3 Ways the Charlotte Hornets Can Use Their Cap Space Without Signing a Free Agent

Houston Rockets

Houston Rockets’ owner and billionaire restauranteur Tilman Fertitta is among the NBA owners most threatened by the economic losses brought on by the pandemic. He’s detailed his approach to survive the financial hit his restaurants have taken due to federal and state restrictions, and those cuts may apply to his Houston Rockets as well.

After shipping off-center Clint Capela in a deal to acquire Robert Covington last season, the team committed fully to an unprecedented style of small ball that saw them take a second-round exit to the Los Angeles Lakers, part ways with long-time coach Mike D’Antoni, and forge ahead into an uncertain new era of Rockets basketball.

Adding to their 2020 woes was the continued decline of former Sixth Man of the Year Eric Gordon after signing a four-year, $75.6 million extension (with the last year non-guaranteed). Though he played slightly better in the playoffs, Gordon never quite found his groove in an injury-marred season.

Nearing the cap limit with only 7 guaranteed players on the roster for 2020-21, the Rockets are almost certain to hit the luxury tax threshold next year. That could be a price Fertitta isn’t willing to pay for a team that flamed out in last year’s second round. And he could pressure GM Daryl Morey to make it work under the cap:

• CHA receives Gordon and 2021 first-round pick. HOU receives $16.9 million traded player exception.

This trade sees Charlotte essentially absorbing Gordon’s contract for a low 2021 first-round pick. While Gordon may have some value as a bench spark plug scorer, it’s unlikely he moves the needle much on the current Charlotte Hornets roster. Houston is able to get under the tax and generates a $16.9 million trade exception that could be useful if fans are allowed back at games during the season and financials start to look up.

• CHA receives Gordon, Danuel House, and 2021 second-round pick. HOU receives $16.9 million traded player exception and the 2020 34th pick.

This is a variation of the first trade that nets the Hornets a likely low second-round pick and Danuel House in exchange for taking on Eric Gordon’s contract, giving up a good 2020 second-round pick, and generating a large trade exception for Houston.

This pick gives the Rockets the opportunity to find a good cost-controlled player, or flip it. House was a solid role player last year and can either find his way into the Charlotte Hornets’ rotation or be flipped to another team for additional assets.