Cavs Notes: Updates on salaries, assets

Cavs Notes: Updates on salaries, assets

With the flurry of activity surrounding the Cavs, some details may have been left out and some still may be unclear. This post is basically an update on where the Cavs stand in terms of assets, salary and draft picks.

Assets

* Right now the most usable asset that the Cavs have is their MLE. The Cavs still have $5,765,000 to sign players with but it’s looking like the Cavs will either use a small chunk of it or none of it with what players are left on the free agent market. If the Cavs sign players to the minimum it doesn’t count against the MLE.

* The Cavs don’t have their BAE, as far as I know. The Cavs used last year’s BAE to sign Zydrunas Ilgauskas after he was waived in the Antawn Jamison trade. Since the Cavs used their BAE last year they can’t use it again this year. The Cavs won’t need it this year but the Cavs will have it next year, should they need it.

* In the Cavs-Heat trade, the Cavs received a Trade Exception and 5 future draft picks from the Heat.

The Trade Exception is worth $14.5 million and the Cavs can split it up as many times as they want. All the exception is is salary that can be traded for another player. Except the amount that the TPE is worth does not count against the salary cap but rather it that can be traded for another contract. The TPE cannot be directly combined with any players but there are ways around that. The TPE will last a year and will expire in July 2011, a year from when the transaction was originally completed. If the Cavs don’t use the exception then it’s lost and the Cavs won’t redeem anything from it. But until it expires, the Cavs can use the TPE to trade for a player and split it up as many times as they want.

For further reading on this and for it to be broken down further, I suggest you check out this link.

* The Cavs also received 5 draft picks in the trade with the Heat as well as a draft pick in the Minnesota trade. The Cavs are currently owed 6 future draft picks while not owing any. Here are the terms and conditions of the Cavs future draft picks:

2011 second round draft pick from Oklahoma City

Oklahoma City’s own 2011 2nd round pick to Cleveland via Miami (top 40 protected in the 2011 Draft). If Oklahoma City’s own 2011 2nd round pick is in the top 40 picks, then Oklahoma City’s obligations to Cleveland shall be extinguished. [Miami – Oklahoma City, 6/24/2010 and then Cleveland - Miami, 7/9/2010]

2012 first round draft pick from Miami

Cleveland has the right to swap their own 2012 1st round pick with Miami’s own 1st round pick. [Cleveland - Miami, 7/9/2010]

2012 second round draft pick from New Orleans

New Orleans’ own 2012 2nd round pick to Cleveland via Miami. [Miami - New Orleans, 6/25/2009 and then Cleveland - Miami, 7/9/2010]

2013 first round draft pick from Miami

Miami’s own 2013 1st round draft pick to Cleveland (top-10 protected in the 2013 Draft, top-10 protected in 2014, and unprotected in the 2015 Draft.) [Cleveland - Miami, 7/9/2010]

2013 second round draft pick from Minnesota

Minnesota’s own 2013 2nd round pick to Cleveland. [Cleveland - Minnesota, 7/26/2010]

2015 first round draft pick from Miami

Miami’s own 1st round draft pick to Cleveland in the “First Allowable Draft” (top 10 protected until the 2017 draft at which it will be unprotected in the 2017 draft). The First Allowable draft shall be the draft that occurs two years following the year in which Miami satisfies its first obligation to convey a future first round draft pick to the Cleveland Cavaliers. [Cleveland - Miami, 7/9/2010]

So for those keeping count at home: that’s 2 first round picks and 3 2nd round picks owed to the Cavs the next 5 years. Within the next 3 years, the Cavs will have a total of 4 first round picks and 5 2nd round picks. By building up the amount of draft picks they have, the Cavs are showing they know how to rebuild properly.

Contracts

* The second move of the Chris Grant era was the signing of undrafted free agent Samardo Samuels. Samuels was signed to what was reported as a “multi-year” contract but it’s now been reported it’s a 2-year deal. The exact terms of the agreement are unknown but the contract will break down to $473,604 in the 1st year and $788,872 in the 2nd year with both years likely being partially guaranteed.

* The third move was bringing Christian Eyenga over to the States and signing him to this rookie contract, which was a slotted amount since he was drafted in the 1st round. The contract breaks down as follows: $1,020,960, $1,097,520, $1,174,080 (team option), $2,119,214 (team option), $3,178,822 (qualifying offer).

* The biggest move so far was the deal involving Ramon Sessions and Ryan Hollins. The Cavs gave up Delonte West ($4,500,000 expiring) and Sebastian Telfair ($2,700,000 expiring) who equaled a total of $7,200,000 million in outgoing money. In return they got Sessions ($3,964,320, $4,257,974, $4,551,627) and Ryan Hollins ($2,333,333, $2,483,333) which equaled a total of $6,297,653 of incoming money. The Cavs saved a total of $902,347 during the trade because of the salary differential.

* The Cavs currently have a qualifying offer out to free agent Jawad Williams, who is a restricted free agent because of the QO. The QO is for one year and is worth $1,029,389. If Williams accepts it then he will rejoin the team for a year and become an unrestricted free agent next year without the Cavs being able to make him a restricted free agent. The Cavs could rescind the offer, making him an unrestricted free agent, or work out a long-term deal but neither is likely. Right now it looks as if Williams will accept the QO and become an unrestricted free agent next summer.

* To see the all the Cavs salaries broken down year-by-year, here’s a easier view of the Cavs salary situation over the next few years:

(The future cap and tax numbers are based on projections.)

Early Termination Option
Team Option
Player Option
Partial Guarantee
Qualifying Offer

Name	2010/2011	2011/2012	2012/2013	2013/2014	2014/2015	Notes
Antawn Jamison	$13,358,905	$15,076,715
Mo Williams	$9,300,000	$8,500,000	$8,500,000
Anderson Varejao	$7,031,818	$7,700,000	$8,368,182	$9,036,364	$9,704,545	5% TK; ‘14: 50% guaranteed; Unlikely incentives ($2m over 6 yrs)
Daniel Gibson	$4,015,334	$4,403,834	$4,792,332			‘12: $2.5m guaranteed
Ramon Sessions	$3,964,320	$4,257,974	$4,551,627
Jamario Moon	$3,000,000
Anthony Parker	$2,855,769					Unlikely incentives ($200k/yr)
Ryan Hollins	$2,333,333	$2,483,333
JJ Hickson	$1,528,920	$2,354,537	$3,357,569
Jawad Williams	$1,029,389
Christian Eyenga	$1,020,960	$1,097,520	$1,174,080	$2,119,214	$3,178,822
Leon Powe	$915,852
Danny Green	$762,195	$1,059,293				‘10: Unguaranteed, $125k guaranteed on Opening Day
Samardo Samuels	$473,604	$788,872
TOTAL	$51,590,399	$47,722,078	$30,743,790	$11,155,578	$12,883,367
# of Contracts	14	10	6	2	2
$$ Under Cap	-$6,453,601	-$12,347,922	-$33,827,210	-$40,635,422	-$16,183,633
$$ Under Tax	-$18,716,601	-$25,416,922	-$47,485,210	-$54,907,422	-$31,097,633

Cavs Notes: Updates on salaries, assets

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