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2019 NBA Offseason Salary Cap Digest: Houston Rockets

May 16th, 2019 at 10:00am CST by Luke Adams

After an early-season slump that was widely attributed to the loss of key role players during the 2018 offseason, the Rockets bounced back in a big way, adding new contributors to the rotation and roaring into the postseason with a ton of momentum. For a second straight year, however, Houston saw its momentum halted in the playoffs by the Warriors, sending Daryl Morey and the front office back to the drawing board.

Here’s where things currently stand for the Rockets financially, as we continue our Offseason Salary Cap Digest series for 2019:

Guaranteed Salary

Chris Paul ($38,506,482)
James Harden ($38,150,000) ¹
Clint Capela ($14,896,552)
Eric Gordon ($14,057,730)
P.J. Tucker ($8,349,039)
Gary Clark ($708,426) — Partial guarantee. Non-guaranteed portion noted below.
Isaiah Hartenstein ($708,426) — Partial guarantee. Non-guaranteed portion noted below. ²
Troy Williams ($122,741) — Waived via stretch provision
Total: $115,499,396

Player Options

Nene ($3,825,360)
Total: $3,825,360

Team Options

None

Non-Guaranteed Salary

Chris Chiozza ($1,416,852)
Michael Frazier ($1,416,852)
Gary Clark ($708,426)
Isaiah Hartenstein ($708,426) ²
Total: $4,250,556

Restricted Free Agents

Danuel House ($1,876,700 qualifying offer / $1,876,700 cap hold): Non-Bird rights
Vince Edwards (two-way qualifying offer / $1,443,842 cap hold): Non-Bird rights ³
Total: $3,320,542

Unrestricted Free Agents / Other Cap Holds

Iman Shumpert ($16,516,851): Bird rights
Tarik Black ($3,948,000): Non-Bird rights ⁴
Kenneth Faried ($1,618,486): Non-Bird rights
Gerald Green ($1,618,486): Early Bird rights
Joe Johnson ($1,618,486): Non-Bird rights ⁴
Austin Rivers ($1,618,486): Non-Bird rights
Markel Brown ($1,443,842): Non-Bird rights ⁴
Trevon Duval ($1,443,842): Non-Bird rights
Total: $29,826,479

Projected Salary Cap: $109,000,000
Projected Tax Line: $132,000,000

Offseason Cap Outlook

Realistic cap room projection: $0
The Rockets won’t be in position to create cap room this summer. They’re more likely to end up over the tax line rather than below the cap, unless they fill out the back half of their roster on the cheap.

Cap Exceptions Available

Trade exception: $1,544,951 (expires 8/2/19)
Trade exception: $2,584,136 (expires 9/2/19)
Trade exception: $955,172 (expires 1/7/20)
Trade exception: $1,512,601 (expires 1/22/20)
Trade exception: $3,620,016 (expires 2/7/20)
Trade exception: $3,206,160 (expires 2/7/20)
Trade exception: $1,621,415 (expires 2/7/20)
Trade exception: $1,544,951 (expires 2/7/20)
Trade exception: $1,512,601 (expires 2/7/20)
Taxpayer mid-level exception: $5,711,000 ⁵

Footnotes

This is a projected value.
Hartenstein’s salary becomes fully guaranteed after July 15.
The salaries for two-way players don’t count against a team’s cap, but their cap holds do during the offseason.
The cap holds for Black, Johnson, and Brown remain on the Rockets’ books because they haven’t been renounced after going unsigned in 2018/19. They can’t be used in a sign-and-trade deal.
This is a projected value. If the Rockets stay below the tax apron, they’d instead have access to the full mid-level exception ($9,246,000) and the bi-annual exception ($3,619,000).

Note: Minimum-salary and rookie-scale cap holds are estimates based on salary cap projections and could increase or decrease depending on where the cap lands.

Salary information from Basketball Insiders and RealGM was used in the creation of this post. Photo courtesy of USA Today Sports Images.

2019 NBA Draft Picks By Team

May 15th, 2019 at 2:19pm CST by Luke Adams

While the Sixers and Celtics suffered disappointing losses in the Eastern Conference Semifinals and face uncertain futures, both teams can at least fall back on the fact that they’re still loaded with draft assets. Philadelphia and Boston are two of only three NBA teams – the Hawks are the other – that possess at least four picks in the 2019 NBA draft.

As our full 2019 draft order shows, there are five other teams that more than two selections in this year’s draft. On the other end of the spectrum, nine teams own just one pick in 2018, while two teams – the Nuggets and Rockets – don’t have any selections.

To present a clearer picture of which teams are most – and least – stocked with picks for the 2019 NBA draft, we’ve rounded up all 60 picks by team in the space below. Let’s dive in…

Teams with more than two picks:

Atlanta Hawks (5): 8, 10, 35, 41, 44
Philadelphia 76ers (5): 24, 33, 34, 42, 54
Boston Celtics (4): 14, 20, 22, 51
New Orleans Pelicans (3): 1, 39, 57
Charlotte Hornets (3): 12, 36, 52
Brooklyn Nets (3): 17, 27, 31
San Antonio Spurs (3): 19, 29, 49
Sacramento Kings (3): 40, 47, 60

Teams with two picks:

New York Knicks: 3, 55
Cleveland Cavaliers: 5, 26
Phoenix Suns: 6, 32
Chicago Bulls: 7, 38
Minnesota Timberwolves: 11, 43
Detroit Pistons: 15, 45
Orlando Magic: 16, 46
Indiana Pacers: 18, 50
Utah Jazz: 23, 53
Golden State Warriors: 28, 58
Los Angeles Clippers: 48, 56

Teams with one pick:

Memphis Grizzlies: 2
Los Angeles Lakers: 4
Washington Wizards: 9
Miami Heat: 13
Oklahoma City Thunder: 21
Portland Trail Blazers: 25
Milwaukee Bucks: 30
Dallas Mavericks: 37
Toronto Raptors: 59

Teams with no picks:

Denver Nuggets
Houston Rockets

Stein’s Latest: Beilein, Lakers, Rockets

May 14th, 2019 at 6:48pm CST by ChrisCrouse

John Beilein, who recently accepted the Cavaliers‘ coaching position, strongly considered the Pistons‘ job last offseason, Marc Stein of the New York Times writes in his latest newsletter. Beilein passed up on the chance to become an NBA head coach then but couldn’t pass up the opportunity this time around in part due to Dan Gilbert. The Cavs owner has a reputation for his willingness to spend when necessary in order to win on the court.

Here’s more from Stein’s latest piece:

The Lakers did not formally offer their coaching job to Monty Williams before Williams signed on with the Suns, Stein hears. Williams ultimately decided to go to Phoenix before the competition between he and Tyronn Lue was complete. Stein also hears that Kurt Rambis and Linda Rambis were the strongest supporters of hiring Williams and the couple was the loudest influence when it came to hiring Frank Vogel.
Not offering a five-year deal to Lue—a coach that won a championship with LeBron James—was a major mistake for the franchise, Stein opines. Los Angeles only offered Lue a three-year deal, something that Lue had to see as disrespectful.
The Rockets may be limited in what they can spend, but don’t count out GM Daryl Morey when it comes to making major moves, Stein contends. Houston doesn’t have much flexibility with regard to signing free agents, as it has roughly $116MM in guaranteed salary on the books for next season. However, we’ve seen Morey pull of unlikely trades in the past, as he did with Chris Paul.

Rockets Reportedly Willing To Pay Luxury Tax

May 12th, 2019 at 11:46am CST by Arthur Hill

After making a series of transactions to get below the tax threshold this season, the Rockets are willing to accept the tax next year to upgrade their roster, according to Jonathan Feigen of The Houston Chronicle.

GM Daryl Morey has already received permission from ownership to make moves that will push the team into tax territory, a source tells Feigen. Morey will try to tweak the roster to better compete with the Warriors, who have eliminated the Rockets from the playoffs in four of the past five seasons.

Houston has all five of its starters under contract for next year at a total cost of about $114MM, which is already over the salary cap. Morey will have to rebuild a reserve unit that features unrestricted free agents Austin Rivers, Kenneth Faried and Iman Shumpert and restricted free agent Danuel House.

Barring a bold trade to shake up the roster, Morey’s main weapon will be a mid-level exception that could be worth $9MM but is more likely to be limited to $5.7MM. That money might be needed to re-sign one or more of the team’s free agents, or Morey could also try to find a bargain on the free agent market.

No matter how he proceeds, Morey has a huge challenge ahead of him. The Rockets need to find a dependable small forward to allow Eric Gordon to spend more time in the backcourt, Feigen notes. They also need one more reliable shooter and a power forward who can hit 3-pointers and rebound so they don’t get beaten on the boards so badly when using small lineups.

Rockets Notes: Paul, Free Agents, Capela, Rosas

May 11th, 2019 at 8:54pm CST by Arthur Hill

There are a lot of concerns in Houston after another season ended with a playoff loss to the Warriors, but the decline of Chris Paul may be the most serious issue, writes Sean Deveney of Sporting News. Paul missed at least 20 games for the third straight season, playing in 58, and his production declined in several important areas.

The nine-time All-Star posted career lows in scoring (15.6 PPG), shooting (41.9% from the field), free throw frequency (3.5 per game) and PER (19.7). He had difficulty finding his shot in the playoffs, making just one of his first 10 3-point attempts and shooting 27% from long distance.

Now 34, Paul just completed the first season of a four-year extension he signed last summer. He will make $38.5MM next season, $41.3MM in 2020/21 and has a $44.2MM option for 2021/22. Paul, James Harden and Clint Capela will consume 85% of the Rockets‘ cap space next season, Deveney notes, and are all under contract through the summer of 2022.

There’s more tonight from Houston:

Midseason acquisitions Austin Rivers, Kenneth Faried and Iman Shumpert may all be headed elsewhere this summer, Deveney adds. All three will be unrestricted free agents, and the Rockets won’t have much to offer beyond their mid-level exception. Deveney sees Gerald Green, who played for the veteran’s minimum this year, as likely to return.
Capela’s contract could be a major issue if he can’t overcome the confidence problem that seems to plague him against the Warriors, states Kelly Iko of The Athletic. Capela is owed up to approximately $72.2MM over the next four years, and although he played well during the season, he has become a matchup problem against Golden State. “He’ll learn from this, he’ll only get better,” coach Mike D’Antoni said after the Game 6 loss. “He’s only 25, he’ll get stronger. The expectations are high for him. I think he was a little below his normal stats. Could’ve been better, but I’ll go down with guys like that.”
The Rockets are making some front office changes after losing executive VP Gersson Rosas to the Timberwolves, relays Jonathan Feigen of The Houston Chronicle. Assistant GM Jimmy Paulis has taken Rosas’ duties of coordinating the team’s scouts, and GM Daryl Morey is looking to hire someone to fill the vacancy.

Rockets Owner Promises To Upgrade Roster

May 11th, 2019 at 10:40am CST by Dana Gauruder

The Rockets have no plans to hit the restart button after their Game 6 flop at home against the Warriors. Owner Tilman Fertitta is intent on improving the roster to help the core group get over the hump in future playoffs, Tim MacMahon of ESPN reports.

“I’m very fortunate to have the starting five that I have, but if we can make this team better, we’re going to make this team better,” Fertitta said. “That’s just a fact. I have a great team. I love all five of my starting five, but it’s my job to make sure that we put the best team that we can put on the court next year.”

It’s one thing to say that upgrades are forthcoming. It’s another thing to pull that off when the team already has major salary cap issues. The combined salaries of James Harden, Chris Paul, Clint Capela, Eric Gordon and P.J. Tucker alone put Houston over the projected cap of $109MM for next season.

Harden isn’t going anywhere, so unless the Rockets could somehow unload Paul’s contract — he’s owed a whopping $124MM over the next three years — they’re not going to gain significant cap relief in a trade. The Rockets do have nine trade exceptions they can utilize but none are worth more than $3.62MM.

Houston’s bench is bound to look different because virtually all of its reserves become free agents or have non-guaranteed contracts for next season. The only exception is veteran big man Nene, who can exercise a $3,825,360 player option.

Both of their draft picks this June were traded away in previous deals, with the first-rounder being conveyed to the Cavaliers and the second-rounder going to the Knicks.

The only other major asset Houston will have at its disposal is the $5.7MM mid-level exception for a taxpaying team. Perhaps the Rockets can entice a quality player to sign for below-market value in order to join a contending team.

Otherwise, GM Daryl Morey will have his work cut out for him to create a deeper and more productive bench. Fertitta remains optimistic the Rockets will be champions in the near future.

“I can promise you, we’re going to win some championships with James Harden, because we are not going to sit here,” he said. “We will go to battle every year. We’re going to have a strong offseason, and we’re going to do whatever we need to do to be a better team. We are not going to sit on our hands, I can promise you that.”

Free Agent Stock Watch 2019: Western Conference

May 10th, 2019 at 5:42pm CST by Dana Gauruder

Every week, Hoops Rumors takes a closer look at players who will be free agents or could become free agents next offseason. We examine if their stock is rising or falling due to performance and other factors. With the playoffs in full swing, we turn our attention to the Western Conference:

Trey Lyles, Nuggets, 23, PF (Down) — Signed to a four-year, $10.4MM deal in 2015
Following an uninspiring regular season, Lyles has been a forgotten man in the postseason. He’s only made three cameos as coach Michael Malone has gone with a nine-man rotation with Mason Plumlee serving as the primary big man off the bench. Denver can make him a restricted free agent by extending a $4,485,665 qualifying offer, though his cap hold is $10.1MM. With hopes that Michael Porter Jr. can play next season, it’s no sure thing that Lyles will get that offer. Whether the team picks up Paul Millsap‘s $30MM option – or brings him back at a reduced rate – will also impact Lyles’ future in Denver.

Rodney Hood, Trail Blazers, 26, SG (Up) — Signed to a one-year, $3.47MM deal in 2018
No free agent has boosted his stock in the conference semifinals more than Hood, who is a big reason why Portland’s still alive. He poured in 25 points in Game 6 against Denver and has scored at least 14 points in five of the six games in the series. He drained crucial shots in the fourth overtime of the Blazers’ epic 140-137 victory in Game 3. This is same guy who averaged 3.2 PPG in the first-round series against Oklahoma City. Whether he receives offers as a starter or sixth man, Hood will get paid handsomely this summer.

Iman Shumpert, Rockets, 28, SG (Up) – Signed to a four-year, $40MM deal in 2015
Shumpert is making $11MM this season. No one is going to pay him that much on the open market anymore, but after battling injuries the past two seasons, he has once again become a valuable role player. While he barely got off the bench in the first-round series against Utah, he has been a factor in the last three games against Golden State. Shumpert has averaged 8.7 PPG in 18.3 MPG while going 7-for-13 beyond the arc during that span. He’s also helped to contain the Splash Brothers. Shumpert shouldn’t have too much trouble finding work as a second-unit player.

Kevon Looney, Warriors, 23, PF/C (Up) – Signed to a one-year, $1.56MM deal in 2018
With DeMarcus Cousins and Damian Jones nursing injuries, Looney has received steady minutes during the postseason. On the star-laden Warriors, Looney’s offensive contributions have been limited to putbacks and dunks. But the 2015 first-round selection has been a factor on the boards (nine rebounds in Game 5) and at the defensive end. It’s estimated that Looney will receive offers in the $3-$5MM range, which might make him affordable for the capped out Warriors, who own his Bird Rights.

Photo courtesy of USA Today Sports Images.

Kevin Durant Expected To Miss Rest Of Rockets Series

May 9th, 2019 at 2:32pm CST by Luke Adams

After undergoing an MRI today on his injured right calf, Warriors forward Kevin Durant has been diagnosed with a “mild” calf strain, according to ESPN’s Adrian Wojnarowski (via Twitter).

Based on the team’s initial fears when Durant left Wednesday’s game with a leg injury, that’s positive news. However, Wojnarowski reports that the team’s leading postseason scorer isn’t expected to be re-evaluated until next week.

In other words, while KD may be able to get back into Golden State’s lineup for the Western Conference Finals, the club will likely have to find a way past the Rockets without him, Woj tweets. Game 6 of that series is scheduled to take place on Friday night, with Game 7 happening on Sunday afternoon. The Warriors currently hold a 3-2 lead.

As Anthony Slater of The Athletic notes (via Twitter), Durant has suffered mild calf strains twice during the last two seasons, and has missed a week in each instance. While he’d certainly like to beat that recovery timetable in this scenario, it would be a risk to rush him back before he’s ready.

Despite being down 3-2 in the series, the Rockets now have a huge opportunity to finally get over the hump against the Warriors. Houston has been extremely competitive even in its losses this series, and will have the chance to even up the series at home tomorrow before potentially returning to the Bay Area for a Game 7.

As for the potential impact on the upcoming offseason, Durant’s injury is minor enough that it shouldn’t affect his market at all. But if his absence contributes to a second-round defeat for Golden State, it would be fascinating to see how the early exit might shape the Warriors’ summer.

Joe Tsai Talks Decision To Buy Nets Over Rockets

May 7th, 2019 at 10:54pm CST by ChrisCrouse

Joe Tsai bought 49% of the Nets last year and has the rights to assume majority control of the team in 2021. The billionaire businessman had an opportunity to instead make a play for the Rockets, but he ultimately took the deal with Mikhail Prokhorov because of his love for the City of New York, as he tells Paul Carcaterra of US Lacrosse Magazine (h/t Brian Lewis of the New York Post).

“At the same time the Nets were up for sale…the owners of the Houston Rockets also put the team up for sale. We thought about it, but we decided to put the focus on the Nets because I just couldn’t imagine myself spending too much [time] in Houston,” said Tsai. “No knock on Houston, but I love New York. And owning a sports team, especially in a major league like the NBA, it’s like owning a nice apartment on Park Avenue: The value’s not going to go down.

“From a business standpoint, it made a lot of sense. Then, I was looking at the upside. The NBA and basketball is a very, very big sport globally. Everywhere, people love the NBA, especially in China. I was seeing how the people loved the sport in China. Also, in Southeast Asia, in the Philippines, they love basketball. Indonesia. Even Mexico; that’s going to be a big market. So there’s a lot of international expansion opportunities. So it all made sense.”

Tsai, who is the executive vice chairman of online retailer Alibaba, believes the players and owners each receive a “fair share” of the revenue in the NBA. He also views the league’s TV deal – specifically how the revenue is split evenly between all 30 teams – as a major positive, calling it “kind of a socialist system.”

“So as we peeled through the materials, the more we looked at it —this is really more specific to the NBA — the NBA is really interesting from a business standpoint. You have a very good system to share the economics between the owners and the players,” Tsai said. “The players are very, very important. In any sport, without the talent — the players — you’re not going to have a good team and you’re not going to have fans. So they’re very, very important.

Tsai also owns the WNBA’S New York Liberty, which he purchased earlier this year. Last year, he aligned with Sixers owner Michael Rubin among others in an attempt to buy the NFL’s Carolina Panthers, though the group’s bid was not successful.

Jeff Bzdelik Is Balancing Basketball With Family

May 5th, 2019 at 11:29am CST by Arthur Hill

Rockets associate head coach Jeff Bzdelik has found a way to balance basketball and family after briefly walking away from the game last fall, relays Brian T. Smith of The Houston Chronicle. Houston convinced him to return in November and he helped fix the defense after a disastrous start. “He was kind of resolute for a little while,” said Rockets CEO Tad Brown. “Fortunately for us, we were able to wear him down and end up bringing him back. The first thing was always, let’s make sure everything is OK, personally, with he and his family. And then, secondarily, how do we handle this, how do we move forward? But at the same time, he’s a key part of what we do. How do we get him back to (our) family?”