Hoops Rumors Glossary: Exhibit 10 Contract
After the NBA’s biggest-name free agents come off the board, many teams shift their focus to filling out their training-camp rosters. Teams can only carry 15 players on NBA contracts (plus two on two-way deals) during the regular season, but their maximum roster size increases to 20 players in the offseason, allowing clubs to bring a few extra players to camp to audition for a place on the regular-season roster or a spot on the team’s G League affiliate.
Many of those players will sign a contract with an Exhibit 10 clause. Introduced in the NBA’s most recent Collective Bargaining Agreement, Exhibit 10 contracts are one-year deals worth the minimum salary. They don’t come with any compensation protection, but can include an optional bonus ranging from $5K to $50K.
Let’s say an undrafted rookie signs an Exhibit 10 contract with the Knicks that includes a $50K bonus. He attends camp with the Knicks, but is waived before the regular season begins, with New York designating him an affiliate player in order to retain his G League rights. In that scenario, if the rookie elects to play in the G League for the Westchester Knicks and remains with the club for 60 days, he’d be entitled to his full $50K bonus.
The player wouldn’t receive that bonus if he opts to sign with a team overseas after being waived by the Knicks. Essentially, the Exhibit 10 bonus serves as an incentive for players to stick with their team’s G League affiliate — they must spend at least 60 days with the NBAGL club in order to get their bonus.
There’s another scenario in which that undrafted rookie who signs an Exhibit 10 deal with the Knicks would receive his $50K. Exhibit 10 contracts can be converted into two-way contracts, so if New York opted to do that before the season begins, the $50K bonus would turn into a salary guarantee for the player. As soon as his contract becomes a two-way deal, he’s entitled to that bonus, even if the Knicks waive him a week later.
Only teams with a G League affiliate can include an Exhibit 10 bonus in a contract. In 2018/19, the Wizards will become the 27th NBA team with its own affiliate, leaving only the Pelicans, Trail Blazers, and Nuggets on the outside looking in. Those clubs could technically sign players to Exhibit 10 deals, but wouldn’t be able to include bonus money.
Here are a few more notes relating to Exhibit 10 contracts:
- A team can’t carry more than six Exhibit 10 contracts at a time.
- An Exhibit 10 contract can only be converted to a two-way deal before the regular season begins.
- An Exhibit 10 contract that gets converted to a two-way deal can later be converted into a standard NBA contract.
- An Exhibit 10 bonus earned by a player who ends up in the G League or on a two-way contract isn’t counted toward the NBA team’s total salary.
Note: This is a Hoops Rumors Glossary entry. Our glossary posts will explain specific rules relating to trades, free agency, or other aspects of the NBA’s Collective Bargaining Agreement. Larry Coon’s Salary Cap FAQ was used in the creation of this post.
Marcus Smart Signs Four-Year Deal With Celtics
2:36pm: Smart has officially signed his new contract with the Celtics, according to agent Happy Walters, who tweeted a photo of the signing. The team has also issued a press release confirming the deal.
9:25am: Marcus Smart has agreed to a four-year, $52MM deal to remain with the Celtics, according to Shams Charania of Yahoo Sports. Jordan Schultz of Yahoo Sports first reported that the Celtics and Smart were finalizing a deal in that neighborhood after ESPN’s Adrian Wojnarowski said the two sides were engaged in serious discussions.
The final terms are a little higher than the $46-$50MM range that was reported yesterday, and the deal takes one of the last high-profile free agents off the market. Smart has been with the Celtics since being selected with the sixth pick in the 2014 draft and has developed into one of the league’s top perimeter defenders.
Smart’s contract will push the Celtics into luxury tax territory, at least for now, notes ESPN’s Zach Lowe (Twitter link). It will also become Boston’s only contract between $7-20MM, which could make it a valuable trade chip down the line, adds Kevin O’Connor of the Ringer (Twitter link).
A restricted free agent, Smart had expressed frustrations with the slowness of the process while waiting for an offer. He met with several teams, including the Nets and Grizzlies, last week during the Las Vegas Summer League, according to Charania, but also had a private meeting with Celtics president of basketball operations Danny Ainge. Significant progress was made in the past few days, allowing the team to quickly finalize a deal in a meeting this morning with Smart and his agent, Happy Walters.
The Celtics were happy to get a long-term deal done with Smart a year before backcourt mates Kyrie Irving and Terry Rozier both become free agents, Charania adds. The team will now have at least one of its point guards locked up before entering into negotiations with Irving and/or Rozier.
Smart appeared in 54 games last season, with his playing time limited by a right hand injury caused by punching a glass frame and a torn UCL he suffered in his right thumb while diving for a loose ball in March that caused him to miss the start of the playoffs. He posted 10.2 PPG, 4.8 APG, and 3.5 RPG during the regular season, along with 1.3 steals per night.
“It’s been a tough summer with free agency and his mom’s (cancer),” Smart’s high school coach, Kenny Boren, tells Mark Murphy of The Boston Herald. “It’s been tough emotionally for him.” (Twitter link).
Smart ranked 14th on our list of the Top 50 Free Agents of 2018. His signing leaves Clint Capela of the Rockets and Rodney Hood of the Cavaliers as the best unsigned players left on the market.
Photo courtesy of USA Today Sports Images.
Bulls Sign Antonio Blakeney To NBA Contract
JULY 19: The Bulls have officially signed Blakeney, the team announced today in a press release.
JULY 18: Bulls two-way player Antonio Blakeney will be promoted to Chicago’s 15-man NBA roster, according to K.C. Johnson of The Chicago Tribune, who reports that the team intends to sign Blakeney to a minimum-salary contract.
Blakeney, who spent the entire 2017/18 season on a two-way deal with the Bulls, appeared in just 19 games for the club, spending most of his time with the Windy City Bulls in the G League.
The former LSU standout was one of the G League’s best players in 2017/18, posting an impressive 32.0 PPG to go along with 6.7 RPG, 3.9 APG, and 1.2 SPG in 32 games. Blakeney’s performance earned him NBAGL Rookie of the Year honors for the 2017/18 season.
As Johnson details, Blakeney projects to be Chicago’s third point guard behind Kris Dunn and Cameron Payne. If Dunn and Payne stay healthy, Blakeney may continue to spend time with the Windy City Bulls, since his NBA role could be limited.
Blakeney will get a guaranteed two-year, minimum-salary deal, per Shams Charania of Yahoo Sports (Twitter link). It’ll be worth about $2.94MM in total.
Heat Notes: Wade, Q. Richardson, Winslow, Leonard
Dwyane Wade will wait until he returns from a trip to China before deciding whether to play next season, relays Tim Reynolds of The Associated Press. Wade traveled overseas to announce a lifetime contract with Chinese apparel company Li-Ning, continuing a relationship that began in 2012. Although financial terms were not disclosed, the deal is believed to pay Wade tens of millions of dollars.
“Right now, I’m focused on the game after basketball,” Wade said when asked about his NBA career. “Whatever happens in basketball, it happens. I’ve done everything that I can to this point to put myself that I’m in this position I am today, where I can do something that hasn’t been done globally yet. The basketball will take care of itself. I’ll sit down and figure that out once I get back from this tour at some point.”
There’s more today out of Miami:
- Former Heat player Quentin Richardson, who will return to Miami this weekend as part of the Big3 tour, tells Ira Winderman of The Sun-Sentinel he hopes to see Wade play at least one more season. “I think it’ll come down to what his passion is and what he feels like he has left,” Richardson said. “Look at Manu Ginobili, I feel like he can play a few more years like Manu did and be as good if not better as he has been. In my eyes, I still think he has something left. That’s ultimately a decision that comes down to him and his family.”
- The Heat must decide soon if Justise Winslow is worth a long-term investment, writes Barry Jackson of The Miami Herald. With three years of NBA service, Winslow is eligible for an extension this summer. If the Heat don’t work out an agreement prior to the start of the regular season, Winslow will be a restricted free agent next offseason. A team source tells Jackson that no decision has been made on whether to make an extension offer, but it doesn’t appear the Heat have been entertaining trade offers for Winslow.
- Miami lost out on Kawhi Leonard because it didn’t have a star to offer the Spurs, Winderman writes in a separate piece. The Heat might have been able to offer a combination of young talent in Winslow, Josh Richardson and Bam Adebayo, but San Antonio wanted a scorer who contribute right away, and Miami doesn’t have anyone like DeMar DeRozan.
Michael Porter Jr. Undergoes Second Back Surgery
JULY 19, 1:30pm: Porter’s surgery involved the lumbar spine, and there is no timetable for him to start playing again, tweets Marc J. Spears of The Undefeated.
JULY 18, 9:46pm: Per Steve Aschburner of NBA.com, Nuggets rookie forward Michael Porter Jr., who was recently selected by Denver with the No. 14 overall selection in the 2018 NBA Draft, had a second surgery on his back last week.
Porter, 19, who ultimately slid to the Nuggets on draft night due to worries about his ongoing back issues, first underwent back surgery in November of last year, which limited him to just three games during his freshman season at Missouri.
The latest procedure, according to Porter’s camp, has led to a greater understanding of Porter’s herniated-disks condition, thereby boosting he and his team’s confidence that he will be able to move on from the injury more quickly and begin his NBA career without having to sit out the 2018-19 season.
Per Aschburner, a spokesperson for the Nuggets declined to speak when reached for comment but did indicate that an update on Porter’s health from the team’s medical staff would be forthcoming.
As we relayed at the beginning of the month, Porter has already signed his rookie scale contract with the Nuggets, which will see him earn a salary of just over $2.41MM in his rookie season.
Hawks Waive Jaylen Morris
The Hawks have waived Jaylen Morris, whose $1,378,242 salary for next season was non-guaranteed, according to Chris Vivlamore of The Atlanta Journal-Constitution.
The 22-year-old shooting guard played six games last season after inking a pair of 10-day deals, then signing for the rest of the season in March. He saw 16.3 minutes of action per night and posted a 4.7/2.7/1.2 line. He also played for the Hawks’ entries in this year’s Salt Lake City and Las Vegas summer leagues.
The Hawks have another non-guaranteed contract remaining in shooting guard Antonius Cleveland, whose $1,378,242 salary won’t become guaranteed until January 10.
Yogi Ferrell Backs Out Of Deal With Mavericks
JULY 20, 7:48am: Ferrell has reportedly reversed course on his agreement with the Mavs and opted to re-enter free agency. We have the full story here.
JULY 19, 11:50am: Yogi Ferrell will return to the Mavericks on a two-year deal worth $5.3MM, reports Shams Charania of Yahoo Sports. The second season will be non-guaranteed with a July 7 trigger date, Charania adds.
Dallas will use Ferrell’s Early Bird rights, tweets salary cap expert Albert Nahmad, with the first season paying him less than the $2.9MM qualifying offer the team rescinded last week. That will enable the Mavericks to keep all of their roughly $6MM in cap space.
The Mavericks promised to give Ferrell the backup shooting guard spot at the start of the season, according to Charania. Dennis Smith and Luka Doncic, the team’s first-round picks the past two seasons, are expected to be the starters in the backcourt.
Dallas signed Ferrell to a 10-day contract in January of 2017 after he was waived by the Nets. He averaged 11.3 points in 36 games, then played all 82 contests last season, posting a 10.2/3.0/2.5 line.
Ferrell went undrafted out of Indiana in 2016 and spent much of his time in the G League after signing with Brooklyn, appearing in just 10 games for the Nets.
Photo courtesy of USA Today Sports Images.
Latest On The Kawhi Leonard-DeMar DeRozan Trade
The Raptors had several conversations with Kawhi Leonard and his agent after Wednesday’s blockbuster trade, tweets Michael Grange of Sportsnet, who adds that the talks were “positive” and “forward-looking.” Leonard hasn’t taken his physical yet, reports Josh Lewenberg of TSN (Twitter link), but the team isn’t concerned and remains confident that he will pass it (Twitter link).
Toronto could opt to waive the physical, ESPN’s Brian Windhorst said yesterday in an appearance on “Outside The Lines,” although that would obviously be a risky move. Leonard has 48 hours to report to the Raptors, but Windhorst notes the team could opt to extend that deadline. Team president Masai Ujiri is expected to address the media on the deal by the end of the week.
There’s more news to pass along on the biggest trade of the summer:
- The Spurs were determined to get a scorer in exchange for Leonard, which is why the Raptors were able to get their attention with DeMar DeRozan, according to Kevin O’Connor of The Ringer. San Antonio wasn’t looking to begin the rebuilding process with a package of draft picks and unproven players. In addition, Jakob Poeltl provides a young interior presence for a team that starts 38-year-old Pau Gasol and 33-year-old LaMarcus Aldridge.
- The Spurs lost leverage when LeBron James joined the Lakers without demanding another star accompany him, writes Zach Lowe of ESPN. Lingering injury concerns and Leonard’s open desire to play in his hometown of Los Angeles prevented the Spurs from getting a return more in line with his value. The Raptors now have several months to sell Leonard on the benefits of playing in Toronto, adds Lowe, who says if they get the feeling by Thanksgiving that he still plans to leave next summer, they can move him to the Lakers or Clippers for about what they paid for him.
- Even though Leonard has made it clear he doesn’t want to play in Toronto, he represented the team’s best chance to acquire an elite talent, Lewenberg writes in a full story. Leonard also came at a reasonable price, as Ujiri didn’t have to part with his three best young prospects in OG Anunoby, Pascal Siakam and Delon Wright and held onto all his draft picks after 2019.
- The Spurs traded one unhappy player for another and will have to work to develop a positive relationship with DeRozan, observes Sam Amick of USA Today. DeRozan felt betrayed by the Raptors, posting “Be told one thing & the outcome another. Can’t trust em. Ain’t no loyalty in this game” as part of an Instagram message. San Antonio may rely on assistant coach Ime Udoka, a former workout partner of DeRozan, to help smooth things over.
- With Leonard and Tony Parker both gone and Manu Ginobili contemplating retirement, the Spurs are moving into a new era, notes Jeremy Woo of Sports Illustrated. The changes make a 22nd consecutive trip to the playoffs look like an uncertain prospect, he adds.
Mavericks ‘Really Close’ To Re-Signing Yogi Ferrell
Dallas is nearing a new deal with point guard Yogi Ferrell, tweets Jordan Schultz of Yahoo Sports. Sources tell Schultz the parties are “really close” to agreeing on contract terms.
The Mavericks rescinded their qualifying offer to Ferrell last week, which was believed to be a procedural move aimed at creating more cap room.
The 25-year-old excelled during his first full season in Dallas, appearing in all 82 games, starting 21, and averaging 10.2 PPG while shooting 37% from 3-point range. He first joined the team on a 10-day contract in January of 2017 after being waived by the Nets.
Ferrell will be competing for playing time in a crowded backcourt that includes the Mavericks’ first-round picks from the last two seasons, Dennis Smith and Luka Doncic, along with veteran J.J. Barea.
Kings, Nemanja Bjelica Discuss Possible Deal
JULY 19, 8:54am: The Kings and Bjelica are discussing a two-year contract worth about $13MM with roughly $2MM guaranteed for 2019/20, sources tell international writer David Pick (Twitter link).
JULY 18, 2:57pm: Kings general manager Vlade Divac reached out directly to Bjelica to explain his value, tweets Charania. Krawczynski expands on that point, tweeting that the Kings and other teams have expressed to Bjelica that he’s “too good to go back to Europe.”
Meanwhile, international basketball reporter David Pick tweets that Bjelica felt “devalued” in his agreement with the Sixers. With EuroLeague powerhouses like Fenerbahce and CSKA Moscow not interested in him at this time, Sacramento may represent his best bet for a big payday, Pick adds.
2:36pm: The Kings and free agent forward Nemanja Bjelica intend to discuss a potential contract, according to Shams Charania of Yahoo Sports (Twitter link).
Bjelica, who initially agreed to a one-year, $4.45MM deal with the Sixers early in free agency, backed out of that agreement on Tuesday. Reports at the time indicated that the former EuroLeague MVP would likely head back to Europe, with Bjelica explaining that he wanted to create “some kind of stability” for his family.
However, as Timberwolves owner Glen Taylor noted in a conversation last week with Darren Wolfson of ESPN 1500, Bjelica entered the offseason seeking a multiyear NBA contract. His interest in remaining in the NBA seemingly waned when he was only able to secure a one-year deal, as he suggested in his interview with Jon Krawczynski of The Athletic.
If the Kings are willing to give him two or three guaranteed years, that may prompt the 30-year-old to reconsider his plan to head back overseas, particularly since not many EuroLeague clubs are in position to make a competitive offer, per Sportando (Twitter link).
It’s not clear yet what sort of deal the Kings would be willing to do with Bjelica, but they have more than $20MM in cap room available with only two roster spots still open, so they’ll have plenty of flexibility if they decide they want to bring the stretch four aboard.
Meanwhile, the Sixers figure to be less than thrilled about Bjelica’s about-face if he ends up signing on with another NBA club rather than playing in Europe.