Can We Do Two? (Or, “Where’s My Cap At?”)
This is what the Knicks cap situation looks like for the long-awaited “Summer of LeBron,” going into the 2010-2011 season. Only four players are under contract.
Committed salary: $20.62 million.
If the Knicks want truly max cap space, they could let every other player – from Bill Walker on up to David Lee – walk away for nothing. However, until those players are “renounced,” they continue to take up cap space. For most veterans, the “cap hold” is 150% of their most recent salary. For “non-Bird” free agents, i.e. those who just got traded, like Eddie House, it’s 120%.
The Knicks also have two players with team options, JR Giddens and Bill Walker. Their contracts include a set price for picking up the option.
Finally, Sergio Rodriguez is a restricted free agent.
Like Nate Robinson and David Lee last summer, the Knicks can keep Rodriguez by making a qualifying offer — in Rodriguez’ case, $2.8 million. Or, as they did with Lee and Robinson, they could cut a deal for more. Ted Nelson suggests that Rodriguez has more bargaining power than most restricted free agents, since he could probably play in Spain, tax-free, for $5 million or more. Of course, he may want to stay on the New York stage, even if it means accepting less money.
Where will the cap fall? It depends on who you ask, but bet on a number between $51 million and $56 million. A maximum starting salary is 30% of the cap, or in the $15-17 million range. In other words, the Knicks COULD probably sign two max free agents – if they’re willing to renounce David Lee, and fill out the roster with minimum salary guys. Or, they could sign LeBron James, give $9 million to Lee and have $6-8 million left for additional free agents, or to absorb salary in trades.
Another number to keep in mind: players are allowed annual raises of 10.5%. The Knicks could start Lee at $8 million, and by including maximum raises, make it a 6-year deal for a total of $60.6 million. Teams signing other teams’ free agents are only allowed to make a 5-year offer.
Let the arguments begin!
*For the roster charge, I used (6 x the rookie minimum of $473,604). By league rules, the Knicks must carry at least 12 players on the roster, so technically, with only 4 under contract, the roster charge going into the offseason is 8 x $473,604 (or $3.8 million). However, for every free agent we sign, the roster charge goes down by one player. What we’re really trying to figure out is: can the Knicks sign LeBron James and Dwyane Wade? To do that math, we only need figure on 6 remaining roster slots.
— additional design and inspiration by Thomas B.