Posts Tagged ‘Trades’

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…

Miami Heat Trade Joel Anthony in Three-Team Deal

January 15th, 2014 No comments
Tweet about this on TwitterShare on FacebookEmail this to someone

The Miami Heat have traded center Joel Anthony to the Boston Celtics, as part of a three-team deal, in exchange for guard Toney Douglas from the Golden State Warriors.

The Heat also sent the Celtics $1 million in cash and a pair of draft picks to complete the deal: A 2016 second-round pick and a lottery protected first-round pick originally acquired from the Philadelphia 76ers that will become a pair of second-rounders in 2015 and 2016 if the Sixers fail to make the playoffs this season and next.

The trade isn’t about Joel Anthony and isn’t about Toney Douglas.

It’s also not about Greg Oden, who appears to be on the verge of moving into the Heat’s rotation, or about Andrew Bynum, and how money freed up from today’s trade might make such a signing more financially palatable.

The trade is, more than anything else, a continuing recognition that the harshest elements of the new Collective Bargaining Agreement will take its toll on how the Heat do business.

This past summer, it was the amnesty release of Mike Miller. Then it was declining to utilize the mid-level exception. Now it’s moving Anthony’s untenable contract off the books, a move, when accounting for his 2014-15 salary will save the Heat at least $20 million.  Read more…

Miami Heat 2013 Offseason Primer

July 1st, 2013 No comments
Tweet about this on TwitterShare on FacebookEmail this to someone

Over the past three offseasons, the Miami Heat has constructed, augmented and refined.

Three summers ago, it was uniting LeBron James, Chris Bosh and Mike Miller with Dwyane Wade and Udonis Haslem as a team that would reach the NBA Finals.

The following offseason, one delayed by a lockout, glue guy Shane Battier supplemented the mix to help the Heat win the 2012 NBA championship.

And last summer, Ray Allen and Rashard Lewis were added to help turn the 2012 title into a 2013 repeat.

Because of the team’s ongoing success, as well as the 2013-14 contract options of Allen, Lewis, James Jones and Mario Chalmers all leading them back for another season, there doesn’t figure to be much heavy lifting this time around.

The NBA’s free agency period officially began Monday morning at 12:01 EDT.

While teams can start negotiating immediately, most free agent signings, and all trades, cannot be officially executed until July 10, allowing the league time to compute revenues for the now-expired 2012-13 season and finalize the salary cap and luxury-tax calculations for 2013-14.

However, signings that do not rely in any way upon the specific value of the salary cap can be executed with the start of the new salary cap year on July 1. Such signings include minimum salary deals for up to two years in length.

For the Heat, still basking in a second consecutive championship, the concerns are limited, with 12 players already under guaranteed contract for next season: James, Wade, Bosh, Chalmers, Haslem, Battier, Allen, Lewis, Jones, Miller, Joel Anthony and Norris Cole. In addition, neophyte power forward Jarvis Varnado has a non-guaranteed contract in place that becomes $250,000 guaranteed if he is on the opening-night roster.

That’s 13 regular-season rosters spots potentially filled. Teams can have as many as 20 players under contract in the offseason, in addition to players involved in summer-camp and summer-league tryouts, but need to reduce to between 13 and 15 by the start of the regular season.

While virtually the entire championship core from last season has already committed to return, there is still work to be done:  Read more…