Financial Impact Of Deadline Trades: Southeast

Last week’s trade deadline was a dizzying affair, with 39 players and 17 teams involved in a dozen trades, including a trio of three-team transactions. The day had wide-ranging effects on the salary structures of those 17 teams, and we’ll examine the aftermath for each of them in this multipart series.

We’ll begin today with the Southeast Division, home to the Heat, who acquired Goran Dragic, arguably the top player involved in the deadline-day trades, and the Wizards, who engineered an Andre Miller trade for the second deadline in a row. The salary figures listed here denote this season’s salaries, though we’ll also discuss salary for future seasons.

Miami Heat

In: ($9,206,250)

Out: ($6,159,673)

The Heat slightly lowered their financial commitments for 2015/16, since Zoran Dragic‘s salary for next season is about $464K less than Danny Granger‘s player option. That’s rare for a team that acquires a star, but it’s not nearly the most significant financial upshot here. There was no reasonable chance that Miami would have had been able to clear the cap room to chase Goran Dragic with a fair offer in free agency if they hadn’t traded for him at the deadline. Making a play for Dragic without already having him in the fold would likely have required Dwyane Wade to down his $16.125MM for next season and agree to re-sign for mid-level exception money. Even a “Heat lifer” such as Wade would no doubt hesitate to do that. The motivation to trade for Dragic was much greater for the Heat than for the Knicks or the Lakers, two of the other teams Dragic was reportedly eyeing, and two teams expected to have enough cap room to pay him the max this summer. Those teams will still be out there once Dragic turns down his $7.5MM player option, as he plans to do, but now Miami has the financial advantage of Dragic’s Bird rights to go over the cap to sign him.

For the time being, the trade makes it more difficult for the Heat to find a way to offset the loss of Chris Bosh for the season, since it causes the Heat’s team salary to leap by $3MM, putting them only around $1MM shy of the tax line. That makes it unlikely the team uses the full value of its nearly $2.653MM disabled player exception.

Washington Wizards

In: ($2,077,000).

Out: ($4,625,000)

Sacramento used a trade exception to accommodate this swap, which gave the Kings more than twice as much salary as they gave up, and that in turn allowed the Wizards the chance to create a trade exception of their own. The precise value of that new exception is unknown, since J. Michael of CSNWashington.com writes that the team used part of its $4,329,089 Trevor Ariza trade exception to absorb Sessions, while Eric Pincus of Basketball Insiders figures the Wizards kept that exception intact (Twitter link). Michael’s way lets the Wizards create a new exception equivalent to Miller’s $4,625,000 salary, leaving the Ariza exception at $2,252,089. Pincus has the Wizards creating a new exception worth the difference between the salaries for Miller and Sessions, which comes to $2.548MM. If I had to take a guess, I’d say the Wizards did it as Michael indicates, since in that case the larger exception would be the newer of the two, giving it a later expiration date. However, that’s just my speculation.

What is clear is that Washington gave up some cap flexibility next season, taking on Sessions’ 2015/16 salary of more than $2.17MM instead of Miller’s contract, which expires at the end of this season, for some relief against the tax threshold this season. The Wizards were $1MM shy of the tax line going into the deadline, and now they have $3.548MM in breathing room. Even without the trade, Washington could still have added any player on a prorated portion of the minimum salary, which is all they have to give, and avoided the tax, assuming unlikely bonus clauses in the contracts of the players already on the roster didn’t trigger. I’d imagine the move was motivated more by Washington’s belief that Sessions can outperform Miller than by any immediate tax concerns, though that’s just my speculation. In any case, the team wouldn’t have had a chance to open enough cap room this summer to chase a marquee free agent before the trade, so adding Sessions’ salary for next season doesn’t do much harm. The Wizards should still have enough room beneath the projected $81MM tax threshold for 2015/16 to use the full biannual and non-taxpayer’s mid-level exceptions.

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

Hoops Rumors Originals

Here’s a look back at the original analysis generated by the Hoops Rumors staff this past week..

  • The Trade Rumors App is getting glowing reviews!  If you haven’t already, download it today to keep up with the latest from Hoops Rumors, MLBTradeRumors, and Pro Football Rumors.
  • More than half the teams in the league took part in a whirlwind NBA trade deadline and Chuck Myron recapped all the deals.
  • Eddie Scarito asked you to pick the winners in each deal.
  • The trade deadline was intense, but we gave you all the reading material you needed to be prepared.  The Trade Candidate series profiled many of the players who were rumored to be on the move.
  • Chris Crouse asked you if the Rockets will advance to the second round.
  • Chuck ran down the expiring trade exceptions.
  • If you missed Chuck’s chat, check out the transcript here.

Will The Rockets Win A Playoff Series?

The Rockets have been one of the most active teams at the trade deadline, making at least one deal in 10 out of the last 11 years, including the last eight deadlines. This season, Houston made a pair of moves that brought athletic swingman K.J. McDaniels from the Sixers in exchange for Isaiah Canaan and a second round pick as well as Pablo Prigioni from the Knicks in exchange for Alexey Shved and two second round picks.

The Rockets look much different than the team that lost to the Blazers in the first round of the Western Conference playoffs a year ago. The team had an active offseason, in which it lost Chandler Parsons to free agency and traded away point guard Jeremy Lin and center Omer Asik. The franchise’s major offseason acquisition was forward Trevor Ariza, who has been a starter for the team from day one. During this season, in addition to the moves at the deadline, Houston signed Josh Smith after he was waived by Detroit in late December. And while all these transactions were happening, James Harden elevated his game and put himself into discussion for the NBA’s MVP award.

The Rockets have a record of 37-18, which puts the team in third place in the conference, despite missing Dwight Howard for 21 games due to a knee injury. The team will need its defensive enforcer to be able to stay on the court if it intends to contend for a championship. Houston has not won a playoff series under coach Kevin McHale and has only won one series in the last 17 seasons.

The franchise has improved overall and if the team remains healthy, it appears to have a chance to make a deep postseason run. However, Houston’s competition in the Western Conference has also improved. Only one game separates the Rockets from the Mavericks, who currently reside in sixth place in the conference, so gaining home court advantage in the first round is far from a certainty.

After a busy year of transactions, will the Rockets advance to at least the second round of the playoffs?

Will The Rockets Win A Playoff Series?

  • Yes 50% (465)
  • No 50% (456)

Total votes: 921

 

 

Poll: Which Teams Won The Deadline Trades?

The dust is finally settling after a hectic trade deadline that saw a dozen trades involving 39 players and 17 teams take place. Now it’s time for all of you to critique how each of the teams involved fared. In most cases, some time will be required before a winner can truly be declared for each trade, but it’s never too early to speculate. I’ve listed each and every deal that took place on Thursday, along with all of the known assets involved. Below each trade is a place for you to vote on which team got the better end of that particular deal. Feel free to express yourselves in the comments section below on your deadline deal thoughts and expand the debate.

Here’s a look at each trade that took place on deadline day:

Heat-Pelicans-Suns

Which Team Won The Trade?

  • Heat 71% (1,102)
  • Suns 23% (361)
  • Pelicans 5% (85)

Total votes: 1,548


Pistons-Thunder-Jazz

Which Team Won The Trade?

  • Thunder 80% (1,243)
  • Pistons 16% (250)
  • Jazz 4% (69)

Total votes: 1,562


Suns-Bucks-Sixers

Which Team Won The Trade?

  • Bucks 62% (1,087)
  • Suns 21% (359)
  • Sixers 17% (298)

Total votes: 1,744


Timberwolves-Nets

Which Team Won The Trade?

  • Nets 66% (1,009)
  • Timberwolves 34% (512)

Total votes: 1,521


Trail Blazers-Nuggets

Which Team Won The Trade?

  • Trail Blazers 83% (1,149)
  • Nuggets 17% (235)

Total votes: 1,384


Celtics-Suns

Which Team Won The Trade?

  • Celtics 74% (1,163)
  • Suns 26% (412)

Total votes: 1,575


Rockets-Sixers

  • The Rockets get K.J. McDaniels.
  • The Sixers get Isaiah Canaan and the less favorable of Minnesota’s and Denver’s 2015 second-round picks.

Which Team Won The Trade?

  • Rockets 75% (998)
  • Sixers 25% (332)

Total votes: 1,330


Sixers-Nuggets

  • The Sixers get JaVale McGeethe rights to Chu Chu Maduabum and Oklahoma City’s 2015 first-round pick (top-18 protected).
  • The Nuggets get Cenk Akyol.

Which Team Won The Trade?

  • Sixers 81% (1,062)
  • Nuggets 19% (255)

Total votes: 1,317


Pistons-Celtics

Which Team Won The Trade?

  • Pistons 51% (654)
  • Celtics 49% (624)

Total votes: 1,278


Wizards-Kings

Which Team Won The Trade?

  • Wizards 59% (671)
  • Kings 41% (467)

Total votes: 1,138


Rockets-Knicks

  • The Rockets get Pablo Prigioni.
  • The Knicks get Alexey Shved, Houston’s 2017 second-round pick and Houston’s 2019 second-round pick.

Which Team Won The Trade?

  • Knicks 68% (791)
  • Rockets 32% (370)

Total votes: 1,161


Pelicans-Thunder

  • The Pelicans get Ish Smiththe rights to Latavious Williams, a protected 2015 second-round pick and cash. Smith was subsequently waived.
  • The Thunder get a protected 2016 second-round pick.

Which Team Won The Trade?

  • Pelicans 64% (591)
  • Thunder 36% (330)

Total votes: 921

Recap Of Deadline Trades

More than half the teams in the league took part in a whirlwind NBA trade deadline Thursday. A dozen trades involving 39 players and 17 teams took place. Eight teams made multiple trades, while Sixers GM Sam Hinkie and Suns GM Ryan McDonough were busiest, each pulling off three swaps. It brings to a close one of the busiest seasons for trades in memory, with 25 deals going down between the beginning of the regular season and the deadline.

The Heat’s trade for Goran Dragic, a three-team affair with the Suns and Pelicans, involved perhaps the most significant player who changed hands, though it has plenty of competition for that distinction. Detroit’s acquisition of Reggie Jackson and the three-team swap that saw Brandon Knight head to the Suns and Michael Carter-Williams go to the Bucks were landmark deals, too. Sentimentality, if nothing else, makes Minnesota’s trade for Kevin Garnett, who began his NBA career with the Timberwolves 20 years ago, another particularly noteworthy move.

Here’s a look at each trade that took place on deadline day:

Heat-Pelicans-Suns

Pistons-Thunder-Jazz

Suns-Bucks-Sixers

Timberwolves-Nets

Trail Blazers-Nuggets

Celtics-Suns

Rockets-Sixers

  • The Rockets get K.J. McDaniels.
  • The Sixers get Isaiah Canaan and the less favorable of Minnesota’s and Denver’s 2015 second-round picks.

Sixers-Nuggets

  • The Sixers get JaVale McGeethe rights to Chu Chu Maduabum and Oklahoma City’s 2015 first-round pick (top-18 protected).
  • The Nuggets get Cenk Akyol.

Pistons-Celtics

Wizards-Kings

Rockets-Knicks

  • The Rockets get Pablo Prigioni.
  • The Knicks get Alexey Shved, Houston’s 2017 second-round pick and Houston’s 2019 second-round pick.

Pelicans-Thunder

  • The Pelicans get Ish Smiththe rights to Latavious Williams, Philadelphia’s 2015 second-round pick (top-55 protected) and $801K cash. Smith was subsequently waived.
  • The Thunder get the less favorable of Sacramento’s 2016 second-round pick (top-55 protected) and New Orleans’ 2016 second-round pick.

Trade Deadline Primer

It’s only a matter of hours until today’s 2pm Central trade deadline, and Hoops Rumors has you covered. We have several resources to help you prepare for the action that’s about to unfold and enjoy the deadline to its fullest:

  • Our Trade Candidate Series goes in depth on more than a dozen players who have decent chances of changing teams today.
  • Trade exceptions allow transactions that otherwise wouldn’t work to take place, and they can be powerful tools for the teams that possess them. Check out our complete list here and the exceptions expiring at the deadline here.
  • Our round-by-round look at traded draft picks provides a glimpse of who owes valuable draft assets to whom and when those debts will come due.
  • Nearly half the league is either paying the luxury tax or within $5MM of the tax threshold. See the teams courting the tax, many of which figure to be especially wary of finances today.
  • Draft-and-stash prospects commonly end up in trades. See a complete list of all the draft rights held players and their whereabouts, courtesy of Mark Porcaro.
  • Catch up with a list of trades that have taken place so far this season.
  • Find out how teams have fared after making major trades in the past with Eddie Scarito’s Trade Retrospective Series, which examines landmark swaps with in-depth historical analysis.
  • Our team-specific and transactions-only feeds help you customize the trade deadline news so you get only the information that’s relevant to you.
  • The free Trade Rumors app is also highly customizable and now lets you set up notifications to keep you in the loop no matter where you go.

Trade Candidate Series

The trade deadline is less than 48 hours away, but Hoops Rumors has been preparing for months. Part of that effort has entailed in-depth looks at several players who’ve emerged as likely trade candidates. One of them, Jeff Green, already wound up in a deal. The rest of them aren’t players who necessarily will be traded by the deadline, but each of them has been the subject of trade rumors, and if their teams aren’t shopping them, they’ve at least been open to the idea of sending them out.

Our Trade Candidate pieces explore why a trade might happen, the likelihood of a deal going down, and potential suitors, along with other relevant details. Last season, we profiled guys who were moved by the deadline, such as Danny GrangerEvan Turner and Andre Miller, along with others who were eventually dealt over the summer, including Arron Afflalo, Thaddeus Young, and Omer Asik.

These pieces lend perspective to the stream of rumors and reports flying around this week, and they give you a fuller scope of the market as Thursday’s 2pm Central time deadline draws ever closer. A complete list of the players we’ve examined is below, in alphabetical order, with a link to each profile on the names.

Several Trade Exceptions Set To Expire

Thursday’s 2pm Central trade deadline is the final chance teams will have to make trades this season, and for some clubs, the opportunity cost is even larger. The Pacers have been sitting on a trade exception worth nearly $4.282MM since last year’s Danny Granger trade, but unless they use it before Thursday’s trade deadline, the exception vanishes. It’s unlikely they’ll use the majority of it, since they’re relatively close to the tax threshold, a line the team has long vowed not to cross, but they’ll lose the chance to expend even a portion of it unless they act this week. Indiana is one of seven teams with trade exceptions that expire with the trade deadline.

Four of those seven have trade exceptions worth in excess of $1MM, including the Nuggets, who have two exceptions valued at about $1.659MM and $1.169MM, respectively. Neither is the sort of powerful weapon that the Celtics have in their $12.9MM-plus Rajon Rondo exception, but they’re assets nonetheless. A trade exception allows a team to take in one or more players who make up to the value of the exception plus $100K. That means that two more of the seven teams with expiring trade exceptions can take back players with salaries of more than $1MM, since the Clippers and Kings have exceptions worth more than $900K. That leaves only the Wizards, who only have $16K left on the Eric Maynor trade exception they created last year, meaning their exception is effectively useless.

The trade deadline also compromises the value of disabled player exceptions, which five teams around the NBA possess. Those clubs will only be able to use those exceptions for a signing or to claim a player off waivers once Thursday passes. They won’t even be able to do that after March 10th, when disabled player exceptions fully expire.

Borrowing from our complete list of outstanding trade exceptions, here are the exceptions that will lapse at this week’s trade deadline:

Denver Nuggets

Amount: $1,659,080
Obtained: Andre Miller (Wizards)

Amount: $1,169,880
Obtained: Jordan Hamilton (Rockets)

Golden State Warriors

Amount: $1,210,080
Obtained: MarShon Brooks (Lakers)

Amount: $788,872
Obtained: Kent Bazemore (Lakers)

Indiana Pacers

Amount: $4,281,921
Obtained: Danny Granger (Sixers)

Los Angeles Clippers

Amount: $947,907
Obtained: Byron Mullens (Sixers)

Amount: $884,293
Obtained: Antawn Jamison (Hawks)

Sacramento Kings

Amount: $973,809
Obtained: Marcus Thornton (Nets)
Initial amount: $2,424,687
Used: Scotty Hopson ($1,450,878)

San Antonio Spurs

Amount: $1,463,000
Obtained: Nando De Colo (Raptors)

Washington Wizards

Amount: $16,000
Obtained: Eric Maynor (Sixers)
Initial amount: $2,016,000
Used: DeJuan Blair ($2,000,000)

Hoops Rumors Originals

Here’s a look at the original analysis generated by the Hoops Rumors staff this week..

Trade Candidate: Lance Stephenson

When they signed Lance Stephenson as a free agent last summer, the Hornets never envisioned unloading him a few months later. But Stephenson’s erratic play and the team’s disappointing season have put the fifth-year guard on the trading block.

NBA: Preseason-Orlando Magic at Charlotte HornetsCharlotte gave Stephenson a three-year, $27.4MM contract to leave the Pacers in July, hoping he would help the Hornets improve on last year’s 43-39 record. Instead, both the player and the team got off to rough starts. Stephenson struggled with his shot in November, connecting at just 38% from the field and a paltry 19% from three-point range. Not coincidentally, the Hornets sank to the bottom of the Southeast Division, sitting at 3-15 after a 10-game losing streak that stretched over November and December.

Stephenson’s luck got even worse in mid-December when he suffered a strained pelvis that sidelined him for 14 games. Charlotte won its first four games in Stephenson’s absence and gradually crept back into the Eastern Conference playoff race. The Hornets reached the All-Star break tied for seventh place in the conference at 22-30, a game ahead of the Nets and a game and a half better than the Celtics.
But Stephenson has played only a small role in this resurgence. Since returning to the court January 14th, he has logged more than 30 minutes in just one game and has often played 20 minutes or less. He was held scoreless in the team’s final pre-break game, a 28-point loss to the Pistons, and had just three rebounds and four assists — far short of the flashy numbers he put up last season in Indiana.

Stephenson has continued to have problems with his shot since returning. He shot 32% from the field in January and made just 1 of 10 three-point attempts. His February numbers are little better — 34% from the field and 19% from long distance.

With Stephenson struggling on the court and faced with a diminished role, it may be a case where both sides could benefit from a deal. Stephenson, who was born in Brooklyn, has been linked to the Nets in recent trade talks, including a rumored three-way deal last month that also involved the Thunder. More recent discussions have focused on a one-on-one deal between the Nets and Hornets, with Joe Johnson possibly being sent to Charlotte in return. Adrian Wojnarowski of Yahoo! Sports reported January 25th that Gerald Henderson and Marvin Williams could also be part of the trade package.

Conflicting reports had the Hornets so close to dealing Stephenson and Cody Zeller to Brooklyn last month that they were ready to call the league office. Even though that trade didn’t get finalized, some version of it could reappear before Thursday’s trade deadline.

Charlotte has already shown a willingness to shake things up. On Tuesday, the Hornets sent Gary Neal and Miami’s second-round draft pick in 2019 to Minnesota in exchange for Mo Williams, Troy Daniels and cash considerations.

Despite Stephenson’s recent problems, he remains an intriguing gamble for any team seeking help for a postseason run. The 24-year-old broke through as a star for the Pacers in 2013/14, putting up 13.8 points, 7.2 rebounds and 4.6 assists per game and helping Indiana secure the best record in the Eastern Conference. His numbers were almost identical in the playoffs —13.6 PPG, 6.9 RPG and 4.2 APG — as the Pacers reached the conference finals before losing to the Heat.

However, Stephenson’s on-court production has been mixed with erratic behavior, such as the much-publicized incident when he blew in LeBron James‘ ear during last year’s playoffs. Larry Bird, the Pacers’ president of basketball operations, sent a text message to Jeff Zillgitt of USA Today expressing his displeasure with the James incident at the time, and that undoubtedly played a role in the decision not to retain Stephenson.

In addition, Stephenson was third in the NBA last season with 17 technical fouls and reportedly had a scuffle during practice with teammate Evan Turner. Stephenson also gained a reputation for being moody and having his mind wander during games.

The question for any team considering a Stephenson trade is whether he can get beyond his recent physical and behavioral issues and recapture the on-court brilliance he displayed with the Pacers. He would have to find a team that is willing to absorb a contract that pays him $9MM next season and $9.4MM in 2016/17, but he could be the type of player who benefits greatly from a change of scenery.

Photo courtesy of USA Today Sports Images.

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