I was going to post this in the Mozgov trade but, I'm so pissed that I started a new thread....
I guess I was naive. I thought that we didn't offer D12 a buyout because he wouldn't accept it... Now, Real GM is reporting that Dwight will accept a buyout from the Nets and become a free agent...
This is unacceptable management.
We completely fucked our cap up for next year all to save Michael $ from Luxury Tax.
This move was not made for Basketball reasons and definitely does not make us better on the court.
I agreed that D12 needed to go but, to make this trade and not buy him out is infuriating.
This was a situation that was more complex than it might appear at first glance and was impacted by 3 things in the CBA - buyout rules, taxpayer penalties to the MLE, and the repeater tax.
For arcane reasons I don't really understand the money saved in a buyout isn't taken off the teams cap accounting wise until the *end* of a season. Since Dwight has already been paid for 2017-18 this means that if he had been bought out that the team might have avoided the tax at year end of 2018-19 - ***if he cooperated by voluntarily reducing the amount owed enough*** - but that for the entire year up to that point they would have had to act like a tax paying team counting Dwight's full salary. That would mean only getting the Tax-payers MLE, not the full MLE for example - which in turn would limit them in who they could sign as free agents this summer. Trading for Mozgov avoided all that. The team is clearly under the cap CBA wise and can use the full MLE.
On top of that Dwight would have had to take a pretty big hit for the Hornets to have avoided the tax this season. Yeah, it's only Jordan's $$$, but it would have had an even bigger impact in 2019-20 if they were a tax team in this coming season. Even if the team had kept Dwight and let his salary come off the books there is a good chance that the team was going to hit the tax in 2019-20 after resigning Kemba. Taking a one year tax hit hurts but isn't nearly as bad as what happens if it's the 2nd year a team is paying the tax. The repeater tax is crazy harsh.
If the team had Kept Dwight there would have been an acrimonious negotiation as the Hornets tried to avoid the tax by getting Dwight to void as much guaranteed salary as possible. If they were not able to do that, then they probably would have had to trade someone else like Lamb for nothing just to avoid the repeater tax or getting stuck in a situation where they only had the taxpayer MLE as described above.
With the Moz trade it's pretty likely that the team will pay the tax in the season after this upcoming one if they resign Kemba - but after that tons of salary comes off the books and the tax is only a one year blip. Provided MJ is willing to pay the tax and the team takes smart advantage of the MLE this year, then the Moz trade is probably not so bad. Plus it's always possible that Moz gets stretched or another trade happens to make the books work.
And speaking of stretching here are the numbers
* Stretching Dwight this summer - 3 year hit of 7.83 mil per year
* Stretching Moz this summer - 5 year hit of 7.4 mil per year
* Stretching Moz next summer as Kemba becomes a free agent - 3 year hit of 6.17 mil per year
So stretching Moz next summer would result in the least amount of dead money overall.
Finally Moz's option next summer is a player option - so it's vaguely possible that he could decline it as well, saving the Hornets lots of trouble. I think that's *SUPER* unlikely but stranger things have happened. The longshot gamble might have been a factor in the trade as well, but IDK.