Yahoo sports rumor:

[bajaden]

This is a small rumor, but a rumor is a rumor. Marc Spears of Yahoo sports is reporting that the Kings are thinking of taking on salary in a trade, in which a player comes to the Kings, who absorb the salary by being under the cap (more on that later) and recieiving a draft pick as a reward for the salary cap relief to the other team.

Spears only mentions 2nd round picks. Some of which (my own research) could be as high as 32 to 38. The Hornets need serious relief. So if we have lets say, 3.8 mil in salary under the cap, and we want to fill a need at the same time, and we rid them of a player thats rumored to be on the market. Hilton Armstrong leaps to mind. Their first round pick leaps to mind as well.

My problem is that as far as I know we still have cap holds against us. To the best of my knowledge I don't think we ever gave up the rights to McCants, whose cap hold is around 8 mil. So Spears could be whistling dixie. But if I'm wrong about the holds, then it would make sense.

 

[VF21]

Every year about this time, we start to see a plethora of trade rumors. I'm convinced a lot of them are from guys who sit in front of their computers, talking on their cell phones to each other, and dreaming up rumors. They then use each other as their "NBA source" to get the ball rolling. It always reminds me of the infinite monkeys typing on infinite typewriters scenario.

 

[kpm308]

I posted this in the other thread about using our cap space to absorb salaries, but the cap holds can be renounced at any time, so no big deal there. Basically all that would mean is that you are giving up the bird rights to the players we renounce, and that shouldn't matter to us at all as I see no scenario where we will be looking to bring back Vitaly Potapenko or Corliss Williamson or any of the other guys who we have cap holds on.

The only real reason that a team keeps these cap holds around is that they can still use these players in a sign and trade, like what Dallas did with Keith Van Horn a couple years ago.

 

[Nighthawk1]

I think we actually have around $4.15 million we can absorb before lux tax.. I think its better spent elsewhere but who am I

 

[bajaden]

I think we actually have around $4.15 million we can absorb before lux tax.. I think its better spent elsewhere but who am I

If true, in some cases the player we would be taking on would be an expiring contract. The point would be for the team giving up the player is to get under the luxury tax for this year. For us it would be a wash except for the draft pick we would pick up.

Essentially if we take on an expiriring contract and pick up a draft pick there's no pain involved for us, other than absorbing whatever money is left on the contract this year. So to my mind it would have to be either a low to mid first round pick or a high second round pick to make it worth the effort.

 

[Vlade4GM]

I'd just like to see Petrie show some aggressiveness to anything draft related.

 

[kpm308]

I think that the front office will look at other options first, like moving Nocioni and bringing in a big man, but if nothing works out the 4.15 million in cap space will be a pretty big deal at the deadline if nothing works out with other deals.

Absorbing that much salary can get Miami and Houston under the lux tax level, so for instance if we took that much salary back they would save 2 million in players salary (the season is half over so they have already paid the other half to the player), 4 million in luxury tax penalties, and allow them to collect around 4.5 million in luxury tax payments, total of 10.5 million dollars. The likely case year is that the other team would send over cash to cover the players we take on. So all in all, we would be paid the money to cover the player we take on, so it would cost us nothing. The other team would save 8.5 million dollars total. Then we get whatever incentive the team is willing to give up to do this. Considering the going rate for a first rounder is 3 million dollars, and we save the team 8.5, I don't think a first rounder is out of the question at all, or possibly a prospect. The Sonics got 2 first rounders for taking on Kurt Thomas form the Suns a couple years ago, so it wouldn't be unprecedented.

 

[bajaden]

I think that the front office will look at other options first, like moving Nocioni and bringing in a big man, but if nothing works out the 4.15 million in cap space will be a pretty big deal at the deadline if nothing works out with other deals.

Absorbing that much salary can get Miami and Houston under the lux tax level, so for instance if we took that much salary back they would save 2 million in players salary (the season is half over so they have already paid the other half to the player), 4 million in luxury tax penalties, and allow them to collect around 4.5 million in luxury tax payments, total of 10.5 million dollars. The likely case year is that the other team would send over cash to cover the players we take on. So all in all, we would be paid the money to cover the player we take on, so it would cost us nothing. The other team would save 8.5 million dollars total. Then we get whatever incentive the team is willing to give up to do this. Considering the going rate for a first rounder is 3 million dollars, and we save the team 8.5, I don't think a first rounder is out of the question at all, or possibly a prospect. The Sonics got 2 first rounders for taking on Kurt Thomas form the Suns a couple years ago, so it wouldn't be unprecedented.

Yeah, its basicly a win/win for us if the deal is as advertized. We temporarily lose cap space which we reaquire at the end of the year and gain a draft pick. And your right, its been done in the past.