Why Rockets Aren’t Waiving Carmelo Immediately

The Rockets issued a somewhat unusual press release on Thursday, announcing that they were parting ways with Carmelo Anthony. While the announcement contained much of the same language that a typical press release on a waived player would, GM Daryl Morey said in his statement that the club is still “working toward a resolution” on the situation. In other words, “parted ways” isn’t actually a euphemism for “waived” in this case — Anthony is still technically on Houston’s roster, just not with the team.

While it may seem odd for the Rockets not to just request waivers on Anthony today and move on from the situation entirely, there are a handful of reasons why it makes sense for the team to hold off on such a move.

For one, waiving Carmelo could lead to an unfavorable outcome for either the Rockets or Anthony — if he goes unclaimed on waivers, Houston would be on the hook for his entire salary and the tax penalties that will come along with it. On the other hand, if Anthony is claimed off waivers, taking his contract off the Rockets’ books, he could end up being acquired by a team he has no interest in joining, eliminating his ability to pick his new club.

Although most players go unclaimed on waivers, Anthony’s contract is pretty claim-friendly. As we detailed on Thursday, the league’s waiver rules allow any team to use the minimum salary exception to place a claim on a player who is on a one-year, minimum salary contract. Only the Thunder and Hawks would face restrictions on Anthony, since they recently traded him and bought him out, respectively. Any other club could theoretically put in a claim.

Finding a trade partner willing to take on Anthony would be the easiest way to avoid waivers altogether and to create a win-win situation for the team and the player. The Rockets could send Anthony to a team he’s interested in joining and clear his contract from their cap at the same time, reducing their tax bill.

Meanwhile, Anthony’s new team wouldn’t have to match salaries, since Carmelo’s contract could be absorbed using the minimum salary exception. That team could also essentially give up nothing for the veteran forward – perhaps just a top-55 protected second-round pick – and might even be able to convince the Rockets to include a little cash, since Houston would still come out ahead by avoiding Anthony’s tax hit.

Unfortunately for the Rockets, NBA rules prevent Anthony from being traded for about another month, since players who sign as free agents in the offseason can’t be dealt until at least December 15. So if Houston hopes to go the trade route, it will be at least a few weeks before the situation is resolved.

Even if the Rockets can’t eventually find a trade partner for Anthony, there’s one more reason why it makes sense for the team to exercise some patience. Houston is currently carrying 14 players on its NBA roster, the league-mandated minimum. If the team dips down to 13 players, it would have two weeks to add a 14th man. So as soon as the Rockets release Anthony, that clock starts ticking.

With Anthony’s salary already locked in, barring a waiver claim, the Rockets aren’t increasing their projected tax bill by keeping him on the roster a few extra days or weeks. However, if they waived him, then had to sign another player within the next two weeks, that new player’s contract would help push the club’s tax bill higher.

Photo courtesy of USA Today Sports Images.

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