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Houston Rockets Salary Cap Update

With July 1’s arrival, David Weiner takes a look at the Rockets’ salary cap situation as Houston delivers their free agent pitch to Dwight Howard.

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Goodbye, June. Hello, July.

It’s been an exciting few months since my last cap update. The Houston Rockets advanced to the NBA playoffs for the first time since 2009, ultimately losing to the Oklahoma City Thunder in a thrilling six-game series. Almost as importantly, the Rockets have once again grabbed the attention of a national audience, both with their play (led by budding superstar James Harden) and with their much-ballyhooed pursuit of now-unrestricted free agent Dwight Howard.

With that in mind, let’s take a look at the team’s current salary cap situation.

The Rockets’ Latest Moves
Since my last update, the Rockets have made the following roster moves:

  • Signed center Tim Ohlbrecht to a three-year non-guaranteed deal.
  • Signed guard Aaron Brooks to a two-year deal, with the second season being non-guaranteed.
  • Waived Tyler Honeycutt, electing not to “stretch” his $100,000 partial guarantee, meaning that Honeycutt will count $100,000 against the Rockets’ team salary in 2013-14.
  • Drafted Murray State guard Isaiah Canaan with the 34th pick of the 2013 NBA Draft.  As a second round pick, Canaan will not count against the Rockets’ team salary until he signs a contract.
  • Reportedly signed Tennessee State forward Robert Covington to a two-year partially guaranteed deal.  The deal is presumably at the rookie minimum ($490,180), with approximately $150,000 of that being guaranteed.
  • Declined their option on the contract of Francisco Garcia (for $6.4 million).
  • Waived Carlos Delfino ($3 million) and Brooks ($2.508 million), neither of whose contracts were guaranteed.
  • By not waiving him, fully guaranteed the whopping $926,500 salary of Chandler Parsons for the 2013-14 season.
  • Agreed in principle to trade Thomas Robinson to the Portland Trailblazers in exchange for two future second round picks and the draft rights to Kostas Papanikolaou (6-8 small forward from Greece, 48th pick of 2012 Draft) and Marko Todorovic (6-11 center from Montenegro, 45th pick of 2013 Draft)
  • Elected not to spend the remaining $2.1 million of their 2012-13 Maximum Annual Cash Limit (which represents the aggregate amount of cash that a team can include in all trades combined over the course of a season).  The Maximum Annual Cash Limit for 2013-14 will be $3.2 million.

Salary Commitments and Available Cap Room

Thomas Robinson

“Thomas, we hardly knew you.”

(All salaries courtesy of ShamSports.com.)

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Barring any further roster moves, and assuming a maximum team salary cap of $58.5 million (which is the rough estimate according to the latest league projections but will be clarified by July 10), the Houston Rockets now have just over $40.11 million in team salary committed for the 2013-14 season: Harden ($13.78 million . . . approximately – more on that here), Jeremy Lin ($8.37 million), Omer Asik ($8.37 million), Royce White ($1.72 million), Terrence Jones ($1.55 million), Donatas Motiejunas ($1.42 million), Parsons ($926,250), James Anderson ($916,099), Greg Smith ($884,293), Patrick Beverley ($788,872), Ohlbrecht ($788,872), Covington ($490,180), and Honeycutt (waived – $100,000 partial guarantee).  (Technically, Robinson’s $3.52 million salary is still on the books until the trade with Portland can be consummated on July 10, but he’s off the books for all intents and purposes.)  Add it all up, and the Rockets currently have salary cap room in the maximum amount of approximately $18.39 million.

Of course, that figure includes the non-guaranteed “league minimum-equivalent” contracts of Anderson, Smith, Beverley and Ohlbrecht, all of which can be waived to create additional cap room.  I purposely do not include Covington with the other four players here because, since his contract is partially guaranteed and his total salary is (likely) the same as an incomplete roster charge, it’s actually cheaper to include him in team salary than not to.

If you waive Anderson, Smith, Beverley and Ohlbrecht, and replace them with four (4) incomplete roster charges ($490,180 each, to bring the total number of players/cap holds on the books to a minimum of 12), it would bring the Rockets’ total available cap room up to approximately $19.8 million.

To make up the difference needed to get to “Dwight Max Room” ($20.51 million), the team could potentially waive White using the “stretch” provision, which enables teams to stretch out a waived player’s cap hit over twice the number of years remaining on the player’s contract, plus one (in White’s case, his lone remaining guaranteed year could be stretched out over three seasons).  Waiving White would net the Rockets an additional $656,140 in cap room.

While these moves would bring the Rockets’ total available cap room–according to my figures–to approximately $20.46 million in cap room (around $54,000 or so short of Dwight Max Room), it is entirely possible that my rough estimate of Harden’s salary–my one deviation from the numbers on Shamsports.com because no such number exists yet–could be off by more than $54,000, meaning that this avenue quite possibly would create Dwight Max Room.  It’s also entirely possible that Howard won’t let $54,000 determine the course of his NBA career.

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Other Cap-Clearing Alternatives
Despite that the above-referenced cap maneuvers might create Dwight Max Room, it is unlikely that the Rockets would want to part so easily with some of its good young players.  For purposes of this piece, let’s assume that the Rockets elect to waive Anderson and Ohlbrecht (each of whom could presumably be re-signed later at the same salary, although either or both of them might get claimed off waivers by another team) but decide not to waive Smith and Beverley (both of whom are tremendous value contracts and neither of whom would ever make it through waivers unclaimed).  Keeping Smith and Beverley on the books would reduce the Rockets’ cap room by $692,805

However, if White could be packaged in a trade with Smith without any salary coming back rather than being waived, the Rockets would get to approximately $20.73 million in cap room.  That’s more than enough to offer Dwight the max and would also allow the Rockets to retain Beverley.

There is also no guarantee that it will be another one or more of the young power forwards dealt.  There have been reports that the Rockets were gauging other teams’ interest in Lin (including one very speculative-sounding rumor of a trade to Detroit for a signed-and-traded Jose Calderon).  If Lin were moved with little to no salary coming back, Houston could comfortably add Howard–and probably another player–without having to trade or waive anyone else on the roster.  (For what it’s worth, I assume that the team does this for all of its players–sans Harden–and would not jump to any conclusions that the Rockets are actively looking to “dump” their starting point guard.)

There are any number of alternative means by which the Rockets can create additional cap room.

Save a Little Something for Isaiah
Howard may not be the only new addition on whom the Rockets would like to use their available cap room.  Given that Canaan likely graded out as a first round talent on the Rockets’ draft board (pure speculation on my part), it is also likely that the team would want to sign Canaan to a three- or four-year deal, similar to the contracts previously handed out to second rounders like Chase Budinger and Parsons.

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In order to sign Canaan to a contract of more than two years in length or starting at higher than the rookie minimum salary ($490,180), the Rockets would need to leave a sliver of cap space open.  For instance, in 2011, the Rockets set aside $850,000 in cap room to use on Parsons while negotiating a free agent contract with Samuel Dalembert.

Of course, if the Rockets are forced to choose between using an extra few hundred thousand dollars or so on Howard or Canaan, I’m pretty confident that Canaan would find himself playing for the rookie minimum faster than you can say “Carl Landry.”

So . . . Is That It?

Daryl Morey

After the draft, Daryl Morey was confident he could create the cap room, and he was right

Using most/all of their cap room on one free agent signing (Howard) has raised many questions from fans wanting to know how the Rockets will be able to add other quality veteran free agents for next season.  While the utilization of cap room means that the Rockets would not be able to utilize many of their salary cap exceptions, there are still other avenues to add quality players.

One new salary cap exception introduced in the 2011 CBA is a type of Mid-Level Exception commonly referred to as the “Room” Exception.  The Room Exception allows a team that has opted to use its salary cap room to exceed the salary cap by a set amount in order to add one or more players on a one- or two-year contract.  It cannot be combined with cap room to offer a free agent more money.  For the 2013-14 season, the amount of the Room Exception is $2.652 million.  It is quite possible that the Rockets will try to use the Room Exception to bring back either Garcia or Delfino or to add another quality veteran willing to take a pay cut in order to play on a championship contender.

Another avenue for adding players could be the Minimum Player Salary Exception, which allows a team to exceed the salary cap to add players for the veteran’s minimum.  Such contracts can be up to two years in length.  If a veteran of three or more NBA seasons is signed, his cap hit is only the two-year veteran’s minimum salary (for 2013-14, $884,293); and if such a player signs a one-year minimum deal, the portion of his salary over and above the two-year veteran’s minimum actually gets picked up by the league!  To the extent that the Rockets need to waive several players to create enough cap room to sign Howard, it is possible that Houston adds at least one decent veteran on a minimum salary contract.

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With a potential foundation of both Harden and Howard, the Rockets would certainly present an attractive opportunity to NBA veterans looking for a rotation spot on a winner.

Conclusion
Over the course of the past year, the Houston Rockets have quickly gone from “perennial bridesmaid” to “prime catch” in the eyes of many star players.  With an awesome (and I mean that literally) contingent–including Rockets owner Leslie Alexander, GM Daryl Morey, Executive VP Gersson Rosas, CEO Tad Brown, Harden, Parsons and Rockets legends Hakeem Olajuwon and Clyde Drexler–meeting with Howard, it is quite clear that the Rockets have become major players in how the NBA landscape will shift this summer and beyond.  With a core of high quality young players, along with plenty of cap room, Houston now presents one of the league’s best opportunities for a star player to become part of a championship contender for the next several years.

Houston Rockets

Houston a potential landing spot for Ben Simmons post-buyout?

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Ben Simmons Houston Rockets

ESPN NBA analyst Brian Windhorst said on Thursday’s NBA Trade Deadline show that Brooklyn Nets forward Ben Simmons is working on a buyout and the Houston Rockets is a potential landing spot for him.

“Cleveland and Houston are two situations for Ben Simmons,” said Windhorst.

Rockets coach Ime Udoka was an assistant coach in Philadelphia in 2019-20 when Simmons was with the Sixers, before injuries took a significant toll. In fact, Udoka, when speaking about Amen Thompson earlier this season, brought up some comparisons to Simmons.

“The skill set is there, and it’s something that’s unique with his speed, athleticism, size, passing ability, and all those things,” said Udoka of Thompson. “I coached somebody, Ben Simmons, who had similar traits… as far as size and ability to push the pace, and find guys and finish. There are some similarities there.”

Both Thompson and Simmons are known for their elite athleticism, defensive versatility, and ability to create opportunities in transition.

However, can Simmons help the Rockets today? That’s the tough question.

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Simmons has played in 33 games this season, averaging 6.2 points, 6.9 assists, 5.2 rebounds, 0.8 steals and 0.5 blocks in 25 minutes a night. He does not shoot threes (like, at all) — he has only attempted two threes in the past three seasons combined.

Ideally, he does not play in front of your young forwards of Amen, Tari Eason and Jabari Smith Jr. and on that basis alone, I think I would pass. But, Ime loves defensive dogs and he could use some extra ballhandling on the roster. You can see that there’s little in the way of offensive organization when Fred VanVleet is out.

There would be a comical full circle moment though if the Rockets did sign Ben Simmons, considering the Rockets were heavily criticized for trading James Harden in 2021 to Brooklyn instead of to Philadelphia for Simmons. The Rockets clearly made the right choice there.

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Rockets pick up another second-round pick in deal with Hawks

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Cody Zeller

The Houston Rockets are working the phones to do a little more asset management.

After acquiring a second-round pick from Boston to take on Jaden Springer’s salary, the Rockets made another similar move, absorbing the contract of Cody Zeller this season to get back a 2028 second-round pick.

Ironically, that pick is Houston’s own 2028 second-round pick that the Rockets sent to Atlanta in 2023.

The Rockets waived Springer to make roster room for Zeller. They will likely do the same with Zeller in order to make room for a buyout signing in the coming days or weeks.

It’s a small move but it’s another good one on the margins. These second-round picks add up. The two the Rockets got in the past couple of days — Boston’s 2030 second and Houston’s own 2028 second — could be eventually combined in a deal that nets the Rockets a solid role player down the line. Houston did exactly this last season when they acquired Steven Adams from Memphis.

So quick grade? Easy A. Solid asset management work by Rockets GM Rafael Stone and credit to Rockets owner Tilman Fertitta for being willing to spend millions just to get some extra seconds.

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Rockets Pick Up Jaden Springer, Second-Round Pick in Trade with Celtics

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Jaden Springer Houston Rockets

The NBA Trade Deadline is just over 24 hours away but the Houston Rockets have already made a move.

OK, it’s not that kind of move, but Rafael Stone and the front office did make a trade on the margins on Wednesday, picking up Jaden Springer and a 2030 second-round pick from Boston.

The Rockets leveraged their open roster spot and salary situation to take the contract of Springer off the hands of the Celtics, who are saving a ton in luxury tax payments by making the move. It’s smart business by the Rockets, who are doing this for a second-round pick in 2030.

Now, usually a Celtics second-round pick is not worth much, but this is five years out so it’s a quality asset as far as seconds go. In today’s NBA, these kinds of picks have grown in value as key assets for being in a position to land solid role players. With the Rockets planning on being a playoff team for the next several years, this addition could prove useful in addressing future roster needs.

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This trade framework between Houston and Boston may not be new to you. If you watched or listened to the ClutchFans Podcast on Monday, David Weiner, aka BimaThug, literally called out this exact possibility of the Rockets taking on Springer and landing a second-round pick.

As for Springer himself, this was a player I liked quite a bit in the 2021 NBA Draft and I wanted the Rockets to take him at the Josh Christopher spot. He has not quite panned out just yet. He’s got good size for a point guard (6-foot-4, 200 pounds) but is not a strong playmaker and has not been incredibly accurate as a shooter (25.0% from three).

But he does have good defensive potential. Does that get Ime Udoka’s attention at all? Possibly, but the Rockets likely will get an end-of-the-bench look at him for the rest of the season before his contract expires this offseason.

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Podcast: Doncic to Lakers, Fox to Spurs and the Trade Deadline for the Houston Rockets

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Luka Doncic Traded To Lakers, De'Aaron Fox Traded to Spurs, Rockets Trade Deadline and Impact

Luka Doncic traded to the Lakers? De’Aaron Fox traded to the Spurs?

What a crazy few days it has been, and the NBA trade deadline (Feb 6) hasn’t even arrived yet. The league is already turned upside down, so what does this mean for the Western Conference and the Houston Rockets?

Join Dave Hardisty and David Weiner on this episode of the ClutchFans Podcast as they break down:

  • The shocking Luka Doncic trade to the Lakers
  • Could the Rockets have had a legit chance at Luka?
  • How De’Aaron Fox changes San Antonio’s future
  • The Rockets owning Dallas’ 2029 first-round pick
  • What the Rockets could do at the NBA trade deadline
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The podcast premieres at 7:30am CT! Come join us!



CLUTCHFANS PODCAST: SPOTIFY | APPLE

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How the stunning Luka Doncic trade to the Lakers impacts the Houston Rockets

Dallas did the unthinkable by trading their superstar – what does this mean for Houston now and in the future?

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Luka Doncic Traded To Lakers

Late Saturday night, the Dallas Mavericks traded Luka Doncic to the Los Angeles Lakers for Anthony Davis and a 2029 first-round pick.

I know, it doesn’t seem even remotely real. This is the most shocking sports trade of my lifetime. I can’t think of one bigger nor one more unbelievable.

The Mavericks have to know something about Doncic that we don’t. It’s being reported that his poor conditioning, weight issues and looming supermax contract were the biggest factors, but this is a young phenom who is hypercompetitive. He might very well haunt Dallas for a long time.

It’s an absolutely fascinating move. So how does this impact the Houston Rockets now and in the future?

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The Rockets Couldn’t Get Luka?

The first reaction is of course, “Luka Doncic was available?!?” That leads to the inevitable question of why the Rockets didn’t get involved.

The simple answer is they didn’t know. Nobody really did — and it would not have mattered if they did.

This is a classic example of how sometimes in the NBA, it doesn’t matter how big of a treasure trove of assets you have. What matters is having the right single asset. Dallas Mavericks GM Nico Harrison wanted Anthony Davis and that was that. The Rockets, with all their youth and picks, would not have been able to compete for Luka because they couldn’t help Harrison with his goals.

At the same time, this has to be maddening for Rockets GM Rafael Stone and the Houston front office, who have tried to position themselves for just such a trade when it became available. Doncic is 25-years old and was seen as an untouchable top-5 player, a dream target, the kind of player teams fantasize about stealing — yet the Mavericks booted him out of Dallas like a bad tenant in the dead of night. No league-wide bidding war — just unceremoniously traded while 28 other teams sat clueless, never even getting a shot at the prize.

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Dallas could have had their pick of top young players and draft choices had they made this an actual competition so this trade will be questioned and second-guessed for many years to come.

Rockets Control Dallas’ 2029 first-round pick

There is a silver lining for the Rockets and that’s the control they have on Dallas’ 2029 first-round pick (unprotected).

Dallas traded that pick to Brooklyn in the deal for Kyrie Irving in 2023. Brooklyn gave control of the pick to Houston as part of the deal to get their own picks (2025, 2026) back this past summer. So the Rockets control the best two first-round picks (unprotected) out of Phoenix, Dallas and Houston’s own first in the year 2029.

In this deal, Dallas’ core got older. Irving will turn 37 in the 2028-29 season and Davis will turn 36. This is four years away so a tremendous amount can change between now and then, but on paper it is a strong positive indicator for the value of that pick.

Keep in mind, the Rockets are unlikely to actually use this draft pick — they’re more likely to trade it to strengthen their current roster. So, what actually happens to Dallas four years from now isn’t as important as how teams around the league perceive the value of that pick right now and in the near future.

This looks like a potential win for Stone, Patrick Fertitta and the Rockets front office.

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Impact on Western Conference

Both the Lakers (currently 5th seed) and Mavericks (currently 8th) are potential first-round matchups for the Rockets this postseason.

Los Angeles: The Lakers may have taken a short-term hit, but if Luka’s conditioning issues can be fixed, this trade completely revitalizes their future. Before this move, Los Angeles was still relying on a 40-year-old LeBron James with no clear path forward, especially with their draft picks already limited. Now, they’ve managed to land Doncic, who put up 33.9 points, 9.8 assists, and 9.2 rebounds per game last season at just 24 years old, in exchange for a 31-year-old Davis. That’s highway robbery.

The NBA just handed the Lakers another superstar lifeline (like Shaquille O’Neal, like Pau Gasol, like Chris “Basketball Reasons” Paul, like LeBron James, like Anthony Davis) and they took full advantage.

But right now, this is an odd fit. The Lakers have no size. More moves have to be on the way here so stay tuned on how the Rockets match up with this squad.

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Dallas: Luka had been out for over a month and the Mavericks have been slipping. Dallas says they want to focus on defense and they do get that in Davis. They went from relying on two forces on the perimeter to putting the ball in Kyrie’s hands as the leader and leveraging their size in Davis, Derrick Lively (when he returns healthy) and Daniel Gafford.

The Rockets have excellent perimeter defenders, but their lack of interior rim protection makes it tough to handle Davis and any additional size next to him. This could be a real challenge for Alperen Sengun. While Sengun offensively dominated Gafford in their last matchup, he struggled against Lively — and Davis is on a whole different level.

But can Amen Thompson, Tari Eason and Dillon Brooks take out the head of the snake in Kyrie? Three-point shooting efficiency will likely be the key against Dallas. I think this is a tougher matchup for Houston right now, but long term, I think this really helps the Rockets. We will find out soon as Houston faces the Mavericks (without Lively) this Saturday.

One last potentially positive note to close on: Texas is fertile ground for free agents. No state income tax and warm weather have always been draws for NBA players, so having young superstars like Victor Wembanyama and Luka Doncic playing for your two rivals in the state had the potential to make things problematic when recruiting players trying to win a championship. Dallas loses that draw and becomes a team with a much smaller window… and who wants to live in San Antonio over Houston?

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