Posts Tagged ‘Trade Deadline’

Miami Heat Drop Below the Luxury Tax With Two Trades

February 18th, 2016 3 comments
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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 at the NBA Trade Deadline

January 21st, 2014 No comments
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The Feb. 20 N.B.A. trade deadline is now officially less than a month away.

The Miami Heat started their dealings early this season, shipping Joel Anthony to the Boston Celtics along with a million dollars and two draft picks (one second-rounder and another that was originally Philadelphia’s and will likely become a pair of second-rounders). In return, the Heat got a player from Golden State, but this deal wasn’t about Toney Douglas as much as it was about the benjamins.

Anthony, who lost his role to Chris Andersen last season and had been a reclusive presence on the court ever since, ultimately became a casualty of the Heat’s cash crunch and managing partner Micky Arison’s desire to creep closer to the luxury-tax line. He didn’t get there, not with this deal, but it did save him around $20 million, and it did eliminate one of the obstacles to reshaping the roster after this season, when LeBron James, Dwyane Wade and Chris Bosh can all opt out of their existing contracts.

Now, it’s conceivable that only Norris Cole ($2.0 million) and Udonis Haslem ($4.6 million option) will be under contract on July 1, as Arison, Pat Riley and the Heat try to retain James, Wade and Bosh, and perhaps Mario Chalmers, Ray Allen, Michael Beasley and even Greg Oden.

That’s the long-term vision.

The short-term? The trade did nothing to advance the cause. The Heat, championship material as they are currently constructed, nonetheless have various needs that have yet to be addressed.  Read more…

Why Pursue Stoudemire?

February 9th, 2010 No comments
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There are numerous reasons why it would make a great deal of strategic sense for the Heat to make a strong play for Amare Stoudemire in advance of the February 18 trade deadline.

Here’s another: It eliminates the potential for the Cavaliers to get him. Cleveland appears to be the front-runner at the moment for Stoudemire’s services at the moment; they’d have almost no chance to get him in free agency.

The free agency summer ahead is as much a chess match between competitors for LeBron James as it is anything else.

James wants Stoudemire. It makes strategic sense that if the Heat have the chance to block a deal, they should take it – particularly with the excellent cover that he’d be an excellent fit for the Heat. It wouldn’t be seen as reactionary.

If the Cavaliers land Stoudemire, James is happy. The Cavaliers become clear-cut favorites to reach the N.B.A. Finals. If they win, they become clear-cut favorites to retain both James and Stoudemire for the long-term.

Even assuming the Heat is then successful in acquiring Chris Bosh on the free agent market, could a Wade-Beasley-Bosh core truly compete with the Cavaliers of today plus Amare?

Ask yourself that question honestly. What’s it worth to you to ensure that doesn’t happen? Micheal Beasley?

2010 Free Agency: Teams on the Brink

February 5th, 2010 No comments
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The 2010 free agent class is poised to be among the best in N.B.A. history. Nearly one-third of all the teams are attempting to position themselves to maximize cap space in order to make a run at one or more of them. LeBron James, Dwyane Wade and Chris Bosh are the headliners.

There are currently just four teams competing with the Heat to produce the necessary cap space to make a serious run at them: the New Jersey Nets, New York Knicks, Chicago Bulls, and Los Angeles Clippers. With the February 18 trade deadline now less than three weeks away, each will be looking to further improve their financial flexibility.

Here’s a look at how each are currently positioned (assuming a $54 million cap):

The Nets currently have a guaranteed payroll of $22.7 million from five players (Devin Harris, Yi Jianlian, Kris Humphries, Brook Lopez, Terrence Williams, and Courtney Lee) for next season. As of now, they stand to have about $28.4 million in cap room.

While they seem poised to break the all-time N.B.A. record for futility this season, five months from now they could offer an intriguing array of talent. The Nets will have a 25% chance of getting the first overall pick in the 2010 draft. If the balls bounce favorably, they will select Kentucky point guard John Wall. Paired up with center Brook Lopez, this would figure to be a solid core. The move to Brooklyn and the promise of free-flowing cash from new owner and Russia’s richest man, Mikhail Prokhorov, might make such a proposition difficult to resist for premier free agents.

Nets at the Trade Deadline: The only long-term contract they have belongs to Harris, who has occasionally come up in trade discussions because he’s regressed so badly this season. The Nets seem a bit fed up with him, but they likely won’t look to move him until they get assurances on Wall in June. If they do, their cap space would jump to $33.1 million even with Wall. That would leave them comfortably in range for two maximum contract free agents.

The Knicks currently have a guaranteed payroll of $27.3 million from six players (Eddy Curry, Danilo Gallinari, Wilson Chandler, Toney Douglas, Jared Jeffries, and Jordan Hill) for next season. As of now, they stand to have about $23.8 million in cap room.

They want more. As much as they’d like to lure LeBron James, they’d love to pair him with a second maximum contract free agent. General Manager Donnie Walsh has tried all season to find a taker for Eddy Curry and his bloated $11.3 million salary, but he hasn’t been easy to move. In fact, he has one of the least desirable contracts in the league.

Knicks at the Trade Deadline: They’ll be looking to clear Jared Jefferies’ $6.9 million salary. If they do, their cap space will jump to $31.2 million. That would leave them just about $1.5 million short of their target goal. But they’d be able to bridge that gap by giving away some of their desirable youngsters. One problem for the Knicks is that even if they do get them, they’d have nobody of significance with which to pair their two new additions.

The Bulls currently have a guaranteed payroll of $37.7 million from seven players (Luol Deng, Kirk Hinrich, Derrick Rose, Joakim Noah, James Johnson, Taj Gibson, and John Salmons) for next season. As of now, they stand to have about $14.0 million in cap room.

Chicago has the best array of existing talent on minimal contracts in All Star point guard Derrick Rose and center Joakim Noah, and could therefore be a major player in free agency. While they don’t currently have enough cap room for even one maximum contract player, their situation is a bit of an illusion. Deng would figure to be a possible trade target for several teams, and would clear $11.3 million off the books. But, as one of the better defensive small forwards in the league when healthy, don’t expect such a trade until a more definitive replacement is identified in the summer.

Bulls at the Trade Deadline: They’ll be looking clear either Kirk Hinrich’s $9.0 million salary or John Salmons’ $5.8 million salary. If they do, their cap space would jump to at least $19.3 million which, when paired with a potential Deng trade later in the summer, could free up at least $30.2 million. That would leave them around $2.5 million shy of the room required for not one but two maximum contract free agents. If it’s one, they’ll target Wade. If it’s two, it could be James and Wade or Bosh. The Bulls figure to be a significant and dangerous player this summer.

The Clippers currently have a guaranteed payroll of $39.0 million from six players (Baron Davis, Chris Kaman, Blake Griffin, Eric Gordon, Al Thornton, and Sebastian Telfair). As of now, they stand to have about $13.0 million in cap room.

The Clippers, to this point, have not been seriously mentioned as a viable threat to lure James away from Cleveland in free agency. That’s despite the fact that they can offer him a promising group of potential sidekicks — led by All-Star center Chris Kaman, forward Blake Griffin and guards Eric Gordon and Baron Davis — as well as proximity to the many off-court business opportunities that only Hollywood can provide. But the reason the Clippers have not been mentioned as a serious suitor is no mystery. Owner Donald Sterling has a reputation as one of the league’s worst owners to play for, caring more about generating a profit than he does about spending what it takes to build a contender.

Clippers at the Trade Deadline: The Clippers feel they have a title-caliber starter at every position but small forward. They’ll hope to attract LeBron James. To get there, they’ll first be looking to clear the $2.8 million and $2.7 million expiring contracts of Al Thornton and Sebastian Telfair. If they do, their cap space will jump to $17.5 million. That’s more than enough for James.


Note: The Cleveland Cavaliers do not have any cap space for the summer of 2010 but they can offer LeBron James a full maximum contract by utilizing his Bird rights. They also have the assets with which to complete a sign-and-trade for a second maximum contract free agent. Thus, they cannot be discounted from any discussions revolving around the possibility of acquiring two such players. It does, however, seem unlikely because Cleveland is not widely considered a desirable free agent destination. 

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