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Trading Space: Cap Room a Commodity For Rockets as Deadline Nears

For three years, the plight of the Houston Rockets was that they always came up short on reeling in the big fish. The James Harden acquisition changed all that.

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Paul Millsap

Former Rockets exec Dennis Lindsey, now Utah's GM, could be dealing Paul Millsap at the trade deadline

For three years, the plight of the Houston Rockets was that they always came up short on reeling in the big fish.

The James Harden acquisition changed all that.

The Rockets now have a young superstar and an exciting style of play, and suddenly Houston is a much more attractive NBA location. So where before there may have been some desperation, Daryl Morey and company can now afford to be patient as the primary goal in 2013 is to land, or improve their position to land, a top flight superstar to put alongside Harden.

The Rockets continue to say publicly that they’re not likely to make a major move by tomorrow’s NBA Trade Deadline. That usually means the opposite, but I’m told this time you can pretty much believe it.

Unless a major player becomes available, cap room is king in Houston right now.

The term “cap room” is used loosely to describe two different things with the Rockets, though both can be linked together. The team has just under $7 million in available cap room right now. They are also positioned to have somewhere between $12-$18 million in cap room this summer. The Rockets would like to use their current cap room without damaging their future cap room, so that’s the reason that it is likely that the Rockets make some kind of trade by tomorrow, yet it is unlikely to be a big one.

Mid-Season Cap Room

With roughly $7 million in current cap room, the Rockets are in a prime position to absorb a salary that expires at the end of the year. Having that cap room means that the Rockets don’t have to necessarily play by salary matching rules. They can take on a $7M annual contract and give almost nothing back in return.

There are teams — and the Chicago Bulls are a prime example — that have a luxury tax locomotive heading their way. Some teams, such as the Charlotte Bobcats, are simply losing money and need or want the savings. Others simply need a flexible third team trade partner to facilitate another deal.

The Rockets will be popular in all three scenarios, so this is where you cue Les Alexander for another “I want to say this without being predatory” statement. As long as they never cross the luxury tax, Les has never hesitated to spend money for picks or players to improve. This is a closing window to pick up an asset (draft picks or a young player), so it would be shocking to me if the Rockets don’t make some kind of addition this way.

In particular, Chicago’s situation seems tailor-made for the Rockets. The Bulls are almost $4M over the luxury tax line and likely need to unload Rip Hamilton, who has a partial guarantee for 2013-14, to get under the tax line. They also have a Eurostash prospect in the 6-foot-10 forward Nikola Mirotic. The Rockets have been pretty happy with their prospect bigs and Mirotic isn’t as strong a post player as Donatas Motiejunas, but he’s a much better shooter. The Rockets have gone this way a few times in the past few years — drafting Motiejunas, Sergio Llull and Furkan Aldemir, who I’m told the Rockets have been very happy with since they took him with the 53rd pick of the 2012 NBA Draft.

Offseason Cap Room

Dwight Howard and Chris Paul.

It starts with the best of the best, and the Rockets shouldn’t sacrifice a bigger opportunity for a short-term gain. Just ask the Brooklyn Nets if they now enjoy having traded Damian Lillard for Gerald Wallace.

While Paul’s name gets thrown in there, it’s really Howard that the Rockets are hoping to woo. That’s not a new trade target, but it would seem an even slimmer shot now than it was this past summer to get a superstar to leave a glamour location and iconic franchise for less money. However, with Howard’s ongoing issues in Los Angeles, his sour relationship with Kobe Bryant and the Rockets looking like they’re on the rise, the chances have gone from “LOL! Wait… you’re serious?” to “Well, maybe it’s not impossible.”

But here’s why you try: If the Rockets were able to do the incredible and sign Howard outright this summer, they would not only be a West contender with an elite scorer and two of the best post defenders on the planet, but, believe it or not, they would be in a good trade position to add a third star, which those in Oklahoma City and Miami say is all the rage these days.

This is why the Rockets can’t take themselves out of the free agent game, even if the odds are stacked against them.

Smith, Millsap and Gasol

Two interesting names that have been linked to the Rockets are Atlanta’s Josh Smith and Utah’s Paul Millsap. Both players have contracts that expire this summer, which would fit in well with Houston’s cap room plan.

But because the Hawks and Jazz are looking for a good haul for either player, it’s not likely that the Rockets would pay that price. They would lose assets and have to pony up big dough to keep that player beyond this season.

The Rockets do have a logjam at the power forward spot, and all four players — Patrick Patterson, Marcus Morris, Terrence Jones and Motiejunas — are signed beyond this season. The same applies to Royce White, though he is likely toxic on the trade market right now. That means if any of those players were traded for an expiring contract, the Rockets create cap room this summer. This is why it’s not surprising that Adrian Wojnarowski reported that the Rockets are shopping Terrence Jones for a first round pick, as such a move could create $1.5M in cap room, depending on what came back.

So I have no doubts the Rockets have made offers here, but they are likely lowball deals leveraging their cap room and the “carrot” of one of those forwards. Such a move would be a win-win for the Rockets, giving them a boost this year for a playoff run and a potential $1M-$3M savings to their summer of 2013 cap room, if they waived the incoming players’ cap holds this summer.

Would the Jazz or Hawks take one of the Rockets’ power forwards in exchange? Unlikely, as they should get better offers, and that’s why a deal here doesn’t seem the perfect fit.

As for Pau Gasol, that’s absolutely a no-go right now given his big dollar contract, but I would not be surprised to see his name surface again in Houston IF the Rockets fail to land Howard this summer or some other star in a signing or trade. Gasol would be an interesting acquisition in that he gives the Rockets a big forward alongside Omer Asik for one year, and allows them to do the cap room thing all over again in 2014, when his contract expires.

Conclusion

The two things I expect to see happen on the deadline are a move to leverage current cap room for an asset and a deal that possibly sends a power forward out, where the Rockets are a bit overstocked. It could be the same deal or multiple deals, but that’s what I think could shake out from the Rockets’ current course.

But don’t panic if Thursday comes and goes without anything significant. The Rockets are just starting to launch thanks to the Harden trade, and this trade deadline should just be a precursor to the real movement this summer.

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Armed with a bizarre fascination for Mario Elie and a deep love of the Houston Rockets, Dave Hardisty started ClutchFans in 1996 under the pen name “Clutch”.

Houston Rockets

Podcast: Houston Rockets options with the #3 pick of the 2024 NBA Draft

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Houston Rockets 2024 NBA Draft prospects Zaccharie Risacher Stephon Castle Reed Sheppard Donovan Clingan

The offseason is now underway.

The forecast looks good for the Houston Rockets, but… there’s pressure as well this offseason because there are a handful of other West teams that might have rosier futures. Ime Udoka wants to win and win big. As we are about five weeks away from the NBA Draft, what are the Rockets looking to do this summer?

David Weiner joined Dave Hardisty on the ClutchFans podcast to discuss the Rockets shockingly landing the #3 pick and their options in this draft, including Reed Sheppard, Donovan Clingan, Zaccharie Risacher, Stephon Castle, Matas Buzelis and others. They also discuss the possibility of some big game hunting in Houston.


CLUTCHFANS PODCAST: SPOTIFY | APPLE

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Podcast: Steven Adams, Mikal Bridges and Trade Possibilities for the Rockets

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Houston Rockets Trade Deadline 2024

The Houston Rockets already made one deal, acquiring center Steven Adams from Memphis for a handful of second-round picks, but we still have several days left before this Thursday’s NBA Trade Deadline.

Are more deals on the way?

Rumors of interest in Mikal Bridges have swirled, with the Rockets holding precious (and unprotected) first-round picks from Brooklyn. They also could use some help inside this season, which Adams can not provide. Shooting is always in demand.

David Weiner joined Dave Hardisty on the ClutchFans podcast to discuss the Adams trade, its impact on the Rockets in 2024-25 and beyond, the Mikal Bridges rumors, the Brooklyn picks, other trade possibilities and options for Rafael Stone moving forward. Also discussed is the play of Houston’s core 6 prospects: Amen Thompson, Cam Whitmore, Alperen Sengun, Jabari Smith Jr., Tari Eason and Jalen Green.


CLUTCHFANS PODCAST: SPOTIFY | APPLE

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Rockets trade for center Steven Adams

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Steven Adams Houston Rockets

The Rockets made a surprise trade on Thursday, sending the contract of Victor Oladipo and three second-round picks to Memphis for center Steven Adams.

The deal came together quickly and the Rockets had a small window to get it done, hence why this trade was made with a week to go until the trade deadline.

The Price

When you consider that Memphis did this for cost savings primarily and that Adams would not play for any team in the league this season, the price seemed a little high to me. The Rockets gave up the OKC second-round pick this year, which is no big loss, but they also give up the better of Brooklyn’s or Golden State’s second-round pick this season. That’s a pretty good pick (likely in the late 30’s). They also give up the better of Houston’s or OKC’s second-round pick in 2025. If things go as planned for the Rockets, that pick should be in the 45-55 range.

But they didn’t sacrifice a first-round pick, which would have been brutal, and they were not going to use all those seconds this season. So it’s just a matter of opportunity cost — who else could they have gotten for this package?

My understanding is they (particularly Ime Udoka) are very high on Adams.

The Rockets also did this move for cap purposes as well. By moving out the Oladipo contract, which was expiring, and bringing in Adams’ deal, which is signed for $12.4M next season, the window for the Rockets to put together a trade package for a star player is extended out until the 2025 trade deadline. They continue to wait to see which players, if any, shake loose here and become available. They want flexible (see: expiring) contracts that they can combine with assets and this gives them another year to be in that position.

The Trade

It’s not often that the Rockets acquire a player I had not considered beforehand but that’s the case with Steven Adams. The Rockets sorely need a big with size that provides more traditional center strengths, making Clint Capela, Robert Williams, Nick Richards or Daniel Gafford potential candidates, but Adams was overlooked for a few reasons.

First, the 30-year old big man is out for the season after knee surgery cost him the entire 2023-24 campaign, so the Rockets won’t get any benefit from this trade this season. Secondly, Adams is not your traditional center either when it comes to rim protection.

But what Adams does do, he’s really good at and he has some of the same strengths of Brook Lopez, who the Rockets tried to sign in the offseason. Adams is quite possibly the strongest guy in the league and a legitimate 6-foot-11 with a 7-foot-5 wingspan. He’s an outstanding screen-setter, something that could really benefit the likes of Fred VanVleet, Amen Thompson and Jalen Green. He was also an elite rebounder last season, finishing 6th in the league in caroms at 11.5 a game despite playing just 27.0 minutes a contest.

After watching Jonas Valanciunas absolutely bully the Rockets inside on Wednesday, it should be apparent by now to everyone that this was a pretty big need.

In 2021-22, the Memphis Grizzlies finished #2 in the West at 56-26. Their top two players in Net Rating that season were Dillon Brooks (+11.0) and Adams (+8.3), key cogs in a defense that held opponents to 108.6 points per 100 possessions. They’re both now Houston Rockets.

So this adds another trusted vet to Ime Udoka’s rotation.

The question is will the 30-year old Adams return to form after the knee injury? Adams sprained the posterior cruciate ligament in his right knee a year ago, which cost him the end of that season and the playoffs. He tried rehabbing it and it never got better, so surgery became the option just as this season was kicking off.

I like to think the Rockets did their due diligence on that, despite the short time it took for this deal to come together, but that’s unclear.

If he does bounce back, then Udoka has a big man he can turn to reliably in situational matchups or on nights when the younger bigs struggle. He wouldn’t be Boban or even Jock Landale in that scenario — he’s going to play, so the frontcourt depth in 2024-25 should be better. In the end, they got a starting-caliber center who will have no problems coming off the bench, and that’s what they were looking for.

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On the KPJ trade and future of the Rockets

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The Houston Rockets are back to being a professional NBA team once again.

The Rockets finally ended the Kevin Porter Jr. era on Tuesday, coughing up two second-round picks in order to unload his contract to the Oklahoma City Thunder, getting back the contract of Victor Oladipo and third-year forward Jeremiah Robinson-Earl. The move puts an end to a long investment and very rocky tenure with KPJ.

David Weiner joined Dave Hardisty on the ClutchFans podcast to discuss the Porter Jr. Experiment, the price paid to move him, Houston’s potential trade options moving forward, the new culture and the current state of the Rockets young core.

ClutchFans Podcast: On Apple | Spotify

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Heavy investment in Kevin Porter Jr raises serious questions about Rockets front office

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Kevin Porter Jr. Rafael Stone

Soon-to-be-ex Rockets guard Kevin Porter Jr was arrested last week for allegedly assaulting his girlfriend, resulting in a fractured neck vertebra and a deep gash above her right eye after an attack at a hotel in New York. He allegedly woke her up by punching her repeatedly, strangled her and did not stop hitting her until she ran out of the hotel room screaming for help and covered in blood.

“This is a serious domestic violence case,” said assistant Manhattan district attorney Mirah Curzer.

First and foremost, I wish the victim healing. I don’t know what to say about the nightmare she went through. She and her family will forever be impacted. As for KPJ, if this is true, he doesn’t belong on the Rockets or in the NBA at all. He belongs in jail.

Secondly, this can’t be overlooked and just swept under the rug: Why did the Houston Rockets bank on and invest so heavily in this guy?

Kevin Porter Jr. being accused of crimes of this severity should not be shocking – at all. Before he even came to the Rockets, he had a long list of serious problems. He was suspended multiple times in high school. In 2019, he had a “conduct issue” significant enough that USC suspended the 5-star recruit indefinitely. He fell to the end of the first round of the 2019 NBA Draft because of his behavior liability. He was accused of punching a woman in the face in Cleveland. He also had a gun and marijuana charge later dismissed after getting into a car crash. He went into a tirade and got into a nasty confrontation with both the Cleveland coach and GM, resulting in the Cavs severing ties immediately and dumping him to the Rockets for nothing.

You could make the argument that initially giving Porter Jr. a second chance in Houston was praiseworthy, but the Rockets experienced KPJ’s anger management and immaturity issues firsthand on several occasions.

Former Rocket Austin Rivers said this week that this isn’t the first, second or even seventh issue with Porter Jr. and that Rockets “higher-ups” confided in him that they had no idea how to handle him.

“I remember talking to guys in the Houston Rockets organization, higher-ups, [and] they were having issues then,” said Rivers. “They were like, ‘We don’t know what to do with him.’ And that’s when he just got there from Cleveland!”

Porter Jr. was routinely a nightmare for Rockets coaches to deal with. On several occasions, he confronted and cussed out members of the coaching staff, saying they didn’t have the “credentials”, per source, a reference to the fact that him playing heavy minutes at point guard was a decision they did not control.

Once at a night out, Porter Jr. had a disagreement with a DJ over music choice and he snapped, smashing the DJ’s laptop to the floor. He needed to be restrained and removed. Rockets personnel and several of Porter’s teammates witnessed the incident.

Curzer also dropped a bombshell at the arraignment in saying that Porter Jr. has a history of abusing his girlfriend, who he had only been dating since early last year, his second season with the Rockets. Curzer specifically cited an incident in which KPJ allegedly rammed his car into hers.

There were dozens of maturity issues visible on the court to anyone paying attention. He refused to check out of games. He got into an argument on the bench with assistant Lionel Hollins. On numerous occasions, he would visibly shut down when he wasn’t passed the ball. I invite you to watch this video from a game against Memphis on March 20, 2022. Just listen to the Grizzlies broadcasters, particularly starting at the 1:40 mark, talk about what they are witnessing here:



Privately, people around the league would say they were baffled by the Rockets continued fascination with Porter Jr. Nobody could understand it.

That fascination starts with Rockets general manager Rafael Stone, who by every account over the last two years was the driving force behind the investment in Porter Jr. It has been no secret. Trading for him in January 2021 was seen by some with the team as his “Harden acquisition”, code for a signature move that makes an executive’s career, much in the way landing James Harden did for Daryl Morey in 2012.

For example, former Rockets head coach Stephen Silas never considered Porter Jr. to be a point guard, per sources — playing him there was a Stone mandate because the GM believed that is where his future lied.

John Wall also told us as much publicly when he explained the phone call he got from Silas about coming off the bench. He said Silas told him “This is what the GM wants,” adding again that Silas said, “Man, you don’t deserve that. You should be the starter. This is just what they want to do.” Wall was upset because he believed KPJ should have to earn the spot.

“I have a hard time finding anybody outside of the Rockets front office that believes that Kevin Porter Jr. is a starting point guard in the NBA,” said ESPN reporter Tim MacMahon in December.

There were plenty of warning signs about KPJ to the public too.

After Porter Jr. got into a heated argument in which KPJ “physically shoved” Rockets assistant coach John Lucas and quit on the team in the middle of a game against Denver in January of 2022, leaving the arena at halftime, Sports Illustrated’s Chris Mannix famously wrote that the Rockets should “Cut Porter Jr. Waive him. Release him. Whatever. Eat what’s left of the $1.8 million he’s owed this season and the $3.2 million he’s got next and move on.” It became a source of mockery for Porter Jr’s fans, a line they would bring up after each game he hit a few threes or handed out some assists.

In February of this year, ESPN’s Jonathan Givony, one of the most connected reporters in the league, flat out warned us that he was hearing awful things about the Rockets culture and locker room. He was blunt in what the Rockets needed to do — waive Kevin Porter Jr. outright and bring in a new coach and GM.

“Just cut him. That’s it,” said Givony of Porter Jr. “And you’re sending a signal to the league that we’re going to do things differently from here on out.”

“When you talk to people around the NBA about Houston, you just don’t hear good things about their culture, about that locker room. You talk to people that are on that team, and they are like, ‘We are a mess’,” said Givony. “Do people want to work with this organization? But you can change that fairly quickly if you come in, get rid of the bad apples and you change the coaching staff, and all of a sudden, you’re Houston. It’s the third-biggest city in America. There’s a history here of you actually being good.”

Porter came to the Rockets for “free” (in exchange for a top-55 protected second-round pick, which was designed not to convey), but he proved far from it as the Rockets continued to pour investment into him. Over the last 2-3 seasons, no Rockets player got more developmental capital than Porter Jr. – not Jalen Green, not Alperen Sengun, not Jabari Smith Jr. The Fertittas paid John Wall $85+ million over two years to sit at home so the team could groom Porter Jr. to be their future point guard.

Then they doubled down. With restricted free agency on the horizon and a seemingly non-existent market for KPJ’s services, the Rockets gave Porter Jr. an extension a year sooner – a contract that was presented as a four-year, $82.5 million deal. The deal was more team-friendly than that, putting team options in it after years 1 and 3. Going from the potential disaster that was initially reported to a deal they could escape after one season felt like a “win”, but the biggest question was why they wanted him long-term at all. The unprecedented nature of a contract that size with that kind of club control clearly showed the Rockets knew there was unique and significant risk here.

After KPJ signed the extension, The Athletic’s Kelly Iko summarized the Rockets view of Porter Jr. – “As has been [their] stance for months, the Rockets have maintained the notion that Porter is a priority and is considered a huge part of their core, along with Green and Jabari Smith Jr.”

The Rockets actions to kick off the 2022-23 season showed exactly that – that he was a priority. They benched Sengun to start the season, in large part to give KPJ a “lob threat” and defender in the starting lineup. They gave him the superstar “Harden Locker”. They introduced him last in the starting lineups. They treated him as the star and empowered him to be the self-proclaimed “Head Honcho” of Clutch City.

But the extension proved unwise and foolish. Porter Jr. never even made it to the first year of it. With over $80 million on the line, he snapped again. The Rockets signed him to one of the team-friendliest deals ever and still managed to both overcommit and overpay as Stone now scrambles to attach real assets to it to get another team to take it off his books.

Is it fair to question the judgment of the Rockets front office? Absolutely and without question. Whether you look at their ability to value character, evaluate risk, scout basketball, build culture, manage assets or allocate development resources, they failed at every level here. Why didn’t they act sooner? Why did they double down? Why didn’t they hold him accountable? Why did everybody in the league see it but them?

“We value the player and the person that [Kevin Porter Jr.] is becoming and are eager to invest in him and his journey,” said Stone after rewarding him with the extension less than a year ago.

The question you have to ask yourself now is, with all they knew and witnessed about Porter Jr. both on and off the court — why were they eager at all?

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