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 […]
Market Adjustment: Good NBA big men are bargains right now
August 27th, 2018
It took nearly a month of free agency to do it, but the last big free agency name was eventually taken off the board at the end of July. The Houston Rockets finally agreed to re-sign free agent centre Clint Capela to a deal reported to cost them only five years and $90 million, of which only five years and $80 million is guaranteed. My use of the world “only” there was very deliberate. That is not a lot of money for a player of some calibre, and who is a roughly ideal fit for what the Rockets are doing with their team. It is considerably less than the maximum salary of five years and $147,710,050 (or four years and $109,509,175 with another team) that he could have signed for, and it is a lot less than Houston probably expected they could get him for when headed into free agency. In a tough free agency period in which they lost Trevor Ariza to the Phoenix Suns and Luc Richard Mbah A Moute to the L.A. Clippers, and given a maximum contract to Chris Paul that will be of questionable value in the back end, the Rockets needed to win on this one, and they have done. In large part, this was due to their patience. Taking this full month allowed the relative impatience of the competition to take effect, and as the other cap space teams spent their money up, Capela quickly ran out of bidders. The Rockets have been significantly aided in this quest, though, not only by Capela’s restricted free agency, but also by a flat overall market for ‘big men’. Positional distinctions are increasingly hard to do these days. Still, with that disclaimer in mind, here is a list of all the new contracts given out to veteran ‘big men’ in […]
