How The Cavs/Jazz Trade Worked Financially
It seemed from the moment that news of Tuesday’s trade between the Cavs and Jazz surfaced, the deal was somehow more significant than a swap involving four backups normally would be. The Cavs reportedly see some value in John Lucas III, Malcolm Thomas and Erik Murphy as players rather than simply as non-guaranteed contracts, but an earlier report indicated the team had been looking for non-guaranteed deals specifically to strengthen its bid for Kevin Love. The trio doesn’t represent an overwhelming step toward Love, but the move gives the Cavs more options they can present to the Wolves, which might make the difference as Minnesota president of basketball operations Flip Saunders sorts through several competing packages.
A key part of the trade involves a separate transaction. The Cavs struck a deal that same evening with No. 33 overall pick Joe Harris worth precisely $2,710,369 for three years, including a guaranteed $884,879, according to Mark Deeks of ShamSports. That it runs three years indicates that the Cavs need to use cap space to complete the transaction, since neither the minimum-salary exception nor the room exception, the two vehicles other than cap space the Cavs have for signing free agents, allows for contracts longer than two seasons.
The Cavs have yet to officially announce their deal with Harris, but that doesn’t necessarily mean they haven’t officially signed him. Sometimes teams never make official announcements when they sign draft picks, for any number of possible reasons. The Bulls never announced having signed 2008 No. 1 overall pick Derrick Rose to his rookie scale contract, as Deeks pointed out earlier this month (on Twitter). The RealGM transactions log shows the Harris signing as having taken place, and the presence of his salary figures on Deeks’ database is further indication that the Harris signing is official. That means the signing had to have taken place prior to the trade, which the Cavs did officially announce, since Cleveland wouldn’t have had the cap room necessary to sign Harris to his deal had they executed the trade first.
The Cavs entered Tuesday evening with $56,030,677 in salary and a cap hold of $4,592,200 for Andrew Wiggins, who remains unsigned. That left them with $2,442,123 worth of space beneath the $63.065MM cap. The Harris signing brought that room down to $1,557,244. The Cavs, as the NBA allows them to do, then appeared to split the Jazz trade into two parts. The first involves taking on Lucas’ $1.6MM salary and Murphy’s $816,482 salary in exchange for Felix’s $816,482 salary. Murphy and Felix essentially cancel each other out, so it amounts to an absorption of the $1.6MM Lucas salary, putting the Cavs over the cap by $42,756. The NBA lets teams complete trades that take them as much as $100K above the salary cap without conforming to salary-matching rules, so the Lucas salary just barely squeezes in under this requirement.
That move puts Cleveland over the cap, leaving the Cavs to execute the rest of the trade, a simple acquisition of Malcolm Thomas, using the salary-matching rules required of a capped-out team. The incoming $948,163 salary of Thomas is obviously greater than nothing, which is what Utah is getting in this side of the deal, but fortunately for Cleveland, players on minimum-salary contracts don’t count as incoming salary in the NBA’s matching game. Thomas makes the minimum, so the trade is kosher.
The Jazz needn’t worry about splitting the transaction or dealing with any salary-matching requirements, since they were well under the cap before the trade and are even further beneath it in the aftermath of the deal. The Cavs must continue to deal with the ripple effects of having landed over the cap. By all appearances, that bars them from aggregating Thomas in a subsequent trade for two months. While the Cavs can trade Thomas by himself, no trade limitation applies to either Lucas or Murphy, since Cleveland acquired them while under the cap. Cleveland nonetheless appears ready to sign Wiggins, triggering a 30-day waiting period before he can be traded, and since the Wolves are insistent that Wiggins be a part of any deal for Love, it doesn’t appear as though Cleveland is in any position to rush to make a Love trade official.
All of this hinges on the Harris signing truly having already taken place, as all indications suggest. If it weren’t official, it’s possible the Cavs could have structured the trade differently with the intent of later opening up the cap room necessary to formalize the Harris signing. Still, it appears as though deft management of timing gave Cleveland the opportunity to sign its second-rounder to a three-year deal, which is significantly more valuable to the team than a two-year contract would be, as I explained last year. The Cavs did so while still acquiring non-guaranteed contracts that they can flip, sooner or later. Utah receives some more cap space, as well as Felix, ostensibly the player with the most upside in this transaction, having been picked 33rd overall just a year ago. Time will tell if it was indeed a trade that helped both teams, but the deal has the makings of being just that.
Magic Sign Devyn Marble
11:12am: The deal is official, the Magic announced via press release.
10:59pm: The sides have an agreement in principle on a three-year deal that’s fully guaranteed for the first season, Robbins writes in his full story. Since it’s for three years, that means the Magic are indeed using cap space.
10:52am: The Magic are on track to sign No. 56 overall pick Devyn Marble as soon as later today, reports Josh Robbins of the Orlando Sentinel (Twitter link). The rights to the former Iowa shooting guard went from Denver to Orlando as part of last month’s Arron Afflalo trade.
Marble, the son of former NBA player Roy Marble, showed steady improvement over his final three seasons with the Hawkeyes, averaging 17.0 points in 30.2 minutes per game with 34.9% three-point shooting as a senior. He aligned himself with another former NBA player when he chose B.J. Armstrong as his agent.
Orlando will likely use some of its ample cap space on what’s probably a deal for the minimum salary. It would be somewhat surprising if it were fully guaranteed, as such deals aren’t too common for late second-round picks. The Magic appear to be coming to a much quicker resolution with their second-rounder this year than they did last summer, when they didn’t officially have a contract with No. 51 overall pick Romero Osby until September 27th.
Contract Details: LeBron, Deng, Carter, Gasol
The idea that the Cavs would trade LeBron James sometime during his two-year contract is outlandish, but just in case it happens, the deal includes a 15% trade kicker, according to Mark Deeks of ShamSports. Deeks has updated his salary database with plenty of new information on deals signed within the past few weeks, so we’ll pass along some of his noteworthy findings. All links to go the relevant salary page at ShamSports.
- Luol Deng, LeBron’s replacement with the Heat, also has a 15% trade kicker, as do new Grizzlies swingman Vince Carter and Knicks signee Jason Smith.
- The last year of Pau Gasol‘s three-year deal with the Bulls is a player option.
- The final season of the contract Joe Harris signed with the Cavs is non-guaranteed.
- Eric Griffin‘s three-year, minimum-salary contract with the Mavs is non-guaranteed, with the exception of a $150K partial guarantee for this coming season.
- Jodie Meeks‘ deal with the Pistons was originally reported to be more than $19MM, but it actually checks in at $18.81MM.
- Damjan Rudez will make $3.449MM over the life of his three-year deal with the Pacers, which includes a team option for the final season. Shayne Whittington‘s partial guarantee with the team this year is worth $25K.
- Russ Smith‘s deal with the Pelicans runs three years at the minimum salary, but only the first season is fully guaranteed. Fellow Pelicans rookie Patric Young‘s two-year deal is non-guaranteed, save for a $55K partial guarantee this year.
Hoops Rumors 2014 Free Agent Tracker
Dozens of players have signed new contracts in the past few weeks, and some noteworthy free agents remain without one. You can see where they all stand with the Hoops Rumors Free Agent Tracker. Using our tracker, you can quickly sort through contract agreements, sorting by team, position, free agent type, and a handful of other variables.
A few notes on the tracker:
- Contract years and dollars are based on what’s been reported to date, so in some cases those amounts are approximations rather than official figures. Salaries aren’t necessarily fully guaranteed, either.
- A restricted free agent who signs an offer sheet will be listed under the team that extended the offer sheet, but note that those signings won’t be official unless the player’s original team declines to match within the three-day period to do so. If the original team matches, we’ll update the tracker to show that the player is back with that team.
- The tracker doesn’t include signed draft picks, since those players weren’t free agents. We’re keeping on top of 2014 draft pick signings in this post. The tracker also doesn’t include “draft-and-stash” players who’ve signed this summer, like Nikola Mirotic and Bojan Bogdanovic. You can find information about those players on their personal rumor pages (Click these links for Mirotic‘s and Bogdanovic‘s personal rumor pages, and find out how to access any player’s rumor page here).
Our 2014 Free Agent Tracker can be found anytime on the right sidebar under “Hoops Rumors Features,” and it’s also under the “Tools” menu atop the site. It will be updated throughout the offseason, so be sure to check back for the latest info. If you have any corrections, please let us know right here.
Ray Allen Mulling Retirement Amid Cavs Pursuit
JULY 23RD: Allen is leaning towards returning for a 19th season to join LeBron with the Cavs, sources tell Gary Washburn of the Boston Globe (via Twitter). We heard earlier tonight that Allen will be making a decision once he gets MRIs on his legs.
JULY 12TH, 9:46am: If Allen plays another season, it will be with the Cavs, sources tell Sam Amico of FOX Sports Ohio. Amico notes that Cleveland has been in contact with Allen’s agent as their efforts to add familiar veterans around LeBron James intensify.
2:51pm: The Cavs haven’t had contact with Allen yet, according to Alex Kennedy of Basketball Insiders (Twitter link).
1:13pm: Allen’s priority is to keep playing with LeBron, wherever LeBron chooses to go, tweets Bleacher Report’s Ethan Skolnick.
JULY 9TH, 10:10am: The Cavs are trying to woo free agent Ray Allen, reports Chris Broussard of ESPN.com (on Twitter), but the shooting guard is strongly considering retirement, as Alex Kennedy of Basketball Insiders hears (Twitter link). The pursuit Allen would appear to be part of Cleveland’s effort to entice LeBron James to sign there after the Cavs agreed to a trade this morning that will give them enough cap room to accommodate a max contract for James.
Allen, who’s 11 days shy of his 39th birthday, has been leaning toward returning for another season with the hope of playing with James for another season, but it’s unclear whether he wants to follow the four-time MVP from Miami to Cleveland should James elect to move north. The Jim Tanner client remains one of the league’s better three-point shooters, though his accuracy from behind the arc slipped to 37.5% this past season, his lowest mark in four years after three straight seasons in which he bettered his career percentage of 40.0%.
Contract Details: Brooks, Bairstow, Brown
As free agent transactions around the league become official, so do the monetary specifics of their contract agreements. Here’s a round up of the latest contract details to come to light this evening:
- The minimum salary contract Aaron Brooks signed with the Bulls is for one year, as Mark Deeks of ShamSports reveals on his updated Bulls salary page.
- Cameron Bairstow‘s three-year contract with the Bulls is guaranteed for $425K in year two and otherwise non-guaranteed past the first season, Deeks also reports.
- Markel Brown‘s two-year deal with the Nets is fully guaranteed in year one, with a series of guarantee dates for the second season, as Deeks shows.
- The two-year deal the Nets gave Cory Jefferson is similar, except it’s only guaranteed for $75K this year, Deeks also notes.
- The Nets gave Bojan Bogdanovic a 15% trade kicker on his three-year deal rather than the player option that he initially appeared to be getting, as Eric Pincus of Basketball Insiders reports on his Nets salary page.
- Robbie Hummel‘s deal with the Timberwolves is fully-guaranteed for $880K for the upcoming season, reports Pincus. It was originally reported to be worth $900K. Pincus adds that the deal allows Hummel to block any trade Minnesota may try to include him in (Twitter links).
Chuck Myron contributed to this post.
Suns Re-Sign P.J. Tucker
JULY 23RD: The deal is official, the team announced. The Suns used cap space to complete the transaction.
7:22pm: The third year of Tucker’s deal includes about $3.8MM of non-guaranteed money, writes Paul Coro of The Arizona Republic. Coro also indicates that Tucker has yet to sign the contract.
JULY 10TH, 6:35pm: The Suns will re-sign restricted free agent P.J. Tucker to a three year deal worth $16.5MM, reports Marc J. Spears of Yahoo! Sports (via Twitter). Tucker met with Suns owner Robert Sarver and head coach Jeff Hornacek yesterday and it was believed that talks would spill over to today. The terms of the deal would allow Phoenix to utilize Tucker’s Early Bird Rights, their Mid-level exception or their available cap room to bring back the forward, though there have yet to be reports of which option they’ll choose.
The 29-year-old Texas product has carved out a nice role the past two seasons in Phoenix as a solid defender and a positive influence in the locker room. Tucker, who is represented by the Arete Sports Agency, averaged 9.4 points and 6.5 rebounds in 30.7 minutes per game last season for a Suns team that nearly made the playoffs. While Phoenix has been mentioned as suitors for some of the NBA’s top free agents, it has mostly been on the periphery. However, they’ve had a busy Thursday after reportedly hosting restricted free agent Isaiah Thomas and now locking up Tucker.
There was talk last week that several teams had inquired about the possibility of acquiring Tucker from Phoenix via sign and trade but they came away convinced that the Suns were determined to keep him. The Wizards and Raptors were specifically reported to have had interest.
And-Ones: Salary Cap, Huestis, Allen, Hornets
Executives from teams around the league believe the NBA will attempt to prevent any sharp jump in the salary cap from one year to the next when heightened TV revenues come in by gradually increasing the cap, Grantland’s Zach Lowe reports. The union would have to consent to any such effort, Lowe tweets. Some teams project that the cap will be as much as 30% higher two years from now, as Lowe adds in his full piece.
Let’s take a look at what else is brewing around the league on Wednesday night:
- Josh Huestis should accept the required tender the Thunder are obligated to make to retain his draft rights rather than follow through on a promise to sign instead in the D-League, as Mark Deeks of ShamSports argues in a piece for Hoop365.com.
- Ray Allen, currently vacationing in China, told a Chinese news outlet that he will return home on Thursday to get MRIs on both of his legs before making a decision about the 2014/15 season, tweets Brian Windhorst of ESPN.com, who adds that multiple teams are interested.
- Hornets head coach Steve Clifford indicated that he’d like to add some depth at center behind Al Jefferson and Bismack Biyombo, reports Rick Bonnell of the Charlotte Observer. Bonnell adds that such an addition would likely be a veteran on a minimum salary deal (Twitter links).
- After a number of years in the lottery, the Jazz have assembled the type of young and promising core that should make them a threat in the near future, opines Alex Kennedy of Basketball Insiders.
Chuck Myron contributed to the post.
Lakers Re-Sign Jordan Hill
JULY 23RD: The team has officially re-signed Hill, according to Mark Medina of the Los Angeles Daily News (via Twitter), who reports that GM Mitch Kupchak called Hill a “consistent contributor” in a team release.
JULY 11TH: Free agent forward Jordan Hill has agreed to a two-year, $18MM deal to return to the Lakers, reports Adrian Wojnarowski of Yahoo! Sports (Twitter link). Hill joins Nick Young, who agreed to re-sign earlier, in returning to the team, and new acquisition Jeremy Lin, whose trade was agreed upon earlier, too.
In 72 games last season, Hill averaged 9.7 PPG, 7.4 RPG, and 0.8 APG while playing an average of 20.8 minutes a night. His slash line was .549/.000/.685. His career numbers over five seasons are 6.7 PPG, 5.3 RPG, and 0.5 APG.
With all the deals signed today, the Lakers have all but taken themselves out of the running for Carmelo Anthony, and seems to indicate the team will focus on next summer to try to lure a big name to Los Angles. The franchise now only has their $3.27MM taxpayer mid level exception with which to pursue players unless more moves are made.
Western Notes: Clips, Jazz, Withey, Buycks, Mavs
Steve Ballmer’s $2 billion bid for the Clippers equals more than 12 times the total revenue projections for the team from 2013/14, but no major pro sports team has ever sold for more than five times of its total revenue, according to Bank of America. Ramona Shelburne and Darren Rovell of ESPN.com have the details, which back up the contention of Clippers CEO Dick Parsons that it would be tough to envision another bidder coming in so high.
- The Jazz received $1.3MM in cash Tuesday as part of their three-for-one trade with the Cavs, reports Eric Pincus of Basketball Insiders (Twitter link). That’s slightly more than the $1MM that was originally reported.
- Jeff Withey‘s minimum salary became fully guaranteed for this coming season after the Pelicans declined to waive him before the end of Tuesday, the final day they could do so without owing him any money, according to Mark Deeks of ShamSports. Teammate Luke Babbitt also earned a $100K partial guarantee when the Pelicans kept him past Tuesday, which was also the final day his contract had been fully non-guaranteed.
- Dwight Buycks is drawing the eye of the Clippers and Suns, and multiple teams from overseas are interested in him as well, Sportando’s Enea Trapani reports. The Raptors waived Buycks on Saturday, before his contract would have become fully guaranteed.
- The Mavs are nearing a deal with Jameer Nelson, but owner Mark Cuban insisted to Tim MacMahon of ESPNDallas.com that the team isn’t trying to unload Raymond Felton. “We like him and think he will have a great year,” Cuban said.
- Cuban also made an appearance on Sportsradio 1310 The Ticket in Dallas this week, during which he explained that the Mavericks strategically used the ultra-logical approach of the Rockets‘ front office to put together an offer for Chandler Parsons that was unlikely to be matched (link via The Dallas Morning News).