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Magic let $17 million trade exception received in the Dwight Howard deal expire

Aug 12, 2013, 2:26 PM EDT

Dwight Howard AP

When Orlando traded Dwight Howard to the Lakers last summer, the team did so with a long-term vision of entering a full-fledged rebuild in mind.

Made simpler, it meant that unless something truly incredible came across the desk of Magic GM Rob Hennigan, that it was fairly likely that the $17.8 million traded player exception the team received in the deal for Howard would go unused.

That’s exactly what ended up happening, as the exception expired at midnight on Sunday.

Steve Kyler of HoopsWorld explains in a little more detail the reasons behind the Magic’s decision not to use it:

The problem with the Magic doing anything meaningful with the TPE is Orlando is still on the hook for the final $22.346 million year of Gilbert Arena’s contract, a contract that was waived using the amnesty provision in the Collective Bargaining Agreement. It removed that figure from the Magic’s salary cap, but still remains a bill the Magic have to pay.

The Magic also cut Quentin Richardson last year ($2.808 million this year) and Al Harrington this summer ($3.574 million this year and $3.804 million next year), leaving the Magic with more than $28.72 million payable to players no longer on the roster in addition to the $52.122 million owed to guys that will play this year.

Using the $17.816 million TPE would have only added to those numbers and there simply wasn’t anything worth doing that could justify spending more than the already committed $80.84 million.

Essentially, there are too many dollars already being paid to guys who aren’t playing in order for the team to take on any more salary to pay guys who will.

The only way to justify adding to the already astronomical payroll figure would be by adding a top-five NBA player to the roster. Since that level of talent is rarely available (and it wasn’t this past offseason, unless you count Howard), it’s no surprise that the Magic sat tight, content to rebuild through the draft at the team’s own pace.

  1. money2long - Aug 12, 2013 at 2:32 PM

    someone out there must be angrily waving their fist in the air while screaming, GILLLBERRRTT !

    • jcmeyer10 - Aug 12, 2013 at 4:06 PM

      Gilbert is happily waving his gun in the air screaming, GILLLBERRRTTT!

    • raidmagic - Aug 12, 2013 at 8:41 PM

      That actually made me laugh…as a Magic fan nothing basketball wise has made me laugh much this year.

  2. jcrileyesq - Aug 12, 2013 at 2:53 PM

    it must be like christmas for gilbert every 2 weeks when the check comes or is wired to his account

  3. 00maltliquor - Aug 12, 2013 at 3:09 PM

    Not to mention Hedo’s useless arse is still on the roster. Man the Magic have got to have the worst payroll ever. 28 million for absolutely nothing, OUCH!

    • ravissevens - Aug 13, 2013 at 1:04 AM

      That absolutely nothing is Otis Smith. He destroyed the Magic with stupid trades and even stupider FA signings.

  4. 00maltliquor - Aug 12, 2013 at 3:10 PM

    Feels like forever since we’ve seen Howard in a Magic jersey.

  5. jabronikid - Aug 12, 2013 at 3:25 PM

    $80M for a season record that will nit surpass 10 wins.

  6. skinsfanwill - Aug 12, 2013 at 5:02 PM

    Gilbert would be taking out the garbage, cleaning the arena, selling popcorn, parking cars or something if i had to pay him all those millions. No way he sits home and enjoys my money for nothing.

    • jcmeyer10 - Aug 12, 2013 at 5:46 PM

      Watch out, you may just buy your next beer from Gilbert at the Amway Center!

  7. 407magic - Aug 12, 2013 at 5:13 PM

    gilbert better be giving some of those millions to Otis smith for trading for him.

    • shanelsweet - Aug 12, 2013 at 6:19 PM

      Nope, he owes that contract to being the “son” that the owner, Abe Pollin, always wanted to win a championship. The Wizards GM Ernie G. should have won GM of the Year for getting the Wizards out from under that contract so quickly.

  8. patfic15 - Aug 12, 2013 at 6:37 PM

    And Lebron thinks something is wrong with the Players union? Please..if you can make 20+ mil for sitting on your ass at home…

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