Future and current cap implications of Toronto Raptors trade deadline

Toronto Raptors - Delon Wright and Marc Gasol (Photo by Vaughn Ridley/Getty Images)
Toronto Raptors - Delon Wright and Marc Gasol (Photo by Vaughn Ridley/Getty Images) /

The Toronto Raptors made headlines with a busy trade deadline. How do those transactions impact the team’s cap-sheet this season and moving forward?

The Toronto Raptors made three deadline deals. Malachi Richardson and a draft pick for cash, Greg Monroe and a draft pick for cash, and of course, the monster-deal involving Marc Gasol. Toronto almost certainly improved on the court with Thursday’s moves, but how will it impact their books this season and moving forward?

For this season, it might cost Toronto some. In the future, it should help. Let’s look at each deal and how it will impact the Raps salary-sheets.

Malachi Richardson trade

I’ve touched on the cap implications of a Malachi Richardson trade earlier. However, to sum it up briefly, Toronto will save a little more than 200,000 by trading Richardson. They also did receive cash in return, although the dollar amount has not been disclosed.

Greg Monroe trade

Unless a rookie is signed to replace him, Greg Monroe’s deal was completely cash neutral. Monroe was making $2.16 million, the nine-year veteran’s minimum. However, the Raptors were only responsible for $1.51 million of that figure.

In the NBA, more experienced players have higher minimums. Naturally, the NBA doesn’t want to teams to discriminate against older players in order to save money. To help prevent that, the NBA subsidizes part of older player’s contracts.

In short, whoever the Raptors bring in will almost certainly be paying the same $1.51 million contract from Toronto.

Toronto did also receive cash considerations back from Brooklyn a total sum of $110K.

Marc Gasol trade

A deal where Toronto actually picked up some tax liability. The Gasol trade will likely cost Toronto cash this season, but will save them money the next.

In the Gasol deal, the Raptors sent out a combined $27,409,557.00 in salary while receiving $25,406,736 in taxable salaries in return. ($1.28 million is a trade-kicker Memphis would’ve paid, but Toronto will be taxed on….idk the NBA is weird).

However, the deal sent out three players and only received one in return. When you account for two additional salaries at $1.51 million, the Raptors tax-bill increases ever so slightly (just over $1 million for which they will pay just over $3.25 million for).

Accounting for the cash Toronto received as well as the money they will save by having less than 15 players for a game or two, they probably (we still don’t know final cash considerations or who will be picked up) will just about break even, although they might be on the hook for a slightly larger sum now.

Gasol trade moving forward

The biggest implications of the deal will happen next summer. Toronto swapped JV’s $17.6 million dollar player option, C.J. Miles $8.7 million player option, and Delon Wright‘s restricted free-agency for Marc Gasol’s $26 million option. That’s a tremendous positive for the Raptors’ books.

JV is going to accept his option. C.J. Miles is DEFINITELY going to accept his. Those two alone, cost more than Marc Gasol. Who knows what offer-sheet Delon will receive this summer, although with lots of money floating around, it’s fair to expect 8+ million. If Kawhi stays, the tax implications would be too costly for the Raptors to match that deal.

With only Gasol on the books, Toronto is paying the same price as they would have for a lesser JV and an out-of-the-rotation C.J. Miles.

Toronto also will become a beneficiary of the weird “Wait Gasol might opt-out” possibility. Marc Gasol has made A LOT of money in his career. His brother Pau has also made A LOT of money in his career. If Kawhi bolts in free-agency, Gasol might want to spend his last couple of years on a real contender.

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This would be the best case scenario for Toronto. An impactful player if Kawhi stays. Open cap-space if he leaves. The trade will improve the Raptors cap positioning no matter what, and it might work out even better than they originally planned.