NBA Roundtable

2010 Cap Space: Miami Heat

In General NBA on April 28, 2010 at 10:37 am

Follow up post following the higher than expected cap figures

Miami Heat Salaries

Contracts above $5 million

  • Nobody

Rest Of Team’s Salaries

  • Michael Beasley – $4.96 million
  • Daequan Cook – $2.17 million
  • Mario Chalmers – $850k

Mario Chalmers has a non-guaranteed contract but at that salary he’s a lock to be picked up so I included him here. Chalmers will be in the final year of his contract.

Michael Beasley will be entering the third year of his rookie scale contrast whilst Cook enters his final season.

Those contracts amount to $7.98 million.

Other Costs

  • Draft Picks — Miami hold the #18 pick and that comes with a cap hold of about $1.2 million.
  • Non-Guaranteed Contracts — James Jones is due to earn $4.65 million but is only guaranteed $1.86 million of that amount. As a result, Jones is very likely to be bought out.
  • Player Option — Dwyane Wade has a player option for $17.15 million. However, he will opt out.
  • Player Option — Joel Anthony has a player option for $850k. He is very likely to use this option to stay with the Heat so I’ll include him in the salaries.
  • Open Roster Spots — The Heat have five players on their roster at this point. Meaning a cap charge for seven open roster slots which will cost around $3.31 million.

The cost of the Heat’s draft pick + waiving James Jones + Joel Anthony’s player option + open roster spots amounts to $7.22 million.

That gives us a new total of $15.2 million.

The Cap

David Stern recently announced

NBA commissioner David Stern said on Friday that the league is projecting the cap to come in at about $56.1 million. The actual number won’t be determined until early July, before teams can begin officially signing players.

Though that figure would still be lower than this season’s $57.7 million cap, it’s far better than estimates from last summer, when the league sent a memo to teams warning them of a potential sharp drop to between $50.4 million to $53.6 million.

2010 Cap Space

That Miami Heat will have $40.9 million in cap space next summer.

Summer Options

Let’s assume that Dwyane Wade stays and costs $16.57 million. That reduces Miami’s cap space to $24.8 million.

That leaves Miami with enough cap space to sign a second max contract free agent + would leave them with another $8.7 million to spend on remaining players.

If Miami traded Beasley for further cap flexibility, they could increase that $8.7 million to $13.2 million and increase it again to $14.88 million if they traded Cook for cap flexibility also.

Okay, so that leaves us with three different options:

$8.7 Million

The two main options here will be to spend it all on one player or to split it amongst two or three (more likely two) players to begin rounding out the rotation.

There would be a limited number of options at just under $9 million for one player, hmm, Brendan Haywood and Luis Scola look like the only options here.

If Miami choose to split their $8.7 million, here are a few of those options

  • $6 million + $3 million deal — Mike Miller/Josh Childress/Raymond Felton/Ronnie Brewer + Amir Johnson/Louis Amundson/Al Harrington
  • Split Equally ($4.5 million each) — Udonis Haslem + Travis Outlaw/Anthony Morrow/Linas Kleiza (Haslem may take slightly less money to stay with Miami)
  • Split Three Ways — Jermaine O’Neal + Raja Bell/Rasual Butler + Chris Duhon/Steve Blake/Luke Ridnour

Something along those lines …

$13.2 million

Miami will likely turn their focus to another tier

  • Rudy Gay, David Lee or Carlos Boozer

Other options include targeting those full $8.7 million players (Haywood, Scola) and then spending the remaining funds ($5 million) on one more key role player. Say Haywood + Haslem.

Or splitting the $13 million three ways and targeting three players in the $4.5 million range. Or four players in the $3.5 million range.

I think the first option here is the most likely and the second option the second most likely. I am doubtful Miami would try to split their funds in so many ways (three or four ways) to attempt the final group of options.

$14.9 Million

This is close enough to a max contract to make things interesting. Miami are about $1.7 million shy of creating enough cap room.

  • Waive Chalmers = $377k created
  • Trade 2010 pick for a future first rounder = $727k

That would give us a difference of $600k. Quite small. Miami could likely convince a max contract free agent to sign for that money or get both to agree to split the difference or sign and trade Joel Anthony to help make up the difference.

Anyway, Miami is capable of signing two max contract players or the equivalent of two max contract players.

  • Joe Johnson
  • Amare Stoudemire
  • Chris Bosh
  • LeBron James

Or, Miami could target their first tier choices in the previous category (Gay, Lee, Boozer) and spend the remainder ($1.7-to-$3 million) on another role player.

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