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Houston Rockets

Houston Rockets Salary Cap Update

David Weiner breaks down the Houston Rockets salary cap situation and the tools they will have at their disposal to improve the team this summer.

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Well, that sort of sucked.

After a strong regular season — in which the Houston Rockets amassed a 54-28 record and got the 4-seed in the Western Conference despite several key contributors missing stretches throughout the year — the Rockets bowed out in the first round of the NBA Playoffs, succumbing to the Portland Trailblazers 4-2 despite holding home-court advantage in the series.  Each game was a down-to-the-wire nail-biter — Rockets GM Daryl Morey even described each game as “a coin flip” — yet Portland seemed to make just a few more key plays than Houston did throughout the series, none bigger than Damian Lillard‘s buzzer-beating 3-pointer to end the Rockets’ season in Game 6.

So, as we Rockets fans attempt to dry our tears and/or to get over our hangovers (both figurative and literal), it’s time to take stock of the team’s current salary cap situation and where the Rockets can go from here.

Salary Commitments and Available Cap Room
(All salaries and contract information courtesy of ShamSports.com.)

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Daryl Morey

Here is Daryl Morey just finding out he placed 9th in Executive of the Year voting

The Houston Rockets are currently scheduled to have nearly $64.95 million in team salary committed for the 2014-15 season: Dwight Howard ($21.44 million), James Harden ($14.73 million), Jeremy Lin ($8.37 million cap hit), Omer Asik ($8.37 million cap hit), Terrence Jones ($1.62 million), Donatas Motiejunas ($1.48 million), Francisco Garcia ($1,316,809 – player option), Josh Powell ($1,227,985, non-guaranteed), Omri Casspi ($1,063,384, non-guaranteed until August 5), the cap hold for the #25 pick in the 2014 NBA Draft ($991,000), Chandler Parsons ($964,750, assuming the Rockets exercise their option – more on that here), Patrick Beverley ($915,243, non-guaranteed), Isaiah Canaan ($816,482), Robert Covington ($816,482, partially guaranteed for $150,000), and Troy Daniels ($816,482, non-guaranteed).

If the Rockets slashed all non-guaranteed salary (other than for those in the 2014 Playoffs rotation), their total salary commitments would still be around $61.99 million.  However, with the most recent projections of the 2014-15 salary cap at around $63.2 million, it is unlikely that the Rockets will have cap room this summer . . . unless a trade involving either Lin or Asik (or both) is made that brings back little to no salary.  (Hint:  Such a move will most likely be explored in great depth.)

Available Roster-Building Tools
Even though the Rockets could easily wiggle a little below the projected salary cap, electing to use a small amount of cap room would not make much sense.  By doing so, the Rockets would need to waive their rights to several other roster-building tools.  The following are some of those tools, which we may see Morey and the Rockets utilize this summer.  (Note:  I have purposely avoided talking about larger trades in general, since trades are always in play for Houston.)

Non-Taxpayer Mid-Level Exception:  This is the largest form of Mid-Level Exception (MLE) available.  It allows a team to sign one or more free agents to contracts of up to four years with a starting salary, in the aggregate, of up to $5.305 million.  Any team that utilizes this MLE (as opposed to the smaller Taxpayer MLE) will be “hard-capped” at the luxury tax “apron” level (currently projected to be around $81 million next season).

The Rockets could either shoot for the best player available on the market willing to take a full four-year MLE deal, or they could dangle a one-year deal in the $4-5 million range to a lesser (but still pretty good) player in order to preserve salary cap flexibility in 2015 (when Houston could once again have near-max cap room).

If the Rockets use a high second round pick on a player who will not be stashed overseas, expect the team to set aside a small portion of the MLE in order to sign that pick to a three- or four-year deal (akin to deals they’ve given guys like Chase Budinger, Parsons and Canaan in recent years).  Houston could also use a portion of the MLE to bring over promising Greek small forward Kostas Papanikolaou, whose draft rights the Rockets acquired in the Thomas Robinson trade with Portland last summer.

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Bi-Annual Exception:  This exception (a/k/a the BAE) allows a team to sign one or more free agents to contracts of up to two years with a starting salary, in the aggregate, of up to $2.077 million.  Like the Non-Taxpayer MLE, the use of the BAE will create a hard cap at the luxury tax apron level.

As the name suggests, this exception is only available once every two years.  The Rockets will likely either be under the cap or approaching the luxury tax next summer, so in either case it is unlikely that they will have any use for the BAE in 2015.  However, since the BAE is not much larger than the veteran’s minimum salary for many vets worthy of the BAE, look for the Rockets to avoid using this exception unless they find a younger veteran willing to play in Houston on the cheap.

Omer Asik

Morey will likely shop Omer Asik and Jeremy Lin before balloon payments kick in

Non-Guaranteed Salary:  The Rockets have a handful of small non-guaranteed contracts (most notably, those of Powell and Casspi) that they can combine in order to take in larger salaries in trades, either for existing contracts or in sign-and-trades.  Such salary could either be a decent MLE-level player on a team looking to slash salary or possibly even a straight salary dump of an unwanted player as part of a larger deal otherwise benefiting Houston.  Because the Rockets are well below the luxury tax threshold, they should be able to make smaller trades in order to take up to 150% plus $100,000 of outgoing salary.

For example, if the Rockets were able to pull off a sign-and-trade deal for Carmelo Anthony (presumably using the contracts of Lin and Asik along with other assets and likely involving a third team), the New York Knicks may want the Rockets to also take back some unwanted salary, such as Raymond Felton (still owed over $3.79 million next year with a player option in 2015-16 for $3.95 million).  In a separate trade, the Rockets could send a package of Powell, Casspi and Covington in exchange for Felton.  In such a (side) trade, the Knicks could dump Felton’s salary and take back only $150,000 in guaranteed salary in Covington or, more likely, just keep Covington on his cheap contract.

These roster-building tools do not even account for what players the Rockets might add in the draft.

The Draft
Houston goes into the 2014 NBA Draft holding the 25th and 42nd picks.  The Rockets also have approximately $1.48 million in cash remaining from their Maximum Annual Cash Limit for the 2013-14 season.

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Expect Houston to attempt to move up in the draft — as they try to do every year — if there is a player they value highly enough in the lottery or mid-first round.  That $1.48 million allowance (which cannot be carried over after June 30) could be useful in a draft day trade.  The Rockets also own as many as four 2015 second round picks that could be used to trade up.

If Houston is unsuccessful in moving up in the draft, the NBA Transaction Geek in me is hoping that Morey does what he did during the 2008 NBA Draft:  Trade his way down to acquire multiple/future picks.  In 2008 (the last time the Rockets selected 25th), Morey traded down twice and turned the 25th pick into the 28th and 33rd picks and a high 2009 second round pick.

If they stand pat at #25, expect the Rockets to do what they do every year and take the best player available on the board, regardless of position.  At #42, if there is not a highly-enough rated player on their draft board, Houston could elect to take a foreign prospect to stash overseas for a few years.

Upcoming Roster Decisions
Some decisions involving certain Rockets players will need to be made during the first few weeks of the NBA’s offseason.  Here are a few of those:

Chandler Parsons:  Again, the issue of whether or not to pick of Parsons’s team option by the late June deadline has been discussed ad nauseum.  Here’s the link again.

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Francisco Garcia

Garcia holds a player option for 2014-15

Francisco Garcia:  In a rare scenario under Morey’s tenure as Rockets GM, the Rockets will actually have to wait and see what Garcia does by June 30, as Garcia has a player option for 2014-15 at the veteran’s minimum (for him, just over $1.3 million).  If Garcia declines his option, do not be surprised if the Rockets once again re-sign him.  The league would pick up the tab on a good chunk of Garcia’s salary on a one-year deal (as opposed to on the second season of the two-year deal he signed in 2013), without reducing Garcia’s paycheck.

Jordan Hamilton:  As Houston’s sole unrestricted free agent, the Rockets will need to evaluate whether they want to keep Hamilton around beyond this season.  While the CBA limits the Rockets’ ability to offer Hamilton more than $2.1 million next season (since Denver did not pick up their option on Hamilton’s rookie scale contract), it now seems unlikely that Hamilton will command that much on the open market.  If the Rockets select a wing player in the NBA Draft, or if the team simply feels that Covington is a better long-term prospect at that spot, then Hamilton’s days in Houston may be over.

Omri Casspi:  If the Rockets don’t use Casspi in a trade before August 5, they will need to decide how badly they want him next season.  Like with Garcia, the Rockets could possibly re-sign Casspi to a one-year deal in which the league picks up part of the tab . . . assuming that Casspi clears waivers.

The other non-guaranteed guys (Beverley, Powell, Covington and Daniels) presumably will not require decisions on their futures at least until training camp in October.

Conclusion
Rockets fans are hurting right now after a tough first-round loss.  But there is some room for optimism.  Houston has several tools at its disposal to improve the roster for next season, even if a third star player doesn’t “shake loose.”  By utilizing those tools — and with this young core having another year to gel — the Rockets should be better positioned to make a deep playoff run next May.

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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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