Posts Tagged ‘Brian Roberts’

Miami Heat Drop Below the Luxury Tax With Two Trades

February 18th, 2016 3 comments
Tweet about this on TwitterShare on FacebookEmail this to someone

The Miami Heat completed a pair of trades prior to the 3 p.m. NBA trade deadline, achieving their season-long goal of dropping below the NBA’s $84.74 million luxury tax threshold.

As a result, Heat fans will almost surely not hear the words “repeater tax” again until at least the 2020-21 season.

The Heat were $11.3 million over the luxury tax threshold only July 10th. The path to tax avoidance was long and twisted, and included five trades.

On July 27th, the Heat executed two trades, sending Shabazz Napier and $1.1 million in cash to the Orlando Magic in exchange for a 2016 top-55 protected second-round draft pick, and Zoran Dragic, $1.6 million in cash and its 2020 second-round draft pick to the Boston Celtics in exchange for a 2019 top-55 protected second-round draft pick.

On November 10th, the Heat traded Mario Chalmers and James Ennis to the Memphis Grizzlies in exchange for Beno Udrih and Jarnell Stokes.

On February 16th, the Heat traded Chris Andersen and two second-round picks (the first is Miami’s 2017 pick if it lands in the top 40 or its 2018 pick if not, and the second is Boston’s 2019 top-55 protected pick acquired in the Dragic trade) in exchange for Brian Roberts.

The Andersen trade was critical, as it set the stage for today’s accomplishment. Pat Riley and the Heat organization knew that trading the injured Andersen’s $5.0 million salary in exchange for nothing in return would be rather difficult. So, at the cost of essentially one second-round draft pick, Miami mitigated the burden for a potential trade partner by swapping his salary for the more palatable $2.9 million salary of the capable veteran backup point guard Roberts, in the process saving $6.2 million even if things didn’t play out as planned. That left the Heat just $3.5 million over the tax threshold.

The rest was rather easily predictable, if not necessary inevitable.

Earlier today, the Heat traded Jarnell Stokes along with $721,300 in cash to the New Orleans Pelicans in exchange for a 2018 top-55 protected second-round draft pick. The cash payout is enough to cover the $273,401 remaining balance on Stokes’ $845,059 salary for the season, and net the Pelicans a $447,899 profit.

Later in the day, the Heat traded the newly acquired Roberts and their 2021 second-round draft pick to the Portland Trail Blazers in exchange for $75,000 in cash. Because the Blazers had a team salary below the salary floor(1), in addition to receiving a second-round pick from Miami, Portland also saved $1.9 million by taking on the $924,657 remaining to be paid on Roberts’ $2.9 million salary.

In accomplishing their goal, the Heat utilized their full $3.4 million allotment of cash for the 2015-16 season, but traded away just one rotation player (Chalmers, and they received back a rotation player in Udrih in return) and three of their second-round draft picks. Miami has now dealt away every first and second round pick available for trade through the 2021 draft.

The result? The Heat are now $218,000 below the luxury tax threshold.  Read more…

Miami Heat Trades Chris Andersen, Adds Brian Roberts In Tax-Savings Deal

February 16th, 2016 No comments
Tweet about this on TwitterShare on FacebookEmail this to someone

The Miami Heat has traded big man Chris Andersen and two future second-round draft picks and received back point guard Brian Roberts, as part of a three-team trade that includes the Memphis Grizzlies and Charlotte Hornets.

Shooting guard Courtney Lee will go from the Grizzlies to the Hornets, with small forward P.J. Hairston heading from Charlotte to Memphis, Andersen from Miami to Memphis, and Roberts from the Hornets to the Heat.

The Grizzlies will also receive four second-round draft picks in the trade, with two coming from the Hornets (Charlotte’s 2018, and one it got from Brooklyn in 2019) and two from the Heat.

The first of the two second-round picks the Heat will surrender will be in either 2017 or 2018. If the Heat’s 2017 pick lands in the top 40 (i.e., one of the first 10 picks of the second round), it will be conveyed to the Grizzlies and the Heat’s 2018 pick will be sent to the Atlanta Hawks as part of the James Ennis trade. If the 2017 pick does not land in the top 40, it will be conveyed to the Hawks, and the Grizzlies will receive the Heat’s 2018 pick.

The second of the two second-round picks the Heat will surrender will be the 2019 pick acquired from the Boston Celtics as part of the Zoran Dragic trade. That pick, however, is of limited value. It is top-55 protected, meaning the Heat will only get it, and thus will only be obligated to convey it, if the Celtics finish the 2018-19 regular season with one of the five best records in the NBA.

The financially-motivated trade will save the Heat $6.2 million — $719,226 in payroll savings and $5.5 million in forgone luxury tax payments.

The deal leaves the Heat $3.5 million above the NBA’s $84.74 million tax threshold. At that level, Miami is facing a projected tax bill of $8.7 million.  Read more…