Bulls Clearing Cap Room For Forthcoming Move?
The Bulls have been cutting costs in a series of minor moves over the last week, having traded Jerian Grant, waived Sean Kilpatrick, and withdrawn David Nwaba‘s qualifying offer. As K.C. Johnson of The Chicago Tribune details, the transactions signal that the Bulls are looking to create the flexibility necessary to complete a more significant move using cap room. A source tells Johnson that there’s a “strong internal belief” that Chicago will finalize another move.
Although the Bulls technically remain an over-the-cap team due to their various exceptions and cap holds, they can create up to about $20.6MM in cap room by waiving Julyan Stone and Paul Zipser, renouncing Noah Vonleh, and renouncing their trade exceptions. All of those moves are expected to happen, according to Johnson.
Johnson suggests that the Bulls’ forthcoming transaction will likely involve either shoring up their wing position or absorbing an unwanted contract with an asset attached. While Chicago has been linked to restricted free agents like Jabari Parker, Rodney Hood, and Marcus Smart intermittently within the last few weeks, I’d be very surprised if the club intends to make an offer to any of those players that requires $20MM+ in space. Clint Capela is the only RFA who might warrant such an offer, but he seems like an improbable target for the Bulls, who drafted Wendell Carter just three weeks ago.
Accommodating a salary dump looks like a more logical path for the Bulls. One popular theory that has been making the rounds is a swap that sends Carmelo Anthony ($27.93MM) and draft assets to Chicago for Cristiano Felicio ($8.47MM). This theoretical deal, which we touched on earlier this week, was fleshed out this morning by cap expert Albert Nahmad.
Such a trade may appeal to the Thunder, who could clear about $20MM from their 2018/19 cap and create nearly $100MM in projected luxury-tax savings by replacing Anthony’s salary with Felicio’s. It’d also make sense for the Bulls, who could carve out additional cap room for 2019 and/or 2020 and could perhaps acquire an extra draft pick for taking on Anthony. The Bulls would subsequently buy out Carmelo in this hypothetical scenario.
However, this is all speculation at this point. All we know for now is that the Bulls’ recent series of moves suggests they have something in mind for their cap room. We’ll have to wait to see what exactly that is.
Cap Impact Of Thursday’s Trades For Nets, Hawks, Nuggets
After a relatively quiet day in terms of NBA transactions on Thursday, a flurry of agreements were reached in the evening. The Nuggets‘ free agent deal with veteran guard Isaiah Thomas kicked off a series of moves that saw Denver agree to send Kenneth Faried and Darrell Arthur to Brooklyn, with the Nets flip Jeremy Lin to the Hawks in order to create the cap room necessary to absorb the Nuggets’ unwanted contracts.
As we detailed on Thursday, the Hawks and Nets were two of the only teams with any cap room still available. The Nuggets, meanwhile, entered Thursday with one of the NBA’s highest projected payrolls, and were looking for a way to get out of luxury-tax territory. The 2018/19 cap outlooks for all three teams were altered significantly by last night’s trade agreements.
With the help of salary data from Basketball Insiders and information from cap experts Bobby Marks and Albert Nahmad, here’s a breakdown of how each team involved in last night’s action will be impacted from a cap – and tax – perspective:
Atlanta Hawks
There are a few factors to consider when determining exactly how much cap room the Hawks still have available. For one, we’re still not sure whether or not Lin is waiving his trade kicker as part of his move to Atlanta. If he doesn’t waive that trade kicker – and he’d have no real reason to – his bonus will increase his cap hit from $12.5MM to $13.75MM, cutting into the Hawks’ cap space.
Atlanta also still has Jaylen Morris and Antonius Cleveland under contract. Both players are on modest non-guaranteed salaries worth $1.38MM apiece.
If we assume that Lin’s trade kicker will increase his cap hit and Morris and Cleveland remain on the Hawks’ roster, the team projects to have about $7.7MM in cap space remaining. However, that number would increase to nearly $10.5MM without Morris and Cleveland.
Brooklyn Nets
Most of the Nets‘ leftover cap room will be eaten up by Faried’s and Arthur’s salaries. After Brooklyn completes its reported deal with second-round pick Rodions Kurucs, the team will have less than $3MM in cap space available.
The Nets still haven’t finalized their contract agreements with Joe Harris and Ed Davis, since it makes sense to use up all their cap room before they use their Early Bird rights to go over the cap for Harris and sign Davis with the room exception.
If Brooklyn determines that it will have no use for its remaining $2-3MM in cap space, the club could complete those signings after officially locking up Kurucs. However, GM Sean Marks figures to explore all options with that leftover cap room before going over the cap by signing Harris and Davis.
Denver Nuggets
There are plenty of moving parts in play for the Nuggets, who still have to finalize Thomas’ signing and waive Isaiah Whitehead, whose non-guaranteed contract will be acquired in the trade with the Nets. We also don’t have final, official figures for new contracts for Nikola Jokic, Will Barton, and Jarred Vanderbilt.
Based on what we know though, it appears the Nuggets will have a team salary of about $115MM after waiving Whitehead and signing Thomas, putting the team approximately $8.7MM below the tax line.
As Nahmad observes (via Twitter), Denver has a few unlikely incentives to consider for Jokic, Paul Millsap, and Gary Harris. The 2018/19 cap hits for those players would increase if they earn their incentives, so the Nuggets will want to leave a little breathing room to account for that. Still, the team has flexibility to use its full mid-level exception.
So far, the Nuggets have used a reported $2.84MM of their mid-level to sign Torrey Craig and Vanderbilt, which would leave about $5.8MM of the $8.64MM exception available. Denver could also technically use its $3.382MM bi-annual exception, though the team would become hard-capped if it uses any of its BAE or uses more than the taxpayer portion ($5.337MM) of the mid-level.
Atlantic Notes: Leonard, DeRozan, Russell, Watanabe
The Raptors‘ potential pursuit of Kawhi Leonard is the hottest rumor making the rounds at summer league, according to Doug Smith of The Toronto Star. Toronto appears poised to join the Lakers, Sixers and Celtics as teams in the conversation for the Spurs’ star. With LeBron James out of the East, the addition of Leonard could tilt the balance of power in the race for the conference title.
Smith speculates that San Antonio would ask for DeMar DeRozan, OG Anunoby, two first-round draft choices and another player or pick. Smith suggests countering with an offer of DeRozan or Kyle Lowry, along with either Norman Powell or Jakob Poeltl, plus Delon Wright and a pair of first-rounders.
DeRozan erased his Instagram feed this week and posted the message, “We had some bumps along the way. But the reward is in the journey. I’m in my bag.” However, a source close to him tells Michael Grange of Rogers Sportsnet that there’s no significance behind the move and it’s not an indication that a trade is coming (Twitter link).
There’s more tonight from the Atlantic Division:
- The Raptors have become the new odds-on favorite to acquire Leonard, notes Tom Orsborn of The San Antonio Express-News. OddsShark.com, a sports betting site, lists Toronto as the even-money favorite to swing a deal for Leonard.
- The Nets haven’t had any extension talks with D’Angelo Russell, according to Michael Scotto of The Athletic. Russell, who was acquired in a trade with the Lakers last summer, put up some impressive numbers in first 12 games with Brooklyn before being sidelined by a left knee injury. He posted a 20.9/4.7/5.7 line on 46% shooting prior to the injury, which required arthroscopic surgery. Russell, 22, will make $7.02MM in the upcoming season and will be a restricted free agent next summer if no extension deal is reached.
- Japanese star Yuta Watanabe is making a bid for an NBA job with his performance for the Nets‘ summer league team, writes Candace Buckner of The Washington Post. Watanabe averaged 9.8 points, 5.3 rebounds and 2.0 blocks in four summer league games. “It’s great for me,” he said. “Great experience, but it’s still summer league. I still have a lot to go, so my goal is not here.”
Jazz Sign Jairus Lyles To Exhibit 10 Contract
8:06pm: Lyles has an Exhibit 10 contract, according to Jones (Twitter link). He can make between $5K and $50K if he is waived by the Jazz, is assigned to the team’s G League affiliate and spends at least 60 days there.
JULY 12, 6:57pm: The Jazz have signed UMBC guard Jairus Lyles, the team announced on its website. Terms of the deal were not released, so it’s not clear if Lyles will receive any guaranteed money.
It’s not a two-way contract, tweets Tony Jones of the Salt Lake Tribune, who suggests it’s a path to get Lyles to the organization’s G League affiliate.
The 23-year-old is playing for Utah’s team in the Las Vegas Summer League, posting 11 points, four rebounds and four assists in his only appearance. He also played in two games in the Utah Jazz Summer League.
Lyles gained national prominence after his UMBC team upset top-seeded Virginia in this year’s NCAA Tournament. He put up a 20.2/5.5/3.5 line in 33 games with the Retrievers.
Bulls Rescind QO For David Nwaba
The Bulls have rescinded their qualifying offer for David Nwaba, tweets Shams Charania of Yahoo Sports. The second-year guard will now be an unrestricted free agent.
Nwaba was productive in his lone season with the Bulls, starting 21 of 70 games and averaging 7.9 points and 4.7 rebounds per night. Chicago claimed him off waivers last summer after he spent his rookie season with the Lakers.
The unrestricted status should improve the offers for Nwaba, who has reportedly already received a “barrage” of interest from around the league. Nwaba ranks 42nd on our list of the Top 50 Free Agents of 2018.
Friday is the deadline for teams to rescind qualifying offers for NBA and two-way restricted free agents. Any QOs kept active after tomorrow cannot be withdrawn for the remainder of the summer without the player’s consent.
European Teams Interested In Luke Babbitt
Veteran forward Luke Babbitt is drawing interest from several EuroLeague teams, according to Orazio Cauchi of Sportando. Barcelona and Maccabi Tel Aviv are among the clubs that have checked on Babbitt, Cauchi adds.
Babbitt, 29, started this season with the Hawks before being traded to the Heat at the February deadline. He appeared in 50 total games and averaged 5.2 PPG, but his numbers declined after coming to Miami, where he averaged just 11.2 minutes per night. He was used for just three total minutes in the playoffs.
The 16th pick in the 2010 draft, Babbitt has spent his entire career in the NBA except for a brief overseas excursion during the 2013/14 season. He signed with Nizhny Novgorod in Russia, but left after a few months.
Cavaliers Notes: White, Doncic, Parker, Love
Okaro White has a chance to win a roster spot with the Cavaliers, but first he has to overcome the effects of a broken left foot he suffered in November, writes Joe Vardon of Cleveland.com. White’s foot has fully healed, but he is still struggling with the psychological aspects of the injury and admits he’s “babying” it.
“I just gotta get through,” said White, who is part of the Cavaliers’ entry in the Las Vegas Summer League. “I’m old enough, I’m not young anymore, so I gotta get over it [mentally] and try to find a way to showcase my ability.”
White started four games for the Heat before the injury, but it wound up ending his season. He was shipped to the Hawks at the trade deadline, then signed with the Cavs in March, but never took the court for either team. The 25-year-old forward has a non-guaranteed $1,544,951 contract for 2018/19.
There’s more news out of Cleveland:
- The Cavaliers passed on an opportunity to trade up on draft night and snag Luka Doncic, Vardon reports in a separate story. A source tells Vardon that Cleveland had an offer from Atlanta that included the No. 3 pick and Kent Bazemore, who will make more than $18MM next season with a $19.27MM option for 2019/20. However, the Cavs wanted Collin Sexton and were confident they could get him at No. 8.
- With LeBron James gone, the Cavaliers should take a gamble on Jabari Parker, according to Greg Swartz of Bleacher Report. The second player taken in the 2014 draft, Parker could become a dynamic scorer and rebounder if he can fully bounce back from his second ACL surgery. Swartz suggests Cleveland should use its $8.6MM mid-level exception to offer Parker a two-year contract. That would give him $13.3MM more in guaranteed money than if he accepts his $4.3MM qualifying offer with the Bucks, and it would put him back on the open market in 2020 when he’ll only be 25. Swartz recommends a few other moves for the Cavs, including re-signing Rodney Hood, working out an extension with Larry Nance Jr., trying to trade veterans such as J.R. Smith and Tristan Thompson and taking on unwanted contracts to stockpile draft picks.
- Chris Fedor of Cleveland.com suggests several trades involving Kevin Love, listing the Trail Blazers, Heat, Lakers, Suns and Jazz as possible destinations.
NBA Teams With 2018/19 Cap Room Remaining
Last Wednesday, we noted that only three NBA teams still had significant cap room available. Depending on your definition of “significant,” that’s still the case. One of those three teams – the Kings – made a player for another’s restricted free agent, but the Bulls matched Sacramento’s offer sheet for Zach LaVine and still have plenty of flexibility themselves.
While the Kings, Bulls, and Hawks are still the only teams that can create more than $15MM in cap space without trading any players or waiving and stretching any guaranteed salaries, a number of other clubs technically still have cap room available too.
Using our own data and salary information from Basketball Insiders, our current cap room estimates – as of July 12 – are below. If you have any questions or notice any errors, please let us know in the comment section.
Here’s a breakdown:
Atlanta Hawks
- Current space: $17.9MM
- Space if they waive non-guaranteed salaries and renounce UFAs: $23.91MM
- The Hawks have had a quiet offseason so far, but could clear the most cap room if any team if they renounce Malcolm Delaney and waive the non-guaranteed contracts of Jaylen Morris and Antonius Cleveland.
Sacramento Kings
- Current space: $19.53MM
- The Kings already renounced their free agents and waived Nigel Hayes‘ non-guaranteed salary in order to help accommodate LaVine’s offer sheet. With LaVine’s offer matched by the Bulls, Sacramento will have to find another use for its space.
Chicago Bulls
- Current space: None
- Space if they waive non-guaranteed salaries and renounce UFAs: $18.94MM
- The Bulls continue to technically operate as an over-the-cap team since they haven’t renounced their trade, mid-level, and bi-annual exceptions, or Noah Vonleh‘s $10MM+ cap hold. Once they decide they want to use their cap room, they could clear up to almost $19MM without withdrawing David Nwaba‘s qualifying offer.
Brooklyn Nets
- Current space: $9.97MM
- Space if they waive non-guaranteed salaries and renounce UFAs: $12.17MM
- The Nets aren’t about to waive Spencer Dinwiddie‘s non-guaranteed salary, but cutting Isaiah Whitehead and renouncing Quincy Acy would create a little extra space if they need it. Once the Nets use their cap room or decide they don’t need it, they’ll finalize deals for Joe Harris (Early Bird rights) and Ed Davis (room exception).
Dallas Mavericks
- Current space: $5MM
- Space if they waive non-guaranteed salaries: $5.54MM
- It’s not clear if Dorian Finney-Smith‘s salary is still non-guaranteed — he had a reported July 5 salary guarantee deadline, but there has been no confirmation that that date wasn’t pushed back. If Finney-Smith doesn’t have his full guarantee yet, the Mavericks could get to $6MM+ in space. The team figures to use either its cap room or its room exception to re-sign Dirk Nowitzki.
Philadelphia 76ers
- Current space: $1.69MM
- Space if they waive non-guaranteed salaries: $4.89MM
- Getting up to $4.89MM in room would mean waiving T.J. McConnell and Richaun Holmes, which is probably unlikely. Still, the Sixers could use that $1.69MM in room to sign a player like Jonah Bolden to a long-term deal if they so choose. They’ll eventually finalize Nemanja Bjelica‘s deal using their room exception.
Phoenix Suns
- Current space: $1.18MM
- Space if they waive non-guaranteed salaries: $3.25MM
- The Suns could create a little extra flexibility by waiving Shaquille Harrison and Davon Reed, but the team may not need that remaining room either way.
Salary information from Basketball Insiders was used in the creation of this post.
Warriors Sign Jonas Jerebko
JULY 12: The Warriors have officially signed Jerebko, the team announced today in a press release. The one-year deal with be worth the veteran’s minimum.
As Mark Medina of The San Jose Mercury News tweets, Golden State’s offseason roster activity figures to be almost over. The team has 13 players under contract and is expected to bring back Patrick McCaw. The Dubs will likely keep their 15th roster spot open to begin the regular season in order to save some money and retain flexibility.
JULY 7: Free agent Jonas Jerebko, who was waived by the Jazz earlier today, plans to sign with the Warriors after he clears waivers on Monday, per Adrian Wojnarowski of ESPN.
Jerebko is expected to clear waivers, as any team who makes a waiver claim for Jerebko would be required to to guarantee his $4.2MM salary for this season. It was already reported by Wojnarowski earlier this morning that there was strong mutual interest between Jerebko and Golden State, so Jerebko’s plans come as no surprise.
Because the Warriors already used their taxpayer mid-level exception on DeMarcus Cousins, have no cap room, and will assuredly be above the apron this season, Jerebko will only be eligible to sign a one- or two-year deal at the minimum salary.
Nets Sign Dzanan Musa To Rookie Contract
Nets first-round pick Dzanan Musa has officially signed his first NBA contract, according to tweets from agent Misko Raznatovic and Musa himself. Musa was the last of 2018’s first-rounders who had yet to sign his rookie deal, so all 30 of those players are now under contract.
Musa, a 6’9″ Bosnian wing, declared as an early entrant for this year’s draft after spending the last three seasons with KK Cedevita in Croatia. Musa’s squad won the Croatian League championship in each of those three years, and the youngster was named the EuroCup Rising Star in 2018, an honor previously earned by the likes of Kristaps Porzingis, Jonas Valanciunas, and Donatas Motiejunas.
The Nets won’t be counting on Musa, one of the youngest players in this year’s draft class, to make an immediate impact, but his size and scoring ability make him an intriguing prospect.
Musa, the 29th overall pick, figures to earn about $1.63MM in his rookie season, while his four-year deal with Brooklyn will be worth approximately $9.16MM in total. It includes two guaranteed seasons, with team options in years three and four.
With Musa locked up, the Nets figure to shift their focus to making things official with second-rounder Rodions Kurucs. The club reportedly agreed to terms with him on a four-year deal shortly after the draft — Emiliano Carchia of Sportando reported today that Brooklyn also finalized a $750K buyout agreement with Barcelona, Kurucs’ old team.