What will our money look like if Paul walks and we get outbid for THJ?

[Wurider05]

will we have substantial money or what? I haven't figured out this cap thing yet. I will probably get it figured out the day after I finally figure out women!!

[HawkItus]

No.

 

via Peachtreehoops.com

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All salary related numbers per Basketball Insiders, the salary cap, for reference, is approximately $101,000,000 and please, for sweet love’s sake, remember that ALL scenarios discussed are purely hypothetical.

Let’s start with the guaranteed contracts that the Hawks (barring any trades) will definitely be paying next season:

 

Hawks' 2017-18 guaranteed salary (as of June 3rd 2017)

Player	Amount owed in 2017-18	Total
Dwight Howard	$23,500,000
Kent Bazemore	$16,910,113
Dennis Schröder	$15,500,000
Malcolm Delaney	$2,500,000
Taurean Prince	$2,422,560
Mike Dunleavy	$1,662,500 (of $5,175,000)
DeAndre' Bembry	$1,567,200
		$64,062,373

(As a quick note, the Hawks have until July 1st before Dunleavy’s $5,175,000 becomes fully guaranteed)

So you can see the grand total of the Hawks’ guaranteed salary in 2017-18 is $64,062,373. With the salary cap set to amount to $101,000,000, does that mean the Hawks have nearly $40 million in cap space? No, absolutely not, as the Hawks’ cap holds must now be added to the equation.

A cap hold, in case you didn’t know, basically serves as a placeholder for a team’s free agent. They exist to close loopholes in the CBA.

For example, if cap holds didn’t exist a team could use all of their cap space to sign free agents (notable or otherwise) and then re-sign their free agents — after all of the cap space has been used — using the Bird Rights (which allow you to go above the salary cap to re-sign your own free agents).

As you can imagine, this could possibly create a huge imbalance which favors larger market/title contending teams. That is why they exist.

Since there are a number of Hawks players hitting the free agency market this summer, there’s a lot of cap holds to add to this equation. Let’s go over them.

 

Very quickly, here’s how a cap hold is calculated:

Non-Bird Rights: 120% of previous salary

Early-Bird Rights: 175% of previous salary or 104.5% of average salary

Bird-Rights: 250% of previous salary for first round draft picks if below average salary, 200% of previous salary for first round picks at/above average salary, 190% of previous salary for non-first round picks below average wage and 150% of previous salary for non-first round picks above the average salary

Cap hold numbers per Basketball Insiders:

2017 Hawks cap holds

Player	Cap hold amount ($)	Total
Paul Millsap	$30,108,050
Ersan Ilyasova	$12,600,000
Thabo Sefolosha	$7,315,000
Tim Hardaway Jr.	$5,704,013
Kris Humphries	$5,200,000
Mike Muscala	$1,471,382
José Calderón	$1,471,382
		$63,869,827

So if we were to add the total that these cap holds amount to ($63,869,827) to our original figure ($64,062,373) you get $127,932,200. That’s nearly $26 million over the salary cap and at this point you can forget about cap space, now you’re in the luxury tax.

For arguments sake, let’s take out all the cap holds (including Paul Millsap’s) apart from Tim Hardaway Jr. ($5,704,013 cap hold) and Mike Muscala ($1,471,382) since it’s likely the Hawks will want to re-sign them and will need to hold onto their Bird Rights. We’ll add the total that their two cap holds amount to ($7,175,395) to the Hawks’ guaranteed salary total of $64,062,373 and we’ll get $71,237,768.

We’re almost done. Now we have to apply the roster spot charges, $815,615 per open roster spot under 12. The Hawks currently have 9 players under contract (assuming both Dunleavy and Ryan Kelly are kept/have their contracts guaranteed and Paul Millsap opts out) so the Hawks will be charged $2,446,845 for those three open roster spots under 12.

 

So we’ll add that figure to $71,237,768 and we get $73,684,613.

This figure does not include the remainder of Dunleavy’s $5,175,000 non guaranteed contract ($3,512,500), Ryan Kelly’s non guaranteed contract of $1,572,230 nor the Hawks’ 19th overall selection in the draft ($1,614,400). We’re now going to add those.

If we added these figures (as it would seem as though the Hawks plan on keeping all three) to our original figure we get $80,383,743.

So, $80,383,743 is the final figure of salary counting against the Hawks that we’re going to use today, giving the Hawks just under $21 million in cap space in this hypothetical example.

This figure — and this is very important — is only possible if:

• Paul Millsap’s, Thabo Sefolosha’s, Ersan Ilyasova’s, Kris Humphries’ and José Calderón’s cap holds are all renounced/sign for other teams. There is no other way (barring a Kent Bazemore/Dwight Howard trade to relieve salary) for the Hawks to have cap space this summer.

 

•  

Edited June 19, 2017 by HawkItus

[Guest]

1 hour ago, Wurider05 said:

will we have substantial money or what? I haven't figured out this cap thing yet. I will probably get it figured out the day after I finally figure out women!!

@Wurider05 Easy answer is we'll have about $20 mill in capspace if you count guaranteed salaries and cap charges for empty roster spots.  

However, if Sap leaves, we can generate a TPE (traded player exception) in the amount of his new contract that can be used in a trade to acquire a player. Can't be used to sign a player though.

[capstone21]

Big problem is we can't attract free agents here.  

[HawkItus]

17 minutes ago, capstone21 said:

Big problem is we can't attract free agents here.  

Uh Millsap, Howard, Thabo, Baze, JYD..........oh you mean Super Stars?  Neither can 90% of the other franchises.

[Wurider05]

We could trade for Julius Randle to replace Sap if he leaves.  He is better than any big we could get at 19. Hell we might can do a straight trade of Randle for the 19th pick since the lakers are looking for an additional 1 st round pick. If he sucks we let him walk. He is only 22 and made Bud and Co can develop his game. 

[Guest]

13 minutes ago, Wurider05 said:

We could trade for Julius Randle to replace Sap if he leaves.  He is better than any big we could get at 19. Hell we might can do a straight trade of Randle for the 19th pick since the lakers are looking for an additional 1 st round pick. If he sucks we let him walk. He is only 22 and made Bud and Co can develop his game. 

I asked about him in this thread....

 

[capstone21]

1 hour ago, HawkItus said:

Uh Millsap, Howard, Thabo, Baze, JYD..........oh you mean Super Stars?  Neither can 90% of the other franchises.

We made Sap, JYD and Baze into what they are ... we got them for very cheap ... as for Howard ... his name has been mud and his signing with us was a chance to redeem himself ...

[DJlaysitup]

D12 is shot to h#ll and everybody knows that we are just paying him off to sell some tickets.  He will likely play 48 games next year and have a few 20-20s at home. 

[BigDog90]

7 hours ago, Wurider05 said:

We could trade for Julius Randle to replace Sap if he leaves.  He is better than any big we could get at 19. Hell we might can do a straight trade of Randle for the 19th pick since the lakers are looking for an additional 1 st round pick. If he sucks we let him walk. He is only 22 and made Bud and Co can develop his game. 

Lakers want an additional lottery pick, not 19th pick.

[macdaddy]

11 hours ago, DJlaysitup said:

D12 is shot to h#ll and everybody knows that we are just paying him off to sell some tickets.  He will likely play 48 games next year and have a few 20-20s at home. 

Sell tickets to who?  Dwight's family?  I don't know anyone who's going to see the Hawks now because Dwight's on the team.  

[Bankingitbig]

17 hours ago, JayBirdHawk said:

@Wurider05 Easy answer is we'll have about $20 mill in capspace if you count guaranteed salaries and cap charges for empty roster spots.  

However, if Sap leaves, we can generate a TPE (traded player exception) in the amount of his new contract that can be used in a trade to acquire a player. Can't be used to sign a player though.

I have it at just over $30M if you only count guaranteed salaries (including #19 and #31 draft picks) and roster charges. I don't think a TPE generated from a Millsap Sign-and-Trade would be useful because we would have no cap room to sign players in free agency due to the TPE. Haven't looked at all the possible scenarios, but keeping Millsap's cap hold of $30M on the books and then a potential $30M+ TPE would take away all our salary cap room as far as I understand.

[Guest]

26 minutes ago, Bankingitbig said:

I have it at just over $30M if you only count guaranteed salaries (including #19 and #31 draft picks) and roster charges. I don't think a TPE generated from a Millsap Sign-and-Trade would be useful because we would have no cap room to sign players in free agency due to the TPE. Haven't looked at all the possible scenarios, but keeping Millsap's cap hold of $30M on the books and then a potential $30M+ TPE would take away all our salary cap room as far as I understand.

I kept it at $20 mil because i don't think we renounce every free agent, i at least left Ilyasova's caphold.

I'm saying it's an option if you can't find FAs willing to take our money, but need to facilitate a trade(s) for more than our $20 mil in capspace.