Danny Ferry looking to trade but avoid the tax

[Admin]

Good read here

http://blogs.ajc.com...-avoid-the-tax/

Atlanta Hawks: Danny Ferry looking to trade but avoid the tax

3:34 pm June 29, 2012, by Michael Cunningham

Danny Ferry didn’t make the decisions that led to the Hawks owing $61 million in salaries next season to six veteran players on a team that’s topped out in the second round of the playoffs.

But now that’s he’s Hawks GM, Ferry will have to build a roster for next season without much financial flexibility. And he will have to start doing it pretty much on the fly because the free-agent negotiating period opens Sunday, less than a week after he took the job.

“It’s a crash course, for sure,” Ferry said. “I think we want to make the best decisions possible in the short term. We want to make right decisions, whether it’s a trade, whether it’s free agency. But especially trades.”

The trade market remains the best way for the Hawks to make significant additions to the roster (which of course means they’d also have to make significant subtractions).

They continue to get a lot of calls about Josh Smith but the impetus for pursuing Pau Gasol came from Rick Sund and Ferry so far hasn’t taken that baton. Ferry hasn’t even had a chance to fully assess the roster or meet the players.

Smith has a lot of value as a talented and productive player on a reasonable contract that expires after next season. Al Horford is an attractive piece, too, because he’s an All-Star big man locked up for four years and $48 million. Good luck dealing Joe Johnson with four years and $90 million remaining on his contract.

(Aside: I’ve heard some of my blog people wonder if Ferry will be “allowed” to trade Marvin Williams. Please accept that the Hawks have tried to trade Williams for at least two years and no one is biting. That shouldn’t be hard to do since you don’t want him on your team at his salary, either.)

If the Hawks don’t make a trade, then they’ll have to find some value on the free-agent market and perhaps get some contributions from unheralded rookies.

After signing first-round draft pick John Jenkins, Atlanta will have roughly $62 million in salaries committed to seven players. If second-round pick Mike Scott makes the roster and sticks for the year, that’s another $473,604. Ferry said he hasn’t decided if he will extend a qualifying offer to Ivan Johnson; if the Hawks do so and Johnson ends up playing on that deal, add about $1 million.

That’s about $63.5 million dollars for nine players. The roster minimum is 13 and the maximum is 15.

The salary cap next season will be no less than $58 million. The luxury-tax threshold last season was $70.3 million and won’t rise significantly unless the players and league agree on a big increase in projected BRI for next season.

So, basically, the Hawks likely will have somewhere in the neighborhood of $6.5 to $9 million of room below the tax line to sign four to six players. Ferry said he’s authorized to spend into the tax but would like to avoid doing so.

“I want to build a roster that has some flexibility to it,” Ferry said. “Ownership has told me when appropriate, that when going over the tax makes sense as far as making us a better team, that is something we would be allowed to do. I want to use that judiciously, though, when you are given that opportunity to do so.

“In this new CBA, some of the challenges when being over the tax as far as trade restrictions as far as exceptions available to you going forward have changed the spending habits in the NBA. Would I think over the next few years we would go over the tax? I think there is a good chance but, again, I want to do that in a judicious manner.”

Ferry is talking about the more-punitive tax penalties that begin in 2012-13. Teams over the threshold will pay a higher tax; will have a smaller mid-level exception and no bi-annual exception; can’t take as much salary back in trades; and won’t be able to receive a player in a sign-and-trade if they are $4 million or more above the tax level.

Translation for the Hawks: Ferry can use the mid-level and bi-annual exceptions and make the Hawks tax-payers again but he’d better be sure he’s signing players that put the Hawks over the top.

“If the belief was it was going to make us a lot better, those things are on the table whether now or later in the year,” Ferry said. “The dollar amount certainly is a parameter as it relates to the tax. You’d prefer not to go over it. But right time, right trade, right thing [then] ownership, Bruce Levenson, has told me that if it’s appropriate and right and it would really make a difference we would have the ability to do so.

“I want to say with that I don’t think it’s always the right thing to go over the tax because of the rule and because of the way things operate. Most teams are never one player away. I think that’s a mistake sometimes teams make. We are going to look at opportunities and make a decision.”

The opportunities will be there for the Hawks on the trade market. There’s a sense of urgency because free agency opens in a couple days but Ferry said he plans to stay patient.

“Every player we may like, [the process] will take its own pace,” he said. “We will have some control over that but the players will have some control over that, as well. So we are going to make our calls on July 1, we are going to explore every option and hopefully we can make good decisions.

“Honestly, last year–I know I keep crediting Rick–but I thought they did a pretty nice job filling out their roster from where they were. Hopefully we can find avenues to do as well, [and] hopefully even better.”

Michael Cunningham, Hawks beat

[Joker]

Translation:We will not sign any for more than 2 million dollars and we will have at least 2-3 D-Leaguers or UDFA on the squad.Sign Thabeet, Jason Collins, and Daimen Wilkins in free agency.Squad:Teague/UDFA or D-LeaguerJoe/Jenkins/D-LeaguerMarvin/WilkinsSmith/ScottHorford/Zaza/Thabeet/Collins

[Admin]

I wouldn't be surprised if we looked at Patty Mills from the Spurs or maybe trade for Khawi Leonard if they re-sign Danny Green to a long term contract.

[Joker]

I wouldn't be surprised if we looked at Patty Mills from the Spurs or maybe trade for Khawi Leonard if they re-sign Danny Green to a long term contract.

Patty Mills is said to like NYK and a couple other teams. He will cost 2 million as well. Not to mention, Patty Mills is something like Pargo. Not a big fan. I don't like players from the Squrs system to teams like ours. Teams that don't move the ball. They generally look a lot worse for us. Edited June 29, 2012 by Joker

[MaceCase]

Did the rest of the owners wait for Gearon to go on an expedition up Kilimanjaro before hiring Ferry behind his back? I can't say I've heard a peep out of him over this time period, it's all Levenson. The title seems to be misconstrued from the article though, "trade but avoid tax" makes it sound as though they are connected but the tax issue seems to refer more to free agency in the article rather than the trade market. Waiting for Gearon to convalesce from plastic surgery in Rio cost the ASG though as Ferry admittedly claims that he hasn't had a chance to get a real handle on the roster. He mentioned only scouting 2nd round talent with the Spurs and it kind of shows with the draft and now he hasn't talked with much of the players to gauge what trade route to go or what avenue to pursue in free agency.

[Joker]

Did the rest of the owners wait for Gearon to go on an expedition up Kilimanjaro before hiring Ferry behind his back? I can't say I've heard a peep out of him over this time period, it's all Levenson. The title seems to be misconstrued from the article though, "trade but avoid tax" makes it sound as though they are connected but the tax issue seems to refer more to free agency in the article rather than the trade market. Waiting for Gearon to convalesce from plastic surgery in Rio cost the ASG though as Ferry admittedly claims that he hasn't had a chance to get a real handle on the roster. He mentioned only scouting 2nd round talent with the Spurs and it kind of shows with the draft and now he hasn't talked with much of the players to gauge what trade route to go or what avenue to pursue in free agency.

Most NBA teams aren't trying to pay the tax right now.

[MrMeltdown]

Sund Jr. in full affect. Ferry is more bad news. Horrible draft picks and the same vision

[Plainview1981]

Joe Johnson's contract. Ferry would have been smarter to take the Philly job because this team isn't doing squat until he is gone.ugh. I just wish Joe would go away.

[Diesel]

I got the feeling we will make some trades.

It's interesting to hear that Sund was after Gasol and that DFerry has yet to move on that. It tells me that there's some moves to make but Ferry is considering some deals.

The over the tax statement only applies to D-Howard... I thought you all should know that.

IN my mind, I believe that DFerry is trying to engineer a D-12 trade and then keeping Smoove on.

If that doesn't turn out, his second option may be to go with Gasol.

However, the fact that we drafted the way we did and that we didn't make many moves, I would say that Ferry feels confident about us getting D-12.

I mean, why else would we go after the best shooter in all of college basketball and pass on a tellent like Perry Jones III? Easy, because Ferry is probably trying to get Howard as an inside force and Joe, Jeff, and Jenkins as the outside shooters.

It probably means, Horf, Marvin and a first for D-12...

It's really the nicest deal that Orlando could get because those players that Houston picked up are not better than an allstar C and a first.

Ferry could adopt a now Turk position.

Or the trade could be:

Horf and Joe for D-12 and Turk...

Again, it explains the trade for the best shooter in the draft.

[MaceCase]

MC missed an opportunity to ask if amnesty was approved by the owners as well as paying the tax.

[Brotha2ThaNite]

MC missed an opportunity to ask if amnesty was approved by the owners as well as paying the tax.

I'm with you. I read that looking for that question. lol smh

[MaceCase]

The over the tax statement only applies to D-Howard... I thought you all should know that.

IN my mind, I believe that DFerry is trying to engineer a D-12 trade and then keeping Smoove on.

If that doesn't turn out, his second option may be to go with Gasol.

However, the fact that we drafted the way we did and that we didn't make many moves, I would say that Ferry feels confident about us getting D-12.

“I want to say with that I don’t think it’s always the right thing to go over the tax because of the rule and because of the way things operate. Most teams are never one player away. I think that’s a mistake sometimes teams make. We are going to look at opportunities and make a decision.”

[GameTime]

Joe Johnson has us.....

[Admin]

We aren't trading for Dwight and Orlando aren't trading him in the division... unless they know his back is going to be a long term problem.

[Brotha2ThaNite]

I got the feeling we will make some trades.

It's interesting to hear that Sund was after Gasol and that DFerry has yet to move on that. It tells me that there's some moves to make but Ferry is considering some deals.

The over the tax statement only applies to D-Howard... I thought you all should know that.

IN my mind, I believe that DFerry is trying to engineer a D-12 trade and then keeping Smoove on.

If that doesn't turn out, his second option may be to go with Gasol.

However, the fact that we drafted the way we did and that we didn't make many moves, I would say that Ferry feels confident about us getting D-12.

I mean, why else would we go after the best shooter in all of college basketball and pass on a tellent like Perry Jones III? Easy, because Ferry is probably trying to get Howard as an inside force and Joe, Jeff, and Jenkins as the outside shooters.

It probably means, Horf, Marvin and a first for D-12...

It's really the nicest deal that Orlando could get because those players that Houston picked up are not better than an allstar C and a first.

Ferry could adopt a now Turk position.

Or the trade could be:

Horf and Joe for D-12 and Turk...

Again, it explains the trade for the best shooter in the draft.

Hahahaha there you go! Jump on my bandwagon! I hope Danny boy is going for Dwight. I think the hawks have everything needed to make a deal for Dwight. Now you'll thinking like me Diesel! :-)

[ATLscrubLove]

Dwight would be the Superstar the Hawks have needed the past 20 years but Horford is my favorite player and is good for the team. Smoove would have to stay in the A so we would be flopping bad contracts. Joe for Hedos. I wish there were a way to keep Horford in the D12 scenario but I believe it would be impossible. I doubt D12 will come anyways.

[ATLHawks3]

If we land Dwight.. That would be the day.

[DrReality]

Realized something tragic about the hawks last night. Every time I feel a little hope about the team . . . They dash it against the rocks. To take away a mans hope it tragic

[NekiEcko]

But there is some hope, well some.Atleast DF is looking into every thing to get this team under the team and I believe that somebody is going to be trade this off-season but I wish we can trade Marvin and Joe away (if Rashard Lewis can be trade twice with his massive contract, so those two) but lesson learn, never give out a very big contract unless he is a superstar.

[MaceCase]

But there is some hope, well some.Atleast DF is looking into every thing to get this team under the team and I believe that somebody is going to be trade this off-season but I wish we can trade Marvin and Joe away (if Rashard Lewis can be trade twice with his massive contract, so those two) but lesson learn, never give out a very big contract unless he is a superstar.

I really hate the Shard comparison. Do people ever stop to realize that he was traded twice for worse contracts?