Wednesday, October 21, 2009
If Houston is Desperate to Reduce Luxury Tax Payments
By Henry Abbott
Larry Coon suggests the Rockets might consider trading Tracy McGrady and his expiring contract to the Knicks for Eddy Curry and Darko Milicic. The idea is that the Rockets are paying luxury tax right now for a team that may well miss the playoffs. This move would save nearly $10 million this season (adding cost next season, however) while getting the Rockets into the realm of saving much more by getting under the tax line and collecting luxury tax payments instead.
The Knicks, meanwhile, would get the NBA's biggest expiring contract, which is extremely sexy heading into the Summer of LeBron.
My thought, however, is that McGrady's $22.5 million deal, which expires at the best possible time in recent NBA history, could probably fetch far more than bad contracts. Not to mention, the early word out of Houston is that McGrady may actually have value as a player, too.