Cap, Tax, FA Implications Of Celtics/Cavs Blockbuster
Mid-to-late August is typically a quiet period on the NBA’s offseason calendar, but Celtics president of basketball operations Danny Ainge and new Cavaliers GM Koby Altman certainly weren’t on vacation this week, having reached an agreement today on a blockbuster deal that will send Kyrie Irving to Boston. In exchange for Irving, the Cavaliers will receive Isaiah Thomas, Jae Crowder, Ante Zizic, and the Nets’ 2018 first-round pick (unprotected).
Here’s a breakdown of some of the current and future salary cap and luxury tax implications of the swap between the Eastern Conference’s top two contenders:
How salary-matching works in the deal:
According to Basketball Insiders, the salaries changing hands in the trade are as follows:
- To Celtics: $18,868,626 (Irving)
- To Cavaliers: $6,796,117 (Crowder); $6,261,395 (Thomas); $1,645,200 (Zizic)
In total then, the Celtics are sending out $14,702,712 and taking back $18,868,626. Since the Celtics are a non-taxpaying team, they’re allowed to take back their outgoing salary plus an extra $5MM in this deal. Simply sending Crowder and Thomas to Cleveland wouldn’t have been enough, since those two salaries only total $13,057,512, which doesn’t get them to within $5MM of Irving’s figure. Adding Zizic allows the C’s to surpass that threshold.
How the Cavaliers will use a traded player exception and create a new one:
Heading into Tuesday, the Cavaliers had three traded player exceptions at their disposal. Those three TPEs were worth $4,837,500, $2,194,500, and $980,431. Trade exceptions can’t be combined with one another, so Cleveland can’t use any of those TPEs to absorb Crowder or Thomas — both of their salaries are a little too big. However, the Cavs can – and likely will – use that $2,194,500 TPE to acquire Zizic.
Having applied an existing trade exception to Zizic, that means that the Cavaliers are sending out Irving’s $18,868,626 salary and taking back $13,057,512 in Crowder and Thomas. The difference between those totals is $5,811,114, which is the amount of the new traded player exception generated by Cleveland in the deal. The Cavs will have one year to use that TPE.
How Irving’s waived trade kicker affects the Celtics’ cap situation:
Community Shootaround: Kyrie Irving Drama Just Starting
Kyrie Irving has a new home as the disgruntled Cavaliers All-Star was traded to the Celtics as part of a four-player trade that also sends the Nets‘ unprotected 2018 first-round pick to Cleveland. On the surface, it seems that the Irving saga is over; all involved parties can move on, and things can retain a sense of normalcy.
Wrong.
This latest chapter is just beginning as the trade and its ramifications will be examined under a microscope that won’t even reflect Isaiah Thomas’ alleged growth spurt. Thomas, who will head to Cleveland as part of the trade, will do so with questions surrounding his hip — the same hip that caused him to miss most of the playoffs in 2016/17. Celtics general manager Danny Ainge spoke to reporters, including ESPN’s Jeff Goodman (Twitter link) on a conference call Tuesday night and indicated that Thomas’ troubled hip played “some” part in the decision to consummate a deal.
ESPN’s Adrian Wojnarowski tweets that the Celtics expected a mix of rehab and rest would bring Thomas back to full health. Now, the Cavaliers plan with Thomas is to “monitor closely” as he recovers, adding that the team is “anxious” to give him a physical. However, Wojnarowski adds that Cleveland has “no short term concerns” with Thomas’ hip and instead view him as a player entering his contract year with extra motivation.
Thomas indicated multiple times this offseason that his goal is to land a maximum contract in free agency. In an interview with Stephen Hewitt of the Boston Herald earlier this month, Thomas said he feels confident about landing a max deal.
“Very confident,” Thomas said. “I deserve it. I put the work in, and you can put me down against any guard in the NBA. . . . My numbers are up there with the best players in the world, and my team is winning. So, I mean, you have to reward that.”
Thomas, 28, is not the only player in the deal who will reach free agency soon. Irving is set to hit the open market in 2019, but Wojnarowski reported that Irving is “thrilled” to join Boston and that the Celtics made the deal with a “great chance” to re-sign him (Twitter Link).
“Kyrie is one of the best scorers in the NBA. He has proven that on the biggest stage, the NBA Finals, the last three years,” Ainge said in a press release announcing the trade. “He’s been an NBA champion, an Olympic Gold Medalist, and a four-time All-Star. For all he’s accomplished, we think his best years are ahead of him.”
Factoring in the rest of Cleveland’s return (Jae Crowder, Ante Zizic, and the aforementioned draft pick), the team secured a sizeable haul in exchange for a player who, for all his talented, reportedly wanted out. Pairing a healthy Thomas with Crowder’s defense along with LeBron James, Kevin Love and lower-tier talents like Derrick Rose and Tristan Thompson makes for a dynamic team.
Likewise, adding Irving to a group that includes Gordon Hayward, Jayson Tatum, Al Horford, Marcus Smart, and Jaylen Brown gives Boston a young, athletic, and yet still seasoned core of talent.
Whether or not that draft pick lands Cleveland a game-changing talent, Thomas or Irving re-sign with their new teams, or if any of the secondary pieces pan out will the be major storylines to watch. The analysis of this trade will take on a new life when the Cavaliers welcome the Celtics to Cleveland on opening night October 17.
Do you think this trade works out well for both sides? Do you think Thomas’ hip injury will be an issue? Will Irving cement himself as Boston’s primary option? Sound off in the comments below!
Cavs, Celtics Swap Kyrie Irving For Package Including Isaiah Thomas
9:39pm: The trade is official, the Cavs confirmed in a press release. The Celtics also issued an announcement confirming the deal.
6:23pm: The Celtics and Cavaliers have reached an agreement on a deal that will send Irving to Boston in exchange for a package headlined by Thomas, reports Shams Charania of The Vertical (via Twitter). Brian Windhorst of ESPN first reported (via Twitter) that the two teams were on the verge of a deal.
According to both Charania and Windhorst, the Cavs will receive Crowder, Zizic, and the Nets’ 2018 first-round pick (unprotected) in addition to Thomas. Charania also tweets that Irving will waive his trade kicker so that the deal can be completed. Here is Charania’s full story.
5:47pm: Boston center Ante Zizic is also expected to be part of a potential deal with Cleveland for Irving, tweets Adrian Wojnarowski of ESPN. Bobby Marks of ESPN adds (Twitter link) that receiving Thomas, Crowder, and Zizic for Irving would save the Cavs $19MM in taxes. The team’s projected tax bill would lower from $78.4MM to $59.2MM.
5:30pm: The Cavaliers and Celtics are actively discussing trades centered around Kyrie Irving and Isaiah Thomas, according to Shams Charania of The Vertical (Twitter link). ESPN’s Adrian Wojnarowski adds that the two sides are discussing the inclusion of Jae Crowder as well as the addition of future draft picks heading from Boston to Cleveland.
Irving requested a trade from Cleveland last month and included a short list of destination which he would prefer to be dealt to should the team honor his request. Boston was not on that list, but all of the teams—Spurs, Heat, Wolves, and Knicks—with the exception of New York have strong coaching structures in place. The Celtics also have that element with Brad Stevens running the show, so it’s possible Irving would be open to a trade to the New England area.
Of course, Irving does not wield a no-trade clause, meaning the Cavs could ostensibly deal him anywhere they prefer. However, it was previously reported that the team was working with Irving to find a solution that worked for both sides.
Thomas is entering the last season of his contract, one that will pay him just over $6.26MM for the 2017/18 campaign. He should see a massive raise with his next contract, possibly approaching the max, which is something that could negatively impact his trade value.
Photo courtesy of USA Today Sports Images.
Knicks Notes: Houston, Hardaway, Anthony, Contract Details, Artis
Knicks assistant general manager Allan Houston feels that New York is on the right track, relays Bob Herzog of Newsday. Although he would not comment on whether Carmelo Anthony would be playing for the Knicks next season, Houston was effusive in his praise of his new bosses, president Steve Mills and general manager Scott Perry.
“Steve and Scott have been intentional in their language about what we want to be,” said Houston. “It starts with identifying what you want to be and then going out and doing it. When I was here playing, it was very exciting and we had an identity. It’s about establishing that identity again. From what I’ve seen, the players are buying into it. I think it’s the first time in a long time that’s been the case.”
Houston also spoke enthusiastically about Tim Hardaway Jr., the Knicks’ notable free agent signing this offseason: “I’m excited for him. People tend to forget he was 20 years old coming into this environment [as a rookie]. Everybody has to grow. Everybody has to mature. He’s developed all the way around and he’s prepared himself for this. That’s the mindset I took. You want to be valuable to your family, your community, your franchise.”
Here are other relevant details regarding the Knicks:
- Anthony is headed for an awkward preseason, writes Marc Berman of The New York Post. The star small forward has told the Knicks that he is only willing to waive his no-trade clause for a deal with the Rockets, but the two sides have not been close on a trade. Berman writes that there is a chance that Melo will be forced to attend training camp, which will begin September 25. If Anthony holds out, it will cost him money. If he attends training camp, expect a great deal of awkwardness.
- Bobby Marks of ESPN reports that both Knicks free agent signees Jamel Artis and Xavier Rathan-Mayes have an Exhibit 10 in their contract. This means that each player would receive a $50K bonus if he is waived and would pend 60 days with the Knicks G-League team. Unlike the protection for Nigel Hayes, the Exhibit 10 bonus doesn’t impact the Knicks cap.
- In another story penned by Marc Berman, the writer explains how the Knicks ensured that the undrafted Artis would not get away after his impressive Summer League performance. After a forgettable first game, Artis averaged 10.1 points, while shooting over 50% in his last four contests. “I feel great about making the team,’’ Artis said. “It’s just my competitiveness. I feel I bring a lot to the game and am better than a lot of people, but I want to keep being humble. I feel I’m better than some guys that got drafted.’’
Andrew Wiggins Leaves Agent Who Negotiated Max Deal
Andrew Wiggins has filed paperwork to leave BDA Sports after his agent Bill Duffy negotiated a five-year, maximum salary extension for the Timberwolves‘ budding star, Adrian Wojnarowski of ESPN reports. That deal, which has not yet been agreed upon, is expected to be worth about $148MM.
Duffy revealed to Wojnarowski that Wiggins filed paperwork to terminate his relationship with BDA Sports as Minnesota sent a contract to both agent and Wiggins. Players are free to leave their agents at any time but guidelines of the National Basketball Players Association are set up to protect agents who negotiated deals for their players while representing them. Duffy indicated that whenever Wiggins puts ink to paper to confirm the deal he negotiated, he will be in touch with the NBPA to protect his interests.
“We are disappointed that Andrew made this decision, especially after a three-year partnership where we worked closely with Andrew and his entire family,” Duffy said to ESPN. “Unfortunately, tampering is a common problem in our industry, and that’s part of the reason why I’ve already been in contact with the NBPA to discuss my rights in this matter. Obviously, whenever Andrew signs the max extension that we negotiated with Minnesota, we will work with the NBPA to make sure that our interests are protected.”
The former first overall pick would become the first player from his 2014 draft class to sign a rookie extension. Darren Wolfson of 1500 ESPN tweets that Wiggins is likely to sign with a Canadian agent (Wiggins is a native of Toronto, Canada) that works for a major agency in the United States. Once he has new representation, Wiggins’ tentative deal with Minnesota will likely not change, Wolfson adds.
Wiggins, 22, has shown vast improvements in his offensive game in his first three seasons, topping out at 23.6 PPG last season while completing his third straight season of at least 81 games played. Along with Karl-Anthony Towns, the recently acquired Jimmy Butler and Jeff Teague, Wiggins is expected to be a vital piece for a potential playoff team.
Pistons Notes: Roster Turnover, New Arena, Leuer
The Pistons had the chance to bring back the core of their 2016/17 squad this offseason, but elected to swap continuity for the possibility of a better situation, Keith Langlois of NBA.com explains.
Detroit has undergone serious roster turnover since executive/coach Stan Van Gundy arrived in town with only one player — Andre Drummond — remaining on the roster from the team which Van Gundy inherited. This summer, the franchise had the opportunity to bring back Kentavious Caldwell-Pope and allow the core time to gel. However, by letting KCP walk, trading for Avery Bradley and carving out a bigger role for Stanley Johnson, the team will for the third straight season try to incorporate new pieces.
Langlois believes the team’s offseason moves will allow the Pistons to become more diverse on the offensive end as well as remain flexible in the accounting department. Had the organization inked KCP to a long-term deal, it would have been meant approaching or surpassing the luxury tax and it would have created difficulties if the team needed any substantial changes. As it stands, Detroit has a season to evaluate how Johnson progresses and Bradley fits before making a decision on capping out the roster.
Here’s more from Detroit:
- The Pistons are set to move downtown to a new arena next season, though they may face one last hurdle in their efforts to do so. Christine Ferretti of The Detroit News reports. A small group filed a lawsuit against the City of Detroit over the $34.5MM in public funding which will go to the new arena.
- Jon Leuer made several changes this offseason as he prepares for his second season with the Pistons, relays Langlois in a separate story. He focused more than ever on three-point shooting and has decided to continue to vigorously lift weights through the season to counter last year’s decline in productivity after the All-Star break. “I lift really hard in the off-season and preseason and that keeps my weight up and keeps me stronger. Jordan was saying there’s even a testosterone boost when you lift more, so I think that’s something toward the end of the season I’ll be conscious of to hopefully maintain a high level of play,” said Leuer. Van Gundy says that he views Leuer as a starter, but that he will have plenty of choices at power forward.
- For everything Pistons, check out the team page.
Latest Notes On NBA’s Tampering Investigation
The Lakers are under investigation for tampering, and according to Broderick Turner of The Los Angeles Times, that probe was initiated after Lakers president Magic Johnson made comments about Paul George during an appearance on Jimmy Kimmel Live.
As Turner details, the NBA will look at more than just Johnson’s late-night appearance as the league attempts to determine whether the Lakers are guilty of tampering in relation to George. But Johnson’s comments during that appearance angered Pacers owner Herb Simon enough to prompt Indiana to formally pursue a case against L.A.
Here’s more on the Lakers/Pacers situation:
- The Lakers and Pacers are both confident that their side will ultimately win out in the tampering investigation, as Dan Feldman of Pro Basketball Talk outlines. Feldman passes along comments from Bob Kravitz of WTHR, who says the Pacers “feel very strongly that there were correspondences between Lakers executives and Paul George’s representative.”
- Nat Newell of The Indianapolis Star explores what sort of punishment the Lakers may face if they’re found guilty of tampering. In Newell’s view, the Lakers are unlikely to receive more than a slap on the wrist unless there’s proof of further correspondence – beyond Johnson’s Kimmel appearance – between the Lakers and George’s camp. Even a penalty for Johnson’s comments during that appearance would be an overreaction, argues Mark Whicker of The Orange County Register.
- James Blancarte of Basketball Insiders examines the implications of the NBA’s investigation into the Lakers, while Steve Kyler of Basketball Insiders takes a more general look at how NBA teams skirt the rules and operate in “gray areas” when it comes to potential tampering.
Jerry West Talks Dubs, CP3, Dekker, Ballmer, Lakers
Longtime basketball executive Jerry West surprised many NBA observers earlier this offseason when he decided to leave the Warriors for the Clippers. Speaking to Tim Kawakami of The Athletic, West acknowledged that he was sad to leave Golden State and had been very happy working for the Warriors, chalking up his decision to timing.
Although he’s a consultant for the Clippers now, West still views the Warriors as the overwhelming favorite to win another championship in 2018, telling Kawakami that “everyone’s playing for second place right now.”
In addition to sharing his lingering fondness for his old team, West also touched on several other noteworthy topics during his discussion with Kawakami. Here are a few highlights:
On whether he knew Chris Paul would leave when he left the Warriors for the Clippers:
“I felt he was. Yes. I didn’t think he was going to stay there. You just get a sense that some players are going to move, you do. You just get a sense… there was all the talk. I know that Steve [Ballmer] met with him. I think Lawrence [Frank] and Doc [Rivers] both met with him. I did not meet with him or talk with him. I just had the sense when I first started talking to them, I asked them, ‘You may not be able to keep either one of these players, him or Blake Griffin.’ I said, ‘How’s that going to work?’ I think they felt there was a chance for sure that he was going to leave.”
On the Clippers moving on without Paul:
“I know some of the people down there [in Houston] and obviously Mike D’Antoni, he’s a friend of mine, he has a place at the Green Brier, and he’s very high on the players we got. He mentioned to me, he said that he thinks they’ll get to play there more and particularly if Sam Dekker can be healthy, he’s a very good prospect. He’s had two seasons of injuries, but he seems very healthy.
“It also gives Doc a chance as a coach to be able to coach differently, more ball movement. Chris was a ball-dominant point guard. [Not having Paul] encourages more movement. When a coach has to do things a little bit differently, that might be challenging but also might be fun for him. Even though we’ll miss Chris, it’s part of the NBA.”
On Clippers owner Steve Ballmer:
“[In] a lot of ways he reminds me of the kind of owners that you want, somebody who’s really committed to trying to build a team. He’s smart, he lets people do their job, he doesn’t think he’s someone who wants to run the team. He’s given Lawrence and Doc a lot of leeway there and they’re going to hire two new people there in the front office. It’s just… I see some changes from the prior regime there that I think are going to be really positive.
On whether he thought he might return to the Lakers rather than joining the Clippers:
“Absolutely not. I had no contact with the Lakers. Honestly, I would’ve never gone back there even if they would’ve contacted me. Never had any conversations, never had a desire there. I knew that would’ve never happened.”
Be sure to check out Kawakami’s full interview with West for more interesting observations from The Logo.
Pacers Sign Alex Poythress To Two-Way Contract
A year after bringing Alex Poythress to training camp, the Pacers have re-added the former Kentucky standout to their offseason roster, announcing today in a press release that Poythress has signed a two-way contract with the club.
Poythress, who will turn 24 in September, didn’t earn a spot on Indiana’s regular season roster last season, but the undrafted rookie excelled for the Pacers’ G League affiliate. In 46 games for the Fort Wayne Mad Ants, the 6’7″ forward averaged 18.5 PPG, 7.1 RPG, and 1.4 BPG, with an impressive shooting line of .528/.403/.783.
Poythress’ performance for Fort Wayne earned him a spot on the All-NBA G League Second Team, and resulted in a late-season call-up to the Sixers. He made his NBA debut for Philadelphia in April and appeared in six games down the stretch, averaging 10.7 PPG and 4.8 RPG.
Previous reports have indicated that Edmond Sumner will be one of the Pacers’ two-way players, so it appears both two-way spots on Indiana’s roster have now been filled. In total, the club now has 17 players under contract, leaving three spots open on the 20-man offseason roster.
For more details on how two-way contracts work, be sure to check out our FAQ. Our full list of this year’s two-way players can be found right here.
Elvin Hayes Involved In Group Trying To Buy Rockets
Another potential investor of note has been linked to the Rockets, as Hall-of-Famer Elvin Hayes confirmed to Fox 26 Houston that he is part of a group that is looking to buy the franchise. As Mark Berman of Fox 26 Houston details, the 12-time NBA All-Star confirmed that he and his group recently met with Rockets CEO Tad Brown.
“We have met with the Rockets, and had a very cordial and a very nice, in-depth visit,” Hayes said. “We feel good about our meeting with the Rockets, and I think they felt good with us. … We have some very strong people in this group. We could do some very good things with this organization, with this team.”
Hayes, who played his college ball at the University of Houston before joining the Rockets, is one of a handful of Houston athletes and celebrities who have expressed some interest in getting involved with the purchase of the franchise. Beyoncé, Hakeem Olajuwon, and Dikembe Mutombo are among the others linked to the Rockets sale within the last month and a half.
Of course, like those other big names, Hayes wouldn’t have the means to be the primary stakeholder in the franchise, so his group figures to include at least one person capable of making that kind of investment. Hayes declined to identify members of his group, but suggested that Houston billionaire Tilman Fertitta – who previously expressed interest in buying the Rockets – would make for a good owner if Hayes’ group doesn’t win out.
“If we are not fortunate enough to be successful in this endeavor, I feel that Tilman would be a person that could really bring great benefit to this basketball team and this city,” Hayes said. “If we are not where we need to be, I feel that Tilman would be the person really to do amazing things with this basketball team.”
Dan Friedkin and Jim “Mattress Mack” McIngvale are among the other big-money investors who are said to have some interest in making a bid for the Rockets, who were put up for sale in July by current owner Leslie Alexander.