Financial Impact Of Deadline, Buyouts: Pacific
The effects of the trade deadline are still being felt around the NBA as teams work buyout deals, negotiate with new free agents and fill open roster spots. Hoops Rumors will be taking a team-by-team look at the financial ramifications not just of the deadline itself but of the post-deadline moves. After beginning earlier with a look at the Southwest Division, we’ll continue with the Pacific Division:
Clippers
The trade of Lance Stephenson for Jeff Green was fairly even in terms of raw salary, but the Clippers absorbed a projected tax hit that magnifies the $450K difference between Green’s salary and Stephenson’s. L.A. is more than $10MM over the $84.74MM tax threshold, so that $450K will cost two and a half times that amount in additional taxes, unless the Clips find some altogether unlikely means of trimming salary by the final day of the regular season. Thus, the trade represents an investment of an additional $1.575MM in combined payroll and taxes. Rookie Alex Stepheson‘s 10-day contract also costs, at the rate of $30,888 in salary and $139,305 in tax penalties on top of it, but even though the tax penalty would be the same for anyone else on a 10-day deal, his salary is $24,834 less than if the team had signed a long-tenured veteran, as it did earlier with Jeff Ayres.
Suns
The Suns earned some well-deserved praise for snagging a first-round pick in the trade that sent Markieff Morris to the Wizards, but they also reaped some financial flexibility that allowed them to pick up an intriguing asset after the trade. Phoenix created a $1.56MM trade exception for the difference between the $8MM salary of Morris and the combined $6.44MM that Kris Humphries ($4.44MM) and DeJuan Blair ($2MM) make. The Suns used that exception to claim John Jenkins off waivers from the Mavericks, thus snagging a former No. 23 pick who has a favorable contract and averaged 19.7 points per game in the preseason this past fall. Jenkins has two years left on his contract after this season, and both call for non-guaranteed minimum salaries, meaning he has no long-term cost if he doesn’t pan out and a low cost if he does. Phoenix also signed Phil Pressey to a 10-day contract worth $55,722, but the Suns still have a lower payroll for this season than they did before the deadline. They also erased $7.4MM from next year’s guaranteed salary commitments and a combined $16.6MM for the two seasons after that, since Humphries and Blair are on de facto expiring contracts. That made it palatable for the Suns to eat the rest of Blair’s salary for this season when they waived him.
Warriors
Golden State dared to tinker with a roster that’s in the midst of the most successful season in NBA history so far, waiving little-used Jason Thompson to make room for a prorated minimum-salary contract for Anderson Varejao. That Varejao deal costs $289,755 in salary and $724,388 in projected tax penalties, so it represents an investment of more than $1MM. The Warriors nonetheless minimized the effects on next year’s payroll with the use of the stretch provision. It was much too late to stretch any of Thompson’s nearly $6.909MM salary for this season, but Golden State turned the $2.65MM partial guarantee on his 2016/17 pay into equal $883,333 installments for each of the next three seasons. That drops Golden State’s guaranteed salary commitments for the summer ahead from close to $74.752MM to about $72.985MM, an incremental difference that could nonetheless be meaningful to the team’s pursuit of Kevin Durant.
Kings
Sacramento, despite no shortage of rumors, didn’t make any roster moves in February, though Caron Butler is reportedly a buyout candidate.
Lakers
Like the Kings, the Lakers have stood pat so far through the deadline and buyout season.
Southeast Notes: Riley, Johnson, Anderson
Heat president Pat Riley acknowledged that injuries that have left the team with only 10 healthy players could prompt the team to change its tax-related stance against making a signing in the next two weeks, observes Ira Winderman of the Sun Sentinel. The Heat can’t sign anyone until March 6th without crossing the tax threshold, and Riley has said his plan is to wait even longer so Miami can fill both of its open roster spots before season’s end.
“We have our limitations financially as far as what we can do and how much and there’s a certain date,” Riley said. “But obviously being down another point guard, we may have to rethink that. But right now, that’s not a priority.”
Miami is reportedly among the contenders for Joe Johnson and would have interest in Kevin Martin if Johnson signs elsewhere. See more from the Southeast Division:
- Johnson would be a cheap addition for the Hawks who would fill a need for scoring and help on the wing, where Kyle Korver and Kent Bazemore have struggled, but he doesn’t seem like a fit within Atlanta’s offense, opines Jeff Schultz of the Atlanta Journal-Constitution, who questions whether Johnson would accept a secondary role.
- Alan Anderson surprised himself with his performance Wednesday in his first game with the Wizards after injury knocked him out for most of the season, as J. Michael of CSN Mid-Atlantic relays. Anderson, who signed a one-year, $4MM deal in the summer, led the team in plus/minus at plus 11, Michael notes. “He’s going to be competitive. He’s going to play with a chip on his shoulder, an edge. He’s always one of those physical players out there. He did one heck of a job for his first game back,” John Wall said. “His defensive pressure, intensity, his talking out there, made some big shots for us to get us back into the game. Once he gets his wind [back], he’s going to be great for us. That’s the reason we wanted him on our team.”
- Soon-to-be free agent Hassan Whiteside‘s value depends on the eye of the beholder, as some teams would probably jump at adding him for the eye-popping production he delivers while others wouldn’t tolerate his mistakes, writes Rob Mahoney of SI.com, who details the Heat big man’s strengths and limitations.
Harden Wanted McHale Fired, Dwight Traded?
FRIDAY, 7:41am: Harden never demanded a coaching change or that Howard be traded, Rockets CEO Tad Brown insisted Thursday to Jonathan Feigen of the Houston Chronicle.
THURSDAY, 2:37pm: James Harden “angled” for the Rockets to trade Dwight Howard before the deadline and pressured the team to fire Kevin McHale earlier this season, multiple league sources tell Ken Berger of CBSSports.com. However, multiple sources told Calvin Watkins of ESPN.com that neither Harden nor Howard asked Rockets brass to change coaches, and Watkins portrays the idea of tension between Harden and Howard as overblown. Houston fired McHale after a 4-7 start but didn’t trade Howard, who’s poised to opt out and is widely expected to leave in free agency this summer, according to Berger.
“I don’t know what the perception is; the reality is we get along and we want to win,” Harden said to Watkins, speaking about Howard.
Harden has reportedly irked some of his teammates with his play and aloof nature at times, though he and Howard appeared upbeat following a players-only meeting that preceded McHale’s ouster. However, rumors have long followed the relationship between the Rockets stars. The respective camps for Harden and Howard went into the 2014 offseason “whispering” about their desire that the other be traded, according to Fran Blinebury of NBA.com. Howard has repeatedly denied a December 2015 report that he’s “extremely unhappy” playing a supporting role behind Harden, who takes nearly twice as many shots.
Rockets GM Daryl Morey said he never came close to trading Howard, but Morey and agent Dan Fegan were reportedly making a strong effort to find a new team for him in the hours leading up to last week’s deadline. Houston was in touch with the Mavericks, Bulls, Hawks, Celtics,Hornets, Heat, Bucks and Raptors about Howard as it sought to engage in trade talks about the former All-Star center, according to multiple reports, but the market for him was apparently soft.
‘Melo Turned Away Interest From Celtics?
FRIDAY, 7:35am: The Celtics went to Anthony’s “advisers” to gauge his willingness to waive his no-trade clause rather than the Knicks, and no trade talks took place between Boston and New York, sources told Marc Berman of the New York Post. Indications are that the Creative Artists Agency, which represents Anthony, wants him to keep an open mind about his future, Berman writes.
4:35pm: Anthony denies that he turned down any such trade proposal, saying the Knicks never approached him about waiving his no-trade clause, according to Frank Isola and Stefan Bondy of the New York Daily News. One of the first-rounders the Nets owe the Celtics as well as an additional pick, David Lee‘s since bought-out contract and a second player would have gone to New York in the proposed deal, Isola and Bondy write.
THURSDAY, 7:58am: The Celtics expressed interest before the trade deadline in obtaining Carmelo Anthony from the Knicks, but they were told that Anthony didn’t want to waive his no-trade clause to play for Boston, sources tell Ian Begley of ESPNNewYork.com. It’s unclear how far talks between the Celtics and Knicks went, Begley notes. The teams were reportedly part of a preliminary three-way discussion with the Cavaliers that involved the idea of sending Anthony to Cleveland, but Begley’s report indicates that Boston and New York also had a chat on the side, however brief.
It’s no shock to see the Celtics having gone after a star, though the apparent interest in Anthony demonstrates how far president of basketball operations Danny Ainge would go to acquire a marquee name. Anthony turns 32 in May and is in the midst of a third straight season of declines in scoring average since leading the NBA in points per game with 28.7 in 2012/13. He’s under contract for a combined $78,731,280 over the three seasons following this one, including a player option for 2018/19, and the deal includes a 15% trade kicker. His no-trade clause would carry with him wherever he goes if he allows the Knicks to deal him away. Multiple disadvantages would come with trading for Anthony, to be sure, but the Celtics apparently remained of the belief that doing so could help their team.
Ainge said the Celtics came close to pulling off a significant trade before the deadline, had the other team not pulled out of the talks, but it appears that conversation was about Jahlil Okafor, not Anthony. The C’s were also linked to Dwight Howard, Al Horford and others.
Anthony has been steadfast in saying that he wouldn’t waive his no-trade clause and doesn’t want to leave New York to play anywhere else, though he’d reportedly give strong consideration to a trade that would send him to the Clippers. Several teams apparently think that if the Knicks don’t make significant progress in their rebuilding project by mid-July, Anthony would be willing to approve a trade.
Do you think Anthony will finish his contract on the Knicks, or will he eventually approve a trade? Leave a comment to share your thoughts.
Nets Waive Joe Johnson In Apparent Buyout
The Nets have waived Joe Johnson, the team announced via press release. The statement didn’t refer to it as a buyout, but the sides were in buyout talks, as Marc Stein of ESPN.com reported earlier today. The 34-year-old was making almost $24.895MM in the final year of his contract and likely relinquished a portion of that in exchange for the chance to hit free agency.
“The Nets want to thank Joe for his many contributions to the team and the organization,” Nets GM Sean Marks said in the team’s statement. “Joe has been a quality professional since joining the Nets four years ago, was a valued member of three playoff teams, and provided many thrilling moments for his teammates and Nets’ fans. We wish him much success in the future.”
No team has enough cap room or any exception large enough to claim Johnson off waivers, so he’s poised to hit the open market Saturday. He’d been planning to sign with the Cavaliers in the event of a buyout, as Chris Haynes of the Northeast Ohio Media Group and the Cleveland Plain Dealer reported, but Chris Vivlamore of the Atlanta Journal-Constitution hears he has interest in rejoining the Hawks, the team he played for from 2005 to 2012. The Cavs and Hawks are among a group in pursuit of the 15th-year veteran that also includes the Celtics, Rockets, Heat, Thunder and Raptors, according to Stein. Ethan Skolnick of the Miami Herald first reported the Heat’s interest weeks ago, but Miami is unable to sign anyone prior to March 6th without crossing the luxury tax line.
The move leaves the Nets with two open roster spots. Brooklyn saved more than $1.5MM through a buyout deal with Andrea Bargnani this past weekend. Marks has been on the job for only a week, but both Bargnani and Johnson have hit waivers in that brief time. The Nets also released Deron Williams in a buyout deal this past summer under former GM Billy King.
And-Ones: Wolves, Joe Johnson, Rockets, Mavs
The Timberwolves are at a “standstill” in talks with Grizzlies minority-share owner Steve Kaplan about a potential deal that would see Kaplan and his partners take 30% of the Minnesota franchise, Wolves owner Glen Taylor told Jerry Zgoda of the Star Tribune. The sides can’t proceed until Kaplan sells his stake in the Grizzlies, Taylor said to Zgoda, and Memphis principal owner Robert Pera isn’t making it easy, according to Jon Krawczynski of The Associated Press (on Twitter). The deal had reportedly been on track to be complete by the end of this month, but Taylor, who remains optimistic it will ultimately get done, said it will probably take months, not weeks, Zgoda relays. That arrangement would reportedly involve Taylor eventually ceding control of the Wolves to Kaplan, but Taylor plans to remain the primary owner for another few years, Krawczynski tweets. See more from around the NBA:
- New Nets GM Sean Marks essentially confirmed the reported buyout talks with Joe Johnson today in an appearance on the “Joe & Evan” show on CBS New York radio (Twitter transcription via Devin Kharpertian of The Brooklyn Game). Marks said the team would talk to Johnson to see “what he really wants to do,” adding that he thinks the 15th-year veteran has “deserved the right” to go to a playoff team if he wants.
- The relationship between James Harden and soon-to-be free agent Dwight Howard is nuanced, but the idea of tension between the Rockets stars is overblown, as Calvin Watkins of ESPN.com examines.
- The Mavericks didn’t really receive trade offers of picks likely to fall in the middle of the first-round for Dwight Powell and Justin Anderson, according to Tim MacMahon of ESPNDallas.com (Twitter link). That conflicts with an earlier report.
Timberwolves, Andre Miller Likely To Work Buyout
12:38pm: Miller and the Wolves are already finalizing a buyout deal, agent Andy Miller tells Adrian Wojnarowski of The Vertical on Yahoo Sports (Twitter link).
12:35pm: Timberwolves owner Glen Taylor indicated that he’ll probably reach a buyout agreement with Andre Miller that would allow the 39-year-old point guard to appear in the postseason with another team, reports Jerry Zgoda of the Star Tribune. Taylor added that while he’s open to a buyout with Kevin Martin, Martin’s side would have to initiate those talks, as Zgoda details. Miller is on a one-year deal for the minimum salary, while Martin is making $7.085MM this season with a $7,377,500 player option for next year. Both would have to hit waivers no later than Tuesday to remain playoff-eligible for other teams.
Taylor said he’s willing to work with Miller’s camp, pegging him as more likely to end up with a buyout than fellow veteran Tayshaun Prince, with whom the owner said he has yet to engage in any buyout talks, Zgoda writes. Prince, 35, has played a prominent role, appearing in the starting lineup for 44 of his 56 appearances, including Wednesday’s game against Toronto. Interim coach Sam Mitchell has used Miller only off the bench and in just 26 games. Mitchell has given rookie point guard Tyus Jones an increased role of late, and Miller hasn’t played in any of Minnesota’s last four games, Zgoda notes.
Martin has played in each of those four games after sitting for the previous nine, and while he’s still averaging double-figure points, at 10.6 in 21.4 minutes per contest, it was no secret that he was available for a trade before last week’s deadline. Would-be suitors were apparently reluctant to take him on without knowing what he’d do about his player option. GM Milt Newton said after the deadline passed without a Martin trade that a buyout discussion would probably take place between Martin and the team in the near future, but Taylor told Zgoda that Newton hasn’t called agent Dan Fegan to start any such conversation.
Several teams were linked to Martin before the deadline, as I noted in his trade candidate piece, and that includes the Bucks, who reportedly made a run at him as the clock ticked down. At least one team asked the Wolves about Miller as the deadline approached, though it’s unclear which team that was.
Wizards Sign J.J. Hickson
The Wizards have signed J.J. Hickson, the team announced. Jorge Castillo of The Washington Post reported that a deal was expected between the sides after Shams Charania of The Vertical on Yahoo Sports wrote that they were engaged in advanced discussions about a prorated minimum-salary contract that would run through the rest of the season. The pact indeed covers the balance of 2015/16, as Wizards GM Ernie Grunfeld confirmed in the team’s press release.
“Signing J.J. for the remainder of the season gives us another solid veteran who will bring more depth to our frontcourt,” Grunfeld said. “His experience, athletic ability and physical presence will be solid additions to our team as we continue our playoff push.”
Hickson became a free agent earlier this week after the Nuggets waived him Saturday. Denver and the Jeff Schwartz client were planning to do a buyout deal, as Marc Stein of ESPN.com reported shortly before Hickson’s release, though it’s unclear how much salary, if any, Hickson forfeited from the $5,613,500 his Nuggets contract called for him to make this season. Assuming he’s getting the minimum as reported, he’ll make $366,337 with the Wizards as a seven-year veteran, though Washington only has to pay $273,038, the equivalent of the prorated two-year veteran’s minimum, with the league picking up the tab for the rest. That’s key, since the Wizards were already only about $1MM shy of the tax line.
Washington was only carrying only 14 players, one below the regular season maximum, so the team didn’t have to make a corresponding move. The Wizards were short a big man, since they sent Kris Humphries and DeJuan Blair to the Suns for Markieff Morris in a two-for-one trade at last week’s deadline. The 27-year-old Hickson appeared in only three games for the Nuggets after December 8th, but he made nine early-season starts prior to that, eclipsing the eight starts in 73 appearances he made last year.
Joe Johnson Interested In Playing For Hawks
Joe Johnson has interest in joining the Hawks if he shakes free from the Nets, several sources tell Chris Vivlamore of the Atlanta Journal-Constitution. That adds some doubt to the notion that Johnson would sign with the Cavaliers if he becomes a free agent this season, as Chris Haynes of the Northeast Ohio Media Group and the Cleveland Plain Dealer had heard. The Nets and Johnson have reportedly begun buyout talks, with the Hawks among a handful of teams interested in signing him.
Only three Hawks, Jeff Teague, Al Horford and Kirk Hinrich, remain from the seven seasons Johnson spent with Atlanta between 2005 and 2012, Vivlamore notes. The Hawks originally signed Johnson to the contract that pays him nearly $24.895MM this season before trading him to the Nets in the 2012 offseason. The 34-year-old would be giving up a portion of that salary in exchange for his way off the 15-42 Nets if the sides work a buyout deal, and he’d be available much more cheaply should he clear waivers, as would be expected.
Atlanta has an open roster spot and can offer Johnson a prorated portion of the room exception, which would work out to about $2MM. That’s not as much as he could get from the Thunder, who can offer about $2.4MM, but it’s more than the Cavaliers and several others can offer. The Celtics, Rockets, Heat and Raptors are also in pursuit, according to Marc Stein of ESPN.com, who broke the story of the buyout talks between Johnson and the Nets. Johnson would have to hit waivers no later than March 1st to be eligible to play for the Hawks or any team other than Brooklyn in the postseason, and that would largely represent Johnson’s motivation to do the buyout, since the Nets have virtually no shot of making the playoffs.
Nets, Joe Johnson Start Buyout Talks
The Nets and Joe Johnson have begun talks about a would-be buyout deal, reports Marc Stein of ESPN.com (Twitter link). Johnson would reportedly sign with the Cavaliers if he becomes a free agent this season, but Stein hears that the Hawks, Celtics, Rockets, Heat, Thunder and Raptors are also pursuing him (Twitter link). Multiple reports in recent weeks have cast doubt on the idea that Johnson would engineer a buyout, which would entail him giving back part of his nearly $24.895MM salary, and Johnson has said he wouldn’t rule out re-signing with the Nets this summer, when his contract is set to expire. Chris Haynes of the Northeast Ohio Media Group and the Cleveland Plain Dealer, who reported the Cavs link, heard that whether a buyout happens comes down to Brooklyn’s willingness to reap financial savings at the cost of a move that would help Cleveland.
Johnson, 34, is averaging 11.8 points per game on 40.6% shooting this season, his lowest figure in either category since the 2002/03 season. Still, he’s shooting 37.1% from 3-point range, mirroring his career average. He remains in a starting role and hasn’t appeared as a reserve in any game since 2003/04, though many of the teams that would sign him would probably ask him to come off the bench.
It’s nonetheless no surprise to see Johnson attract interest from multiple suitors in spite of his declining production, as he’s still capable of delivering an offensive boost. He put up 27 points and 11 assists on February 5th in Brooklyn’s win against the Kings. That was a few days after Ethan Skolnick of the Miami Herald reported that Johnson would stir the Heat’s interest if he came free on the buyout market.
The Cavs and Raptors only have the prorated minimum salary of about $400K to offer, while the Thunder have the most to spend among the teams connected to him, since they have a prorated portion of the $3.376MM taxpayer’s mid-level exception, which is now worth about $2.4MM. The Hawks and Celtics have prorated portions of the room exception now worth about $2MM. The Heat can’t pay even the minimum salary on a contract for the rest of the season until March 6th without inviting repeat-offender tax penalties, while the Rockets are roughly $500K shy of the hard cap they triggered when they signed Montrezl Harrell earlier this season.
Johnson would have to hit waivers by the close of business on March 1st to be eligible to appear in the playoffs with a team other than Brooklyn, a club with no postseason hopes of its own. The Jeff Schwartz client has been in the postseason every year since missing out with the Hawks in 2007.