As Ailene Voisin reported, the Kings and Pelicans are close to agreeing to a Sign and Trade deal that includes Tyreke Evans for Robin Lopez and Greivis Vasquez.
There's just one problem: Actually completing the trade. Which is the point of the post. I don't agree with the trade, if it ends up happening, and if it ends up happening I'll comment then when I know more about what's going on. Until then, let's just say for now I don't agree. But that's not the point of this post. The point, if you will, is whether the Kings can or cannot pull this post off.
Right now, assuming that the Pelicans and Kings are over the cap (which is assuming a lot in the Kings case), the trade cannot be completed as constructed if Evans, Lopez and Vasquez are the 3 pieces moving.
Got that? Welcome to CBA land, kiddies, it's about to get funny.
So, first off, what are the rules regarding trades? Here they are:
|Outgoing salary||Maximum incoming salary|
|$0 to $9.8 million||150% of the outgoing salary, plus $100,0002|
|$9.8 million to $19.6 million||The outgoing salary plus $5 million2|
|$19.6 million and up||125% of the outgoing salary, plus $100,000|
As you can see, the outgoing trades for teams that are in the 0 to 9.8 salary range is 150% of the outgoing salary plus 100K. Which is one half of the problem for the New Orleans Pelicans here. And that's only the beginning, y'all.
If the Kings remain over the cap, which right now they currently are, that also means Tyreke is BYC. What is BYC? In layments terms, it means Tyreke's trade value for this particular deal will be about 5.5 million dollars (assuming the first year salary is 11 million dollars which is assuming a lot) if the reported first year salary of 11 million dollars is accurate.
Now, the problem is that New Orleans can only trade half of Tyreke's salary in a trade back to Sacramento in this BYC scenario, they have to make up the other half somehow either using a trade exception (which they don't have) or with cap room (also of which they do not have).
It is worth noting, that if the Pelicans include any of Lance Thomas, Darius Miller or Brian Roberts, they can pull this trade off. It's also worth noting that the Pelicans are almost certainly under the cap as of right now.
But that also means the Kings are not trading Tyreke when he's BYC. (That's also a steal for the Pelicans. But I digress.)
For that to happen, that means a lot of the following. The Kings must renounce James Johnson, Cole Aldrich, Toney Douglas and amnesty John Salmons to guarantee themselves being under the cap. (The NBA might consider the Kings under the cap by just renouncing those aforementioned three without amnestying Salmons anyway if the Kings petition the NBA to do it that way.)
So the question is, can the Kings get under the cap by just renouncing Johnson, Douglas, and Aldrich. The answer is yes, but it comes at a cost.
For my numbers that I've crunched, I've counted the Kings cap room using the following:
1) Tyreke's Cap Hold, 2) All existing salary already on the books, 3) Ben McLemore's 7th pick cap hold, and the cap hold for Ray McCallum's draft rights. (That's 12 slots which is all you need to do when projecting cap room.)
In order to get under the cap by NBA rules, you must renounce all cap holds applicable (not including Tyreke and I'll explain why in a moment) and all exceptions (The Mid Level, Bi-Annual, any trade exceptions etc etc) in order to get under the cap. The good news, if you're a fan of the trade, is that none of this is fatal to getting a trade done. In fact, one could argue that because D'Alessandro is a cap wizard, there's no way that this won't get done from the Kings perspective.
However, that being said, it's still a very stupid move to build around DeMarcus Cousins as your primary centerpiece on the basketball court.
Like I said, that's for another day.
The reason Tyreke cannot be renounced is that you cannot Sign and Trade a player for whom you do not have Bird Rights for. If you renounce someone's Bird Rights, you no longer have them. That's what renouncing actually means in this context.
Therefore, in order to complete the trade, the Kings must keep Tyreke's Bird Rights in order to pull off the trade.
That said, we shall see what happens by the time is all said and done. Maybe the trade isn't enough, or maybe there isn't enough sweetener, or whatever. Maybe it takes too long to pull off a Sign and Trade from the Kings or Pelicans perspective. Or whatever.
We shall see. But as of now, this is a really stupid move that cannot be pulled off based on the available information. Of which, naturally, we do not have completely as of yet.
Until next time, I think.
UPDATE: Per Sam Amick, Robin Lopez is headed to Portland in a 3 team deal. If that's the case, the Kings can stay under the cap (or be considered over) if the one piece they are getting in return is Greivis Vasquez. Additionally, a recalculation in cap space would put the Kings at 47,073,513 for 12 players (or salary slots) including Vasquez but not Lopez.
As of right now, that's roughly 11 million dollars in cap space before you even calculate an amnesty for John Salmons which would add 7.583 million dollars to that total.