Yes, Dino, it appears you have it right.
[Rocket's owner Leslie] Alexander said the luxury tax threshold of $71.15 million is in effect a hard cap for the Rockets, with the exception of any opportunity to land “a great, great player.”
“I love Dikembe. I love him as a player and as a person,” he said. “He’s a terrific guy and a good player, but he’s not a great, great player anymore.”
Though the Rockets would only have to pay Mutombo about $536,000 (a prorated portion of his veteran’s minimum salary), if signing Mutombo triggered the luxury tax, he would likely cost between $5 million and $7 million in salary, tax and lost shared revenue.
Seems likely that this, more than Mutombo's decline, is the reason he's a long shot to resign with Houston. $5 million is understandably too much to pay out for Deke at this point in his career. And while I'm on the subject, let me add, I'm not much interested in bringing him to Boston, one assistant coach on the roster is enough.