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The Rarity Of Team Options

March 24th, 2015 at 3:28pm CST by Chuck Myron

People around the NBA often use the term “team option” in reference to a year that’s covered by non-guaranteed salary, but there are key differences. Front offices have to make decisions on a team option for a season before the July 1st preceding that season, but they can wait until opening night to make a decision on a player with a non-guaranteed season without having to shell out any salary, and until the leaguewide guarantee date in January without having to pony up the full salary. Partial guarantees mitigate this advantage to some degree, and contracts often have specific dates well in advance of the leaguewide guarantee date that specify a full or partial amount must be paid to the player if he remains under contract. Still, those deals are almost always more flexible than team options, which helps explains why team options are as rare as they are.

All rookie scale contracts, by rule, include two team options for the final season, and the decision on each is due a year ahead of time. Only five non-rookie scale contracts include team options for next season. A few more are on the books for 2016/17 and 2017/18. Some of them involve salary that’s non-guaranteed as well, since the collective bargaining agreement allows team option years to remain non-guaranteed even after the option is exercised. Thus, some executives have found value in signing second-round picks and undrafted rookies to four-year deals that include dual team options and non-guaranteed salary for the fourth year. That gives teams the choice of making the player a restricted free agent after year three or an unrestricted free agent after year four, as I examined a while back. That strategy backfired this past summer for the Rockets, who declined their team option on Chandler Parsons to make him a restricted free agent only to watch him sign an offer sheet for nearly the maximum salary.

Still, others, most notably the Sixers and GM Sam Hinkie, continue to sign similar deals. And occasionally, front offices will consent to team options for veteran talent, perhaps because their agents push to avoid the threat of a release without pay hanging over their clients for months. Perhaps that’s why Michael Beasley emerged with a team option on his multiyear deal with the Heat, as Eric Pincus of Basketball Insiders reported last week.

Here’s a look at the five players with team options for next season, in descending order of value.

And here are those with team options for future seasons, in descending order of value:

The Basketball Insiders salary pages and RealGM were used in the creation of this post.

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Where Players Who Signed In China Are Now

March 24th, 2015 at 12:58pm CST by Chuck Myron

Metta World Peace, who signed Monday night to play in Italy following his Chinese stint earlier this year, is not alone among players with NBA experience who are shaking free from China, now that the Chinese Basketball Association season is over. Nearly two dozen players appeared in the CBA this season who were on an NBA regular season roster either this season or last. Some, like Michael Beasley, have found homes in the NBA again, while others are still trying to make their way back to the league. Here’s what’s happening with each:

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Following Specific Players On Hoops Rumors

March 23rd, 2015 at 4:58pm CST by Chuck Myron

There’s only a bit more than three weeks to go in the regular season, which means several teams will soon shift their focus to the draft and free agency, if they haven’t already. In addition to methods of keeping up with your favorite teams as they plot for the future, Hoops Rumors also provides ways to easily follow the latest on all of your favorite players and soon-to-be free agents. If you want to stay up to date on Kevin Love rumors, you can find Love’s page right here. For intel on where Greg Monroe might end up, go here. Updates on top draft prospect Jahlil Okafor are found on this page.

Every player we’ve written about has his own rumors page. You can find any player by using our search box (located in the right sidebar); by clicking his tag at the bottom of a post in which he’s discussed; or, by simply typing his name in your address bar after hoopsrumors.com, substituting dashes for spaces. For example, Love’s page is hoopsrumors.com/kevin-love.

You can also set up an RSS feed for any of our player pages by adding /feed to the end of the page URL, like this: hoopsrumors.com/kevin-love/feed. Entering that URL into the reader of your choice should enable you to get updates whenever we write about Love. It works for teams, too. If you’re a Warriors fan, you can enter hoopsrumors.com/golden-state-warriors/feed into your reader and stay on top of all the latest from the Bay Area.

In addition to players and teams, there are a number of other subjects you can track by clicking on the tags that we use at the bottom of posts. You can keep tabs on news related to this year’s draft right here. Items related to the NBA D-League can be found on this page. You can simply scan our top stories here. Again, you can set up a feed with any of these pages by adding /feed to the end of the URL.

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Maximum Salaries For Select 2015 Free Agents

March 23rd, 2015 at 1:30pm CST by Chuck Myron

The NBA’s maximum salary isn’t just a single number. It’s an individualized figure that depends on a player’s years of experience and prior salary. That’s why it’s quite conceivable that Greg Monroe will receive a maximum-salary contract this summer that gives him less money for next season than what DeAndre Jordan gets for a starting salary on his new deal, even if Jordan signs for less than the max. Monroe will enter the offseason with five years of experience against seven years of experience for Jordan.

That seventh year is the key. The NBA’s maximum salary jumps from a figure of about 25% of the cap to one that’s approximately 30% for players who have between seven and nine years of experience. It goes up even farther, to about 35%, for those with 10 or more years in the league. Depending on league revenues from this season, which determine the maximum for next season, LeBron James could make even more than the 35% max. A player can sign a new contract with a starting salary of up to 105% of what he made in the final season of his previous deal, regardless of experience. So, James’ maximum salary will be at least $21,676,200, regardless of where the league’s maximum for players with his years of experience comes in.

The maximum salaries, like the salary cap, are tied to league revenues, but the NBA uses a formula for determining the maxes that’s different from the one that produces the cap. So, that’s why the 25%, 30% and 35% figures don’t line up precisely with those corresponding percentages of the cap. In most cases, the maxes are less than the true percentages of the cap. For instance, 35% of this season’s cap is close to $22.073MM, but the 35% maximum salary is just slightly more than $20.644MM.

We’ve put together a list of some of the top free agents for next season, categorized by the maximum salary bands in which they’ll fall. The following players are eligible for the 25% max next season, which was $14,746,000 in 2014/15. If the maxes go up by the same percentage that the cap is expected to escalate for next season, when the league projects a $67.4MM cap, the maximum salary for these players will be approximately $15.76MM. All are due for restricted free agency, except those marked with asterisks.

This next group of players are some of those eligible for the 30% max, which was $17,695,200 in 2014/15. If the maxes go up by the same percentage that the cap is expected to escalate for next season, when the league projects a $67.4MM cap, the maximum salary for these players will be approximately $18.912MM. All are set for unrestricted free agency. Those who have player options are noted.

This next group of players are some of those eligible for the 35% max, which was $20,644,400 in 2014/15. If the maxes go up by the same percentage that the cap is expected to escalate for next season, when the league projects a $67.4MM cap, the maximum salary for these players will be approximately $22.063MM. All are set for unrestricted free agency. Those who have player options are noted.

Larry Coon’s Salary Cap FAQ was used in the creation of this post.

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Free Agent Stock Watch: DeAndre Jordan

March 22nd, 2015 at 7:16pm CST by Will Joseph

DeAndre Jordan told Sam Amick and Jeff Zillgitt of USA Today Sports last week that “the free agency process is definitely going to be a fun one.” The Clippers’ center, who will be an unrestricted free agent at season’s end, has good reason to be looking forward to the summer. He’s enjoying another season of gaudy raw numbers that could land him a maximum deal.

NBA: Preseason-Los Angeles Clippers at Golden State WarriorsJordan, who is making $11.44MM this season, is averaging 11.2 PPG and 2.2 blocks. His 14.8 rebounds per game and .709 field goal percentage are both tops in the league. He’s this season’s only player to post three 20-point, 20-rebound games. He ranks second in the NBA in defensive win shares.

“He’s clearly the defensive player of the year,” Clippers coach Doc Rivers said, per Arash Markazi of ESPNLosAngeles.com. “If anybody else gets that award, we need to have an investigation.”

Winning the award could further solidify Jordan’s status, but it’s likely that he inks a maximum deal regardless. Another thing to keep in mind: Jordan will only turn 27 in July and has started every regular season game for the Clippers since the 2010/11 season. He brings size, length and athleticism. Outside of his offensive limitations, there isn’t much to dislike. With top big men being hard to find, there are several teams — including the Clippers — that could conceivably make pitches to Jordan, who said he has no interest in signing a one-year contract, as Markazi wrote.

“I’m not going to be greedy and sign a one-year deal,” Jordan said. “Nah. I’m just focused on getting it over with and focusing on playing again. I’m just trying to win here.”

It’s too early to tell which teams are seriously interested in reeling in Jordan, who, as Markazi pointed out in the aforementioned story, has been making the rounds on national sports talk radio shows recently while gaining more mainstream attention. The market could be dictated by the actions of other soon-to-be unrestricted free agent big men Marc Gasol and LaMarcus Aldridge. Tim Duncan is in the final year of his contract and if he retires, that could make things even more interesting because the Spurs would be in play for a big man.

Photo courtesy of USA Today Sports Images.

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Commenting Policy

March 22nd, 2015 at 2:45pm CST by Chuck Myron

Comments of this nature are not allowed at Hoops Rumors:

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If you see comments that fit the above criteria, please flag them and/or contact us.  Bans may be handed out liberally by our moderators, without second chances. Remaining civil is not that difficult, and most commenters have no problems doing so, nor with helping rein each other in. We are grateful for long-time commenters and readers, though this policy applies equally regardless of tenure.

All comments on Hoops Rumors or the Hoops Rumors Facebook page may be repurposed as a part of the Hoops Rumors Featured Feedback series. In these instances, comments may be edited and abridged.

This policy is always available at the bottom of the site, and will be re-posted monthly.

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Poll: Is Draymond Green Worth The Max?

March 22nd, 2015 at 1:14pm CST by ChrisCrouse

Draymond Green will become a restricted free agent this offseason and a player with his kind of talent is certain to garner much attention. There are reports that the Warriors are hesitant to give Green a higher starting salary than they will give Klay Thompson next season. Thompson won’t receive more than $15.5MM, per his agreement with the team. The maximum salary for the 2015/16 season won’t be known until the offseason since it is a product of the salary cap. There is a chance that the true figure comes in above $15.5MM, which would create a conundrum for the team. However, Golden State had given every indication that they will match any offer sheet presented to the B.J. Armstrong client.

Green is very valuable to the Warriors, as he has become the team’s utility knife. His size and quickness allow him defend basically any opponent. Versatility is an asset in the NBA and having Green on the Warriors allows coach Steve Kerr to get creative and exploit mismatches. Kerr has used Green at different positions in various lineups this season, including one with Green at center surrounded by four shooters, which is virtually impossible to defend. Green has also logged minutes at the both forward positions and has guarded shooting guards, forwards and centers.

While Green’s defense has always been his bread and butter, his improved shooting over the last year and half has been a major factor in his increased role. The 25-year-old’s shooting has risen every year he has been in the league and he is currently shooting 44.0% from the field and 34.2% from three point range this season.  Green’s ability to effectively defend the opponents’ big men, coupled with his shooting skills, has turned the Michigan State product into the NBA’s quintessential stretch four. The position is in demand now more than ever and teams are often using underqualified players to play the role.

There will be a plethora of teams interested in the forward’s services this offseason. The Pistons should be considered the favorite, outside of the Warriors, to sign Green as reports have indicated that the Michigan native has “significant interest” in signing an offer sheet with them. Detroit only has $37.6MM on the books for the 2015/16 season, as Eddie Scarito of Hoops Rumors points out on our Pistons Salary Commitment page. That figure doesn’t account for cap holds for players like Greg Monroe and Reggie Jackson. I speculate that Monroe will leave Mo Town, while Jackson stays put for a starting salary between $10-13MM. Such moves would give the Pistons cap space for at least one maximum salary contract. The Lakers and Knicks also should have cap space for at least one max contract and those teams are always a threat to steal an opposing team’s free agent.

Green is a budding young talent and many teams will look to secure a meeting with him once free agency begins. Still, this doesn’t mean a maximum salary contract, which is usually reserved for star players, necessarily awaits him. Green, who hasn’t yet made an all-star team, isn’t quite a star in the league, but he is trending in the right direction.

Will Draymond Green Get The Max?
No 62.50% (470 votes)
Yes 37.50% (282 votes)
Total Votes: 752

 

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2015/16 Salary Commitments: Pistons

March 21st, 2015 at 5:20pm CST by Eddie Scarito

With the NBA trade deadline now passed, teams are focusing on locking down playoff spots or vying for a better chance in the draft lottery. Outside of the players who are added on 10-day deals, or those lucky enough to turn those auditions into long-term contracts, teams’ rosters are relatively set for the remainder of the season.

We at Hoops Rumors are in the process of taking a look ahead at each franchise’s salary cap situation heading into the summer, and the free agent frenzy that occurs every offseason. While the exact amount of the 2015/16 salary cap won’t be announced until July, the cap is projected to come in somewhere around $67.4MM, with the luxury tax threshold projected at approximately $81MM. This year’s $63.065MM cap represented  an increase of 7.7% over 2013/14, which was well above the league’s projected annual increase of 4.5%.

We’ll continue onward by taking a look at the Pistons’ cap outlook for 2015/16…

Here are the players with guaranteed contracts:

Here are the players with non-guaranteed contracts:

Players with options:

The Pistons’ Cap Summary for 2015/16:

  • Guaranteed Salary: $27,875,456
  • Options/Non-Guaranteed Salary: $10,708,458
  • Total: $38,583,914

The Basketball Insiders salary pages were used in the creation of this post.

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Hoops Rumors Weekly Mailbag 3/15/15-3/21/15

March 21st, 2015 at 1:05pm CST by Eddie Scarito

In addition to our weekly chat, which Chuck Myron facilitates every Wednesday, we have added a second opportunity for you to hit us up with your questions in this, our weekly mailbag feature. Have a question regarding player movement, the salary cap, or the NBA draft? Drop me a line at HoopsRumorsMailbag@Gmail.com or @EddieScarito on Twitter. Now for this week’s inquiries:

“Who might the Knicks actually be able to land in free agency this summer?” — Gerry

As a fellow Knicks fan I understand the pessimism in your phrasing. Phil Jackson will certainly be active in trying to land a number of big name, big ticket free agents this summer. Unfortunately, I don’t expect him to be all that successful though. Most, if not all, of this summer’s potential free agents would have to accept less money and a diminished chance at contention to come to New York…which isn’t a great start to any sales pitch. Jackson as an executive has little appeal to prospective signees, despite what the Knicks’ PR department would have you believe. To land free agents, Jackson will have to overpay just to have a fighting chance this summer. Keeping this in mind I would posit that Greg Monroe and Rajon Rondo would be the two players most likely to sign with New York. If I can only choose one, then I’ll go with Monroe. He’ll likely be seeking top dollar, a figure that not all league executives agree Monroe is worth, and I can easily see the Knicks being the ones to give it to him.

“What NBA team needs Devin Booker the most and what do you see him doing once he makes it to the NBA?” — Dustin

I don’t rate Booker as being a franchise cornerstone type of player at the NBA level, so to say a team needs him is perhaps a bit strong of a statement. It’s also not a given that Booker will leave school after this season. He really could use another year of development and would probably improve his draft position by staying at Kentucky for his sophomore campaign. But if Booker has a strong tournament, or if his people get a strong indication that he’ll be a surefire first-rounder, he’ll likely decide to leave school this year. But his 1-6 shooting performance against Hampton on Thursday night isn’t a great start on this front.

Booker isn’t really a great athlete, and this will limit his ability to be an effective pro over the long haul. He’ll have difficulty guarding the more athletic twos in the NBA, and creating his own shot will be a challenge as well. But the kid can definitely shoot, perhaps better than anyone in this year’s draft class, and that is a skill that can always find a place in the league. Booker will likely top out as an NBA sixth man because of his limitations. He’s only a freshman, so he may have a well of ability that hasn’t been tapped yet, but I don’t see him becoming an All-Star, nor a top of the line starter in the NBA.

The guard is currently projected as a mid-to-late first-rounder if he declares for the draft in June. Going by our current reverse standings that allows for some potentially interesting fits for Booker. A team like the Clippers, who are currently projected at the No. 25 spot would be a very good fit for Booker given their lack of bench production this season and need for floor spacers. Memphis could also use some depth in the backcourt, and the Grizzlies would be able to allow Booker significant D-League time during his rookie season, which he’ll need.

“How important do you think NCAA tournament performance is to a player’s draft stock?” — Vinny

While a solid tournament performance certainly doesn’t hurt a prospect’s draft position, it’s not necessarily a prime determining factor for the NBA draft. Individual pre-draft workouts are far more important to GMs and scouts than what a player does over a few games in March. There have been plenty of March heroes that have gone undrafted, or have ended up being busts in the NBA. Personally, I believe how a player performs under the bright lights of the tournament reflects more on his emotional makeup and character than on his actual playing ability. College teams can load up on defense and limit any player for a game or two, no matter how talented he is. A bad stat line or two isn’t going to knock a prospect out of being a lottery pick like a bad pre-draft workout can.

“Who should win the Rookie of the Year award for this season? Rank your top five finalists.” — Kelly

I think the ROTY award winner is easily the Wolves’ Andrew Wiggins. He has shown quite a bit of growth over the course of the season, and he just might end up making the Kevin Love trade look like a foolish deal for the Cavaliers. Much more so if Love changes his mind and leaves Cleveland after this season. Wiggins is a player whom Minnesota can and will build around. It should be pretty fun for Wolves fans in a few seasons thanks to Wiggins and the rest of the young talent Flip Saunders has acquired.

Here are my top five rankings for the Rookie of the Year award:

  1. Andrew Wiggins (Timberwolves) 15.8 PPG, 4.4 RPG, 1.8 APG. .433/.324/.742
  2. Elfrid Payton (Magic) 8.5 PPG, 4.0 RPG, 6.1 APG. .421/.250/.527.
  3. Nerlens Noel (Sixers) 9.3 PPG, 7.8 RPG, 1.9 BPG. .453/.000/.608
  4. Nikola Mirotic (Bulls) 9.2 PPG, 4.9 RPG, 1.1 APG. .402/.317/.801
  5. Marcus Smart (Celtics) 7.9 PPG, 3.5 RPG, and 3.3 APG. .363/.341/.647.

That sounds the buzzer on this week’s column. Thanks for all of your submissions. Keep on sending in your questions and I’ll be back next Saturday with some more responses.

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2015/16 Salary Commitments: Nuggets

March 21st, 2015 at 11:39am CST by Eddie Scarito

With the NBA trade deadline now passed, teams are focusing on locking down playoff spots or vying for a better chance in the draft lottery. Outside of the players who are added on 10-day deals, or those lucky enough to turn those auditions into long-term contracts, teams’ rosters are relatively set for the remainder of the season.

We at Hoops Rumors are in the process of taking a look ahead at each franchise’s salary cap situation heading into the summer, and the free agent frenzy that occurs every offseason. While the exact amount of the 2015/16 salary cap won’t be announced until July, the cap is projected to come in somewhere around $67.4MM, with the luxury tax threshold projected at approximately $81MM. This year’s $63.065MM cap represented  an increase of 7.7% over 2013/14, which was well above the league’s projected annual increase of 4.5%.

We’ll continue onward by taking a look at the Nuggets’ cap outlook for 2015/16…

Here are the players with guaranteed contracts:

Here are the players with non-guaranteed contracts:

Players with options:

The Nuggets’ Cap Summary for 2015/16:

  • Guaranteed Salary: $47,952,474
  • Options/Non-Guaranteed Salary: $12,006,661
  • Total: $59,959,135

The Basketball Insiders salary pages were used in the creation of this post.

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