Rockets Money Crunch: Will Les Alexander Spend For a Contender?

March 14th, 2010 by Patrick Harrel Leave a reply »
Whether it was ponying up the $3 million in cold cash to acquire Ron Artest or the $8 million spending spree that netted the Rockets David Andersen, Chase Budinger, Jermaine Taylor, and Sergio Llull, Les Alexander has shown that he is willing to spend to improve his team. 

However, with an offseason that could prove to be the most important and expensive in recent franchise history, how much will Alexander be willing to spend?

Vikram Dimba wrote an excellent piece on a similar subject, but this article will touch on the more fiscal ramifications of the fated summer of 2010.

For some background information, the NBA's salary cap can be defined as a "soft" cap. While teams above the cap cannot sign whomever they want, there are various exceptions that allow teams to exceed the cap.

If a team's payroll exceeds the luxury tax threshold, they automatically trigger a dollar-for-dollar payment for as much as they are over the threshold. Because the tax payments are divided up between the non-tax paying teams, there is a multi-million dollar incentive to be below the threshold.

The last few years, the Rockets have been ov ...

Read Full Article at Bleacher Report - NBA
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