Heat Rumors: 2016, Brown, Beasley, LeBron
The Heat aren’t title favorites anymore, but they remain a compelling team as the 2014/15 season approaches, with questions surrounding just how well they can play without LeBron James and whether Chris Bosh and Dwyane Wade can fill the superstar void. Here’s the latest from South Beach:
- Team president Pat Riley says he isn’t planning to make moves that cut into the team’s cap flexibility for the summer of 2016, observes Ira Winderman of the Sun Sentinel. That’s when the NBA starts receiving new TV revenue and several of the contracts Miami signed this summer come off the books. The Heat have about $29.5MM in commitments for the 2016/17 season.
- Riley praised the way Shannon Brown, who’s on a non-guaranteed deal, performed so far in training camp, as Winderman writes in a separate piece. Riley also expressed pleasure about Shawne Williams, whose addition largely assured Michael Beasley wouldn’t be back, Winderman notes. “I love Mike, but we’re moving on,” Riley said. “When [LeBron James] left, we just cleaned the table. It’s time to move on. It really had nothing to do with anything but we’re just moving in another direction, in another way, and it was nothing punitive, there was nothing bad. I wish him nothing but the best. But we decided, in the long run, Josh McRoberts and Shawne, Chris [Bosh], Chris Andersen, Udonis [Haslem] and the guys we had there, I didn’t want him to be put in the position of not playing, maybe.” An earlier report indicated that some in the Heat organization had concerns about Beasley’s defense and maturity.
- There are also some within the Heat who are upset that James ignored many of Riley’s attempts to communicate during his free agency this summer, reports Barry Jackson of the Miami Herald. Some of them believe that the four-time MVP already knew he was going to sign with the Cavs when he met with Riley shortly before announcing his decision.
NBA, TV Partners Sign $24 Billion Deal
9:05am: Commissioner Adam Silver also confirmed the arrangement in a press conference streamed via NBA.com, and the NBA has released a statement, too.
MONDAY, 8:40am: ABC/ESPN and Turner Sports, the subsidiary of Time Warner, have confirmed the deal in separate releases that detail their TV coverage plans. The NBA has a press conference scheduled shortly to discuss the new TV package.
SUNDAY, 10:30pm: One reason this NBA TV deal has such a high price tag is that by doing it prior to the existing agreements ending, it prevented FOX and NBC from making a play to secure broadcast rights, Tim Bontemps of The New York Post tweets.
9:36pm: The NBA and its television partners have agreed to a new nine-year deal, report Ben Cohen and Shalini Ramachandran of The Wall Street Journal report in a subscription-only piece. The combined annual rights fees that ABC/ESPN and Time Warner will pay surge from approximately $930MM to around $2.66 billion, tweets Richard Sandomir of The New York Times, making the full value of the arrangement $24 billion, as Sandomir notes in a full story. The deal kicks in for 2016/17 and runs through 2024/25.
The move had been expected, as John Lombardo and John Ourand of Sports Business Daily reported last month, though the fee is larger than the roughly $2 billion annual figure that seemed likely at the time. The increase appears to put the league in position to raise the salary cap even higher than anticipated, and in September some teams were already projecting that the cap, at $63.065MM this season, would leap to $80MM by the 2016/17 season, according to Grantland’s Zach Lowe. It’s unclear whether the league will phase in any such jump beginning with next season’s cap, or if the TV rights deal is backloaded, possibilities that Lowe heard had been in play.
The agreement also stands to affect the market value of franchises, particularly with at least part of the Nets on the market, as well as the league’s labor negotiations. The NBA and the players union each have an opt-out clause in the summer of 2017, and it seemed highly likely even before the TV deal that one or both sides would elect to get out of the existing CBA.
Nets, Guggenheim In Talks To Merge Ownership
8:15pm: Robert Windrem of Nets Daily tweets that “a lot” remains to be done on the proposed deal, but reports that both sides want to get it done.
SATURDAY, 10:35am: A source close to Mikhail Prokhorov says the Nets majority owner has no intentions to surrender control of the team, Mitch Abramson of the New York Daily News writes. “He’s not a seller,” the source told Abramson. “He wants the Nets and he loves the Nets and he wants to be controlling owner. This is something that he really enjoys.”
FRIDAY, 8:02am: Newsday’s Rod Boone largely seconds the initial reports, having heard that the Nets and Guggenheim are not talking about a “stake sale” but rather a partnership in which Prokhorov would remain in control (Twitter links).
THURSDAY, 10:53pm: Dodgers Chairman and Guggenheim CEO Mark Walter told Ohm Youngmisuk and Darren Rovell of ESPN.com, “I am the controlling owner of the Dodgers and I have no intention of selling the Dodgers or moving them into a new ownership group.” Walter also noted that he had yet to see the Nets’ financials, but added, “they are a terrific franchise and I would be happy to look at their information and any proposal anyone wanted to make to me — as I would with any proposal.” I would speculate that if the franchise’s financials have yet to be combed over, then a sale isn’t likely to be imminent anytime in the near future.
The ESPN article also had a different financial value attached to the franchise, with sources telling them the Nets were estimated to be worth $1.2 billion while the previous reports had the team valued at $1.7 billion. The estimated value of the Barclays Center was consistent with the earlier $1.1 billion figure that was mentioned.
4:40pm: The potential deal could evolve into a straight sale of the team and no partnership, Chris Mannix of SI.com reports (Twitter links). According to Mannix’s sources, Nets majority owner Mikhail Prokhorov is actively looking to “cash out” and sell his interests in the franchise.
1:32pm: A Nets-Guggenheim partnership would forge a sports empire likely worth $8 billion, a source tells Windrem, who notes that the figure would encompass the Nets and Dodgers franchises, Barclays Center and Dodger Stadium (Twitter links).
12:46pm: Prokhorov didn’t initiate the conversation, and the Nets haven’t shown a willingness or desire to sell, a source cautions to Adrian Wojnarowski of Yahoo! Sports. Still, high-ranking NBA executives believe Prokhorov will sell his stake sooner rather than later, Wojnarowski adds via Twitter.
12:39pm: Nets owners and representatives from Guggenheim Sports and Entertainment Assets are in talks about a deal that would give the Guggenheim group a stake in the team while allowing Mikhail Prokhorov to remain as controlling owner, reports Robert Windrem of Nets Daily. Grantland’s Zach Lowe hears similar chatter (Twitter link). The sides are working off valuations that have the entirety of the Nets worth $1.7 billion and the Barclays Center worth $1.1 billion, though it’s unclear just how much of a share of both Guggenheim would absorb.
Nets minority owner Bruce Ratner has been looking to sell the 20% stake in the team he holds through Forest City Enterprises, and Prokhorov reportedly has been listening to offers for his 80% interest, though Prokhorov was apparently just trying to gauge what the team was worth. Lowe wouldn’t be surprised if Prokhorov decides to sell soon (Twitter link), but a deal with Guggenheim would entail keeping Prokhorov in charge for the foreseeable future, Windrem hears.
Prokhorov and Ratner had been seeking a $1 billion valuation for the club, so it appears Guggenheim has come in well above that mark. The desire to up the value of the club was apparently behind Prokhorov’s austerity pledge in which he targeted getting the team out of the luxury tax by 2015/16. The Nets already began reeling in spending this summer, allowing Paul Pierce to sign with the Wizards rather than using their Bird Rights on him to top Washington’s offer.
Guggenheim president Todd Boehly met in Moscow last week with Prokhorov, Ratner and Nets CEO Brett Yormark, a source tells Windrem. Guggenheim, along with partner Magic Johnson, also showed interest earlier this year in purchasing the Clippers in the wake of the Donald Sterling scandal.
Eddie Scarito contributed to this post.
Extension Candidate: Brandon Knight
The Bucks never seemed to have much of a chance to sign an extension the last time they were eligible to negotiate one with a point guard named Brandon who went in the top 10 picks in the draft, so perhaps it’s only logical that they’re reportedly anxious to reach a deal this time. Milwaukee appears motivated to come to terms with Brandon Knight rather than let him hit restricted free agency, as Brandon Jennings did in 2013, but there aren’t so many similarities beyond their names, pedigree and the position they play on the floor. There’s been no suggestion that Knight is eager to leave Milwaukee, as there was with Jennings. Even though Knight, the No. 8 overall selection in the 2011 draft, went two picks higher in the order than Jennings, the No. 10 choice from 2009, Knight doesn’t seem to have quite as much upside.
Knight’s agent, Arn Tellem, would probably dispute that last point, noting that Knight’s 17.9 points per game in his third NBA season this past year were more than Jennings has posted in all but one of his five seasons in the league. Knight has also proven a more effective three-point shooter over the course of his career, if only slightly so, and his 16.5 PER last season was better than Jennings’ mark of 15.6 for the Pistons. Still, even when Jennings put up the worst assists-to-turnovers ratio of his career, it was better than the one that Knight produced last year, when he recorded career bests in assists (4.9) and turnovers (2.6) per game.
Knight seems sensitive to criticism that he’s not cut out to play point guard, recently insisting to Charles F. Gardner of the Milwaukee Journal Sentinel that it’s his best position. New coach Jason Kidd expressed confidence in Knight’s abilities but cautioned that he may still see time at shooting guard, as Gardner also noted. The Bucks have alternatives at the point, having claimed Kendall Marshall, who’s little more than two years removed from having been a lottery pick and who averaged 8.8 assists per game last season in 54 appearances with the Lakers. That number for Marshall reflects Mike D’Antoni‘s up-tempo scheme as well as the point guard’s own ability, but Marshall’s presence on the roster should serve to motivate Knight to either sign an extension, take command of the point guard position this season, or both. Marshall’s minimum-salary contract is up at the end of the season, and if he proves he can be a better point guard than Knight this year, it’s quite possible the Bucks would choose Marshall instead if they don’t already have Knight on a long-term deal. That threat is tempered somewhat because Milwaukee would have full Bird rights on Knight and only Early Bird rights on Marshall, but it still exists.
Moving to shooting guard would put Knight in a crowded mix on the wings that includes Giannis Antetokounmpo, Jabari Parker, O.J. Mayo, Khris Middleton, Jerryd Bayless, Jared Dudley and Damien Inglis, all of whom are either building blocks or have guaranteed salary on the books for 2015/16. It’s hard to see Knight beating out either Antetokounmpo or Parker for a starting spot long-term. The team’s desire to strike an extension clearly signals belief that Knight can handle the point, but the ability to negotiate from a position of strength no doubt fuels GM John Hammond‘s push for a deal. Fourth-year players who pass on extensions routinely bet on themselves, but in Knight’s case, there’s a lot to lose, particularly considering what happened on the restricted free agency market this summer.
Phoenix’s willingness to come up significantly on its four-year, $48MM offer to Eric Bledsoe, finally striking a five-year, $70MM arrangement, was a positive coda to a tense standoff that cast the market for point guards in a team-friendly light. There weren’t many front offices clamoring for free agents at the position Knight wants to prove he can play, in large measure because the league is flooded with quality point guards. Rajon Rondo is set to hit free agency next summer, and Ricky Rubio, Kemba Walker and Reggie Jackson are in line compete with Knight on the restricted market, contingent on whether they sign extensions.
Teams would probably be less anxious to pursue Knight if they instead see him more as an undersized shooting guard than as a point guard, even though smaller backcourts are more common than they used to be around the league. Knight’s wingspan of nearly 6’7″ helps him defensively against larger players, but it’s unclear if his defense is an asset. The Pistons were 7.3 points per 100 possessions better with Knight on the floor in 2012/13 compared to when he wasn’t, as NBA.com shows, but the Bucks were 4.0 points per 100 possessions worse with Knight in the lineup this past year.
The last point guard to sign an extension with an average annual value of less than $10MM was Mike Conley, and that deal has worked out remarkably well for the Grizzlies. Tellem surely doesn’t want a repeat of that situation, and so it only seems logical that he’d respond to the Bucks’ enthusiasm for an extension with proposals involving more than $10MM a year. It’s conceivable that the Bucks envision compromising with a deal similar to the four-year, $41MM arrangement the Sixers gave Jrue Holiday two years ago, an extension that proved tradeable even before it kicked in. Still, I think the Bucks would like to see whether doubts about his place on the roster and the market for point guards around the league lurk in the back of Knight’s mind and motivate him to sign a bargain deal for less than what Holiday received. I don’t think Tellem will let that happen, so it’s tough to see a path to a deal.
Eastern Notes: Hawks, Sixers, McDaniels, Vonleh
There’s concern around the league that NBA franchises are overvalued, in part out of worry that the union will negotiate a better deal for itself in the next collective bargaining agreement, as Sean Deveney of The Sporting News details. That “buy low, sell high” mentality helps explain why Nets owner Mikhail Prokhorov seems motivated to cash out on at least part of his majority share of the team. There’s more from Deveney’s piece pertaining to another team on the market, as we pass along here:
- Deveney also hears that Hawks owner Bruce Levenson was open to selling his controlling interest in the team even before the discovery of his racially charged email. We rounded up today’s latest on the Hawks sale right here.
- The Sixers only signed two players in free agency this year, both to minimum-salary deals, as our Free Agent Tracker shows, but co-owner Josh Harris insists he’s willing to spend in the future, notes Bob Cooney of the Philadelphia Daily News (Twitter links). “We’ve bottomed out and now together we build,” Harris said.
- Grantland’s Zach Lowe confirms that the deal that K.J. McDaniels signed with the Sixers was indeed the team’s required tender, as I speculated. Teams must offer their second-round picks a one-year, non-guaranteed contract for the minimum salary to retain their draft rights, and those are the terms that McDaniels signed for.
- Hornets rookie Noah Vonleh says he didn’t work out for Charlotte before the draft because his agent didn’t believe he’d still be available when the Hornets picked at No. 9 overall, as Vonleh tells Scott Fowler of the Charlotte Observer.
Latest On Hawks Controversy
1:57pm: Vivlamore clarifies in a full story that Levenson, Peskowitz and Foreman intend to sell their 50.1% of the club, but the reason the percentage of the team up for sale is not clear is because it’s unknown whether the Gearons or any of the other owners who hold minority shares intend to sell. It would be premature to target the end of the year for completion of the sale, Vivlamore adds, noting that the city of Atlanta has no authority over the sale of the team and little to do with the mechanics of the ownership transfer, in spite of Reed’s meetings with Silver, Levenson and others. There is indeed plenty of interest from potential buyers, but most are merely making inquiries about the sale process at this point and aren’t yet talking terms, Vivlamore says.
11:39am: Commissioner Adam Silver assured Reed last week that the league is committed to keeping the Hawks in Atlanta, as Reed relayed today to media, including The Associated Press. Reed also expressed hope that the team will indeed have a new owner by year’s end.
10:54am: It’s unclear just what percentage of the team is up for sale, tweets Chris Vivlamore of the Atlanta Journal-Constitution. A buyer could have the majority of the team with the purchase of Levenson’s, Peskowitz’s and Foreman’s full stakes, since that would constitute 50.1% of the club. However, a purchase of less than that could presumably put Michael Gearon Sr. and Michael Gearon Jr., who control a combined 42%, in charge, though that’s just my speculation.
9:00am: The Hawks are likely to be sold by year’s end, at a price point that falls somewhere in between the $550MM the Bucks went for in the spring and the bloated $2 billion that Steve Ballmer paid for the Clippers, a source tells Michael Wallace of ESPN.com. In the meantime, several agents who spoke to Wallace are concerned about the front office situation, suggesting that the lingering effects of the controversy surrounding the team and GM Danny Ferry‘s indefinite absence will affect the team’s ability to make roster moves.
Controlling owner Bruce Levenson, along with partners Ed Peskowitz and Todd Foreman, are selling their shares of the team, which make up a collective 50.1% stake in the franchise, after revelations of a racially charged email prompted Levenson to relinquish his ownership. The balance between the efforts of Levenson and his partners to find a buyer against the league’s involvement in the sale is unclear, but the city of Atlanta is part of the process. Mayor Kasim Reed said last month that he had spoken with six prospective buyers. Hawks executive Dominique Wilkins has expressed interest in buying the team, likely in the role of front man for an investment group, though it’s not certain whether his recent promotion is a signal that he’s close to taking any sort of ownership role.
Coach Mike Budenholzer has taken over the GM duties for Ferry, whose racially charged remarks about Luol Deng prompted his indefinite leave, but Budenholzer dismisses the notion that juggling two jobs would leave the Hawks in a tenuous position, as he expressed to Wallace. The ESPN scribe also indicates that assistant GM Wes Wilcox is playing a prominent role.
“I feel like there’s not a huge difference, to be honest with you,” Budenholzer said to Wallace. “Preparing for camp and little things that needed to be decided — who’s coming, who’s not, where we’re staying — so there’s a few of those conversations that impact my day. A few more people are probably coming into my office than prior. It gives me a comfort level when I think I’ve been involved in a [Spurs] program where the assistants and coaches have had a lot of input. R.C. [Buford] and [Gregg] Popovich, those guys were amazing about listening. They valued our opinions. And now, I value everybody’s opinion.”
The agents who expressed their concerns to Wallace about the structure of the front office emphasized the effect as it applied to trades involving players on high-dollar or long-term deals, but such moves rarely happen at this point of the year. Closing the sale by December would allow the new ownership to have their staff in place in advance of the February 19th trade deadline, when more significant moves more commonly occur.
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Western Notes: Gee, Mills, Nedovic, Ballmer
The players union encourages agents to negotiate contract guarantee dates into non-guaranteed deals for their clients in part to help ward off what happened to Alonzo Gee this summer, writes Grantland’s Zach Lowe. Teams played hot potato with Gee’s contract, which was to remain non-guaranteed until the leaguewide guarantee date in January, and the Kings waived him late last month, in time for him to receive no more than another non-guaranteed pact for the minimum salary with the Nuggets. Gee’s agent Happy Walters didn’t represent the small forward when he signed the contract that teams passed around via trade this summer, and vows to Lowe that he’ll never let a player agree to a non-guaranteed deal without a guarantee date, though it’s unclear what guarantee dates, if any, are involved in Gee’s arrangement with Denver. While we wait to see how that dynamic plays out around the league, and whether Gee can crack the Nuggets opening-night roster, here’s more from around the Western Conference:
- The Hornets planned to pursue Patrick Mills last summer but backed off when he was diagnosed with a torn rotator cuff just as free agency was beginning, according to Jeff McDonald of the San Antonio Express-News. Mills re-signed with the Spurs for three years and $11MM.
- Agent Misko Raznatovic is skeptical that the Warriors are giving a fair shot to Nemanja Nedovic, the 30th overall pick in 2013, as Raznatovic tells Saša Ozmo of the Serbian website B92 (Ozmo provides an English translation on TwitLonger). “I don’t know if he’s going to get a proper chance,” Raznatovic said. “They’re promising he will, but we’ll see, he’s had a lot of injuries. I hope everything is going to be all right.” A decision on Nedovic’s third-year team option is due by October 31st.
- New Clippers owner Steve Ballmer insists he won’t micromanage coach/executive Doc Rivers as he runs the basketball operations for the team and doesn’t agree with the notion that $2 billion was too much to pay for the team, as Ballmer tells USA Today’s Sam Amick. Ballmer also says to Amick that he intends to own the team “until essentially I die.”
Four Teams Face Tough Roster Decisions
October is a month of decision-making for NBA clubs, as they sort through rookie scale extensions and options and figure out how to shrink their rosters down to the 15-man regular season limit. That third task is fairly straightforward for most teams, who’ll cut players with non-guaranteed deals and diminutive partial guarantees and keep those on fully guaranteed contracts.
For a few clubs, it’s not so easy, either because they have more than 15 fully guaranteed contracts or because there are players on the roster with little or no guaranteed money whom the club would like to keep at the expense of one or more of their fully guaranteed guys. Often, this means waiving a fully guaranteed contract and eating that money, though sometimes teams are able to work out salary-clearing trades.
A look at our roster counts shows several teams with at least some partially guaranteed money on the books for more than 15 players, but the predicaments of four teams stand out. We’ll profile them here:
Celtics
It took a series of maneuvers, including waiving and re-signing camp invitee Christian Watford, just to give the C’s enough room to squeeze a contract for Evan Turner under the 20-man offseason roster limit. Boston has 16 fully guaranteed contracts plus a $100K partial guarantee out to Erik Murphy, so more roster gymnastics are ahead for president of basketball operations Danny Ainge. Phil Pressey and the newly acquired Dwight Powell have the cheapest guaranteed deals on the team, as each is in line for less than $1MM, though Pressey, a point guard, might have an edge if Rajon Rondo‘s injury lingers.
Pistons
The Pistons were set with 15 fully guaranteed contracts before Greg Monroe inked his qualifying offer, which is also fully guaranteed and carries a de facto no-trade clause. That sets up a tough decision this month for coach/executive Stan Van Gundy. Spencer Dinwiddie has the lowest amount of guaranteed money for this season, but his contract is also fully guaranteed for 2015/16. Tony Mitchell is the only Piston who has guaranteed salary that adds up to less than $1MM.
Rockets
Houston doesn’t look like it’s in a bind at first glance, since the team only has 15 fully guaranteed deals. Yet with projected starting point guard Patrick Beverley on a non-guaranteed contract, GM Daryl Morey will almost certainly part with one of those 15. Nick Johnson, Troy Daniels and Isaiah Canaan, the Rockets with the cheapest full guarantees for this season, all have a significant amount of guaranteed money on the books for 2015/16, too. Ish Smith, Jeff Adrien and Francisco Garcia are each on a fully guaranteed one-year deal that costs the team less than $1MM, but all three are proven veterans who saw time in NBA rotations last season. Further complicating the matter is that the team owes partial guarantees to Tarik Black, Robert Covington and Akil Mitchell.
Timberwolves
Minnesota’s situation is another that doesn’t appear troublesome initially, but the team invested a $250K partial guarantee in Glenn Robinson III, this year’s 40th overall pick, to go along with 15 fully guaranteed contracts. Robinson won’t earn a free pass onto the regular season roster, but the team is reportedly looking to unload J.J. Barea, whether by trade or buyout. If the Wolves don’t part ways with Barea, coach/executive Flip Saunders might cast his eye in the direction of Robbie Hummel, the only player with fully guaranteed salary that totals less than $1MM.
Basketball Insiders was used in the creation of this post.
And-Ones: Maxiell, Clippers, Thunder, Brooks
Jason Maxiell agreed to join the Hornets knowing that the team envisions him in a capacity more similar to the reduced role he played for the Magic last year than to the 71-start campaign he had with the Pistons in 2012/13, as Rick Bonnell of the Charlotte Observer examines.
“It’s both maturing in life and maturing in basketball,” Maxiell said. “Respect your coach, your owner and your teammates, and help the other guys to understand this is a career. It’s not just playing basketball, it’s getting to a place where you can do other things after basketball.”
The pressure’s on the 31-year-old to make an impression this month, since he has a non-guaranteed deal. Here’s more from around the league:
- Doc Rivers admits that the Clippers have a greater need at point guard, a position that Jared Cunningham can play, than at the forwards, Joe Ingles‘ positions, but Rivers insists that he won’t necessarily make a decision on the final regular season roster based on that. Ben Bolch of the Los Angeles Times has the details.
- The contracts of Thunder camp invitees Lance Thomas, Michael Jenkins, Richard Solomon and Talib Zanna are all non-guaranteed for the minimum salary and cover just one season, reports Eric Pincus of Basketball Insiders (Twitter link). All four fit the criteria for Exhibit 9 Contracts that would keep the Thunder from paying them if they’re injured during camp, but it’s unclear whether any of them agreed to such a deal.
- Championship dreams led Aaron Brooks to sign for just the minimum salary when he joined the Bulls, as he tells Joel Brigham of Basketball Insiders. Former Bulls and fellow Seattle natives Nate Robinson and Jamal Crawford gave Brooks full-throated endorsements of the organization, as Brooks says to K.C. Johnson of the Chicago Tribune (Twitter link).
- Agent Charles Briscoe is joining forces with NFL agent Joby Branion to form Vanguard Sports Group, tweets Shams Charania of RealGM. Our Agency Database shows that Briscoe, who formerly operated through Briscoe Sports Management, represents Archie Goodwin and Joe Jackson of the Suns, Xavier Silas of the Wizards, and Junior Cadougan, who was briefly with the Bucks last fall.
