Josh Huestis’s D-League adventure, a misplaced exercise in loyalty
July 23rd, 2014

(originally published elsewhere) A few days ago, Darnell Mayberry broke the story that Oklahoma City Thunder draft pick Josh Huestis might spend next year in the D-League, collecting a mere $25,000 or so salary, rather than sign in the NBA. This would be groundbreaking, not as the first first rounder to not sign immediately in the NBA (this happens quite often), but as the first to do so who instead signs in the D-League. It also makes absolutely no sense on the face of it. As useful as the D-League can be, its salaries are extremely uncompetitive. Players are paid by the league in one of three salary brackets, determined by their ability, and even though Huestis would no doubt be worthy of the highest D-League salary possible, that figure is still paltry. It will be comparable before tax with what an NBA 10 day contract pays, and when I say ‘comparable with’, I mean ‘slightly lower than’. Huestis would be doing so because the Thunder asked him to, in a pre-arranged deal running unnervingly close to the line. Tom Ziller speculated it, and Zach Lowe confirmed it. The projected second round or undrafted player going in the first round was indeed a eye opener, and it follows that, given that they may have been alone in wanting to take him that high, the Thunder felt they had the leverage to lean on him in this way. Apparently, to agent Mitchell Butler, the fact that it is the Thunder makes it all worthwhile. An analogous situation here is that of George Hill with the San Antonio Spurs in 2008. The Spurs took the IUPUI guard in the first round when no one expected them to, and used this as a means of leveraging him into accepting less than the customary […]

Posted by at 1:24 AM

“Consideration In Trades And Trade Structure” – a league instruction manual
July 11th, 2014

At the end of the July Moratorium each year, the league sends out a memo containing all of the findings from the audit it conducted during it. That audit is what the moratorium period is for – the moratorium is one long end-of-season book-keep in which it crunches all the numbers related to revenue, BRI, escrow, tax and the like, and makes determinations on both the past and the future. That memo generally filters through to the mainstream media – it has to, because it contains all the things that will make the league work next year, such as the salary cap numbers and exact size of the luxury tax threshold. It also contains things such as the latest projection of the season after next ($66.3 million salary cap, $80.7 million luxury tax threshold) and the sizes of next year’s exceptions. This year, however, the league sent out a second memo. Entitled “Consideration in Trades and Trade Structure”, it is a reminder and/or clarifier to teams about some of the specifics of what they can and cannot do in trades. Seemingly, they felt this was necessary Considering the presence of this memo suggests that some teams do not entirely understand the rules (or, perhaps, have been intent on pushing them back a bit), it is self-evidently the case that those of us outside of the league will not fully know them either. So, here goes. The memo is divided into two parts. The first part of the memo deals with what constitutes ‘consideration’ in trades, and is itself split into two parts. Part two of this first section concerns consideration in trades for non-playing personnel. Seemingly, in light of recent de facto coaching trades (whereby a team receives compensation for letting a non-playing member of staff out of their contract […]

Posted by at 7:54 AM

The fourth and probably final part of the Tim Duncan/Zach Randolph contract saga
June 24th, 2014

Further to this, this and most recently this. In the last update, I explained how Tim Duncan had had his contract modified, but Zach Randolph had not. And yet what I could not explain was why Tim Duncan had had his contract modified, but Zach Randolph had not. Was it because simply no one had noticed, or because of some other technicality I could not otherwise foresee that made the otherwise identical situations different? Couldn’t say. Can now, though. It certainly wasn’t the former. Apparently the reason why Duncan’s contract (which he has opted into, thus transitioning this whole endeavour from being an interesting aside into something with a palpable if not exactly massive affect on the NBA landscape) was modified, but Randolph’s was not, is because Randolph’s was “too old”. This does not however mean that the fact it was signed under the 2005 CBA (and not the 2011 CBA like Duncan) played a part in this differentiation. Instead, I am told it instead merely means they took that as a legitimate reason for looking the other way, through avoiding the issue altogether, rather than having a technical reason for addressing it in this way. So, yeah. Zach, if you’re out there, and you’re planning on opting in and signing an extension…..start chasing this up. There could be a million dollars in it for you. (The very full details of what is being discussed here can be found at the previous links. Especially the first one.)

Posted by at 4:26 AM

Tim Duncan did indeed get a pay rise
June 14th, 2014

This post is essentially the conclusion to a post from nearly two years ago, dated July 22nd 2012. That post was itself a follow-up to this post, published three days prior. The two posts combined to document an issue, or was at the time a potential issue, of a mistake in a contract. Sitting in the crowd at the 2012 Las Vegas Summer League, I was talking to someone about the market value of power forwards today. The discussion followed a fairly predictable route, and before long we got to talking about Zach Randolph, who in April 2011 signed an extension with Memphis that was to keep him with the team through 2015. Specifically, we were wondering how much he was due to get paid. In accordance with the universally held but entirely unspoken rule whereby no-one in, around, covering or even vaguely interested in the NBA is any good with facts without a computer in their hand, I could not remember how much his extension was for. (Trade secret there. To a man, they/we have nothing.) So I pulled out my mid-90’s notebook and had a look for the specifics of Randolph’s deal. It was there and then that I noticed for the first time a problem with Randolph’s contract, an error which I, and apparently everyone else involved, had not noticed in the fifteen months prior. Randolph’s extension called for base compensation of $17,800,000 in 2013/14, and $16,500,000 in 2014/15. (The contract also contains a ream of bonuses that make it deviate from those exact figures, yet they change not the general principles to be espoused here.) The 2014/15 is a player option season. This all looks like standard enough fare. However, a piece of CBA minutiae states that the salary in a player or team option year […]

Posted by at 1:21 AM

Max Deal The Way To Go With Irving
May 28th, 2014

(originally published elsewhere) Cleveland committed their future to Kyrie Irving. They picked him first overall, gave him all the reins, and gave him all the plaudits. And yet now there are reports that they do not want to give him a maximum contract extension. Whether or not Irving is worth the maximum salary is not really relevant here. The point is loyalty, and, more importantly, the perception of loyalty. It is not automatically disloyal to offer less than the maximum salary in an extension to a player you (rightly) do not feel is worth it, but to the player and his powerful agent, it is perceived as so. Anything less than undivided love is insufficient love, because the assumption – fuelled by perception – is that undivided love is available elsewhere. If you show anything less than undivided love, you do not show sufficient loyalty. And NBA players are driven by loyalty. Offer them less than the maximum and they will point to all those beforehand in comparable situations who received it. Blake Griffin, for one, or fellow point guards Derrick Rose and John Wall (particularly Wall, who had a long way to go at the time he received his deal, moreso than Rose). It matters not if they are not worth the maximum – the assumption was always that they were going to get it, especially after picking him first overall, openly stating he is the future and the foundation, and when given that they are one of the few bright spots for the franchise in the last three moribund seasons. The fact that the last three years have been poor is partly Irving’s fault, of course, but that is not how this particular process works. It could, then, be a situation headed for a messy divorce. Especially if […]

Posted by at 1:55 AM