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Cap holds + Sign-and-Trade

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Cap Holds

Cap Holds

Salary Floor 46.4
Salary Cap 58.0
Luxury Tax Line 70.3
Apron 74.3

Dwight Howard 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Immediate Extension 19.5 20.5 22.0 23.5
Free Agent Resigning With Bird Rights 19.5 20.5 22.0 23.5 25.0 26.6
Free Agent Resigning Without Bird Rights or through Sign-and-Trade
19.5 20.5 21.4 22.3 23.2
Age at Start of Season 26 27 28 29 30 31 32

What teams are eligible for Dwight sign-and-trade?

Rule 1: Receiving team can’t be above "apron" after the deal.

Rule 2: Receiving team can’t have used Taxpayer MLE for 2013-14.

Rule 3: During a sign-and-trade, free agent cap holds are excluded.

So, why would Dwight even consider a sign-and-trade?

There is only 1 reason why Dwight would do a sign-and-trade.

Example: Let’s use Dallas because Dwight wants to go there. Dallas is committed to $37.0 million (Dirk + Marion + Carter not waived + 2 other minimum wage kids).

Suppose Dallas’s cap holds are $1 million. (Incredibly small number, but calm down and hang with me). Now Dwight comes over to Mark Cuban and says I want to sign. Dallas still can’t outright sign him! Why? Because Dwight is worth $20.5 million. 37 + 1 + 20.5 = 58.5!!!!! Over cap…. Can’t do it!

As you can see in virtually any case: Dwight will HAVE to do a sign-and-trade. Of course, Dallas can gut their entire roster and sign 12 more players through veteran's minimum... but how far do you think Dallas will go with that strategy? Or do you really think Dwight is going to take additional pay cuts?

Why can’t another team do a sign-and-trade instead of Orlando?

Only one team can do a sign-and-trade. And that’s the team that Dwight finishes the season with. And that’s why the Magic have SO MUCH POWER over Dwight’s future.

So, can the Magic try to attract other stars with the sign-and-trade? We are only committed to $34 million so far...

NO!! and Yes!!

Example 1: The Magic are committed to $34 million. Why don't we just start collecting players like Chris Paul ($19.1) and Josh Smith ($16.4) through sign-and-trade. That will be $34 committed + $35 other superstars + our Bird free agents ($20.5 + ~ $10) for a grand total of $99.5. YAY! Except something's wrong. Starting in 2013-14, if a team acquires a player in a sign-and-trade, the apron becomes a hard cap! That's why the era of Super Big 3 is probably over. That is why the Lakers can't milk the system any more.

Example 2: More reasonable. Magic is committed to a cap hold of $54.5 with Dwight. Because $74.3 is the hard cap after sign-and-trade, that leaves us with $19.8 million to build the rest of the team.

Now you start fantasizing. You can basically build a team with 1 more star and a bunch of other role players. You can use the stretch savings (although I wouldn't do that). Trade J.J. Redick out of a sign-and-trade, use the small TPE left, etc.

For any questions, I will answer in here. To avoid arguments, I will try NOT to answer in comments. Sorry. Thanks for reading.

This FanPost was made by a member of the Orlando Pinstriped Post community, and is to be treated as the opinions and views of its author, not that of the blogger or blog community as a whole.

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