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SeriousSummer · 06-28-2005, 01:59 PM

As an exercise, I tried to work out the cost and savings to each team for this deal. I used the variation of Finley/Bradley/TAW for Houston/Penny/Rose, because that seems a little more interesting. Ready for some fun?

But first: The disclaimers (I am a lawyer by training). I used last years' salary numbers since I couldn't find all of this years' numbers available (the salaries will be higher this year by about 10-12%) and I assumed the luxury tax was in effect for all the salaries (pretty safe for the first year). I assumed the insurance company cooperated by paying 80% of TAW's buyout and that Bradley's salary was covered 80% by insurance. I assumed Bradley comes off the cap as an injured player after one year, but that TAW did not.

New York: Without Deal With Deal

Year 1 Houston -- 17531250 Finley -- 14609375
Tax -- 0 Tax -- 14609375

Hardaway -- 14625000 Hardaway -- 14625000
Tax -- 14625000 Tax -- 0

Rose -- 5462000 Bradley -- 4000000 - 80% = 800000
Tax -- 5462000 Tax -- 4000000

TAW -- 3200000 - 80% = 640000
Tax -- 3200000

Total: 57705250 52483750

Year 2 Houston -- 17531250 Finley -- 14609375
Tax -- 0 Tax -- 14609375

Hardaway -- 0 Hardaway -- 0
Tax -- 0 Tax -- 0

Rose -- 5462000 Bradley -- 4000000 - 80% = 800000
Tax -- 5462000 Tax -- 0

TAW -- 2200000 - 80% = 440000
Tax -- 2200000

Total: 28455250 32658750

Year 3 Houston -- 0 Finley -- 14609375
Tax -- 0 Tax -- 14609375

Hardaway -- 0 Hardaway -- 0
Tax -- 0 Tax -- 0

Rose -- 5462000 Bradley -- 4000000 - 80% = 800000
Tax -- 5462000 Tax -- 0

TAW -- 0
Tax -- 0

Total: 10924000 30018750

Year 4 Houston -- 0 Finley -- 0
Tax -- 0 Tax -- 0

Hardaway -- 0 Hardaway -- 0
Tax -- 0 Tax -- 0

Rose -- 5462000 Bradley -- 0
Tax -- 5462000 Tax -- 0

TAW -- 0
Tax -- 0

Total: 10924000 0

In summary, from New York's point of view, the monetary impact is +5,221,500 in Year 1; -4203500 in Year 2; -20094750 in Year 3; and +10,924,000 in Year 4 for a net negative effect of -8,172,750 over four years for making the trade rather than just cutting Houston. In other words, you a premium of a little over $2 million per year to have Finley for three years rather than Hardaway for one and Malik Rose for four. In NBA terms, this isn't very much.

Dallas: Without Deal With Deal

Year 1 Finley -- 14609375 Houston -- 17531250
Tax -- 0 Tax -- 0

Bradley -- 4000000 - 80% = 800000 Rose -- 5462000
Tax -- 4000000 Tax -- 5462000

TAW -- 3200000 - 80% = 640000
Tax -- 3200000

Total: 23249375 23555250

Year 2 Finley -- 14609375 Houston -- 17531250
Tax -- 0 Tax -- 0

Bradley -- 4000000 - 80% = 800000 Rose -- 5462000
Tax -- 0 Tax -- 5462000

TAW -- 2200000 - 80% = 440000
Tax -- 2200000

Total: 19049375 23555250

Year 3 Finley -- 14609375 Houston -- 0
Tax -- 0 Tax -- 0

Bradley -- 4000000 - 80% = 800000 Rose -- 5462000
Tax -- 0 Tax -- 5462000

TAW -- 0
Tax -- 0

Total: 15409375 10924000

Year 4 Finley -- 0 Houston -- 0
Tax -- 0 Tax -- 0

Bradley -- 0 Rose -- 5462000
Tax -- 0 Tax -- 5462000

TAW -- 0
Tax -- 0

Total: 0 10924000

Dallas's monetary summary is as follows: In year one the deal costs Dallas 305,875; in year two 4,505 875; in year three Dallas saves 4,485,375 and in year four the deal costs Dallas 10,924,000 for a total negative effect of $11,250,375. That's a little less than $3 million per year in return for the services of Malik Rose.

I still like this deal for both teams, but going through this exercise (which I've greatly simplified) does make it clear to me just how difficult it's going to be to assess the financial impact of various deals.

06-28-2005, 01:59 PM	#6
SeriousSummer Golden Member Join Date: Jan 2003 Posts: 1,589	RE:Dallas-New York, and everybody wins As an exercise, I tried to work out the cost and savings to each team for this deal. I used the variation of Finley/Bradley/TAW for Houston/Penny/Rose, because that seems a little more interesting. Ready for some fun? But first: The disclaimers (I am a lawyer by training). I used last years' salary numbers since I couldn't find all of this years' numbers available (the salaries will be higher this year by about 10-12%) and I assumed the luxury tax was in effect for all the salaries (pretty safe for the first year). I assumed the insurance company cooperated by paying 80% of TAW's buyout and that Bradley's salary was covered 80% by insurance. I assumed Bradley comes off the cap as an injured player after one year, but that TAW did not. New York: Without Deal With Deal Year 1 Houston -- 17531250 Finley -- 14609375 Tax -- 0 Tax -- 14609375 Hardaway -- 14625000 Hardaway -- 14625000 Tax -- 14625000 Tax -- 0 Rose -- 5462000 Bradley -- 4000000 - 80% = 800000 Tax -- 5462000 Tax -- 4000000 TAW -- 3200000 - 80% = 640000 Tax -- 3200000 Total: 57705250 52483750 Year 2 Houston -- 17531250 Finley -- 14609375 Tax -- 0 Tax -- 14609375 Hardaway -- 0 Hardaway -- 0 Tax -- 0 Tax -- 0 Rose -- 5462000 Bradley -- 4000000 - 80% = 800000 Tax -- 5462000 Tax -- 0 TAW -- 2200000 - 80% = 440000 Tax -- 2200000 Total: 28455250 32658750 Year 3 Houston -- 0 Finley -- 14609375 Tax -- 0 Tax -- 14609375 Hardaway -- 0 Hardaway -- 0 Tax -- 0 Tax -- 0 Rose -- 5462000 Bradley -- 4000000 - 80% = 800000 Tax -- 5462000 Tax -- 0 TAW -- 0 Tax -- 0 Total: 10924000 30018750 Year 4 Houston -- 0 Finley -- 0 Tax -- 0 Tax -- 0 Hardaway -- 0 Hardaway -- 0 Tax -- 0 Tax -- 0 Rose -- 5462000 Bradley -- 0 Tax -- 5462000 Tax -- 0 TAW -- 0 Tax -- 0 Total: 10924000 0 In summary, from New York's point of view, the monetary impact is +5,221,500 in Year 1; -4203500 in Year 2; -20094750 in Year 3; and +10,924,000 in Year 4 for a net negative effect of -8,172,750 over four years for making the trade rather than just cutting Houston. In other words, you a premium of a little over $2 million per year to have Finley for three years rather than Hardaway for one and Malik Rose for four. In NBA terms, this isn't very much. Dallas: Without Deal With Deal Year 1 Finley -- 14609375 Houston -- 17531250 Tax -- 0 Tax -- 0 Bradley -- 4000000 - 80% = 800000 Rose -- 5462000 Tax -- 4000000 Tax -- 5462000 TAW -- 3200000 - 80% = 640000 Tax -- 3200000 Total: 23249375 23555250 Year 2 Finley -- 14609375 Houston -- 17531250 Tax -- 0 Tax -- 0 Bradley -- 4000000 - 80% = 800000 Rose -- 5462000 Tax -- 0 Tax -- 5462000 TAW -- 2200000 - 80% = 440000 Tax -- 2200000 Total: 19049375 23555250 Year 3 Finley -- 14609375 Houston -- 0 Tax -- 0 Tax -- 0 Bradley -- 4000000 - 80% = 800000 Rose -- 5462000 Tax -- 0 Tax -- 5462000 TAW -- 0 Tax -- 0 Total: 15409375 10924000 Year 4 Finley -- 0 Houston -- 0 Tax -- 0 Tax -- 0 Bradley -- 0 Rose -- 5462000 Tax -- 0 Tax -- 5462000 TAW -- 0 Tax -- 0 Total: 0 10924000 Dallas's monetary summary is as follows: In year one the deal costs Dallas 305,875; in year two 4,505 875; in year three Dallas saves 4,485,375 and in year four the deal costs Dallas 10,924,000 for a total negative effect of $11,250,375. That's a little less than $3 million per year in return for the services of Malik Rose. I still like this deal for both teams, but going through this exercise (which I've greatly simplified) does make it clear to me just how difficult it's going to be to assess the financial impact of various deals.