Only One Team Has Used Its Entire Non-Taxpayer MLE In 2023/24
There are three forms of the mid-level exception: the room exception, the full/non-taxpayer MLE, and the taxpayer MLE. All three have different values and can be used to sign players to contracts of different lengths.
Our focus today is specifically on the non-taxpayer version of the mid-level exception, which is a bit of a misnomer. Though its name suggests otherwise, using the non-taxpayer MLE doesn’t mean a team can’t or won’t be above the tax line ($165,294,000) at seasons end; it simply means the team’s total salary can’t surpass the first tax “apron” ($172,346,000).
As our Luke Adams previously detailed, the non-taxpayer MLE is the primary tool for over-the-cap teams to sign free agents. It runs for up to four years with 5% annual raises and a starting salary worth up to $12,405,000.
Interestingly, while many teams have used a portion of the non-taxpayer MLE, only the Raptors have gone through the entire $12,405,000 this summer — they used it to sign veteran guard Dennis Schröder to a two-year deal in free agency. Schröder is currently competing at the 2023 World Cup, leading Germany to an unblemished 5-0 record and a berth in the quarterfinals.
The Knicks (Donte DiVincenzo), Lakers (Gabe Vincent), Timberwolves (Shake Milton and Nickeil Alexander-Walker) and Cavaliers (Georges Niang) have all used a major portion of the MLE. They’re all unlikely to use the remaining amount they control due to the relatively modest amounts they have available, as well as their luxury tax situations.
The same is true of the Bulls, who are right at the tax line and used $6.2MM of their MLE to sign Jevon Carter. The Pelicans only used $1.8MM of their MLE (on E.J. Liddell), but they’re projected to be over the tax at the moment, so they’re unlikely to use more of the MLE unless they make a major salary-shedding trade.
The Mavericks (Dante Exum and Seth Curry) have used $7MM of their MLE, and they technically have enough breathing room below the tax to use more of it. However, their roster is nearly full, so it’s unclear if they actually will.
The Hawks, Nets, Hornets, Grizzlies, Trail Blazers and Wizards haven’t used any of their non-taxpayer MLEs. Some are more likely to use it than others, but it’s technically still available.
And-Ones: In-Season Tournament, Kalaitzakis, Raduljica
Sarah Todd of The Deseret News believes the NBA’s new in-season tournament will be a boon for what is typically a ho-hum portion of the regular season. According to Todd, players will be motivated by the glory of winning, being pictured with the NBA Cup, and the chance to earn $500K.
As Todd notes, while $500K may not be a huge sum for the league’s highest-paid players, it’s only $60K shy of what players on two-way deals will make over a full season, and it would be a significant reward for those on rookie deals and minimum-salary contracts. It might take a year or two for fans to buy-in, but the in-season tournament should make the regular season more fun, Todd opines.
Here a few more odds and ends from around the basketball world:
- EuroLeague team Panathinaikos has parted ways with Georgios Kalaitzakis, as Eurohoops.net relays. The final pick of the 2021 draft, Kalaitzakis played 13 NBA games in 2021/22 — his rookie season — with the Bucks and Thunder, though he spent much of that campaign in the G League. He returned to Panathinaikos last summer, marking his second stint with the Greek club.
- Former NBA center Miroslav Raduljica has left Serbia’s Crvena Zvezda by mutual agreement, per Eurohoops. The 35-year-old will be signing with Greek side Marousi B.C., sources confirm to Eurohoops. Raduljica, who played 53 games with the Bucks and Wolves from 2013-15, has had a lengthy international career and was formerly the captain of Serbia’s national team, winning silver medals at three different tournaments (2009 EuroBasket, 2014 World Cup, and 2016 Olympics).
- In case you missed it, we passed along several World Cup notes this morning.
Javonte Cooke To Sign Exhibit 10 Deal With Timberwolves
Free agent Javonte Cooke is signing an Exhibit 10 contract with the Timberwolves, agent Jerry Dianis tells Michael Scotto of HoopsHype (Twitter link).
Cooke, 24, went undrafted last year out of Winston-Salem State. As Scotto notes, the 6’6″ guard spent his first professional season playing for Minnesota’s NBA G League affiliate, the Iowa Wolves.
In 25 regular season games (20.3 MPG) with Iowa in 2022/23, including five starts, Cooke averaged 8.0 PPG, 3.0 RPG and 1.6 APG on .424/.308/.773 shooting splits.
Given his relatively modest contributions, it’s highly likely that Cooke will be waived by Minnesota before the ’23/24 season starts. In that scenario, if he spends at least 60 days with Iowa, he could earn a bonus of up to $75K.
As our roster count tracker shows, the Timberwolves currently have 14 players on guaranteed standard contracts and a pair of players on two-way deals, along with a two-way qualifying offer out to restricted free agent Matt Ryan. Since they’re below the offseason maximum of 21 players under contract, they won’t have to make another roster move to sign Cooke.
And-Ones: Executives, Value Deals, Super-Max, Milestones
Ben Rohrbach of Yahoo Sports recently ranked 25 of the NBA’s top decision-makers in terms of how successful they’ve been at drafting, making trades, and signing free agents over the course of their respective careers. The other five lead executives were not evaluated due to a small sample size.
As Rohrbach writes, with how his system is set up, having a high score over a long career is more impressive than an executive who performed similarly with fewer years of experience. Still, there’s an obvious caveat: his evaluation process is subjective.
Mavericks general manager Nico Harrison is ranked No. 25, followed by Hornets president of basketball operations Mitch Kupchak and Bulls executive VP of basketball operations Arturas Karnisovas. The top three executives in Rohrbach’s system are Jazz CEO Danny Ainge (No. 1), Raptors president Masai Ujiri, and Spurs GM Brian Wright.
Here’s more from around the basketball world:
- Yossi Gozlan of HoopsHype created three all-contract-value teams comprised of players at each of the five positions. Players on rookie deals and those with maximum salaries were excluded from consideration. Gozlan’s first team features four members of the United States’ World Cup roster — Jalen Brunson, Austin Reaves, Mikal Bridges and Jaren Jackson Jr. Cavaliers center Jarrett Allen takes the final spot.
- Signing players to a Designated Veteran contract, also known as the “super-max,” is a polarizing topic among NBA executives, according to Steve Bulpett of Heavy.com. “Super-max isn’t a guarantee of the result you’re looking for,” one general manager told Heavy Sports. “Just because you qualify doesn’t make you that guy. Inflated contracts are even harder to move. The additional penalties in the new CBA should slow the roll of everybody giving out a super-max deal the first time a guy qualifies for it. Just because a guy qualifies for it doesn’t necessarily make him entitled to it. That’s become the issue in the league. If you’re going to call yourself a franchise-level player, which is what I think the super-max number says, you’ve got to have more than just putting up numbers.”
- ESPN.com lists some noteworthy milestones and anniversaries to watch for the 2023/24 season, noting that Lakers superstar LeBron James is on track to surpass 40,000 career points if he maintains his stellar production and stays healthy. James became the league’s all-time leading scorer last season.
Warriors’ Lacob Talks Kerr, Paul, Poole, More
Speaking to Tim Kawakami of The Athletic, Warriors owner Joe Lacob expressed optimism about retaining Klay Thompson long term, as we previously relayed.
However, Thompson isn’t the only key member of the organization entering a potential walk year. As Kawakami writes, head coach Steve Kerr, who is currently coaching Team USA at the World Cup, could also be a free agent in 2024, but there seems to be momentum on a contract extension ahead of training camp.
“We have started to talk with his people, again, same as kind of the Klay situation,” Lacob said. “Very early. There’s plenty of time. Steve is just like Klay, we want Steve to be here for a long time. Hall of Fame coach, we really value him. And I’m sure we’ll be able to work out something that’s fair to both sides.”
Kerr, who turns 58 later this month, has been Golden State’s lead coach for the past nine seasons, compiling a 473-238 regular season record (.665 winning percentage) and a 99-41 postseason record (.707) en route to six finals appearances, including four championships.
Here are some more highlights from Kawakami’s conversation with Lacob, which is worth checking out in full:
- Lacob said the team didn’t plan to exceed $400MM in combined payroll and luxury tax payments for the upcoming season, but noted that trading Jordan Poole for Chris Paul created more financial “optionality” going forward — Paul’s ’24/25 salary is non-guaranteed, while Poole is entering the first year of a four-year, $123MM+ extension. “To some extent, this is a year-by-year league,” he said. “When you’ve got a chance to win, you’ve got to go for it. We did the best thing we thought we could do. This is going for it. So we’ll see what happens.”
- Golden State’s owner said the team will take a wait-and-see approach regarding Paul’s future with the team beyond this season. Lacob also said that while he was initially dubious about the trade, eventually the Warriors realized it could make them better this season, since Paul has consistently helped raise the level of the players around him. “We kind of warmed to that idea and the more we processed it the more we thought it really made sense — at least for the short-to-intermediate term,” Lacob told Kawakami. “Certainly longer-term, I’m not going to deny, we gave up a great asset in Jordan Poole, probably has a decade or so left to play in this league. He’s probably going to just get better. We were going short-term versus long-term on this. But for a lot of different reasons, both basketball reasons and financial reasons, it just made sense to do it.”
- Poole and Draymond Green had a well-documented dust-up during last year’s training camp, with Green punching the young guard. Kawakami asked Lacob if it was fair to say the Warriors had to pick between the two players this summer after a season filled with tension (Green re-signed on a four-year, $100MM deal). “I don’t want to say absolutely that’s true,” Lacob said. “I think it’s fair to say there was some level of concern going forward whether that was going to be something that would work out. To be honest with you, I think it would’ve worked out, could’ve worked out. But I think it is fair to say that in order to make the numbers work and so on, someone probably was going to be the odd man out. It just turned out, and it wasn’t planned, that it was Jordan.”
- Lacob confirmed Golden State hopes to move under the league’s second tax apron next offseason, according to Kawakami. “It is very penal to be above it,” he said. “I think our goal would be to be under it, yeah. You just lose too many options in terms of constructing your roster, draft choices and a variety of things. It is very difficult to contemplate not being under it. But look, it’s a year-by-year thing and we’ll see what happens.”
Lacob: Warriors Want To Keep Thompson For “Rest Of His Career”
Sharpshooter Klay Thompson has spent his entire career with the Warriors, winning four championships and earning five All-Star nods in his 10 active seasons (he missed 2019-21 due a torn ACL and a torn Achilles tendon). He’s entering the final year of his contract, which will pay him $43.2MM in 2023/24.
Appearing on a podcast with The Athletic’s Tim Kawakami, owner Joe Lacob was asked if he expects Thompson, who is eligible for an extension, to remain with Golden State beyond the upcoming season.
“I do,” Lacob said. “We’ve had some very brief discussions at this point with his agent. But they’re very, very early. … I fully expect that we’ll have some substantial discussions soon sometime and we’ll see if we can’t put something together that allows Klay to be here for a long time, which we clearly would like him to be.”
As Kawakami points out, both Draymond Green and Andrew Wiggins took pay cuts in order to sign long-term deals with the Warriors, and Thompson will almost certainly have to as well due to the club’s massive payroll and luxury tax situation.
“Look, it’s August and there’s plenty of time to work all this out,” Lacob told Kawakami. “His contract doesn’t expire until next year. We love him and I know he knows we love him. And we’re going to try to do something here for the rest of his career.”
Based on Lacob’s statements, Kawakami believes the two sides will work out an extension before the season begins. Thompson is eligible to add four years onto his current deal, up to his maximum salary.
Thompson, 33, averaged 21.9 points, 4.1 rebounds and 2.4 assists on .436/.412/.879 shooting in 69 regular season games (33.0 minutes) in ’22/23. In his first full season back from the major injuries, he struggled somewhat in the playoffs, posting a .388/.368/.875 shooting line in 13 games (36.0 minutes), well below his career postseason splits.
Still, the core group of Stephen Curry, Green and Thompson has had a ton of success over the past decade, and the team has been motivated to keep the core together. We’ll have to wait and see if a deal comes to fruition in the coming weeks like Kawakami predicted.
Kings Notes: Vezenkov, Monk, McGee
Former Olympiacos star Sasha Vezenkov decided to come stateside for the 2023/24 season, signing a three-year, $20MM contract with the Kings, who held his draft rights. At his introductory press conference on Thursday, Vezenkov said the team’s months-long pursuit to sign him played a factor in his decision, as Jason Anderson of The Sacramento Bee relays.
“I’m really happy, really excited,” Vezenkov said. “It was a big decision for my career and I’m really happy to do it for Sacramento. I’m really thankful to the organization because throughout the last year, they came overseas. They show me their commitment. They show me how much they want me to be here and I’m really happy.”
The reigning EuroLeague MVP had a lot of success playing with Olympiacos, winning back-to-back domestic titles the past two seasons and losing the EuroLeague final to Real Madrid by one point in 2022/23. The Kings’ success last season — winning 48 games and breaking their 16-year playoff drought — was another reason the Bulgarian forward wanted to join the team, according to James Ham of TheKingsBeat.com.
“I like to win,” Vezenkov said. “That’s why we play basketball — to enjoy, to win games. This helped in my decision. As we saw last year, the Kings were a fantastic team, playing beautiful basketball, but most importantly, winning.”
Here’s more on the Kings:
- Adjusting to the pace, space, and athleticism of the NBA can sometimes be a challenge for European players, especially right away. But Vezenkov is confident he’ll make an impact with Sacramento and believes it will be a good fit, per Johnny Askounis of Eurohoops.net. The 28-year-old sharpshooter said it was a “dream” to play in the league. “The NBA was like a goal, a dream for me,” Vezenkov said. “Every kid who plays in Europe wants to come to the NBA. … I am here to help with my experience, with whatever coach needs from me for this team to continue to win games and perform better and better.”
- Ham of TheKingsBeat recently touched on Malik Monk‘s contract situation in an appearance on ESPN 1320’s D-Lo & KC show (Twitter video link). Monk, who is entering the final year of his deal, will only have Early Bird rights in 2024 after signing a two-year contract with the Kings, and he is not extension-eligible. That means Sacramento will be somewhat limited in what it can offer him in free agency next summer, Ham notes. After a solid regular season as the team’s sixth man, Monk had a breakout performance in Sacramento’s first-round playoff loss to Golden State, averaging 19.0 PPG, 5.4 RPG and 3.6 APG in seven games (29.3 MPG).
- Veteran center JaVale McGee is reportedly signing a one-year, fully guaranteed minimum-salary contract to join the Kings after being waived by Dallas. He’s expected to compete for minutes behind Domantas Sabonis, according to Sam Amick of The Athletic, who writes that McGee has the trust of head coach Mike Brown, as they won a pair of championships together with Golden State. McGee’s mother also played for Sacramento’s WNBA team, the Monarchs, Amick adds.
Celtics Sign Svi Mykhailiuk To One-Year Contract
6:30pm: The signing is official, the Celtics announced in a press release.
3:28pm: The Celtics are signing free agent swingman Svi Mykhailiuk to a one-year contract, sources tell Michael Scotto of HoopsHype (Twitter link).
A second-round pick (47th overall) back in 2018, the 26-year-old Ukrainian has bounced around quite a bit over his five NBA seasons, having played for six different teams over that span. Mykhailiuk spent most of 2022/23 with the Knicks prior being traded to Charlotte at the February deadline in the four-team deal that sent Josh Hart to New York.
While Mykhailiuk rarely saw action with New York, appearing in just 13 games for 40 total minutes, he played well for the Hornets down the stretch last season. In 19 games (22.5 MPG) with Charlotte, he averaged 10.6 PPG, 2.7 APG and 2.4 RPG on .441/.404/.676 shooting.
Mostly known as a solid outside shooter (36.0% career from deep), Mykhailiuk has appeared in 252 regular season games for the Lakers, Pistons, Thunder, Raptors, Knicks and Hornets. He also brings plus size on the wing, standing 6’7″ and weighing 205 pounds.
A report last month indicated that Greek club Panathinaikos was interested in Mykhailiuk’s services, but the veteran guard/forward was reportedly focused on finding another NBA opportunity, which has now come to fruition.
Boston, meanwhile, has been scouring the free agent market for wing depth, reportedly holding workouts with at least four veterans over the past week-plus. Mykhailiuk wasn’t among the players named, but obviously he was on the team’s radar.
The Celtics only have 13 players on standard contracts (11 guaranteed), so they won’t have to make a roster move to sign Mykhailiuk, though it’s unclear if he’ll receive a guaranteed deal.
Grizzlies Sign Shaquille Harrison, GG Jackson
In a pair of press releases (Twitter links), the Grizzlies officially announced the signings of Shaquille Harrison and GG Jackson II.
While the terms of Harrison’s contract were not disclosed, Memphis has used its third and final two-way opening on Jackson, who was one of the few remaining 2023 draft picks who had yet to ink a contract, as shown by our tracker.
Harrison, 29, is a six-year NBA veteran who was waived by the Lakers in June before his salary for 2023/24 became guaranteed. He had eight brief playoff cameos for the Lakers in 2022/23 after signing on the last day of the regular season. Harrison had just finished a 10-day hardship deal with Portland prior to his stint in L.A.
Overall, the guard has appeared in 180 regular season games with Phoenix, Chicago, Utah, Denver, Brooklyn and Portland, holding career averages of 5.3 PPG, 2.5 RPG, 1.7 APG and 1.0 SPG on .435/.281/.718 shooting in 15.4 MPG. Harrison also signed a 10-day hardship deal with the Grizzlies in ’21/22, though he never played a game for Memphis.
Known as a strong defender, Harrison spent the majority of the past two seasons in the G League, winning NBAGL Defensive Player of the Year in ’21/22 and finishing third last season. A report last month indicated he was drawing EuroLeague interest, but instead he’ll be returning to Memphis.
As Chris Herrington of The Daily Memphian tweets, Harrison could be in line for NBA minutes once the Grizzlies receive an extra roster slot. Memphis will be able to move guard Ja Morant to the suspended list, opening up a 15-man slot, after the fifth game of his 25-game ban.
Jackson was the 45th pick in June after one college season at South Carolina. He was a highly touted prospect entering college and one of the youngest players in his draft class after reclassifying, but had an uneven freshman season for the Gamecocks.
Overall, the 18-year-old averaged 15.4 PPG and 5.9 RPG in ’22/23, posting a subpar .384/.324/.677 shooting line in 32 games (31.9 MPG). Damichael Cole of The Memphis Commercial Appeal previously wrote that Jackson would likely receive a two-way deal and spend most of the upcoming season in the G League.
The Grizzlies have reached the offseason maximum of 21 players under contract, and they’ll have to make some roster moves ahead of training camp. 17 of their players are on guaranteed standard deals, which means they might have some dead-money cap hits this season unless they make a consolidation trade.
Warriors Notes: Thompson, Santos, Staudt
Former NBA player Mychal Thompson says his son, Klay Thompson, is in great shape ahead of the 2023/24 season, he tells Mark Medina of Sportskeeda.
“He’ll be back hungrier than ever,” Mychal said of Klay. “He’s two years removed from his serious injuries. He’s been working out like crazy. He looks good, lean and ready to go. I expect him to be at a high All-Star level again. It’s possible. But the West is so loaded with guards. You’re going to have to be hooping out of your mind because all of these guards in the West could make the All-Star team.”
The longtime Warriors guard is entering the final year of his contract, which will pay him $43.2MM this season. Will that be a distraction for Klay?
“He’s not worried about that,” Mychal Thompson told Medina. “He knows he has a job to do with coming into camp in the best shape and having a great year. Everything else will take care of itself.”
The elder Thompson also talked to Medina about Klay’s future with the Warriors, the possibility of his son representing either Team USA or the Bahamas ahead of next year’s Olympics, and other topics. The interview is worth checking out in full if you’re a Golden State fan.
Here’s more on the Warriors:
- Brazilian forward Gui Santos, who is currently competing at the 2023 World Cup, was the No. 55 overall pick last year by the Warriors. He wound up signing an NBA G League contract in 2022/23 and spent his first season in the U.S. playing for the team’s affiliate, the Santa Cruz Warriors. The 21-year-old added 15 pounds of muscle in the offseason and had a strong Summer League showing, but he’s expected to once again play for Santa Cruz in ’23/24, reports Dalton Johnson of NBC Sports Bay Area.
- According to Johnson, Santos is currently ineligible for a two-way deal with Golden State because he’s still under contract with Brazilian team Minas. The Warriors could buy out his current deal — which ends after ’23/24 — in order to give him a standard contract, but that isn’t expected to occur, Johnson writes. In other words, Santos likely won’t be making his NBA debut until at least ’24/25.
- The Warriors are hiring Wizards scout Jason Staudt to join their front office, league sources tell veteran reporter Marc Stein (Twitter link). Staudt has worked in various roles with several NBA organizations, including the Magic, Blazers, Rockets and Suns.