How the Oklahoma City Thunder saved money – and whether they might have to save more
August 31st, 2018
The early days of NBA free agency saw the Oklahoma City Thunder go big early. In a move that was known to be happening long before it happened, they agreed to re-sign 2018 NBA All-Star Paul George to a four year maximum value contract, and within hours also agreed to re-sign key reserve forward Jerami Grant to a three year, $27.35 million deal. This was both somewhat surprising and distinctly strong from a team that entered the offseason in a state of flux. In acquiring George and Carmelo Anthony in the summer of 2017, the Thunder strove to make a big stride back to the postseason and to relevance after the departure of Kevin Durant the previous summer. But to do so meant piling on the payroll, and to not take a stride backwards in 2018 meant piling on even more, keeping George and Grant on raises with a payroll that was already hefty without them. Immediately after those moves, reports came out about how, once luxury tax calculations were factored in, the Thunder were looking at a $300 million total commitment for their team this upcoming season. The reports of a $300 million total payroll were accurate enough at the time. However, they were normally taken out of context during their aggregation and sharing. That figure came about because of the heavy amount of repeater luxury tax that the Thunder were facing. Historically not a taxpaying team, the franchise has now paid luxury tax in the last three seasons, triggering the more punitive repeater tax rates for this upcoming season. The 2011 CBA created greater deterrents for teams crossing the luxury tax threshold; whereas before teams would previously pay a simple dollar-for-dollar tax on any amount they went over by, there are now various thresholds over which the amount increases (much […]
With a deadline coming up, the Luol Deng situation could soon be resolved
August 29th, 2018
In the summer of 2016, the L.A. Lakers, armed with cap room, tried to make a free agency splash. They signed centre Timofey Mozgov from the Cleveland Cavaliers to a four year, $64 million contract, and followed it up with signing Luol Deng from the Miami Heat to a four year, $72 million deal. They then almost immediately changed plans. Both players got out to slow starts and then never really sped up; in their first seasons, Mozgov averaged only 7.4 points, 4.9 rebounds and 0.6 blocks in 54 games (52 starts), while Deng averaged 7.6 points, 5.3 rebounds and 1.3 assists in 56 games (49 starts). Designed to be veteran help alongside D’Angelo Russell, Julius Randle, Brandon Ingram and Jordan Clarkson, the pair both struggled to get going throughout and recorded career-worst years. The Lakers shifted their direction pretty much immediately after this. They revamped the structure and personnel of their front office, and opted to up their standards when it came to the players they were pursuing. In the midst of an uncharacteristically long playoff-less streak, the team decided, explicitly, to target only the game’s very best in free agency. No more Mozgovs. It worked this summer when they signed LeBron James as a free agent. But to do so again next year may require freeing themselves of Deng’s contract. Earning $18 million this season and $18.81 million next, Deng’s contract vastly outweighs his performance. Indeed, as of last season, there was no performance. After starting him in the first game of the season but playing him for only 13 minutes, the Lakers had another quick rethink and benched Deng for the young forward quartet of Brandon Ingram, Kyle Kuzma, Julius Randle and (until the trade deadline) Larry Nance Jr. Despite being ostensibly in good health, Deng never […]
Sorry guys, Carmelo Anthony did not get $62 million in advance
August 16th, 2014
(originally posted elsewhere) For the most part, NBA players are paid on the first and fifteenth of every month, with a standard of 24 paydays per calendar year. Players earning more than the minimum can agree to 12 payments over six months or 36 payments over eighteen months, yet the norm is the norm. There is room for some further deviation from these standards. Players can receive both advances on their salary, and receive loans from their teams. There is not, however, room for the amount of deviation that is currently being reported in the case of Carmelo Anthony. It is being reported in several places around the web, most notably (and I believe initially) the Wall Street Journal, that Melo received 50% of his new $124,064,681 contract in one up front payment. Admittedly, it is not so much expressly stated as it is implied that this is the case, but whichever it is, the idea it spawned that he will or might have already gotten $62 million is wrong. The confusion comes from a misunderstanding about how, when and to what degree NBA contracts can be advanced, a confusion I hope to clarify here. The first and most important point to make is that salary for a future season can never ever be advanced. NBA seasons begin on July 1st and end on June 30th, so if it is October 6th 2014 and you want an advance on your 2015/16 salary, you are begrudgingly going to have to wait until July 1st 2015 to get so much as a piece of it. This rule alone is enough to show that the idea that Melo received a full 50% of the full life of the contract up front is false. There is, however, a reason the story exists, for the […]
How Chicago Can Get Carmelo
July 7th, 2014
(originally published elsewhere) Pretend for a minute that Carmelo Anthony chooses the Bulls. It’s possible until it isn’t. Pretend for a minute that he wants more than they can pay him in free agency. Considering that their best free agency offers would top out at a starting salary of $15 million barring a significant weakening of the roster elsewhere, and that other teams are offering an unconditional max, and this seems a reasonable belief. To join Chicago for an amount of money comparable to what he would get elsewhere, Melo would have to be signed and traded. Pretend for a minute that the Knicks are willing to do this deal to help out a conference rival. This, too, is realistic. If they want to be proud and/or stubborn and refuse to help a one time rival, instead preferring to let their player walk for free, then….OK. But there’s assets in it for them if they do, so they shouldn’t be stubborn in this way. They need assets to get good again more than they need to worry about who is good whilst they rebuild. It’s not personal, Sonny. It’s strictly business. With all the previous assumptions in place, Chicago would want badly to acquire Melo via sign and trade while keeping together as good of a team as possible. This means no trading of Taj Gibson, and ideally no trading of Jimmy Butler and Nikola Mirotic. Can Chicago keep all three, acquire Melo, build a brilliant team and do it all within the confines of the Collective Bargaining Agreement? Just about. Here’s how. STEP ONE: Amnesty Carlos Boozer. Thereby expunging his $16.8 million salary from the cap number, if not the payroll. Note that amnestying Boozer does not immediately put the Bulls under the salary cap, due to their […]
Apologies To The Denver Nuggets
January 28th, 2009
I hated the Marcus Camby trade. I hated it. I think everyone did, even Clippers fans. But I really hated it. I think about trades a lot. I should really have better things to do, but I don’t. So I spend a lot of time thinking about trades that have happened, moves that have been made, who would fit on which team, players that certain teams needed, who’ll sign where and for what, etc. But at not point did I think, “a current DPOY candidate and former winner, on an extremely fair value contract, is going to be moved for nothing more than a trade exception.” You just don’t consider these as possibilities, do you? But it happened. And it annoyed me. It annoyed me for one simple reason – the move was financially motivated, and I hate all purely financially-motivated moves. I wrote about as much here, and, in the interests of saving time, I’ll quote myself: When teams make bad personal [sic] moves to save money, purely as collateral damage from their own previous stupid move, then the fans become the victims to the folly that is the NBA and its old boy’s network. I hate any move that involves a team giving away an asset just to save money, with them deeming the financial saving as “necessary” due to their own cap mismanagement. That’s exactly what happened here – the Nuggets, perennial tax payers, were forced to start saving money by their ownership, and the best way for them to do this was to dump Camby’s salary for no return. The moved saved them $20 million this season, plus about the same next season, yet it saw an NBA team literally gifting away one of their best players at a position persistently devoid of much quality. Anyone’s […]
30 teams in 36 or so days: Denver Nuggets
September 27th, 2007
Players acquired via free agency or trade: Chucky Atkins (three years, $9.72 million) Steven Hunter (acquired from Philadelphia) Bobby Jones (acquired from Philadelphia) Players acquired via draft: None Players retained: Anthony Carter (waived, then re-signed, saving about $800,000) Eduardo Najera (opted in) Players departed: Reggie Evans (traded to Philadelphia) Steve Blake (signed with Portland) DerMarr Johnson (signed in Italy) Jamal Samspon (signed with Dallas) Words: When you spend $162 million on only three players in one offseason, you’re generally making a commitment to those as core players. Denver did this last offseason with Nene, Carmelo Anthony and Reggie Evans, investing in two power forwards despite also having the massive contract of Kenyon Martin firmly entrenched at the position, as well as Joe Smith and Eduardo Najera on hand to stand around looking sheepish. When you then trade your only significant expiring contract and both first-rounders this season (and Andre Miller) for soon-to-be-fading star Allen Iverson, you’re making a subsequent commitment to go for it all with what you have. You’re foregoing the few assets you have, placing yourself deep into luxury tax territory to try and put your team over the top. It’s noble. And they could not realistically turn down the Iverson deal because of the small price tag. But, in the short-term at least, it hasn’t really worked. Denver hasn’t had their shooting guard position solved for a number of years. The days of the Kiki Vanderweghe era saw such greats as Predrag Savovic and Vincent Yarborough blemish the position, and while Vanderwghe did pursue a number of options to fill the position (ranging from Manu Ginobili to Clyde Drexler, of all people), the best he could manage was a brief flirtation with Voshon Lenard. New GM Mark Warkentein picked up The Prodigy Formerly […]
