Rookie wrote:Just doing a little checking and it looks like if you go iver the apron, ir 4M iver the tax threshold, the penalties get very severe and there aren't just monetary penalties but also penalties that effect ability to sign players.
Its funny that this happens a few days after we made the lopsided Camby trade. Many thought it was favor by favor, but it looks like the Rockets simply want to screw us up no matter what.
The Rockets have reportedly dropped a bombshell, greatly increasing the third-season salary in the offer sheet signed by Jeremy Lin on Friday.
Last week, it was reported that the Rockets and Lin had agreed on an offer sheet totaling approximately $19 million guaranteed over three seasons, with a team option on the fourth and final season.
The deal was increased to $25 million total over three years, with the final season now nearly $15 million. That final season could cost the Knicks as much as $45 million in luxury tax payments. It is unclear if a team option still exists for a fourth season.
Some believe Houston is now desperate for a point guard after Goran Dragic and Kyle Lowry left the Rockets this summer. But general manager Daryl Morey could still expect the Knicks to match, and he may be more concerned with driving down Lin's value as a future trade chip in New York's arsenal.
Chris Paul is eligible to hit the free-agent market next summer and a package centered around Lin, under more reasonable contract terms, could have enticed the Clippers to trade the All-Star point guard to New York. Inflating Lin's contract terms will make him less attractive to the cost-conscious Donald Sterling, keeping Paul on the path to free agency and in play for Houston as it seeks to remake its roster.
These maneuverings may set up the Rockets' longer-term strategy of acquiring Dwight Howard and keeping the All-Star center in Houston by pairing him with an elite play-maker like Paul.
The Knicks will have three days to match the deal or lose Lin to Houston. New York clearly intended to match under the offer-sheet terms originally reported.
Via Howard Beck/Twitter (New York Times)
Read more: http://basketball.realgm.com/wiretap/222306/Rockets_Sign_Lin_To_Larger_Offer_Sheet#ixzz20XiBo7LP
The owners really turned the checkers game of the off-season into chess. This is a huge mess.
The Thunder are going to get screwed. The NBA is going to turn into a few max players and everyone else getting the minimum.
Other than financial penalties, are there restrictions on taxpaying teams?
In addition to the tax payments described in question number 21, taxpaying teams have the following restrictions. Note that most of these restrictions aren't triggered unless the team would be over the "apron" -- the point $4 million above the tax level -- following a signing or trade.
Teams above the apron cannot use the Bi-Annual exception (see question number 25).
Teams above the apron have a smaller Mid-Level exception (see question number 25). Teams above the apron can offer contracts no longer than three years, while other teams can offer four. The starting salary is also lower (for example, in 2011-12 it is $3 million for teams above the apron, versus $5 million for other teams).
Taxpaying teams can acquire less salary in a simultaneous trade (see question number 81).
Starting in 2013-14, teams above the apron cannot receive a player in a sign-and-trade transaction (see question number 88).
Teams above the apron do not have the same protections under the Gilbert Arenas provision (see question number 44). Under the Arenas provision other teams can offer restricted free agents salaries starting at the Non-Taxpayer Mid-Level exception. If a team with the right of first refusal does not have Early Bird rights to the player and is over the apron, it will have only the smaller Taxpayer Mid-Level exception at its disposal, and cannot match an offer for the full Non-Taxpayer Mid-Level exception.
In addition, taxpaying teams do not receive a distribution from the leaguewide tax fund. However, they do receive a distribution from the escrow fund (see question number 22).
Clean wrote:nixluva wrote:This is not a good thing! That is gonna really hurt in terms of Luxury Tax dollars.
Why does this matter to us? Why does this matter to the Knicks? It only matters to Dolan.
It could matter a lot. There's no guarantee Dolan accepts this.
Rookie wrote:Other than financial penalties, are there restrictions on taxpaying teams?In addition to the tax payments described in question number 21, taxpaying teams have the following restrictions. Note that most of these restrictions aren't triggered unless the team would be over the "apron" -- the point $4 million above the tax level -- following a signing or trade.
Teams above the apron cannot use the Bi-Annual exception (see question number 25).
Teams above the apron have a smaller Mid-Level exception (see question number 25). Teams above the apron can offer contracts no longer than three years, while other teams can offer four. The starting salary is also lower (for example, in 2011-12 it is $3 million for teams above the apron, versus $5 million for other teams).
Taxpaying teams can acquire less salary in a simultaneous trade (see question number 81).
Starting in 2013-14, teams above the apron cannot receive a player in a sign-and-trade transaction (see question number 88).
Teams above the apron do not have the same protections under the Gilbert Arenas provision (see question number 44). Under the Arenas provision other teams can offer restricted free agents salaries starting at the Non-Taxpayer Mid-Level exception. If a team with the right of first refusal does not have Early Bird rights to the player and is over the apron, it will have only the smaller Taxpayer Mid-Level exception at its disposal, and cannot match an offer for the full Non-Taxpayer Mid-Level exception.
In addition, taxpaying teams do not receive a distribution from the leaguewide tax fund. However, they do receive a distribution from the escrow fund (see question number 22).
This changes everything. I don't care if the Rockets happen to draft the next MJ and want to trade him to us, I HOPE WE NEVER DEAL WITH THIS PATHETIC FRANCHISE AGAIN.
You KNOW the Knicks will match any offer, so this new deal is an open attempt to screw a franchise, one that happens to have been extremely (to a fault) pleasing with them. And obviously they were $@%&^@*( enough to wait until the Camby move was done so they could throw this bomb to us?
F THEM!
nixluva wrote:Clean wrote:nixluva wrote:This is not a good thing! That is gonna really hurt in terms of Luxury Tax dollars.
Why does this matter to us? Why does this matter to the Knicks? It only matters to Dolan.
It could matter a lot. There's no guarantee Dolan accepts this.
Why would he not accept it? Lin got MSG stocks to be the highest it has ever been. The money made off the stocks and merch alone already paid for Lins contract and the Luxury Tax money it will cause. MSG also made deals with Chinese Advertisers because of Lin also.
There should be a clause where the owner presented with a poison pill contract can challenge the opponent to a Thunderdome-like battle.
Kyle Lowry left the Rockets this summer
"Left," "shipped out to the wastelands of Canada for a draft pick," same difference.
Gymkata wrote:Kyle Lowry left the Rockets this summer
"Left," "shipped out to the wastelands of Canada for a draft pick," same difference.
I cant believe how hypocrites the journalists of the Sports Media really are. Every other team gets the benefit of the doubt all the time and the reports are written in their favor. Kyle Lowry left? Give me a break! Had it been the Knicks, the piece would be about how they moved every PG they had and created a mess they deserve because they are the worst franchise on the planet.
I'll let them choke on that contract..These things never work out..Riley did the same for Juwan Howard...he was the cat's meow too...Offered him insane money at the time, Washington matched it he never live up to it...Lin would have been nice to watch grow into a player with Shump, but it isn't worth it...He is no lock to be a stud...Time to move on...
crzymdups wrote:
Marc Berman @NYPost_BermanNBA source says the vigil is over. Jeremy Lin has signed Rockets offer sheet in Vegas. Told part of delay was his ESPYs appearance.
5m David Aldridge David Aldridge @daldridgetnt
Source says that Jeremy Lin has officially signed three-year, $25.1M offer sheet with the Rockets. Knicks will have three days to match.
David Aldridge @daldridgetnt
Lin will get $5M in year one, $5.225M in year two and $14.898M in year three. Rockets hoped that will discourage NY, but Knicks will match.
Morey/Houston made Lin a max offer in Year 3.
sigh. Knicks will still match, but Morey is a freaking idiot.
he really needs to be fired if Houston doesn't get Dwight.
He has run a seminar in being a horrible GM this summer so far: giving away Scola for nothing. Letting Dragic walk for nothing. Lotto pick for Lowry is a decent move... maybe. The Marcus Camby trade seemed like a useless move for them especially since they waived Jorts.
Morey is all in for Dwight, if he doesn't get D12, he should be fired IMHO.
This sounds like an owner I know... someone flew to Denver for one guy and traded everything...
holfresh wrote:I'll let them choke on that contract..These things never work out..Riley did the same for Juwan Howard...he was the cat's meow too...Offered him insane money at the time, Washington matched it he never live up to it...Lin would have been nice to watch grow into a player with Shump, but it isn't worth it...He is no lock to be a stud...Time to move on...
you ok going with kidd/pablo p instead?
I could take him or leave him at this point.
JamesLin wrote:crzymdups wrote:
Marc Berman @NYPost_BermanNBA source says the vigil is over. Jeremy Lin has signed Rockets offer sheet in Vegas. Told part of delay was his ESPYs appearance.
5m David Aldridge David Aldridge @daldridgetnt
Source says that Jeremy Lin has officially signed three-year, $25.1M offer sheet with the Rockets. Knicks will have three days to match.
David Aldridge @daldridgetnt
Lin will get $5M in year one, $5.225M in year two and $14.898M in year three. Rockets hoped that will discourage NY, but Knicks will match.
Morey/Houston made Lin a max offer in Year 3.
sigh. Knicks will still match, but Morey is a freaking idiot.
he really needs to be fired if Houston doesn't get Dwight.
He has run a seminar in being a horrible GM this summer so far: giving away Scola for nothing. Letting Dragic walk for nothing. Lotto pick for Lowry is a decent move... maybe. The Marcus Camby trade seemed like a useless move for them especially since they waived Jorts.
Morey is all in for Dwight, if he doesn't get D12, he should be fired IMHO.
This sounds like an owner I know... someone flew to Denver for one guy and traded everything...
"everything"? you mean currently un-signed FA point guard ray felton who was laughed out of portland for being out of shape? you mean enigma mozgov? you mean wilson chandler?
wilson and gallo are nice pieces... melo is starting in the olympics.
holfresh wrote:I'll let them choke on that contract..These things never work out..Riley did the same for Juwan Howard...he was the cat's meow too...Offered him insane money at the time, Washington matched it he never live up to it...Lin would have been nice to watch grow into a player with Shump, but it isn't worth it...He is no lock to be a stud...Time to move on...
Really? Just like that? What were the parameters of that Howard deal? Because this poison pill kicks in the third year alone.
Think about this: Lin's poison pill kicks in year three, a year we were already going to be over the cap. This hurts the franchise in terms of the Tax payment, which could be recovered quickly if Lin is everything we believe he is and the world keeps following his every move.
This also hurts on future deals, but we were already expecting to have almost the same team we have today in the next three years, so any exception we lose or any other that becomes less attractive may not be as important as developing a young PG with potential. It doesn't allow us to get a player through a sign and trade, so we simply have to manage out players' contracts the best way after that third year and either rebuild (many big contracts end that third year) or re-sign the players.
It hurts more now to match the offer for Lin, and for that I hope NY never deals with them again and beats the crap out of them by 90 each game we play. But fact remains we are in to win now and I think Lin is a big part of this so we have to match and accept the consequences of it.
sidsanders wrote:holfresh wrote:I'll let them choke on that contract..These things never work out..Riley did the same for Juwan Howard...he was the cat's meow too...Offered him insane money at the time, Washington matched it he never live up to it...Lin would have been nice to watch grow into a player with Shump, but it isn't worth it...He is no lock to be a stud...Time to move on...
you ok going with kidd/pablo p instead?
Not really, it's ugly anyway u look at it..But I have to think flexibility going forward is important...
And we had a lockout because...
Knicks 'unhappy' about new Rockets offer sheet to LinLAS VEGAS -- Jeremy Lin has signed a revamped Rockets offer sheet for three years and $25 million, according to a league source. All $25 million is guaranteed.
With the previous offer sheet Lin was to be guaranteed $18.5M of a four-year, $28.8M offer sheet. There is no fourth year on this deal.
The Knicks expect to receive the offer sheet soon and have 72 hours to match.
A league source said the Knicks were "unhappy'' at the change in the terms, but Houston was in its right because Lin wasn't able to sign the documents until July 11. A source said the Rockets were desperate because they've lost all their point guards and wanted to make it harder on the the Knicks.
The Knicks were originally expected to get the offer sheet two days ago but the Rockets dragged their feet amid reports the Knicks were planning to match it.
In this new deal, Lin will make $5M the first year, $5.2M in year two and the maximum $15M in year three.
In previous offer sheet Lin was to make $9.3 million in the third year. Sources said Lin was unhappy the third year was so low and his camp tried to get Houston to increase it.
The Knicks have played hardball with Lin, making him go out and seek an offer. It cost him a chance to practice with the U.S. Select Team as he withdrew July 5th to visit Houston.
Mike Woodson said this morning he hopes Lin will stop by the Knicks summer league practices to work out in the next week. Woodson said it was unfortunate he "decided not to play'' in the Select Team but understood it was because he didn't want "to get hurt'' before his contract was official.
Read more: http://www.nypost.com/p/blogs/knicksblog/lin_signs_rockets_offer_sheet_knicks_y6Y25w9GfZFq4JHYCF0yJJ#ixzz20XrbvlrQ
I really hate media (ironically work on it). This is obviously to spin the story the most controversial way.
Still, if the story on Lin's camp is truth then I don't like Lin's and his team's attitude at all. Yes, you will argue that NY made a lot of money with Linsanity, but does that warrant Lin suddenly believing he is such a star that deserves max money for a little more than 30 good games?
Give me a break!
And for all the "good faith" the Knicks had with Lin in letting him test the market, it ended up biting their behinds in a huge way. Fudge it next time! Offer him a contract and move on if he won't accept it.
Bah!
