The Jeremy Pargo trade was a salary dump
July 26th, 2012

Whatever you may feel about Jeremy Pargo – personally, I’m quite shocked at how poor his rookie season was and firmly believe he could do considerably better given a faster paced team with better spacing – it is only important to know that in today’s trade featuring him, he was merely a salary. So too was D.J. Kennedy. In trading Pargo, his $1 million guaranteed 2012/13 salary and a second round pick for Kennedy (whose minimum salary of $762,195 is fully unguaranteed), Memphis does a salary dump and nothing else. Even the $1 million TPE they open up in doing so (created as Kennedy’s salary is absorbable via the minimum salary exception) is of little use, being so small. The Grizzlies are trying to dodge the tax. They did so last year, managing to dip under the threshold upon trading the redundant Sam Young to Philly, and are now threatened by it again. This, to their credit, has not stopped their spending this summer – they paid to re-sign both Darrell Arthur and Marreese Speights, giving them a strong frontcourt with good depth, and were similarly unashamed to spend what it took to upgrade their big hole at the backup point guard spot. Dodging the tax again is unlikely to happen, though. The $3,006,217 given to Arthur, $3 million to Jerryd Bayless, $4.2 million to Speights and $1,110,120 to Tony Wroten has put them back above the $70.307 million tax threshold – after today’s trade, Memphis has $73,053,277 committed to 12 players, not including the unguaranteed salary of Kennedy. It is more than likely the case that Memphis will not be able to avoid a small tax penalty this season. But if it only costs a mid-to-late second round pick to lessen that hit by $2 million, on a player […]

Posted by at 3:49 AM

Tax Payers, Trade Kickers, And Other Deadline Day Bookkeeping
February 26th, 2011

He looks happy. And why shouldn’t he. That was one of the most interesting trade deadline weeks you’ll ever see. Fourteen trades, one kind of funny near trade, 50 players traded, 3 players signed, 4 players waived, 16 draft picks traded, 1 rights to swap traded, and two absolute Stone Cold Stunners of trades that no one expected. And these weren’t trades like Sam Cassell and cash for a 2016 top 55 protected second rounder, either. These were trades that changed teams significantly, and altered the landscape of the entire NBA. (Well, except for the Marquis Daniels one.) Superstars Carmelo Anthony and Deron Williams were dispatched from teams they didn’t want to stay with. Shane Battier and Mo Williams were dispatched from teams they didn’t want to leave. Draft busts Brandan Wright and Hasheem Thabeet were shipped for minimal returns; recently drafted rookies Derrick Favors and Jordan Crawford were shipped before even completing a season. And while my T.J. Ford for Dan Gadzuric idea never got done, Gadzuric did move to the New Jersey Nets, where he can grab as many rebounds as Brook Lopez in a third of the minutes. New York and New Jersey made the two biggest moves by acquiring the two All-Stars, Williams and Anthony. The Knicks finally closed the deal on the Anthony saga, their additional acquisition of Chauncey Billups and their retention of Landry Fields keeping the price tag just about on the right of ‘acceptable.’ Meanwhile, the Nets’s genuinely staggering trade for Williams, whilst ultimately a backup plan, turned out to be better then their original plan. If their intention was to chase Melo for half a year, then give up and trade less in a deal for a better, cheaper player with less mileage on the clock, then they pulled it off […]

Posted by at 6:21 AM