Just to clarify, maybe a cap expert could help me out.
My understanding is that the Wolves would be over the luxury tax with this trade.
My understanding is also that, in a sign-and-trade, the player signed and going out only counts for half the salary in the trade.
In other words, even if we were able to sign Smart to a 14 million dollar contract, and trade him with Morris, Nader, and Yabu (and picks) to the Wolves, the trade would work (16,432,842 in Celtic outgoing salary and 20,445,779 incoming salary is within the 125% limit).
The problem is that even though Smart's salary only counts as 7 million for trade purposes, it still counts as 14 million against their salary cap, which gets them close to the luxury tax threshhold.
By my count, if the Wolves did that trade (and signed Georges-Hunt who they like), they would have 15 players under contract (renounce all free agents) and be in the luxury tax by $924,063. Not a lot, but for team that is looking at the possibility of repeater penalties in the future, it'd be good to get under that. If they waived Nader (400,000 guaranteed), they would get under the tax by $54,179.
Wolves Starters: Teague, Smart, Wiggins, Gibson, KAT
Wolves Bench: Morris, Tolliver, Dieng, Patton, Jones, Okogie, Yabusele, Rose, Georges-Hunt
In my opinion, that trade doesn't make sense for the Wolves unless they at least get back Rozier and then trade Teague in a salary dump, but that was the general numbers for it.