What is Houston thinking

[Randy]

While on one hand, their contract offers have been structured in such a way as to keep the Knicks and the Bulls from wanting to resign Lin and Asik even though they hold their rights.  And one could make the case that either player is worth taking an $8 million dollar a year risk (which is the average of both players 3 year contracts).  I like Lin -- I liked him in exhibition when he was playing with Golden State -- told my son I really wish the Lakers could pick him up (since we didn't have a good point guard option).  He is better than many point guards in the league but he isn't a franchise player or a star in this league, IMO.  Asik has shown potential and it is a big man's league so $8 million a year isn't too surprising to give a big man to see if he can rise to his potential.  I don't see him being much more than a decent role player but there are many big men role players making this kind of money so only time will tell to see if he will earn his money.  So $25 million over a 3 year contract isn't that bad for either player (although personally I think both players would be better placed in the $5-$6 million a year status) but the problem is the way they have backloaded the contracts.

Jeremy Lin's contract:
    2012 - $5 million
    2013 - $5.225 million
    2014 - $14.9 million

Omer Asik's contract:
    2012 - $5 million
    2013 - $5.2 million
    2014 - $14.9 million

So in 2012, these two players will make $10 together.  In 2013, these two players will make $10.425 together.  But in 2014, these two players will make $29.8 million.  Given that the 2012-13 salary cap will be $58 million, that means that in 2014, the Houston Rockets will pay around 50% of their salary cap to two role players.  Wow.  On one hand, you have to admire the way that the Rockets managed to make these "poisoned apple contracts" so unappealing to the Knicks and the Bulls but you have to think that the Rockets might be the ones poisoned in the end.  I'm wondering why they didn't structure one of these two players so that they both weren't getting $14.9 million a year for the same year.  While I think the Rockets went away thinking they won -- I can't help but think that in 3 years they will be thinking how stupid it was to make this kind of contract for two players in the same year.  I hope the owner doesn't mind paying luxury tax in three years!

[ziggy]

I think first and foremost they are trying everything they can to free up as much space as possible so they could trade for Howard.

I also seem to remember, but I would need to get some confirmation on this, the new collective bargaining agreement luxury tax is designed to penalize repeat abusers.  As I recall if you are under the tax threshold then go over, there is no tax due that first year.  Two years in a row and the tax is very punitive.  So by structuring Lin's and Asik's contracts this way, then have 1 year where their payroll is very high, but unless they are above the tax threshold the year before there isn't a tax.

It also give them two summers to make moves, as they would more likely be under the cap in back to back years, then way over it in the third.

[Randy]

Interesting -- so will this spark a new trend in contracts in order to keep teams from matching contracts? 

[ziggy]

Here is a link to a pages that shows all the teams that have paid luxury tax in the NBA

http://www.shamsports.com/media/tax.jpg