Buyout Market 2023: Nerlens 10-day to Nets | Dragic to MIL

[DanSchwartzgan]

Question? What are the tax implications of signing one or two of these guys? Wonder if that factors into the decision to sign them? Kinda like has been said by me and others, there might be a path to just giving the 9th man in house. If Hardy or McGee aren’t gonna be worse than some of these “great buy out options” why take on the extra salary?

This is why there won't be two of them.  We'd pay tax on the guy who is cut and the minimum salary of the buyout guy.  We just saw yesterday that moving Terry's $1.8mm contract from the books saved almost $7mm in tax.  There is only one slot you can fill without paying to cut someone.

As to what ONE of these guys would cost, it depends on whether you assume Dallas will run with 15 players or 14.  If the plan was to run with 15 once we get to this point of the season, then the salary is the pro-rated minimum and the tax on that.  But, it isn't EXTRA since that was always what it would have cost.  If the plan was to run with 14, then the pro-rated minimum and the tax are EXTRA.

I'm of the school that says none of these guys will contribute as even a 9th/10th man in a playoff game.  If they do, you aren't that good or the team that let them go shouldn't have.  With that in mind, I might have a non-traditional use for one of two guys on the list.  I think Green is done.  Can he get whipped into shape in 2 months and play a few minutes in a playoff game.  Maybe.  But he brings a locker-room presence we can probably use.  I could see spending money for that.

The other is Bitadze.  The purpose here is more of a tryout than anything he's likely to bring this season on the court.  He's got more of a shot at upside than anyone on the list.  Maybe Schwartz steers him this way and we take a peek in practice to see if we want to spend money on him next season.  I hope Maxi is healthy and Wood is a grown-up if he doesn't get extended.  But, I don't know those things will be true.  So, he might also serve as insurance up front.