Last Christmas Eve, the
Houston Rockets traded
Steve Francis and a 2009 second round pick to the
Memphis Grizzlies in exchange for a conditional 2011 second round pick. I remember this trade specifically because
I totally called it.The deal was made to help Houston dodge the luxury tax. And it worked, because they did. By dumping Francis's $2,634,480 salary onto the Grizzlies, the Rockets saved themselves that much again in luxury tax savings, as well as picking up a $2,911,756 rebate from not being a luxury tax payer. The amount of money they saved was more than enough to justify giving the Grizzlies enough cash to pay Francis's remaining salary for the remainder of the season, and by returning the Grizzlies's 2009 pick to them - one which they had previous acquired in the draft night 2008 three way trade that saw Memphis move up for
Darrell Arthur - the Rockets found sufficient incentive for the Grizzlies to help them. For the Grizzlies, they were essentially given a free pick; they were given a player that they didn't want, but also enough money to pay his salary without him ever turning up, and they got a 30's pick for their troubles. All they had to do was sacrifice some cap space that they weren't going to use anyway.
(The 2011 pick is irrelevant; it is top 55 protected, and only for that season. So if Memphis pick in the bottom 25 of the NBA that year, which they will, then Houston gets nothing. The pick was only included because Memphis had to give up at least something, however arbitrary.)
(Also, the pick Houston gave to Memphis to save this $5.6 million was the #36, which Memphis then used to draft
Sam Young. Houston later bought the #32 from
Washington for $2.5 million. So in a way, they traded a player on their inactive list in exchange for moving up 4 spots and gaining $3.1 million. Not bad work.)