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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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10 years ago

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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.)

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.

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.

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.

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.

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Mike D’Antoni: The Rockets isolation offense wasn’t pretty, but it was effective

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5 months ago

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October 28, 2022

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Mike D'Antoni Houston Rockets

Former Rockets coach Mike D’Antoni made an appearance on the Thinking Basketball podcast to discuss his career, and he went into his stretch with the Houston Rockets (2016-2020).

One of the big topics discussed was the isolation sets that the Rockets ran often and why they did it.

“If that one-on-one was not efficient, we wouldn’t do it,” said D’Antoni. “But it was doing, if I’m not mistaken, 1.2-something (points per possession) ridiculous. 1.16, for a long time, was the standard of the best offense an NBA team had. We kind of blew that out of the water a little bit (at) 1.20, but our isolation game was like 1.25, 1.24, so it was like — why wouldn’t we isolate?”

The former Rockets coach admitted it was not the most pleasing offense to the eye.

“People don’t like it,” said D’Antoni. “Aesthetically it’s not good. I don’t love it. I would rather pass the ball around. And if I had a team that didn’t have James Harden, guess what? We’d be passing the ball around… It wasn’t pretty. People can complain. But when you have the most efficient offense in NBA history, or close to it, why wouldn’t you do it? Just because you want to look pretty?”

D’Antoni talked about how good the Rockets second units were in the 2017-18 season because of Chris Paul, citing how often the Rockets boosted their lead or turned a deficit into an advantage when they turned to the bench.

“Chris was just a maestro at running our offense, and doing it a little bit (Steve) Nash-like,” said D’Antoni. “Harden had to do it like Harden did it, but both of them were good. Both of them were perfect.”

D’Antoni said part of the reason for the iso sets was he wanted to maximize James Harden and make him “the best player he can possibly be.”

“James is one of the smartest players — and there are a bunch of them — that I ever coached,” said D’Antoni. “I thought probably two or three years there, he had a complete mastery of the game. He went over 50 I don’t know how many times in a row. We were banged up one night and I said, ‘James, you might have to get 50 tonight for us to even have a chance to win.’ He gets 60 and we win. Stuff like that. He was able to do stuff (that)… just a mastery of the game.”

On how close the Rockets were to winning a title, said D’Antoni, “I thought we had it, the third year until Chris went down. Maybe not. Who knows, because Golden State had hearts of champions. Those guys are hard to beat. But I thought we had a good chance at it, that’s for sure.”

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Why Alperen Sengun will come off the bench

With Bruno Fernando expected to start, here’s the plan for the Rockets second-year center

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5 months ago

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October 19, 2022

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Alperen Sengun Houston Rockets

When the Rockets traded Christian Wood, it was crystal clear that Alperen Şengün was the new starting center for the Houston Rockets.

As we’re on the cusp of the Rockets 2022-23 season opener, there’s only one problem — he’s not.

Bruno Fernando is expected to get the starting nod at the five for the Rockets, leaving many to wonder why the second-year center out of Turkey is coming off the bench.

There are a couple reasons why.

First, the Rockets are trying to optimize their prospects, putting them each in the best position to succeed. In the case of Sengun, they want to leverage his passing skillset by making him an offensive hub. That’s difficult to do when you have ball-dominant guards in Jalen Green and Kevin Porter Jr., who thrive out of isolation and are trying to make progress leading pick-and-rolls.

Fernando is a much more limited player, but he fits better right now with the starters because he screens/rolls hard and plays above the rim as an alleyoop threat — it’s been fairly apparent in the preseason how the guards use him. While not a great defender, Fernando also is more of a rim protector than Sengun.

Secondly, Sengun needs to adapt more to the NBA game. The Rockets very much believe in his prospects — he’s only 20 years old — and they still consider him the best five on the roster. But the NBA is a much different game than EuroBasket, which is where he spent more of his offseason focus. The days of just dumping the ball into a post player seem to be dwindling in the NBA. He’s got to get quicker, stronger, tougher — but most important of all, he’s got to shoot the ball better from range.

In a culture where coming off the “bench” is considered a demerit (it shouldn’t be), you have to explain the reasons why — but keep in mind, his minutes will still be significant. I expect he will likely get in the 24-26 range this year, an increase over the 20.7 he got last season. He’s still going to have plenty of opportunity to develop.

My two cents: I give the Rockets props for doing this so early. It’s been apparent to me that the Rockets have multiple players who would be considered secondary playmakers, and to maximize their skills, they need the ball in their hands (imagine if the Rockets drafted Paolo Banchero … grateful every day that Jabari fell to #3!). This hopefully allows for that. Playing Sengun off the bench gives you an opportunity to play a variety of ways and also covers up a current deficiency at backup point guard.

I don’t want to watch Sengun follow the guards around — I want to watch peak Sengun running offensive sets.

Overall, I like it — let’s get the season going.

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Rockets extend Kevin Porter Jr. to incredibly team-friendly deal

What’s being reported as a four-year, $82M extension is actually a one-year, $15.8M extension with full club control

Published

6 months ago

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October 17, 2022

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Kevin Porter Jr. signs Rockets extension

Today was the deadline for the Rockets to extend Kevin Porter Jr. The Rockets have had an offer extended to KPJ for some time and the word behind the scenes was it was likely this day would come and go without a deal.

That changed in a hurry Monday morning.

The Rockets and KPJ agreed on a reported four-year, $82 million extension — at least, that was the initial report.

In truth, the deal is not that at all and is more the spin of an agent. Only the first year of the deal, at just $15.9 million, is guaranteed. The Rockets have until June 30, 2024 to decide if they want to pick up the two following years (2024-25 and 2025-26).

It’s clear KPJ accepted the Rockets longstanding offer because it is one extremely team-friendly deal.

“We value the player and the person that Scoot is becoming and are eager to invest in him and his journey,” said Rockets General Manager Rafael Stone.  “He’s expressed how happy he is to be with this organization and has shown his commitment to putting in the work both on and off the court. We are excited for the opportunity to continue to build something special with him.”

In essence, the structure of this contract fully acknowledges the risks associated with betting on KPJ. It’s not the money you’re giving him — it’s the years. If you give him a long-term deal with fully guaranteed money and things go south, that is an unmovable contract — a cardinal sin to give out when your rebuild is going so phenomenally well after the drafting of Jalen Green and Jabari Smith Jr.

This deal reflects that risk and comes close to eliminating it. The Rockets control all the upside. If KPJ pans out beautifully, they can extend him — it’s 100% their decision. If he doesn’t pan out or the roster/core shifts in an unexpected way — such as being in position to draft Scoot Henderson — KPJ could be a large expiring contract next season.

The Rockets basically signed KPJ to the Sam Hinkie Special (contracts you saw with Chandler Parsons, Jae’Sean Tate and KJ Martin), but with much bigger dollar figures.

For KPJ’s part, there is a small win — he’s gets almost $16 million next season and is signed for this season ($3.2M) and next. He doesn’t have to worry about the finances as much while still staying highly motivated to play well. He didn’t fully bet on himself and take this to restricted free agency, but he did still take a deal that incentivizes him to earn it. But this deal isn’t in the same stratosphere as the ones you saw signed by Tyler Herro and Jordan Poole.

The bottom line: There are risks to signing KPJ that were mitigated by this unique contract structure. If you are a fan of the Rockets remaining flexible as they strive to build a contender, you should be thrilled with this. Big win for Stone and the Houston front office.

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KJ Martin reportedly drawing interest on trade market

Rockets have had “ongoing talks” with Phoenix Suns about the third-year forward

Published

6 months ago

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October 12, 2022

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KJ Martin Houston Rockets

According to Jake Fischer of Yahoo Sports, the Phoenix Suns have had “ongoing talks” about acquiring Rockets forward KJ Martin while Portland and Miami are “two other known teams with interest in Martin.”

There has been talk of trading KJ since before the summer when his father, former NBA All-Star Kenyon Martin, reportedly sought a trade for his son. With the Rockets holding multiple picks in the draft, it appeared the writing was on the wall for reduced minutes for KJ.

Martin has looked like a trusted member of Stephen Silas’ rotation so far in preseason. KJ has played in all three games, averaging 11.0 points and 4.0 rebounds in 26.0 minutes, hitting 5-11 from deep.

At the same time, Jabari Smith Jr. is the future, Jae’Sean Tate seems to be the coaching staff darling and Tari Eason has exploded onto the scene. Minutes for KJ could be available but they will be hard to come by.

If the Rockets are going to trade KJ, what should be the asking price? My feeling is a “good” second-round pick (one that could be expected to be in the 31-42 range) would be the goal. If the Rockets were offered a lottery-protected first-round pick, I think that would be a steal right now for Houston.

What could make more sense is if the Rockets combined KJ Martin with a player like Eric Gordon, especially given the goals of suitors like the Suns, Blazers and Heat.

 

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Jabari Smith steals show in Rockets preseason opener

The Rockets rookie is legit as we take a look at what else stood out in Houston’s preseason rout of the Spurs

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6 months ago

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October 3, 2022

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Jabari Smith Jr Houston Rockets

Finally, Rocketball is back — the Rockets destroyed the San Antonio Spurs 134-96 in the preseason opener Sunday night.

Granted, the Spurs look flat out terrible (the top contender for Wembanyama?) and may finish dead last (and it showed), but there were a number of things that played out in this game that should get Houston fans excited.

But before I get into that, I want to give a huge shout out to everyone who supported RocketsWatch Sunday night. We are watching and discussing Rockets games in realtime this season and the debut was overwhelming. There were over 700+ fans watching the game with Roosh Williams and I in what might be the largest online watch party ever for a Rockets game. The live reactions from the fans were priceless!

Let’s talk about what stood out in this game:

Jabari is the real deal

Going into Sunday night’s preseason opener for the Rockets, the biggest question on the minds of fans was simple — how will #3 overall pick Jabari Smith Jr. look in his first NBA action?

The answer is good. Really good.

Jabari threw down a dunk out of the gate and then locked in on high-energy defense on the other end and right away you knew — the Christian Wood Era was over. Jabari’s impact was immediate on both ends of the floor. Smith finished with 21 points on 8-15 shooting, including a blistering 5-8 from deep, to go with eight rebounds in 24 minutes.

Jabari described himself as “a lot more loose” than he was at Summer League, when he struggled to knock down his shots.

“It was easy,” said Jabari. “My teammates made it easy for me, finding me when I was open. The rest just came from knocking down shots, running the floor, trusting the offense and trusting my teammates.”

What most impressed me was how quick of a trigger Jabari had on the catch-and-shoot. He would receive a pass out of the post or a cross-court pass in the corner and would instantly let it fly, shooting easily over his defender’s reach. This trait stood out and was very Klay Thompson-esque. In the second half, Jabari hit a pull-up triple in transition (his fourth) that was very enticing, then absolutely slayed those of us in the RocketsWatch room when he took two long strides back from the free throw line to drain another triple.

At that point, it was official — the rookie was clowning the Spurs. I can’t tell you how thrilled I am that the Rockets drafted Jabari. This man is going to fit like a glove and will be a ridiculous two-way weapon for the Rockets long term.

https://twitter.com/brhoops/status/1576753965730889729?s=20&t=X5YfCfDU5HwynBnvqoicSQ

Defense. They’re actually playing it. It’s true.

I don’t need to repeat that the Rockets were dead last in defense last year, but… the Rockets were dead last in defense last year. Although, maybe I need to turn that frown upside down.

https://twitter.com/FraudeauxNBA/status/1576358215406989312?s=20&t=X5YfCfDU5HwynBnvqoicSQ

Sunday, however, was a different animal and you could tell immediately. The Rockets were hustling, moving quickly on rotations and closeouts.

“It’s the defense, obviously, that we’ve been concentrating on,” said Stephen Silas. “Our help was good tonight. Our multiple efforts were really good… I’m super encouraged by our intensity on the defensive end.”

Jabari was a big part of that. He made some clear mistakes, sure — I’m not going to say he was perfect — but he seemed to set the tone. Still, it’s not just Jabari — it’s clear to me the mindset of this team is in stark contrast to what we’ve seen the past two seasons. Maybe it’s the Jabari Effect or maybe Lionel Hollins is making his presence felt, but this does not look like the 2021-22 Rockets on this side of the ball.

Tari Eason is pretty much plug-and-play

I had my doubts that Tari Eason would get a ton of run in this game, but Silas played him early (note: Jae’Sean Tate sat this game out). Without having any clear plays run for him, Tari fought and scrapped for 21 points and 10 rebounds (six offensive!) in just 21 minutes. He hit 9-13 from the floor.

“My mentality never changes,” said Eason. “I’m always going to be in the right spot, get after it defensively and be one of the hardest playing dudes on the court. I think that translates at any level and I’m just going to continue to do that.”

He plays like his hair is on fire and has tremendous potential as a two-way demon. Throw him out there when things get stagnant and he’s going to make things happen.

I’ve felt that the Rockets will likely bring Tari along slowly until they figure out what the long-term solution is for guys like KJ Martin, but Operation Patience isn’t going to work if he keeps putting up lines like this. You can’t keep him to the bench or send him to the G-League.

Is Bruno Fernando the backup center?

It sure seems that way. After news broke that the Rockets had signed Fernando to a four-year, nearly $11 million deal, Bruno was the first big off the bench, subbing in for Alperen Sengun.

I’ll be honest — this really surprised me. I expected that Usman Garuba would have the clear inside track to the spot. Fernando also seemed like a good bet to be on a two-way contract, but now with this new deal, Fernando is going to be on the 15-man roster and barring a trade, someone has to be cut (Boban? Favors?) that isn’t expected to be.

But Fernando, who sources say has been terrific in camp, showed why he got that contract, finishing 3-3 from the field and was a +18 in just 11 minutes. He was very effective on rolls, capping a pair of alleyoop passes from Kevin Porter Jr. I would be lying if I said I saw this coming, but it’s a welcome development.

Rotation Notes

It’s only one preseason game, but we still can draw a lot from how Silas sees the rotation.

Bruno looking like a good bet for the backup center role was not the only surprise. KJ Martin and Daishen Nix, along with Bruno, were the first subs of the night. That indicates what we expected, that Nix is in the lead for the backup PG spot over TyTy Washington, who I would guess will run the show with the RGV Vipers early on. I like TyTy as the better bet for this spot long term, but right now the job appears to be Nix’s to lose.

But KJ is a little surprising, given he reportedly wanted out this past offseason with the Rockets slated to bring in a couple bigger prospects (Jabari and Tari) at his position.

Garrison Mathews played only five minutes. The prediction many have made that Silas would play him 15+ minutes this year is not looking so hot.

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