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Gary Tanguay’s Misguided "Plan"

By Chris

So I am sure many of you have heard the latest rumors being spread by everyone's favorite Celtic's pregame anchor, Gary Tanguay.  If you haven't yet, here is a bit from his article on CSNNE.com today, where he explains what he was discussing all day yesterday on the radio and on Sports Tonight.

"First of all, Ray stays here because I don't think Danny Ainge will find enough value to move him and still compete for a title this spring. At the end of the season his $20 million comes off the books. Next, Paul has to opt out of his $21 million dollar final season. Once he does this, Danny can then offer $18 million or so to a free agent like . . . say . . . Joe Johnson. Then Pierce would re-sign a team-friendly deal that would allow him to retire a Celtic while having a younger roster to work with en route to another possible title."

Unfortunately, everything he is proposing here is completely impossible under the current Collective Bargaining Agreement (CBA), so let's take a look at why this won't work...

Star-divide

First of all, I am not sure where he comes up with the $18 million figure.  It seems to be pretty well accepted that the salary cap will be dropping next season.  Some are speculating that it will drop as low as $50 million, but lets say it drops to $55 million. 

The C's already have approximately $42 million in committed salaries next season to Garnett, Wallace, Davis, Rondo, and Perkins.  The C's could then renounce all of their free agents, which would allow them to have some cap space.  However, to determine how much space they have, you would also need to add in cap holds for minimum roster spots (you need to budget in money to pay the minimum salary for players until you have the minimum of 12 players), and Draft picks (you need to budget in the money to pay a first round draft pick).  So this would cut the cap space down significantly.  The C's would be very lucky to get close to $10 million in cap space.  I don't think that will entice Joe Johnson out of Atlanta.

The other issue comes from his theory that Pierce could opt out of his contract, allowing the C's to use that cap space, and then Pierce could resign after that.  While he is correct that this COULD happen, Pierce would have to agree to play for the veteran minimum, which not only means he gives back nearly $20 million, but also means he can't use Bird Rights the next year.

The reason for this is that if Pierce opts out of his contract, he would have a cap hold of about $19 million.  If the C's wanted to open up the cap space to sign someone else, they would need to "renounce" Pierce's rights.  This means that he would no longer have Bird Rights, and cannot be signed for anything above the veteran minimum once the C's are over the cap again. 

Tanguay tried to argue against this here:

"Now, there is NBA language that would prevent the Celtics from using the Larry Bird rule (which states a team can re-sign its existing player for more money than a new club).  The language states that if the team renounces Pierce's deal, it cannot use the Larry Bird rule. This would not be the case, as Pierce would agree to opt out of his deal and then re-sign a new contract after help arrives."

Again, he is completely wrong.  Pierce opting out of his contract does not change his cap hold.  The cap hold is put in place to prevent teams from doing exactly what Gary is proposing.

The other scenario that has come up is that the C's could do what Gary proposes, and then sign Pierce with the Mid-Level Exception.  Unfortunately, this also does not work, because teams under the cap (which the C's would be when they renounce Pierce and other FA's) do not get the MLE.

The moral of the story here is that just because a guy is on TV or the Radio, or even connected with the C's, does not mean he understands the CBA.  I would recommend that anyone who wants to know more about this (Gary, this means you!) check out Roy Hobbs' FAQ about the C's salary cap situation

For information about the CBA on a leaguewide level, check out Larry Coon's page here

Comment 45 comments  |  1 recs  | 

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gary tanguay is an idiot

seriously if any of us were as wrong as tanguay would we still have our job???

by jbuell719 on Feb 3, 2010 12:11 PM EST reply actions  

Not me

I would be fired immediately.

by droopdog7 on Feb 3, 2010 12:14 PM EST up reply actions  

sad reality

Generally speaking, TV/radio have the worst journalists of the media panorama. The best are in magazines and newspapers.
It happens in the US, it happens in Portugal, it happens everywhere,

by Global Celtic on Feb 3, 2010 12:19 PM EST reply actions  

tanguay is excellent at 2 things:

1) offending one of the most educated fan bases in sports;

2) misinforming those fans who do not invest as heavily in detailed knowledge but nontheless is owed accurate intelligent reporting;

he should be removed from his position and put on fishing or something. nice work, chris

by ssspence on Feb 3, 2010 12:21 PM EST reply actions  

1 more thing he is excellent at

under the name g tang he intro’s 2 hip hop albums and its pretty funny.. boot camp clik – casualties of war , and sean price – master P.
just a tidbit i thought some people might enjoy knowing

by MR. CAFETERIA on Feb 3, 2010 4:31 PM EST up reply actions  

Oh, Tang.....so misguided.

Awesome job Chris, you should host the studio show. I’ll even spring for some goofy glasses for you.

When Perk was asked what he thought of Howard winning the gold medal this summer, he responded: "What’s his impression of me after I won a ring?"

by Green17 on Feb 3, 2010 12:26 PM EST reply actions  

I like him for his play by play broadcasting and analysis – that’s where he truly shines.

by jurrasicearl on Feb 3, 2010 12:27 PM EST reply actions  

but his main purpose is to be a rodeo clown.

by jurrasicearl on Feb 3, 2010 12:28 PM EST reply actions  

haha

Great work Chris. I hope when he is googling his name later tonight (like he usually does. I’d bet on it) that this article shows up.

by jdpapa3 on Feb 3, 2010 12:30 PM EST reply actions  

Tanguay doesn't know what he's saying

But… Call me crazy: i believe we are going to sign Joe Johnson next summer. Maybe with a complicated sign and trade, i don’t know, but my guts believing in JJ

by Jack_Frost on Feb 3, 2010 12:31 PM EST reply actions  

Chris very nice

While I can’t stand Tanguay, any person can get over their head pretty quickly with these rules.

I am sure Gary is still a bit woosy from abnnouncing the game last week with Tommy H. He never shut up and I am sure Tommy has a sore butt from Gary kissing it about every 30 seconds.

BTW I have never known anyone to give up $20 million …willingly

Is it Soup Yet?

by Master Po on Feb 3, 2010 12:33 PM EST reply actions  

Yeah, Even Wyc Grousbeck

I hope someone has explained the nomncircumvention rules to Wyc, including the consequences of breaking those rules. Maybe Kevin McHale could sit down with him for a few minutes.

by Brickowski on Feb 3, 2010 12:50 PM EST up reply actions  

I loved...

when tommy asked him to be quiet during the free throws.

by aboubata on Feb 3, 2010 1:11 PM EST up reply actions   1 recs

Yes!

That was hilarious, because Tommy was speaking for all of us!

by Hal Jordan on Feb 3, 2010 8:46 PM EST up reply actions  

Thanks

Vey interesting information.

by thirstyboots18 on Feb 3, 2010 12:43 PM EST reply actions  

although it won’t feel right until Tanguay has to read an on-air apology explaining why he doesn’t know facts directly relevant to his job.

by Fan from VT on Feb 3, 2010 12:45 PM EST reply actions   1 recs

I don't think it's impossible to do what he's suggesting...

It’s clear he has no idea what the rules are but I do believe he is being fed some info from the c’s. let’s just say that the trade the c’s make at the deadline includes perk and davis for an expiring/s. If PP opts out and C’s renounce then the c’s have 34-38 mill. in salary cap to sign PP and other FA to 5 year deals.

by ipgreen on Feb 3, 2010 1:36 PM EST reply actions  

sorry numbers were wrong

they would have committed salaries of 35 mill, giving them as much as 20 mill. (if cap ends up being 55mill) for PP and other FA

by ipgreen on Feb 3, 2010 1:43 PM EST up reply actions  

Don't forget

to subtract the minimum salary holds on each empty roster slot up to a minimum of 12 slots being full. So it’s 35 mil guaranteed plus about 4 mill there. so down ot 16 million at the most optimistic cap prediction. Then realize JJ or another guy on his 2nd max deal is due 17 million or so for first year of new max contract. Not gonna happen.

by Fan from VT on Feb 3, 2010 2:35 PM EST up reply actions  

bummer that has been the plan I too thought would happen for months

as much as I would like to believe Paul would opt out and resign for the vets min, Ray too
Not so sure they would leave that much on the table.

ok Jeff say Paul opts out, we resign ray to 3 mil a year for 3 years, and pull J>Johnson out of Atlanta for 17-20 mil, putting us back up to cap numbers, could we them use the mle on pierce?

Either way I see pursuing Johnson or Wade (not likely) and resigning Ray on the cheap as a 6-7th man as the goal, no matter the tax. Easily making us the team to beat.
Lebron would have to go to the Lakers making their 6-7 men artest and odum, just to compete, the thought tho is bone chilling

by Warrior Spirit on Feb 3, 2010 1:59 PM EST reply actions  

note: Chris wrote this

but the answer to your question is no – once you get under the cap you lose your ability to use the MLE, so once you use up your cap space, you are done with free agents

"We few, we happy few, we band of brothers" Henry V

by Jeff Clark on Feb 3, 2010 2:21 PM EST up reply actions  

also, I assume there are limits to the raises you can give a player (over the initial year salary) so you can’t give Pierce a deal worth $1.00 next year and $20M the next year

"We few, we happy few, we band of brothers" Henry V

by Jeff Clark on Feb 3, 2010 2:23 PM EST reply actions  

8 percent or so i belive. 10.5% if it’s your own player and bird rights are used, but clearly that is not the cae here!

by Fan from VT on Feb 3, 2010 2:33 PM EST up reply actions  

Thanks, Chris

Yet another example of why Celticsblog is the only place I go to for intelligent and realistic discussion of trade scenarios involving the Celtics.

by Lucky17 on Feb 3, 2010 2:32 PM EST reply actions  

Heh, and even then...

Some of the trade rumors are ridiculous. 8 )

by Tai on Feb 3, 2010 2:40 PM EST up reply actions  

maybe be a stupid question but

but cant the celtics just go over the cap and pay the luxury tax. i dont think any team in the nba is under the cap

by gabe pruitt on Feb 3, 2010 2:57 PM EST reply actions  

You can’t just go over the cap. You can only go over the cap
-in trades within 25% of salary of each other
-to resign your own free agents
-via the MLE

by Fan from VT on Feb 3, 2010 3:59 PM EST up reply actions  

Great Article

So instead of having to renounce Pierce’s rights to make a new deal…is it possible to free up more cap space if we negotiated a contract extension before the end of this season? Can we even do that?

by Justin_Bobo on Feb 3, 2010 3:02 PM EST reply actions  

According to Roy Hobbs, Tanguay is right about his second statement...
The only way we realistically could gain cap space is if Paul Pierce opted out of his contract, and immediately signed with the Celtics for a vastly reduced amount. (An immediate signing is necessary to eliminate his cap hold).

So Roy Hobbs’ explaination says exactly what Tanguay is saying. Pierce opts out and immediately signs a team friendly contract, therefore reducing his cap-hold to the new contract amount. What am I missing? Lets say Pierce signs a 5yr/$35m deal. So you save $14m from Pierce in 2011. Renounce everybody else, trade BBD & draft pick, and now your at $46.1m. Add the min “cap hold” on the other roster spots ($3.2m), and you are at $49.1m. Still not enough under the cap to make a play at one of the top tiers, but Tanguay is correct about Pierce opting out and resigning, saving the celts a ton of cap space.
Now if you want to get crazy and trade ’Sheed for an expiring contract, before the deadline, then your in the $42m range, which may get it done.

by Timbaland7 on Feb 3, 2010 3:16 PM EST reply actions  

right, so it's a "mathmatical" possibility, but

1. does pierce voluntarily give up 15 MILLION DOLLARS next year? Has an athlete ever done that?

2. Who is going to take Sheed’s deal?

3. 55 million is the upper optimistic cap prediction, so even getting down to 42 means 13 million AT BEST, but the Amare, Bron, Wade, Bosh, Johnson guys can get about 17-18 million in first year salary i believe. Are they going to take a 4 million dollar pay cut on only their 2nd major contract of their careers?

by Fan from VT on Feb 3, 2010 4:02 PM EST up reply actions  

If the Celts drew in enough studs maybe so… I would give up ALOT of money to become an NBA champion if i ever got into it, and if they’re too stupid to realize that money was more important than there NBA career/ Dynasty (Yes i know it pays the bills and keeps the family fed), then whats the sense in getting them? But in a realistic sense they’re out there to have fun, get paid and compete on National Television for amusement.

"Victory belongs to the most Preserving" - Napoleon

"The teams that do the best job of putting personal agendas aside are the successful teams. It's not easy. That's why it's hard being a good teammate, but everyone has that choice." - Ray Allen

by AiTheLAviTiCuS#21 on Feb 3, 2010 5:14 PM EST up reply actions  

INCREDIBLE WORK!!

Simply a great job on this Chris…

Tanguay is a dink… too bad I am addicted to 98.5 now thanks to T&R and Felgy/Maz!

by rickyfan3.0... on Feb 3, 2010 3:37 PM EST reply actions  

Nice article, Jeff.

At this point, unless there is a large multi-team trade that happens, I simply don’t see the team making major changes until KGs’ contract expires (or we trade his away).

I’m not a betting man but I won’t be surprised if we let Ray play out this year then use Bird rights to sign him to a 2 year deal at around 7 or 8 per. It doesn’t get us under but at least reduces the overage by around $10M. And it will expire with KGs deal. It will be tough to grind out 2011 if these guys don’t stay healthy, but at that point we’ll have a ton of expirings that we can deal or wait to get rid of and use after 2012.

by mmmmm on Feb 3, 2010 3:40 PM EST reply actions  

By the way...

Ainge has said all along that the only way they get a top-tier FA this summer is through a S&T. So while Tanguay may not have his numbers right, he may have heard something about the Celts going after Johnson this summer. Tanguay is trying to make the cap numbers work, while Ainge is thinking S&T.

Do we know when Pierce has to accept/decline his option? Is there a window after the season is over, where we can trade his $21m salary, and then he “opts out”, and resigns with the Celtics? Has anybody discussed that scenario? Probably not possible, but worth exploring.

If Atlanta/Cleveland/Miami are resigned to the fact that there is no way in hell they retain their player, they would be better off doing a S&T that nets them no additional salary, and allows them to get back into the FA playing field right away, while also netting some draft picks.

Scenario: Celts S&T Pierce & 2 1st rounders for Johnson. Pierce immediately opts out of contract. ATL renounces his rights. Pierce resigns with Celts for MLE after 30 day window.

by Timbaland7 on Feb 3, 2010 3:41 PM EST reply actions  

This is an interesting suggestion. I am not positive, but I think it would be possible. Of course, it would probably be easier, and make more sense for everyone involved for the C’s to just sign and trade Ray (resigned), plus maybe, Baby and a couple first rounders for a resigned Joe Johnson to Atlanta. That gives Atlanta a cheaper SG (I am sure they are hurting for cash), who is still very good, and a couple future picks, that could potentially be decent, rather than just letting Johnson walk away for nothing. I think that is a very plausible scenario to bring Johnson back.

by Chris72 on Feb 3, 2010 4:42 PM EST up reply actions  

Wyc did suggest that there was a way for the C’s to get below the cap next summer (but did not really elaborate beyond that), but that was before they signed Rondo (and perhaps before they signed Davis and Sheed). If Rondo had not been resigned, that would have been $9 million off the cap, that would have made it at least somewhat possible (although not all that plausible) that Pierce could opt out, and resign for significantly less money, and they could still have had money under the cap to sign someone else. Of course in that scenario, they would have had to let Rondo walk, since he had about a $6 million cap hold, if I am not mistaken.

by Chris72 on Feb 3, 2010 4:38 PM EST up reply actions  

Success!!!

It appears the article on CSNNE.com has been taken down. Hopefully he is going to drop this idea. It would be nice if he would actually address it, to let those who do not come to this site that its not happening, but I can certainly settle for him stopping spreading these rumors.

by Chris72 on Feb 3, 2010 4:46 PM EST reply actions  

Pierce Will Not Opt Out

I don’t see it happening. He wants the team to do well, but he’s also very prideful in being considering a top tier player. He won’t A) give up tons of money and B) let another guy like Joe Johnson (were it possible) come in and take his spot as top dog for the Celts.

Any kind of discount he’d be willing to take most likely wouldn’t help us that much. Sorry to say but I think that Pierce salary is on the books next year for sure.

by Fred Roberts on Feb 3, 2010 4:49 PM EST reply actions  

Thanks for the props, Chris...

And yes, it would make the world a better place if GT and others (Tony Maz, for instance) would spend 15 minutes reading the FAQ.

All the negativity in this town sucks. It sucks, and it stinks, and it sucks. - Rick Pitino

by Roy_Hobbs on Feb 3, 2010 8:03 PM EST reply actions  

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