discovery69
Posted July 4th, 2010 by discovery69
Tags: Featured, New Orleans Hornets, Portland Trailblazers
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Chris Paul - Part 1 of 2 - New Orleans dilemma

New Orleans dilemma

New Orleans is facing a major turning point this summer as Chris Paul is not willing to wait another 3-4 years to build a winning team.  Chris Paul wants to win now and wants New Orleans to spend money before the end of the summer or he wants to be traded.

Let’s see what could be important factors that may cause New Orleans owners to trade Paul:

    Attracting Investors:
  • George Shinn has agreed to sale his 75% share of the Hornets to minority owner Gary Chouest two months ago.
  • Chouest is trying to get out-of-state minority investors.
  • Investors have shown interest, but concerns in a mediocre team with excessive salaries indicate this “may not” be a profitable investment.
    Projected player salaries
    $66.38M - Current total salaries for 2010-2011 with 9 players
    $02.33M - Salaries for Eric Bledsoe (#18) and Craig Brackins (#21)
    ———-
    $68.71M - Sub-total for 11 players
    $02.08M - Bi-annual player exception
    $05.90M - Mid-Level exception - approximately
    $00.94M - Min salary for two 1st year non-1st round rookies
    ———-
    $77.63M
  • $77.63M is projected salary and doesn’t take into account if the Hornets try to re-sign any of their free agents.
  • Once over the projected luxury tax of $68M.  New Orleans will be paying an additional $9.63 in luxury tax penalty if the salaries are at $77.63M.  Giving the cost of the player payroll at $87.26M.
    Chances of finding better players through trades
  • Will be difficult to find better quality players:
    • through ending contracts of Predrag Stojakovic ($15.34M) and Darius Songalia ($4.82M) will probably wait until Feb 2011 trade deadline.
    • trading away former all-star David West for a better PF is unlikely.
    • Emeka Okafor’s boat anchor contract and James Posey at 33 years old are unlikely to get better talent.

New Orleans is facing a huge dilemma of inflating it’s salaries and paying the luxury tax with more players not only this coming season, but at least into 2011-12.  Win big or lose Chris Paul at the end of 2011-12 season when he can opt out of his contract like LeBron, Wade, Bosh, Johnson and Stoudemire are doing this summer.

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