Dwight Howard to announce Friday

[Cman]

No, I mean that after everything has been factored in, Dwight would actually make more money playing for Dallas and Houston than if he were to play in LA.

Really? So it is 4 years $88M in Houston or 5 years $86M in LA?
In that case, no, he's going to Houston. But I find it hard to believe the taxes are so drastically different.... please provide source.

http://online.wsj.com/article/SB10001424127887324853704578583320651284076.html

^^difficult for those of us not subscribed to the WSJ

Here's a similar article in Forbes (no subscription required): http://www.forbes.com/sites/anthonynitti/2013/05/23/could-state-taxes-cause-dwight-howard-to-flee-l-a-for-houston/2/

Howard still gets more by staying in LA, but not on a per year basis.

In any case, I didn't realize the difference in taxes was so big, so yes, I cede the point.

I'm not subscribed to WSJ, either. Maybe try again?

The Forbes article fails to take into account jock taxes and various other things that WSJ compiled, which would make up for the difference that Forbes is lacking in. The WSJ article states that after EVERYTHING has been accounted for, Dwight will earn $8M more in Texas, or roughly an extra $2M a year.

The Forbes article arrives at same conclusion: extra $2M per year over first four years if he signs with Houston.
LA of course can offer that 5th year that Houston can't. That might matter to Dwight if he is at all worried about his health.

I also don't quite buy the argument that "the fifth year doesn't matter because Dwight can sign another contract". Again, if he is at all worried about his health LA gives him more security.

In any case, as I said above, I cede the point that the tax differences are huge enough to likely make the difference in the amount of money moot.

But I don't cede the point that Houston + Dwight >> Lakers + Dwight.  This board has a strange love affair with Daryl Morey.

[TheTruthFot18]

I have a feeling he'll stay with the Lakers.

Of course he will.  Lakers are required to have one of the top 2 centers in the league at all times.  They always get their big.

Perhaps. But if your Howard is LA really the best option?

1. it really did not work last year. Not "it didnt work out this year" like the 2010-11 heat who at least made it to the finals. They just failed and all those starts are one year older.

2. HOUSTON. Take a pay cut for wins. Kobe will be gone in 1-2 years and LAL becomes the Magic of a few years ago surounding Howard with shooters. Houston will be young and still have room for other starts after Howard and harden.

Seems like a no brainer to me, but I'd love to see him fail and be miserable. Enjoy that extra 1.5 mil in LA

[saltlover]

No, I mean that after everything has been factored in, Dwight would actually make more money playing for Dallas and Houston than if he were to play in LA.

Really? So it is 4 years $88M in Houston or 5 years $86M in LA?
In that case, no, he's going to Houston. But I find it hard to believe the taxes are so drastically different.... please provide source.

http://online.wsj.com/article/SB10001424127887324853704578583320651284076.html

^^difficult for those of us not subscribed to the WSJ

Here's a similar article in Forbes (no subscription required): http://www.forbes.com/sites/anthonynitti/2013/05/23/could-state-taxes-cause-dwight-howard-to-flee-l-a-for-houston/2/

Howard still gets more by staying in LA, but not on a per year basis.

In any case, I didn't realize the difference in taxes was so big, so yes, I cede the point.

I'm not subscribed to WSJ, either. Maybe try again?

The Forbes article fails to take into account jock taxes and various other things that WSJ compiled, which would make up for the difference that Forbes is lacking in. The WSJ article states that after EVERYTHING has been accounted for, Dwight will earn $8M more in Texas, or roughly an extra $2M a year.

The one thing that I didn't see these articles mention is that if Howard stays in LA, his second contract will be worth more too than if he goes elsewhere.  This is because the first year of his second contract will be based off the final year of his first.  Since the Lakers can give him larger raises in this contract, and thus a higher final year salary, his first year of his next contract will be higher.  Furthermore, since raises in contract #2 are based off of the first year in contract #2, the raises in contract #2 will be larger in LA than elsewhere.  If we assume, as Forbes does, that Howard would opt out of year 5 of his LA contract to sign a second five year contract at max value, we can see him signing a four-year contract and a five year contract with a single team, for nine total years.  In this scenario, Howard would be paid $243 million over 9 years by the Lakers, and $228 million over 9 years by the other team.  While the first 4 years would only have a little over $4 million difference total, the final 5 years would have over a $10 million difference total.

So by staying in LA, Howard makes more in his first deal, has an assurance of an extra guaranteed year at max salary if his health gives out, and can make more in his second deal.  Plus he has more off-court revenue opportunities. 

[rondoallaturca]

Both articles consider the 5th year. They both use $118M as Dwight's LA contract. But that's moot since clearly finances are no longer a driving issue of our disagreement between Houston and LA. So turning to the basketball side of things:

D'Antoni's system does not utilize a post presence like Dwight whatsoever. Dwight wants to be the featured player of the team, but the Lakers can't offer that as long as D'Antoni is running the show. Meanwhile, in Houston, they are in prime position to create a team similar to Dwight's Orlando Magic days, where they load 1-4 with guys who can shoot while Dwight will be the featured interior presence.

Kobe is Kobe, but he's 34 and just coming off an Achilles' injury. I don't think people understand how damaging an Achilles' injury truly is, particularly at that age. Look at Billups. He was already on the decline, but after his Achilles' injury, he basically fell off a cliff. Kobe is a warrior and works harder than just about anybody. However, you can't deny that it's far more attractive to play alongside Harden, who is far younger, much more efficient, a more willing passer, and one of the emerging stars in the NBA.

As soon as Nash left Phoenix's magical medical staff, age quickly caught up to him. He's still a great floor general, but his effectiveness is now limited to only about 20 minutes rather than 30-35. Lin is not the best PG you can have by any means, but he's still more than serviceable, and his strengths cater to Dwight. He's great on the pick and roll and is an underrated post entry passer. If he could make Tyson look good on offense, imagine what he could do with Dwight.

Artest is still a great defender and last season he showed his offensive game is still intact, but he's 33 and has no where to go but down. Meanwhile, Parsons has emerged as one of the most promising and dynamic wings in the league. It's an added plus that he's close to Dwight and has been in constant contact with him this whole offseason.

LA has no room to bring in anyone else this year. Next year, Dwight and Nash will be the only guys on the books (with Nash being an expiring). 2014 has a lot of high-profile players slated to become free agents, and the Lakers have always been a hot free agent destination. They certainly have a chance at surrounding Dwight with two more stars. The problem is Houston ALREADY has another star, and they too can bring in a third with proper maneuvering.

Then you look at management. Morey was able to convert Lamb and some draft picks into Harden. He was able to find Parsons in the second round. He successfully stole Lin and Asik away from their former teams (although Lin's contract may have been a bit excessive). The Lakers have traditionally had a great management, as well. But how has their track record looked ever since Jim took over for Jerry?

[rondoallaturca]

The one thing that I didn't see these articles mention is that if Howard stays in LA, his second contract will be worth more too than if he goes elsewhere.  This is because the first year of his second contract will be based off the final year of his first.  Since the Lakers can give him larger raises in this contract, and thus a higher final year salary, his first year of his next contract will be higher.  Furthermore, since raises in contract #2 are based off of the first year in contract #2, the raises in contract #2 will be larger in LA than elsewhere.  If we assume, as Forbes does, that Howard would opt out of year 5 of his LA contract to sign a second five year contract at max value, we can see him signing a four-year contract and a five year contract with a single team, for nine total years.  In this scenario, Howard would be paid $243 million over 9 years by the Lakers, and $228 million over 9 years by the other team.  While the first 4 years would only have a little over $4 million difference total, the final 5 years would have over a $10 million difference total.

So by staying in LA, Howard makes more in his first deal, has an assurance of an extra guaranteed year at max salary if his health gives out, and can make more in his second deal.  Plus he has more off-court revenue opportunities.

Have those $243M/$228M numbers been adjusted for taxes? Furthermore, any endorsement opportunities Dwight misses out on by ditching LA are instantly made up for, and then some, with Houston's incredible international appeal.

[Cman]

The one thing that I didn't see these articles mention is that if Howard stays in LA, his second contract will be worth more too than if he goes elsewhere.  This is because the first year of his second contract will be based off the final year of his first.  Since the Lakers can give him larger raises in this contract, and thus a higher final year salary, his first year of his next contract will be higher.  Furthermore, since raises in contract #2 are based off of the first year in contract #2, the raises in contract #2 will be larger in LA than elsewhere.  If we assume, as Forbes does, that Howard would opt out of year 5 of his LA contract to sign a second five year contract at max value, we can see him signing a four-year contract and a five year contract with a single team, for nine total years.  In this scenario, Howard would be paid $243 million over 9 years by the Lakers, and $228 million over 9 years by the other team.  While the first 4 years would only have a little over $4 million difference total, the final 5 years would have over a $10 million difference total.

So by staying in LA, Howard makes more in his first deal, has an assurance of an extra guaranteed year at max salary if his health gives out, and can make more in his second deal.  Plus he has more off-court revenue opportunities.

Have those $243M/$228M numbers been adjusted for taxes? Furthermore, any endorsement opportunities Dwight misses out on by ditching LA are instantly made up for, and then some, with Houston's incredible international appeal.

I don't know about the latter part of the statement. I assume we're talking about the Yao Ming - Jeremy Lin effect? How big of an effect is this? More so than the Lakers effect? I'm not sure. Lin isn't top 15 in jersey sales, but maybe he ranks close to that list...

[BudweiserCeltic]

Golden State suddenly is emerging like the favorite, and they're trying to clear-up cap space to sign him out-right.

They currently have about 70 million in salaries, so they have a tough task ahead...

Time to play the "who wants a free player" game.

Atlanta, are you interested in Bogut?

Any takers on Richard Jefferson?

Can someone please please please take Biedrins off my hands??

[crownontherocks]

Golden State suddenly is emerging like the favorite, and they're trying to clear-up cap space to sign him out-right.

They currently have about 70 million in salaries, so they have a tough task ahead...

Time to play the "who wants a free player" game.

Atlanta, are you interested in Bogut?

Any takers on Richard Jefferson?

Can someone please please please take Biedrins off my hands??

OMG this could happen: #Laker source told me they'd consider Barnes or Klay or Curry+Bogut+No. 1 for #D!2. GS hasn't yet offered HB/KT or SC
MarkHeisler

Nooooo way curry is in any deal going to lakers

[Birdman]

Warriors has 3 expiring contracts in Jefferson, Bogut, and Biedrins...i say right now all 3 could be had for a future 2nd round pick by any team. Warriors are desperate and they could be had for cheap!! I wouldnt mind Bogut

[86MaxwellSmart]

I'm sure Howard would rather play for a Cool coach like Marc Jackson...than and old Celtic in Kevin McHale...or an Idiot like D'antoni.

[Birdman]

I really think that Dwight made his decision weeks ago b/c he is announcing it very quickly if he is tomorrow

[Roy H.]

Warriors has 3 expiring contracts in Jefferson, Bogut, and Biedrins...i say right now all 3 could be had for a future 2nd round pick by any team. Warriors are desperate and they could be had for cheap!! I wouldnt mind Bogut

Unfortunately for the Warriors, Bogut is the only one who has even an iota of trade value.  The Warriors will probably have to include a first or two to get somebody to take those contracts.

[Roy H.]

Golden State suddenly is emerging like the favorite, and they're trying to clear-up cap space to sign him out-right.

They currently have about 70 million in salaries, so they have a tough task ahead...

Time to play the "who wants a free player" game.

Atlanta, are you interested in Bogut?

Any takers on Richard Jefferson?

Can someone please please please take Biedrins off my hands??

OMG this could happen: #Laker source told me they'd consider Barnes or Klay or Curry+Bogut+No. 1 for #D!2. GS hasn't yet offered HB/KT or SC
MarkHeisler

Nooooo way curry is in any deal going to lakers

That's hilarious.  The Lakers might consider Curry + Bogut + #1 for a player who is going to bolt anyway, huh?

[Fan from VT]

The one thing that I didn't see these articles mention is that if Howard stays in LA, his second contract will be worth more too than if he goes elsewhere.  This is because the first year of his second contract will be based off the final year of his first.  Since the Lakers can give him larger raises in this contract, and thus a higher final year salary, his first year of his next contract will be higher.  Furthermore, since raises in contract #2 are based off of the first year in contract #2, the raises in contract #2 will be larger in LA than elsewhere.  If we assume, as Forbes does, that Howard would opt out of year 5 of his LA contract to sign a second five year contract at max value, we can see him signing a four-year contract and a five year contract with a single team, for nine total years.  In this scenario, Howard would be paid $243 million over 9 years by the Lakers, and $228 million over 9 years by the other team.  While the first 4 years would only have a little over $4 million difference total, the final 5 years would have over a $10 million difference total.

So by staying in LA, Howard makes more in his first deal, has an assurance of an extra guaranteed year at max salary if his health gives out, and can make more in his second deal.  Plus he has more off-court revenue opportunities.

Have those $243M/$228M numbers been adjusted for taxes? Furthermore, any endorsement opportunities Dwight misses out on by ditching LA are instantly made up for, and then some, with Houston's incredible international appeal.

This is why I think the league should pay all income taxes (state and federal) for all players, and all salaries should be reduced and "actual" amount paid to players.

[esel1000]

While I couldn't care less where this overrated diva plays next season, at this point I want him to bolt LA just as a slap to their face and to put them in a very bad position. Lakers deserve to have to rebuild for once...