

The issue would be the not taking back Turkey with Howard. The Magic won't do it unless that happens.

The issue really isn't Turk. It's whether they want to get Brook, Brooks + picks for Dwight or end up losing Dwight for possibly nothing (unless the Lakers pony up or someone deals for Dwight without an extension).

It's an extremely looooooong shot, because given Dwight's flip-flopping last season, he's going to have an impossible time trying to convince everyone that Brooklyn remains an option despite them being cap-strapped.

[DBoys]

From what I've read, using the non-tax MLE sets a HARD CAP at $4M over the lux tax. So, I'm assuming, hard cap means no signings, not even minimum guys.

correct... only rookie minimums.

that hard cap would be approx. 74.3M

Speedy is correct: not even rookie minimums are allowed. (A "hard cap" means it's a strict limit that can never be surpassed.)

Article VII Section 6 (e) (1) is where the new rule is located and says:
Team shall be permitted to use the Non-Taxpayer Mid-Level Salary Exception during a Salary Cap Year only if (i) the Team’s Team Salary at the time the Exception is used and at all times thereafter during the Salary Cap Year does not exceed the Tax Level for such Salary Cap Year plus $4 million, and (ii) at the time the Exception is used, the Team has not already used either the Taxpayer Mid-Level Salary Exception or the Mid-Level Exception for Room Teams.

Once they give 5M to Teletovic, the Nets are operating with a hard cap thereafter for the season.

[Shaheen]

This is why I didn't want the freaking Joe Johnson trade. This looks so difficult to do.

[Harper4Ferry?]

Is it possible that Wallace is getting some not likely to be earned type incentives in order to reduce his cap hit? Also, the Wallace deal is 4 years and 40 million as reported. It could end up being actually a 5 year deal with guaranteed money that is in the 5th year, right? That could lower his year 1 cap hit to like 8M(35.6 over the first 4 years, guarantee of 4.4 on a year 5 salary otherwise not guaranteed).

[Nanogeek]

I think I've spotted an error in Hollinger's math that could mean the Nets are still ok. I've emailed him and will let you know if he responds.

[N Ireland Nets]

I think I've spotted an error in Hollinger's math that could mean the Nets are still ok. I've emailed him and will let you know if he responds.

Its confusing for all fans because we really don't know the breakdown of Williams, Wallace & Teletovic's deal because for all we know Wallace could be getting a lot less in his first year.

Point is the front office's wouldn't be still in talks if it wasn't possible, I'm not sure how exactly it will work but im backing our front office not to do something as silly as signing Teletovic to the full MLE which stops any chance of getting Howard.

[fefe22]

I think I've spotted an error in Hollinger's math that could mean the Nets are still ok. I've emailed him and will let you know if he responds.

Its confusing for all fans because we really don't know the breakdown of Williams, Wallace & Teletovic's deal because for all we know Wallace could be getting a lot less in his first year.

Point is the front office's wouldn't be still in talks if it wasn't possible, I'm not sure how exactly it will work but im backing our front office not to do something as silly as signing Teletovic to the full MLE which stops any chance of getting Howard.

I agree. Those reports must be false. It happens.
I remember last summer Vince Carter's deal with Dallas was also reported to be the full MLE, but Dallas made another trade to get above the Luxury Tax Threshold, and at the end Vince recieved the mini MLE.

[TheNetsFan]

The Teletovic deal does basically kill a Howard trade for now. Had he signed for $3.09mil, there would be no issue. There's no way around the hard cap. If we traded for Dwight, then we'd have to stay under the $74mil (unless BRI went through the roof despite the lockout shortened season). With the Teletovic deal, we have a better shot at trading for Howard at the deadline, when a guy like Wallace or Teletovic can be included.

[NyCeEvO]

I think I've spotted an error in Hollinger's math that could mean the Nets are still ok. I've emailed him and will let you know if he responds.

Its confusing for all fans because we really don't know the breakdown of Williams, Wallace & Teletovic's deal because for all we know Wallace could be getting a lot less in his first year.

Point is the front office's wouldn't be still in talks if it wasn't possible, I'm not sure how exactly it will work but im backing our front office not to do something as silly as signing Teletovic to the full MLE which stops any chance of getting Howard.

I agree. Those reports must be false. It happens.
I remember last summer Vince Carter's deal with Dallas was also reported to be the full MLE, but Dallas made another trade to get above the Luxury Tax Threshold, and at the end Vince recieved the mini MLE.

Yeah, we're not even sure of the first year deal of Gerald Wallace or whether Teletovic is actually getting the full MLE.

Jeff Schwartz is the agent for D-Will, Teletovic, Tyshawn Taylor, and our 2nd round draft pick Ilkan Karaman. I'm quite positive that if the Nets arrange a deal for D12 before the moratorium period, we'll see Teletovic taking the mini-MLE.

All of these reporters were saying that the Joe Johnson deal automatically took us out of the running for D12 and a few of us knew that was utter crap. And the reporters back tracked.

Now, they're trying to say that we can't get him due to finances, when no one even knows how these deals are going to work.

The press makes money off of speculation, not waiting for the honest truth. I'm more than happy to just wait and see...

[PetroNet]

From what I've read, using the non-tax MLE sets a HARD CAP at $4M over the lux tax. So, I'm assuming, hard cap means no signings, not even minimum guys.

correct... only rookie minimums.

that hard cap would be approx. 74.3M

Speedy is correct: not even rookie minimums are allowed. (A "hard cap" means it's a strict limit that can never be surpassed.)

Article VII Section 6 (e) (1) is where the new rule is located and says:
Team shall be permitted to use the Non-Taxpayer Mid-Level Salary Exception during a Salary Cap Year only if (i) the Team’s Team Salary at the time the Exception is used and at all times thereafter during the Salary Cap Year does not exceed the Tax Level for such Salary Cap Year plus $4 million, and (ii) at the time the Exception is used, the Team has not already used either the Taxpayer Mid-Level Salary Exception or the Mid-Level Exception for Room Teams.

Once they give 5M to Teletovic, the Nets are operating with a hard cap thereafter for the season.

i dont believe that is correct. you can always give rookie minimum contracts

[SpeedyG]

I don't even think the mini-MLE still exists. I think there's the MLE and then there's the bi-annual exception which is considerably lesser (like less than $2M). No way Mirza signs for that. It might possible that Mirza signs for less than the full MLE, but right now all reports point to him getting the full.

[PetroNet]

the main point on all of this.... is that none of it has actually happened yet. until july 11, none of this is official.

dwill can take slightly less. mirza can take slightly less. wallace can take less in the first year.

were talking about a couple million. with a trade for dwight, we would be 1.9M under the hard cap, with 5 players needing to be signed. you somehow clear 3 million with those 3 guys taking less and you can sign 5 guys to vet minimums

and im positive dwill would take less, if it meant bringing in howard