Atlanta Hawks: Money matters
The league set the salary cap at $58.044 million and the luxury-tax threshold at $70.307 million. What it means for the Hawks is J.J.s salary will be more than expected, they gained some wiggle room under the tax threshold and Chill’s qualifying offer could put them in a jam. Humor me with some technicalities so I can be transparent with my math in case it’s wrong (I will update later if I figure out any of the figures are off):
In one of those weird CBA quirks, max deals are not based on the team salary cap, which is 51 percent of Basketball Related Income, but are pegged to 48.04 percent of BRI. (EDIT: reader Robert Dinterman emails to note that Projected Benefits are part of the formula and since those haven’t been made public yet these are just estimates) . For a player with J.J.’s experience, his maximum salary is the greater of 105 percent of his 2009-10 salary of $14.98 million ($15.7 million) or 30 percent of the max cap figure, which is about $16.4 $16.3 million (EDIT: this will be lower once benefits are included in formula).
So J.J.’s deal starts at $16.4 $16.3 million, with 10.5 percent raises per year, for a total value of about $124 $123.7 million. The breakdowns for following years (with rounding): $18.1 $18.01 million in 2011-12, $19.8 $19.723 million in 2012-13, $21.5 $21.43 million in 2013-14, $23.2 $23.15 million in 2014-15, and $24.89 million in 2015-16.
The league set the luxury-tax threshold at $70.307 million. Once J.J. signs, the Hawks will have roughly $65 million committed to 10 players when included Jordan Crawford’s rookie-scale deal. So the Hawks can add up to about $5 million in salaries until they must pay the tax.
That brings us to the mid-level exception, which was set at $5.765. The Hawks can sign a player to a contract with a first-year salary up to that amount or split it among more than one player, but if they use all of it it looks like they will pay some of the dollar-for-dollar tax in addition to missing out on the tax rebate money for non-tax teams.
And don’t forget about where Chills fits in all of this. If he signs Atlanta’s $4.8 million qualifying offer it will increase the payroll to near the luxury tax level. The Hawks want to get something for Chills and will try to work out a sign-and-trade. But they might also have to consider renouncing his rights lest he accept the offer at any minute and put them in a position where each additional player costs them double with the tax.
The Hawks also have their bi-annual exception available. They can use that to sign a player for up to two years and $4.3 million (it also can be split but veterans make more with the minimum).
MC
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154 comments Add your comment
Ken Strickland
July 8th, 2010
8:19 am
First, I’d like to question anyone complaining about returning 8 of the 12 players that helped the team finish 3rd in the East, win 53 gms, make it to the playoffs 3 consecutive yrs, and to the 2nd rd 2 consecutive yrs. You really want to throw the baby out with the wash just because we got our butts whipped in the 2nd rd 2 consecutive yrs?
Well, I guess your solution for making certain we don’t get embarrassed in the 2nd rd again is to let our best players go so we won’t get to the 2nd rd, or even make the playoffs. I’d much rather get by butt whipped in the 2nd rd than lose in the 1st rd.
The biggest problem we had in the playoffs has been replaced. The current issue facing the Hawks isn’t who we bring back, but how effectively and efficiently we utilize what we bring back. LDrew was hired specifically to rectify those team issues that were the result of Woodson’s stubbornness, idiosyncrasies and/or personal issues.
LDrew immediately started making those OFF and DEF improvements and upgrades when he declared JTeague as our new starting PG in place of MBibby. This was an issue Woodson refused to address, and considering Bibby’s inconsistency, lack of production and poor DEF, the move is very low risk.
Installing an actual half court OFF, committing to playing uptempo, effective bench utilization, and playing traditional straight up man DEF, will automatically generate improvement. Drew has already said he intends to improve MWilliams’ production by involving him more in the OFF, which again is something Woodson refused to address.
With the new cap already established, I’d definitely look into seeing how desperate the Hornets are in wanting to get rid of EOkafor’s contract. Trade MWilliams and MEvans for him. Then start JJ @SG, Teague @PG, Marvin @SF, Horford @C and JSmith @PF.
BENCH: JaCrawford, EOkafor, ZPachulia, JoCrawford, MBibby, ?, ?.
We can put this roster together without going over the cap, paying any luxury tax, and without using our MLE or biannual exemption. We might even be able to snugly fit Chills’ $4.8M qualifying offer under the cap if we choose to do so.
John
July 8th, 2010
8:34 am
@ Ken….I agree with your post…however…do you know how much Okafor makes? you want to pay someone that much to play FROM THE BENCH?
dap01
July 8th, 2010
8:34 am
Why don’t JJ stay at $119 million and not let his salary go up due to the new salary cap numbers and actually help our team out. That what true leaders do, that is what winners do.
I bet he don’t.
GeeMack
July 8th, 2010
8:34 am
I wonder if LeBron would consider coming to the Hawks if we gave Clevland Josh Smith, Jamal Crawford and a 1st round pick next year.
That way he still plays for a contender, leaves his home team with some peices to still be competative and make the playoff, and he would still be the man on his own team.
JJ
July 8th, 2010
8:36 am
MC –
There seems to be conflicting thoughts from the ASG. On the one hand, you said they don’t want to mess with the “core” guys, but also that the best way to get better is through a trade? How do they trade AND get something of value without giving up something of value (from the core)?
They don’t have enough room under the cap to go the FA route and get someone that will really help. And even if they are willing to “pay the tax for certain player(s)”, aren’t all the players that would fit the mold of making this team better (elite guards and centers) already off the market?
It looks and smells like a trade is the only way to go (if, IF they are serious about getting better), but that brings back the original question of keeping the “core” intact.
dap01
July 8th, 2010
8:54 am
Ken: In your previous post, you trade Marvin and you also start him on next years team.
Did you mean to trade someone else?
doc
July 8th, 2010
8:54 am
melvin your question about tax and championships are relevant. the two highest payrolls this year ended up in the finals. the top eight teams except us spent about 75 mil or more is what i remember. so it is defining if they decide to stay below tax as that will make them pretenders not contenders. unless al h becomes superman 2 this year at his salary then we are destined to mediocrity if we dont land in tax land. simple math no matter how ld coaches or the team plays it wont have enough bullets in their gum come series two of the playoffs.
i imagine if i were them and the heat pull the coup of the threesome of queen, wade and bosh i would not be willing to spend foolishly and would throw in th towel for contending and want to put the nicest team out there possible to be competitive. i would not spend top dollar for that goal either.
JoJo the Godfather
July 8th, 2010
9:31 am
I’d look at Mike Bibby, Mo Evans & a draft pick to Washington for Kirk Hinrich…Washington does this because it’s less contracts, they get a couple veterans, and they pick up a draft pick…Atlanta gets a defensive minded PG that can hit the 3 (with a 2-yr front loaded contract)…The GM’s can decide the quality of the draft pick…Hawks’ guard rotation becomes Johnson & Hinrich starting, 6th man Ja Crawford, with youngsters Jo Crawford & Teague as backups.
macaroni tony
July 8th, 2010
9:34 am
and why do we want to trade Jamal: http://www.youtube.com/watch?v=loOQJOwr2uw&feature=fvw
Melvin
July 8th, 2010
9:36 am
Doc,
If the ASG wave the white flag b/c the Heat gets the queen then smart fans such as yourself will see it and not attend games. Attendence would drop drastically and the only games that would sellout are the Heat and Lakers… The competition is getting better, so either they rise to the occassion or fold and have a fire sale/rebuild (again)…
mark
July 8th, 2010
9:45 am
i don’t blame jj for taking the money, chris bosh is a damn fool. i don’t think the hawks are bad as some would like us to believe. if we could snt childress for the mcgee kid in washington. maybe dorrell wright. and bring back joe smith and use him this time around we could stay in the top for 4@ least 5 in the east.
mark
July 8th, 2010
9:56 am
macaroni tony i am with you why would you want to trade jamal crawford. beside his instant offense he plays hard. he is a team player. he is a class act. the man got game. if he got traded to Miami or any team that was considered a title contender. coming of the bench producing what he is doing in the atl. they would just mail them the rings. keep jamal.
MojoD
July 8th, 2010
10:02 am
I agree with Stretch: At this point and no matter where Lebron ends up going, the Hawks will be about a 6th seed next season and I believe most likely lose in the first round. Even if they make it to the second round they’d have to play the Magic, Heat, or possibly Cavs/Bulls. Although I’d like to see them get a big man and an actual decent starting PG. Bibby is too old to get the job done these days. If we could add two decent players while keeping our core I believe we could be a competitive team. We need to resign JChildress and work out a sign and trade with him since he has some value and doesn’t want to play in Atlanta. Ship out Marvin Williams and Mike Bibby while you’re at it. Heck I’m all for trading anyone on our roster if it improves our team. We must make moves now if we even stand a chance. If it’s the same team as last year we all know what to expect. Another sad, disappointing playoff appearance.
macaroni tony
July 8th, 2010
10:02 am
I feel you on that comment Mark
macaroni tony
July 8th, 2010
10:06 am
and If the Queen go to the Heat, that doesn’t make them better than us. We have a time that has been together for a while. We look at teams that has so call made major moves, then answer me question how in the HELL is the Heat, Bulls, and Knicks are better than us when they don’t even have a complete team. The Heat only have four players that will be under contract and the Knicks got like five.
O'Brien
July 8th, 2010
10:23 am
Doc, Melvin,
The fact that the ASG gave JJ the money they did suggests they will not wave a white flag. And that’s good for us fans. Hopefully, they will spend (or trade) wisely to improve the rest of the team.
Even if LeBron goes to Miami, they still have major holes to fill. PG, Center, and bench depth, which means they would probably have at least 5 guys playing for the minimum salary.
If Lebron really wants to win, I think Chicago is the place to go. Rose, Boozer, Noah and LeBron, plus Deng off the bench (if they can’t trade him) is a good nucleus to start with. All they would really need is shooters.
moboman
July 8th, 2010
10:41 am
What a week!! The whole league is in limbo until tonight. By this time next week it will be a different story. Many of the moves will have been made. LBJ can take either Bulls or Heat and win it all. Hawks have very interesting choices to make too. And they will make some, good or bad remains to be seen.
moboman
July 8th, 2010
10:43 am
@obrien I agree that Chicago would be a better choice for Lebron.
Rufus1
July 8th, 2010
10:56 am
What We know…..
If Lebron leaves the Cavs, we are better than them…
What We Know…..
When Deng becomes the 4th or 5th scoring option in Chicago on a good team, his production will look more like Marvin Williams…AT 5MIL MORE A YEAR.
What We Don’t Know…
How good Drew will be?
How Much organic growth will occur with the Hawks?
How OLD will Boston be?
With Boozer, is Chicago better than the Hawks?
What difference Teague and a defensive center will mean to our team?
TO ALL YOU PESSIMISTS …THE HAWKS WON 53 GAMES NOT 12 GAMES LAST YEAR…HAVE A LITTLE FAITH!!!!
PMC
July 8th, 2010
10:59 am
So what you’re saying MC is that even in the 1st year of this JJ contract…. it’s still not great for the Hawks?
OH well they are a playoff team at least.
PMC
July 8th, 2010
11:01 am
We do have a pretty good Basketball team in Atlanta and they are still fairly young.
If Lebron goes to Miami after the Heat and the Magic the Hawks are probably a 3rd seed still unless Boston plays better in the regular season. The Bulls are maybe a little better other than that though… still being 3rd in the east isn’t bad.
doc
July 8th, 2010
11:15 am
o’b and melvin it will be interesting to follow the money if the heat get what they want …. a nice team or a competitive team. nice teams make 50 wins their goal, competitive teams make the efort to get the brass ring and spend accordingly. i dont mind nice tams bit dont make them out to be more than that. we had a very nice team last year. nice doesnt go far in the playoffs.
jfreak13713
July 8th, 2010
11:22 am
The Hawks will finish no better than 5th in the East! The other teams got MUCH better but the Hawks stayed the same. They played the PREVENT defense while the other teams were playing to WIN.
1. Miami
2. Bulls / Cleveland (if LeBron stays)
3. Orlando
4. Celtics
5. Hawks or Nicks
LeBron decision could change this. Hawks would not get out of the first round!
ICEMANcometh10
July 8th, 2010
11:29 am
REMEMBER THIS:
The Hawks will be ok this year. JJ is no Kontrack he just has some public relations issues he has to work on. He got the max because he is good enough and was smart enough not to take the mid year offer of 7 years @ 75 million.
As far as LBJ going to Miami if that happens don’t worry the rest of their roster will be filled with NBDL players and that will make the big three overpayed and overplayed which =’s no championship…………………………..ICEMAN
3Klub
July 8th, 2010
11:42 am
MC
Any truth to to rumor Chills for McGee S&T?
Veteran Fan
July 8th, 2010
11:43 am
The Hawks have to fix the pg and c spots or there is no improvement. Shaq is a sideshow and should go somewhere else! Either trade Marvin and Josh Smith for Chris Paul or a sign and trade deal for David Lee with JJ going to the Knicks with Bibby. Or do both deals and resign Childress. Starting line up Lee, Horford, Childress, Crawford, and Paul. Reserves Zaza, Crawford, Teague, and Evans. Might even be able to pry West out of New Orleans by throwing Childress into the deal.
Grandad
July 8th, 2010
11:45 am
Since when does three beat Five?
doc
July 8th, 2010
11:49 am
people can complain all they want about this event tonight. reality is the nba has never been more in the news and relevant to the casual fan. all talk stations are going on and on about basketball like never before. stern has to like that. i mean every time i have turned on anything that is close to sports it has been about the nba and the ufa’s. that has to have been huge free publicity.
now the question will be is how the competitive balance changes after tonight? will riles and d wade show how powerful they were and pull off the theft of the century? if they do then they become the favs if they put some rugged ballers around them willing to play roles. if not then the competition opens up to many teams in the east especially if he stays in cleveland. i wonder what stern wants to see happen for the east; 5 to 6 really competitive teams like in the west or a single dominant team to take all the fun out of the regular season?
Volman
July 8th, 2010
11:57 am
Doc…LeBron’s team in the past were the “regular season champions”, but never won a thing.
I really am not too worried about this big three in Miami. If they get a good center, point guard, and bench…then it’s time to be scared.
Celtics are older too… I see the Boozer deal as okay but they still don’t have a good 2-Guard or a good bench.
Ah well. I can’t wait for this deal to be over. LBJ is the biggest attention wh#$%# I’ve ever “witnessed”.
Grandad
July 8th, 2010
11:59 am
Ken Strickland
*N.O.trade proposal/involving Okafor*
My only amendment to your idea would be to add Bibby
and try to entice them to take Bibby some sort of way.
We would be taking an egregious contract from them
and Bibby would be expiring next yr. [for them].
Adding Bibby make’s it even more palatable for us.
Volman
July 8th, 2010
12:02 pm
Grandad—you want to trade Bibby?
So we’ve got Teague starting (unproven) and nobody to back him up?
Grandad
July 8th, 2010
12:05 pm
Ken Strickland
You reckon I really want to rid ourselves of Bibby.
I only mentioned his name 4 times in 5 sentences.
Somehow I see him as our linch-pin to down-fall.
I think he needs to go for more than contractual reasons.
terrell
July 8th, 2010
12:07 pm
If Lebron goes on TV and announces that he’s leaving Cleveland, he’ll be the most hated sports figure in Cleveland sports history. lol! Honestly, I hope he leaves, and Cleveland, of all teams ,knocks him out of the Playoffs. lol! Heat with Lebron, Wade, and Bosh still wont win the East. Book it!
ctrim
July 8th, 2010
12:07 pm
We made Ja Jo Crawford expendable once we drafted Ja Crawford. I like Teague but I would argue that our Team needs a point guard more than a center. I’d trade Ja Crawford and Smooth for CP3 in a heartbeat. We would still need more beef in front court but CP3 would make everyone better and take some pressure off JJ. Chances are that isn’t going to happen but this is still a PG league- not sure if I want to go all in with Teague at the Point.
With the drafting of Jo Crawford do you think we’ll see JJ more at SF this year? I like this line up:
JT Point
Ja Crawford SG
JJ SF
Josh PF
Al C
We still need another big and if we trade Josh for a PG then we’ll need 2 – Sund still has a lot to do before the season begins.
Grandad
July 8th, 2010
12:08 pm
Volman
Yes – w/o question.
he’s not a backup pg no-more than I am.
He’s an undersized, slow, shooting guard now.
-AND-
He’s gonna be a bitchy one @ that!!!
Grandad
July 8th, 2010
12:10 pm
Volman
Obviously we need to pick one up.
FA’s abound.
*Kyle Lowry = my 1st choice if he has not already signed.
Grandad
July 8th, 2010
12:11 pm
Volman – bi-annual.
tyger
July 8th, 2010
12:12 pm
Too good to be true….
Shaq going to Spurs, Hawks don’t have the money to contend. Another year of Jason Collins and Joe Smith and whatever other scrubs they can scrape off the NBA floor.
bigstack19
July 8th, 2010
12:15 pm
So it boils down to Miami can sign everybody. Boston can improve. Orlando can improve. Chicago can add someone, and the Hawks will pretty much trot out the same team that got killed by Orlando and barely beat Milwaukee who only had 8 healthy players. Also, they have an unproven head coach who is supposed to trot out a new offense. Seems like another early playoff exit for the Hawks. People say the fans are cynical but it is hard to get excited when you already know the outcome 4 months before the season starts.
Volman
July 8th, 2010
12:29 pm
Bigstack—it doesn’t hurt when those teams DRAFTED their stars. Miami has 2 players under contract, so they’re able to sign three big-name players. Orlando is in the luxury tax and last time I checked they finished at the same place as we did (not winning a championship). Some franchises get lucky and get franchise players. The Hawks didn’t get any of them, so they have to be creative with trades and free agency to get star players…but you have to have CAP ROOM to sign big-name players. If we wanted to “free up room”, you’re going to lose more games…and wouldn’t you complain about that, too?
I didn’t know the 2nd round was an “early exit” from the playoffs. Being a top-8 team in the NBA sounds good to me (two years in a row).
If you’re such a winner and starved to see such a “great franchise” then maybe you should follow the Lakers, since they “win”. Or else, stop complaining.
Miami–drafted Wade.
Orlando—drafted Howard.
Chicago–drafted Rose (biggest contract is probably Deng)
Boston— this is an exception, but I don’t see how they have improved this summer.. unless you think getting older is improving (and no, this isn’t fine wine)
Grandad–
I still like Bibby..but off the bench. He’s a good shooter, and leads the team. His defense is miserable…but he really did try last year. Don’t know if we will be able to get someone good to back up Mr. Rook. Maybe we can pluck T-Lue out from somewhere! Ha!
Volman
July 8th, 2010
12:32 pm
Oh yeah, adding in Rondo being drafted by Boston (since all the “experts” at ESPN has dubbed this guy the next great PG).
Grandad
July 8th, 2010
12:36 pm
Volman
Don’t laugh it might happen
Nah
Well, then again, maybe
Just kiddin’
Sorta???
Volman
July 8th, 2010
12:39 pm
Grandad—
If we get someone as a backup PG, I’d like Rafer Alston. Really like his game. Period!
KevinM
July 8th, 2010
12:43 pm
if anyone believes that bringing back our top 8 for next year is enough, you are definitely drinking the cap koolaid. You pay Joe 25% of your available money, now you better increase your overall salary to over 75-80 for the sake of the limitations we had last year.
Until we get some semblance of a center, then I stand pat in that the ASG is not intent in making a serious run to win a championship. I don’t think the popularity of the Hawks has ever been stronger in this city. It is time to prove we can compete with the Lakers, Magic and Celtics in the playoffs.
Volman
July 8th, 2010
12:49 pm
Kevin, the ASG has stepped up… just because they’re not $20 million over the luxury tax line (like the Lakers) doesn’t mean they aren’t trying. If the ASG is going to keep paying money for star players, then they need to know that the fans will come out.. This is coming from someone who has had season tickets for 5 years. You have no idea how quiet the Wizards games are when there are maybe 10,000 people there at the maximum. Atlanta is a pretty bad sports city, just plain and simple.
So far, nobody shows up…unless LeBron is in town.
Pass me the koolaid.
DP
July 8th, 2010
12:50 pm
Between $124 million for the likes of stat accumulator Joe Johnson and this LeBron fiasco I think I’m about done with the NBA.
O'Brien
July 8th, 2010
1:04 pm
Volman,
If Chicago misses out on LeBron, they still have about $15 mil to spend, and plenty of shooters available (Kyle Korver, JJ Redick, Anthony Morrow, Mike Miller), none of which will cost more than $10 mil.
So they will still have $5 mil left for another solid piece or two (again, assuming LeBron doesnt sign there).
Ken,
I was never a Woody fan, and I like what Drew has been saying. However, the problem was not all Woody’s fault. Players were to blame for some of the issues too, so there is no guarantee that changing HC will fix all the issues.
I think we need to trade Jamal for a legit big (sure, DJ Mbenga or Petro would help, but are they really the guys a contending team would sign to take the next step). And with Horford getting his big raise next year, we won’t be able to afford Jamal when his contract expires. Plus his value should be high right now (SMOY, and $10 mil expiring).
If Chills signs an offer sheet, he could be traded too, not to mention Mo Evans and Bibby, so Hawks have trade pieces (although I’m not sure how attractive they are).
Volman
July 8th, 2010
1:13 pm
O’Brien— I don’t see any of those players you just listed as anyone that puts Chicago over the top.
N.D.T.K.A.
July 8th, 2010
1:20 pm
Does anyone ever think that all these crazy moves by the likes of Miami (a team we eliminated from the playoffs two years ago with D.Wade), Chicago (lottery team since Kukoc and Pippen left), Knicks(bottom feeder thanks to Isaiah Thomas and reckless spending and management), New Jersey (another bottom feeder), and Cleveland (without Lebron = non-playoff team) are desperate reactionary moves to get better because maybe they see a team like the Hawks as an up and coming club. We resigned our “star” in J.J. Most teams wanted Joe as a 2nd option but at a discount. All of the analyst and rumor pundits, who really don’t like the Hawks kept saying J.J. was gone. ASG made the commitment and J.J. signed. Rudy Gay signed with Memphis. This messed up some of these teams plans to cherry pick good players from smaller tier teams like the Hawks and Grizzlies.
Folks let’s not make the Hawks just like these desperate clowns by making a dumb move by trading off quality assets in an attempt to get better. Getting rid of Woody and hiring Drew should help a lot, along with our guys getting better, and making smart trades from a position of strength not weakness. Just say no to giving away Josh for CP3 ,who as was discussed on this blog previously, just came off major surgery (very risky).
Let’s just see how all of this plays out, Miami and the Knicks have to fill there roster with players. Miami will be broke if Lebron signs; Knicks will have to overpay for lesser talent to fill there roster. Now a little patience may be best to get a quality trade as too many teams have a ton of money and the free agent bums know it. Wait for a trade or propose a sign and trade to these desperate clubs who promised there fans a winner and get a trade that will help the team.
Stop acting like we won 12 games last season, if Sund plays his hand right we may take the next step this season.
Hawks in the 2010-2011 NBA finals!!
bigstack19
July 8th, 2010
1:29 pm
Volman… Getting killed in the second round is an early exit. Making the NBA Finals and winning championships should be the only goal. If everyone else makes strides to improve and the Hawks biggest off-season move was to overspend for a 21 point per game player who may be on the down slope of a good but not great career then yes they will make an early exit. Teams like the Lakers and Celtics would consider the 2nd round and early exit and I bet Orlando thought getting knocked out in the Eastern Finals was too early and exit. The 2nd round may be okay for you and probably Hawks ownership, but the vast majority of fans want championships. No strides are being made towards that goal and with no money it will be impossible to do so.