Hornets Notes: Luxury Tax, Kemba, Lamb, Rookies

With more than $94MM in guaranteed salaries on their books for the 2019/20 season, without taking into account a potential maximum-salary contract ($32.7MM) for Kemba Walker, the Hornets look like a potential taxpayer for next year. However, speaking early Friday morning to reporters, including Rick Bonnell of The Charlotte Observer, president of basketball operations Mitch Kupchak made it sound as if being in the tax isn’t an option for the franchise.

“I would not anticipate that is something we would look to do,” Kupchak said of paying the tax. “There are ways to increase (the distance from the luxury-tax threshold). It’s important we address that as soon as possible. Everybody needs to get on and plan.”

As Bonnell observes, there are multiple paths the Hornets could take to stay out of the tax. They have a handful of highly-paid veterans on expiring contracts, so waiving-and-stretching a player like Bismack Biyombo ($17MM) could be one option. The team could also try trading someone like Marvin Williams ($15MM).

Of course, not re-signing key free agents like Walker and Jeremy Lamb is also a possibility, though I expect the team to do all it can to retain Kemba. Lamb may receive an offer in the neighborhood of $12MM per year from another club, Bonnell writes.

Here’s more on the Hornets:

  • Re-signing Walker would have a domino effect on what the Hornets could do with the rest of their roster, Kupchak acknowledged (via Bonnell): “You’re talking about a substantial contract that goes out many years. When that happens, it creates some financial inflexibility that you have to deal with We have to be mindful of a Kemba contract, should we be lucky enough to re-sign him. There could be limitations (on other roster moves), absolutely.”
  • Kupchak recently indicated that the Hornets are probably unlikely to use their $7.8MM trade exception from last summer’s Dwight Howard trade due to tax concerns, tweets Bonnell. That exception expires on July 6.
  • The Hornets plan on having all three of the rookies they drafted on Thursday – PJ Washington, Cody Martin, and Jalen McDaniels – spend time in the G League in 2019/20, Kupchak said (per Bonnell).
  • In a column for The Charlotte Observer, Bonnell explores how much added pressure the Lakers’ trade for Anthony Davis and interest in Kemba Walker will put on the Hornets.
View Comments (13)