The Los Angeles Clippers have traded point guard Chris Paul to the Houston Rockets, which changes the landscape of the Western Conference.
This decision was rumored to be made after a 90-minute meeting with the front office yesterday. But what does this mean for his checkbook?
The short answer is Paul will lose approximately $11 million by not signing a max deal with Los Angeles. However, this trade gave an opportunity for the team to get compensated rather than have him leave for nothing.
Meanwhile, the new Rockets point guard has a 15 percent trade kicker but he could waive it to make the trade official. His trade kicker is worth $3.6 million, which would alleviate some of the money he lost by not signing with the Clippers.
It’s worth noting Texas has no income tax, which means Paul will save money in the long run if he decides to stay with the Rockets.