Cap Sheet, MLE, Luxury Tax and Free Agency

[TheGlyde]

Hey guys,

As we hit free agency, just an update on the cap situation, as I think we need to temper expectations as to whether the Magic can or will use the full MLE this year to make any kind of splash here. (I am operating under the exception that ownership will not want to go into the luxury tax).

Even with Mozgov off the cap, they will likely be bumping up against the tax line to fill the last 3 roster spots (depending on whether they are minimum level guys (looking at you, Jon Teske), or whether we bring back MCW, or even Ennis.

I'm a bit rusty on this kind of thing guys so let me know if I made errors. Figures taken from Basketball-Reference.

Code: Select all

Vucevic   $26,000,000
Gordon   $18,136,364
Fournier   $17,000,000
Ross   $13,500,000
Fultz   $12,288,697
Aminu   $9,720,900
Isaac   $7,362,566
Bamba   $5,969,040
Birch   $3,000,000
Anthony   $3,285,120 (estimate)
Okeke   $3,121,080 (estimate
Clark   $2,025,705 (estimate)
Total (12 players)   $121,409,472.00

The 2020-21 luxury Tax line is $132,627,000, which gives us around $11.2million to fill out 3 players.

MCW made the minimum last season of just over $2million, and I think most of us agree he played his value up above that. I am not sure what he would agree to, I value him fairly highly but lets say we somehow got him on a team friendly deal starting at say $3.2million.

This would leave only $8million under the taxline and if we used the full MLE ($9.25million) we would be in the tax (and if we used it on one free agent we would still only have 14 players on the roster).

This is why we had to waive goodbye to Wes Iwundu. He would have made at least $2million coming back, and we can probably get similar production for less elsewhere.

Given that one of the 14 players is already out for the season, and with possibilities of players testing positive for COVID during games and needing to use players from the deep bench, I don't think many teams will want to only carry 13/14 players. Hell we were needing to use Vic Law and BJ Johnson in the bubble before the playoffs started.

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TL;DR = Don't expect the Magic to use the full MLE, unless some deals are made to reduce payroll beforehand.

[Knightro]

Good breakdown.

One thing to note is that the league does prorate veteran minimum signings.

So in MCW's case if he signs for the vet min again, he'll be paid $2,320,044 as an 8th year player, but he will only count $1,620,564 against the Magic's cap books.

Saves 700K. Not a significant amount, but if they want to say under the luxury tax then every little bit counts.

[The Real Dalic]

Idk how you guys are not only able to read Cap numbers without being confused and feeling like a dumbass. . . But also good at predicting numbers or know exactly how much Cap space we have or how much a player gets under a certain contract + how much the Magic save. Don't even get me started on how stupid I feel when it comes to Cap Holds.

[MartinsIzAfraud]

Idk how you guys are not only able to read Cap numbers without being confused and feeling like a dumbass. . . But also good at predicting numbers or know exactly how much Cap space we have or how much a player gets under a certain contract + how much the Magic save. Don't even get me started on how stupid I feel when it comes to Cap Holds.

Shamsports capulator does a damn good job of lying it all out. Go visit and click Orlando on the scroll down.

[Knightro]

The other thing to note is that the Magic don't have to be under the luxury tax until the end of the season.

It's possible that they could opt to go slightly over the tax right now and still get under it via trades later in the offseason or at the trade deadline.

[basketballRob]

We should have an injury exception for Isaac, not that they need it.

Sent from my SM-G950U using RealGM mobile app

[MartinsIzAfraud]

The other thing to note is that the Magic don't have to be under the luxury tax until the end of the season.

It's possible that they could opt to go slightly over the tax right now and still get under it via trades later in the offseason or at the trade deadline.

This is what I hope they’re working on. By deadline move AG or tell Fournier pick a team and we’ll move you.

[TheGlyde]

Good breakdown.

One thing to note is that the league does prorate veteran minimum signings.

So in MCW's case if he signs for the vet min again, he'll be paid $2,320,044 as an 8th year player, but he will only count $1,620,564 against the Magic's cap books.

Saves 700K. Not a significant amount, but if they want to say under the luxury tax then every little bit counts.

Yep, just figured in MCW's specific case I didn't think we could get him for the min.

The other thing to note is that the Magic don't have to be under the luxury tax until the end of the season.

It's possible that they could opt to go slightly over the tax right now and still get under it via trades later in the offseason or at the trade deadline.

The old Houston Rockets 'See we are willing to pay the tax' swerve

Heh, but yes it is possible, particularly if they only go a couple of million over and then ship Fournier out at the deadline and only bring back $13-14million in his place.

[UnFadeable21]

Read on Twitter

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[TheGlyde]

Read on Twitter

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Still assuming that Clark will be brought back which would make it 13 players and ~8mill (Less than MLE).

Wonder how negotiations with MCW are going

[Knightro]

I believe Bacon's deal as a 4th year pro will be for $1,737,145 with the NBA picking up $116,581 of the salary.

[Knightro]

Read on Twitter

Not sure if his numbers are right, but if they are the full MLE is in play.

Just don't know if there's anyone worth giving it to out there.

[TheGlyde]

Read on Twitter

Not sure if his numbers are right, but if they are the full MLE is in play.

Just don't know if there's anyone worth giving it to out there.

Its in play if we dont bring back MCW... Clark we could maybe still squeeze in and use the full MLE.

[Knightro]

Its in play if we dont bring back MCW... Clark we could maybe still squeeze in and use the full MLE.

The bigger issue appears to be that there just isn't anyone out there who fits the Magic's current roster they could use the MLE on.

The players that could help the Magic are likely looking for more than 3/30. The players would would take the MLE aren't worth 3/30.

[SD2042]

Its in play if we dont bring back MCW... Clark we could maybe still squeeze in and use the full MLE.

The bigger issue appears to be that there just isn't anyone out there who fits the Magic's current roster they could use the MLE on.

The players that could help the Magic are likely looking for more than 3/30. The players would would take the MLE aren't worth 3/30.

Is it possible to go for a sign and trade player let's say Bogdanovic with the Kings for instance?

[jonbob17]

Its in play if we dont bring back MCW... Clark we could maybe still squeeze in and use the full MLE.

The bigger issue appears to be that there just isn't anyone out there who fits the Magic's current roster they could use the MLE on.

The players that could help the Magic are likely looking for more than 3/30. The players would would take the MLE aren't worth 3/30.

Justin Holiday at 3/18 would have made some sense

[Howard Mass]

This lays it out pretty well.

The Magic already have money tied up in Vucevic, Ross, Gordon and Aminu.

They also have Issac and Fultz hitting free agency next summer.

Given these factors and how this team is stuck between 8th seed and late lottery at the moment especially with Isaac out this season, they should not be committing long-term money to role players.

The big changes need to happen via Trade and feel The Magic will explore their options especially at The Trading Deadline.

Evan Fournier is the first name who needs to move and to me, it's not even a question as he would be better off on a contender with a strong wing next to him or as a sixth man. It was good he opted in so The Magic have a starting shooting guard but I do not feel he should be signed long-term and The Magic should take the best deal they can for him. I'd like this to happen sooner rather than later.

Aaron Gordon is someone they should monitor the Trade Market for from now until The Deadline but do not move until they find the right deal.

Terrence Ross' value will be high around The Trading Deadline. The Magic should at least listen and explore although keep in mind how much he helps this team scoring wise.

Nikola Vucevic is a wild card here. With Mo Bamba still recovering from the effects of Covid, it delays the question on Bamba being the center of the future. However, you got to ask yourself what the direction of this team will be?

Obviously, Fultz, Isaac, Okeke, Bamba, Anthony seem to be in the long-term plans.

Who else does The Magic want to have around them? This question NEEDS to be answered within the next year.

[drsd]

Good breakdown.

One thing to note is that the league does prorate veteran minimum signings.

So in MCW's case if he signs for the vet min again, he'll be paid $2,320,044 as an 8th year player, but he will only count $1,620,564 against the Magic's cap books.

Saves 700K. Not a significant amount, but if they want to say under the luxury tax then every little bit counts.

Critically these must be one-year deals. A min. contract on a multi-year deal counts in full towards the cap.


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[drsd]

I believe Bacon's deal as a 4th year pro will be for $1,737,145 with the NBA picking up $116,581 of the salary.

It is reported to have a team option for year two; which should mean it has a full cap hit.

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[drsd]

Evan Fournier is the first name who needs to move and to me, ....

If Fournier is traded, it would be good if the package was ~10% less than his salary so that the Magic has funds to find a quality 3rd-string PG (for example Carter-Williams on a two-year 6M deal).

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