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Rockets Won’t Return Motiejunas To RFA Market

December 8th, 2016 at 11:54am CST by Luke Adams

The Rockets won’t withdraw their first refusal exercise notice on Donatas Motiejunas‘ offer sheet, reports Jonathan Feigen of The Houston Chronicle (via Twitter). For now, Houston appears willing to wait out the situation in the hopes that Motiejunas eventually reports to the team and finalizes his deal.

As we noted yesterday, Motiejunas is reportedly at odds with the Rockets over a $6MM discrepancy between the offer sheet he signed with the Nets and the deal he’d have to sign with the Rockets. Motiejunas’ four-year, $37MM offer sheet from Brooklyn featured $4MM in likely incentives and $2MM in unlikely incentives. Because those bonuses weren’t included in the principal terms of the contract, the Rockets had no obligation to match them, meaning the deal is now worth $31MM.

With Motiejunas not reporting to the Rockets, the team had two options: Wait out the situation, or withdraw its refusal notice and return him to restricted free agency. In the latter scenario, Motiejunas would be unable to sign another offer sheet with the Nets, but he could sign one with any other team. When I examined the 26-year-old’s options yesterday, I pointed out that there would be little incentive for the Rockets to make Motiejunas an RFA again if they felt there was any chance a team would put a bigger offer on the table, forcing Houston to pay more to match it.

It’s possible that the two sides could work out a new arrangement that perhaps restores some of the incentives Motiejunas lost out on when the Rockets matched his offer sheet. But Houston has worked players like Sam Dekker and Montrezl Harrell into its rotation in Motiejunas’ absence, and the team doesn’t appear to be missing him too badly. If they were to renegotiate the deal, the Rockets would almost certainly want to push back the date on which Motiejunas’ 2017/18 salary becomes guaranteed — the Nets’ offer sheet calls for that to happen on March 1.

March 1 is also a date to watch because after that point Motiejunas can’t sign an offer sheet with another team during the 2016/17 league year. Beginning in March, the veteran forward can only sign with the Rockets, and if he doesn’t get something done, he’d be a restricted free agent again in 2017/18. If the two sides remain in a standoff, Motiejunas’ camp may ultimately relent in late February, since their client’s leverage would be further limited after that time. Kevin Pelton of ESPN.com made that same point today in his Insider-only look at the situation with cap expert Larry Coon.

Donatas Motiejunas, Rockets At Odds Over $6MM

December 7th, 2016 at 1:20pm CST by Luke Adams

Donatas Motiejunas‘ decision not to report to the Rockets is related to a $6MM difference between the offer sheet he signed with the Nets and the deal he’d have to sign with Houston, reports Calvin Watkins of ESPN.com. As has been previously reported, the Nets’ offer had a base value of $35MM over four years and could have maxed out at $37MM, but the Rockets’ deal would only be worth $31MM.

When a team matches an offer sheet for a restricted free agent, that team is only obligated to match the “principal terms” of the offer sheet, as cap expert Larry Coon explains in his CBA FAQ. Those principal terms include bonuses that are considered “likely” for both teams, and incentives based on generally recognized league honors.

In the case of Motiejunas’ offer sheet with the Nets, the deal was reported to include $4MM in likely bonuses and $2MM in unlikely bonuses. The exact details of those incentives aren’t known, but it appears the Rockets don’t believe they’re required to match those terms, and Motiejunas’ camp either disagrees with that view or is unhappy about it. If the Rockets are correct, it raises questions about why Motiejunas’ agents would want those terms in the Nets’ offer sheet in the first place.

According to Watkins, the Rockets are open to working out a new deal with Motiejunas, and his reps are willing to discuss that possibility. Houston would want to do something in the $31MM range, and would want to push back the decision date on his 2017/18 salary, per the ESPN scribe. The Nets’ offer sheet called for that full salary to become guaranteed on March 1, 2017.

In my look earlier today at possible scenarios for Motiejunas and the Rockets, I noted that the team could withdraw its first refusal exercise notice on the Nets’ offer sheet, then negotiate a new contract with the 26-year-old. While that may be the most likely outcome at this point, agent B.J. Armstrong is also open to receiving a new offer sheet from another team, says Watkins. It’s not clear, however, if Houston would withdraw its first refusal notice unless GM Daryl Morey was confident he could get something done with Motiejunas.

What’s Next For Donatas Motiejunas?

December 7th, 2016 at 11:30am CST by Luke Adams

Donatas Motiejunas‘s free agency was already an unusual case before Tuesday, stretching out more than five months and extending well into the regular season. The saga finally appeared to be coming to an end within the last few days. Motiejunas signed a four-year offer sheet with the Nets, giving Houston 72 hours to match it, and the Rockets did just that, exercising their right of first refusal on Monday.

However, in order to finalize the new deal with the Rockets, Motiejunas had to report for a physical within the next 48 hours. That exam was scheduled for Tuesday morning, but the 26-year-old was a no-show, with his agent confirming to Jonathan Feigen of The Houston Chronicle that his client wasn’t reporting to the Rockets.

“We’re not going to show up. We’ll see what happens. We’ll see what the Rockets do,” agent B.J. Armstrong told Feigen. Speaking to ESPN, Armstrong added, “We know our rights. We don’t have a problem with the Rockets at all. We understand the rules fully.”

Motiejunas’ stance is an unusual one, since the CBA’s rules regarding restricted free agents and offer sheets are clearly laid out. The Rockets are reportedly in touch with Motiejunas’ camp to discuss potential options, and the veteran power forward still has time to report to the team, but at this point it’s not clear exactly what the next step will be for either side.

With some help from CBA expert Larry Coon, here are a few ways the situation could play out:

1. Motiejunas reports to the Rockets for his physical later today.

Perhaps the Rockets and Motiejunas’ reps will be able to sort through their differences and find some common ground today, paving the way for the forward to rejoin the team. It would be an abrupt about-face for Motiejunas and his camp, but considering he doesn’t have a ton of leverage, it might be his best move.

2. Motiejunas doesn’t report, but the Rockets keep their right of first refusal notice in place.

If the standoff between the two sides continues, it won’t have a significant impact on the Rockets, who have worked players like Sam Dekker and Montrezl Harrell into their rotation in Motiejunas’ absence. The Rockets won’t have to pay Motiejunas if he doesn’t report to the team, so they may simply be satisfied to wait out the situation, leaving the contract on the table for Motiejunas to finalize whenever he’s ready.

In this scenario, D-Mo would be stuck in limbo, unable to sign a new offer sheet with another team. As Coon points out, the CBA suggests Motiejunas also wouldn’t receive credit for a year of service if he “withholds playing services called for by a Player Contract or this Agreement for more than thirty (30) days after the Season begins.” In other words, he can’t just wait out the situation in the hopes of reaching unrestricted free agency next year.

3. Motiejunas doesn’t report, the Rockets withdraw their first refusal notice, and Motiejunas signs an offer sheet with a new team.

It’s possible that this is the outcome Motiejunas and Armstrong are hoping for, but there isn’t a ton of upside here. It took the former first-round pick five months to find a suitable offer sheet, and if the Rockets decide to return him to the market as a restricted free agent, he won’t be able to ink another deal with the Nets, who would be ineligible to sign him for one year. That means he’d be in the same situation as he was before, but one prime suitor with cap room would be out of the equation.

According to Calvin Watkins of ESPN.com, multiple sources indicate there was one other team in serious talks with Motiejunas before he signed the Nets’ deal. However, Brooklyn’s offer was more attractive than the one he received from that other team, and if the Rockets were willing to match this one, it seems likely they’d be willing to match the next offer he gets. It’s also worth noting that the Rockets would have little reason to let Motiejunas return to the RFA market if they believe there’s a chance he could get a better offer than his current one, since it would put them on the hook for more money.

In this scenario, Motiejunas would have until March 1 to sign a new offer sheet. After that, he’d have to work out a deal with the Rockets or he’d be on track to return to restricted free agency in the 2017/18 league year.

4. Motiejunas doesn’t report, the Rockets withdraw their first refusal notice, and Motiejunas and the Rockets work out a new deal.

The two sides were unable to compromise on a contract for months, but perhaps now that Motiejunas’ camp knows what kind of deal Houston is willing to match, negotiations would be simpler. Still, the terms of the Nets’ offer sheet were fairly reasonable for the Rockets, and it’s unclear why the team would be motivated to work out something new unless Motiejunas’ camp provided some incentive to do so.

5. Motiejunas doesn’t report, the Rockets withdraw their first refusal notice, and Motiejunas signs with a team overseas.

The possibility of signing with team in Europe or Asia has always been on the table for Motiejunas, but again, it doesn’t offer much upside. He would likely be hard-pressed to earn the kind of money overseas that he could in the NBA, and his restricted free agent status wouldn’t go away if he spent a year or two away from the NBA — he’d still be under the Rockets’ control as an RFA if and when he wanted to return.

6. ???

It’s possible that there’s a scenario Motiejunas and Armstrong have in mind that we’ve missed, but it’s not clear what “rights” the agent has referring to, since the CBA’s language on RFAs – which was collectively bargained and agreed to by the players’ union – doesn’t leave much room for interpretation. The player’s leverage in the system is limited.

My best guess at this point is that Motiejunas is willing to wait things out. If the Rockets return him to restricted free agency, perhaps he’ll pursue an offer sheet with the mystery team that was vying with the Nets for his services. If Houston leaves its first refusal notice in place, Motiejunas could report to the team and finalize his deal later in the season.

What do you think? How will things play out for Motiejunas and the Rockets?

NBA D-League Assignments/Recalls: 12/6/16

December 6th, 2016 at 6:55pm CST by Luke Adams

Here are Tuesday’s D-League assignments and recalls from around the NBA:

6:55pm

The Hawks have assigned forward Mike Scott to the Delaware 87ers of the NBA D-League via the flexible assignment rule, the team announced via press release. “Mike has worked extremely hard to return to full health after missing training camp and the early part of the season. In discussing with Mike how he could get himself back in game shape and contributing to the team faster, we agreed that the best way would be to do an assignment with Delaware where he could play meaningful, competitive minutes,” coach/executive Mike Budenholzer said.
Sheldon McClellan is also headed to the 87ers via the flexible assignment rule, with the Wizards wanting him to get some solid playing time, Candace Buckner of The Washington Post relays (Twitter links). The guard is expected to remain in Delaware for several games, Buckner adds.

3:14pm

The Celtics have recalled rookie guard Demetrius Jackson from the D-League, the team announced today (via Twitter). Jackson hasn’t seen much action in Boston, but has been very effective for the Maine Red Claws, averaging 19.6 PPG, 6.5 APG, and 5.9 RPG in eight contests.
The Rockets have assigned rookie forward Kyle Wiltjer to the Rio Grande Valley Vipers, the club announced today (via Twitter). Even with Donatas Motiejunas not reporting to the team, the Rockets have more than enough depth at power forward, and can afford to have Wiltjer practice and play in the D-League.
Rookie forward Georges Niang, the 50th overall pick in the 2016 draft, has been assigned to the Fort Wayne Mad Ants, according to a press release issued by the Pacers. Indiana’s D-League affiliate doesn’t play until Thursday, but the squad’s next five games are at home, so it’ll be interesting to see how long Niang’s assignment lasts.

Donatas Motiejunas Not Reporting To Rockets

December 6th, 2016 at 12:02pm CST by Luke Adams

12:02pm: “We have our rights,” said Motiejunas’ agent B.J. Armstrong, per Jonathan Feigen of The Houston Chronicle (Twitter link). “We’re not going to show up. We’ll see what happens. We’ll see what the Rockets do.”

11:47am: The Rockets essentially have two options for the Motiejunas situation, tweets Wojnarowski: Leave his deal on their books and hope he reports and signs it, or return him to restricted free agency. If Motiejunas hits the market again, he wouldn’t be eligible to sign with the Nets for a year, says Wojnarowski.

11:44am: A day after the Rockets matched his four-year offer sheet to retain him, Donatas Motiejunas did not show up for his scheduled physical exam with the team this morning, reports Jonathan Feigen of The Houston Chronicle (Twitter link). According to Feigen, the Rockets are weighing their options as they consider how to move forward.

Motiejunas, 26, remained on the free agent market for more than five months before finally signing an offer sheet with the Nets on Friday. On Monday, the Rockets exercised their right of first refusal on that deal, which has a base value of $35MM over four years, waiving Bobby Brown to clear room on their roster for the RFA forward. However, Motiejunas has yet to report to the team.

The Rockets reached an agreement to trade Motiejunas to the Pistons at last year’s deadline, but that deal ultimately fell through because of health concerns related to the big man’s back. Houston had also hoped to re-sign Motiejunas before November 23 so that he’d still be trade-eligible this season, another sign that he is perhaps not in the club’s long-term plans. Those factors, combined with the fact that the Rockets never made a contract offer Motiejunas’ camp viewed as acceptable, likely created friction between the player and team, though it’s not clear if that’s what motivated his no-show today.

It’s also not entirely clear what options the Rockets have at their disposal if Motiejunas doesn’t report to the team. According to Feigen (via Twitter), Houston “could return Motiejunas to restricted free agent status,” though the team has yet to make any decisions. Adrian Wojnarowski of The Vertical confirms (via Twitter) that the Rockets and Motiejunas’ reps are discussing the situation.

We’ll provide updates on the situation as they’re available.

Al Horford Says Rockets Were His Second Choice

December 5th, 2016 at 11:00pm CST by Arthur Hill

Celtics star Al Horford thought hard about joining the Rockets this summer before opting to go to Boston, relays A. Sherrod Blakely of CSNNE. Horford listed his finalists as Boston, Houston and Washington, in that order, if he decided to leave Atlanta.

“[Houston] and Boston were probably the two teams I was really, really looking at,” he said before today’s game in Houston. “Just a lot to consider. … “At the end of the day, I just felt I was better off being here in Boston.”

The Celtics haven’t been disappointed after giving Horford a four-year, $113MM deal. He has displayed the versatility that made him a two-time All-Star with the Hawks, averaging 14.9 points, 6.5 rebounds and 4.6 assists through 20 games.

James Harden was part of the recruiting team that nearly convinced Horford to sign with the Rockets.

“I thought we had a chance,” Harden said. “I thought we had a real good chance, but obviously it didn’t work out. Which is fine.”

After Horford turned them down, the Rockets used their cap space to sign Ryan Anderson and Eric Gordon and are off to a 14-7 start.

Someone who didn’t take the news quite as well as Harden was Horford’s father Tito, a former NBA player who went to high school in Houston, tweets ESPN’s Calvin Watkins. Al Horford said his father was “heartbroken” by the decision, but has since gotten over it.

Rockets Notes: Motiejunas, D’Antoni, Brown

December 5th, 2016 at 8:39pm CST by Arthur Hill

Rockets coach Mike D’Antoni plans to give Donatas Motiejunas minutes at both center and power forward now that the team has matched his offer sheet, tweets Jonathan Feigen of The Houston Chronicle. “It’s great,” D’Antoni said. “Looking forward to having him in here and getting him going. He’ll be a nice addition, a nice boost.” Owner Leslie Alexander also complimented Motiejunas, relays Mark Berman of Fox 26 in Houston, saying, “There aren’t many seven-foot players who have the skills that D-Mo possesses. He sees the court very well. He’s a terrific passer and works hard to improve his game.” (Twitter link)

There’s more tonight out of Houston:

The official release time for Bobby Brown, who was waived to open a roster spot for Motiejunas, will determine how much he collects in salary, posts Calvin Watkins on ESPN Now. If Brown was let go before 5 p.m. Eastern, he will receive $253,759 and will clear waivers Wednesday. If it was any later, Brown will get $259,536 and will clear waivers Thursday.
The 32-year-old Brown handled the news of his release like a seasoned professional, Berman tweets. Brown, who earned a roster spot in Houston after being out of the league since the 2009/10 season, appeared in six games with the Rockets and scored two points. “They explained the whole situation as far as D-Mo,” Brown said. “It’s not difficult at all. I’ve been through it before. I’m older. I understand the business side now on how things go.”
Adding Motiejunas brings the Rockets’ team salary to the $103MM mark, Watkins tweets. Houston has moved up to 10th in the league in payroll, according to Bobby Marks of The Vertical (Twitter link).

Rockets Match Donatas Motiejunas’ Offer Sheet

December 5th, 2016 at 4:18pm CST by Luke Adams

4:18pm: The Rockets will create an opening on their 15-man roster for Motiejunas by waiving Bobby Brown, per Calvin Watkins of ESPN.com. The move doesn’t come as a surprise, since Brown’s contract was the only fully non-guaranteed deal on Houston’s books.

Watkins adds that Motiejunas will have to pass a physical before he officially rejoins the Rockets. The veteran forward underwent a medical examination with the Nets when he visited the team last week, so the physical isn’t expected to be an issue, despite concerns about his back.

Meanwhile, according to Sam Amick of USA Today (Twitter link), now that Houston has matched, Motiejunas’ deal is believed to be worth $31MM over four years. An earlier report suggested that the Nets’ offer featured $1MM annually in likely incentives, so perhaps those incentives are considered unlikely for the Rockets, in which case they won’t initially count against the cap.

3:58pm: The Rockets have matched the four-year, $35MM+ offer sheet Donatas Motiejunas signed with the Nets on Friday, reports Adrian Wojnarowski of The Vertical (via Twitter). Houston will have to clear a spot on its 15-man roster to make the move official and formally bring Motiejunas back into the fold.

For Brooklyn, the offer sheet for Motiejunas represented the third time this year that the team had made an effort to land a restricted free agent from another club. However, as with the case when they inked Allen Crabbe (Trail Blazers) and Tyler Johnson (Heat) to lucrative four-year offer sheets, the Nets were stymied in their attempt to add young talent when the player’s original team matched the offer.

Motiejunas, the NBA’s last unsigned RFA of 2016, received a qualifying offer worth about $4.4MM from the Rockets back in June. However, the 26-year-old didn’t reach an agreement with Houston or sign an offer sheet with a rival suitor during the offseason, and that qualifying offer expired in October. Still, the Rockets maintained the right of first refusal on the big man, giving GM Daryl Morey the opportunity to match Brooklyn’s offer.

The four-year deal Motiejunas signed on Friday with the Nets has a reported base value of about $35MM, and features $500K annually in unlikely incentives, for a full value of $37MM. The contract only includes $5MM in guaranteed money for now, but Motiejunas will reportedly have the rest of his $8.5MM first-year salary guaranteed in January, and his $9MM salary for 2017/18 will become guaranteed if he remains under contract through March 1. In other words, he’ll receive at least $17.5MM or so in guarantees unless he’s waived within the next three months.

The Rockets’ last offer to Motiejunas in November was said to be a two-year proposal worth about $7MM guaranteed in year one. The second-year salary on that offer was non-guaranteed. Houston will now have Motiejunas under contract for four years rather than two, at a slightly higher rate, though the final two years of the new deal will remain non-guaranteed until July 2018 and July 2019, respectively.

While the Nets used their cap room to make Motiejunas an offer, the Rockets will retain him using their Bird Rights. Houston entered the day just slightly over the $94MM salary cap, so the deal figures to increase 2016/17 team salary to over $100MM. The club will still be comfortably below the tax line, which is in the $113MM range.

Although Motiejunas struggled to stay healthy last season and his production took a significant hit, he looked like a player on the rise in 2014/15, when he averaged 12.0 PPG and 5.9 RPG to go along with a .504 FG% and a .368 3PT%. He has been plagued by back troubles in recent years, creating some long-term uncertainty about his health and limiting his market. The Rockets were said to have concerns about how his back will hold up in the long term.

For now though, Motiejunas looks like a good fit for Mike D’Antoni‘s system, and once he gets up to speed, he’ll likely assume a role as the club’s backup power forward behind Ryan Anderson. The former 20th overall pick may also see some time at center in smaller lineups, and his return could have an impact on Sam Dekker‘s and Montrezl Harrell‘s minutes.

Assuming the Rockets don’t make a surprise cut between now and March, Motiejunas will remain with the team throughout the 2016/17 season, since he’s not eligible to be traded. Free agents can’t be dealt for three months after signing contracts, which means Motiejunas won’t be trade-eligible until March 5 — that date falls after this season’s February 23 trade deadline.

The Rockets previously agreed to trade Motiejunas to the Pistons at the 2015/16 trade deadline, but that deal fell through due to concerns about the seven-footer’s back.

Photo courtesy of USA Today Sports Images.

Poll: Should Rockets Match Nets’ Motiejunas Offer?

December 5th, 2016 at 9:51am CST by Luke Adams

The Rockets have until the end of the day to decide whether or not they will match the Nets’ four-year, $35MM+ offer sheet for Donatas Motiejunas. And while there have been reports suggesting that Houston would like to keep Motiejunas in the fold, there has been no definitive word yet on whether or not the Rockets will match Brooklyn’s offer and bring back their restricted free agent.

The Nets’ offer reportedly only includes $5MM in guaranteed money, but that figure will increase to $8.5MM in January, and then his 2017/18 salary of $9MM will become guaranteed on March 1. So within three months, about half of Motiejunas’ four-year contract would be fully guaranteed, leaving just the final two seasons non-guaranteed.

Although Motiejunas struggled to stay healthy last season and his production took a significant hit, he looked like a player on the rise in 2014/15, when he averaged 12.0 PPG and 5.9 RPG to go along with a .504 FG% and a .368 3PT%. He has been plagued by back troubles in recent years, creating some long-term uncertainty about his health and limiting his market.

In their negotiations with Motiejunas, the Rockets had reportedly only been willing to offer one guaranteed year, worth about $7-8MM. Team officials reportedly have concerns about how the forward’s back will hold up over multiple years, which could make the Rockets wary about matching an offer sheet that essentially forces them to guarantee him nearly $9MM annually for two years.

The Rockets also would have liked to lock up Motiejunas by November 23, since that would have given the team the option to move him by this year’s February 23 trade deadline. Free agents can’t be dealt for three months after signing their contracts, so Motiejunas will be ineligible to be traded until after the 2016/17 season.

Houston is only barely over the salary cap at the moment, so adding Motiejunas’ contracts to the books wouldn’t put the team in danger of approaching tax territory. And the Rockets could use Motiejunas to provide depth behind frontcourt starters Ryan Anderson and Clint Capela, even if Sam Dekker and Montrezl Harrell have looked good in part-time roles so far.

What do you think? Will the Rockets match the Nets’ Motiejunas offer sheet? Should they match it? Weigh in on both of those questions in our poll and in the comments section below!

What should the Rockets do with Donatas Motejunas' offer sheet?

They shouldn't match it, and won't 32.36% (267 votes)

They should match it, and will 25.82% (213 votes)

They should match it, but won't 23.52% (194 votes)

They shouldn't match it, but will 18.30% (151 votes)

Total Votes: 825

Trade Rumors app users, click here to vote.

Tough Decision on Motiejunas

December 4th, 2016 at 12:06pm CST by Arthur Hill

The Rockets aren’t facing an easy decision about matching the Nets’ offer sheet for Donatas Motiejunas, writes James Herbert of CBS Sports. The four-year, $37MM deal only has $5MM in guaranteed money. Motiejunas would get another $3.5MM this season if he is still on the roster January 10th, and his salary for next season would be guaranteed if he is not waived before March 1st. There is a July 7th trigger date for each of the final two non-guaranteed seasons.

While the financial risk is small, there are other factors that may make the Rockets hesitate. Motiejunas was limited by back trouble last season, and a trade to Detroit in February was rescinded because he couldn’t pass a physical. Houston officials are worried about how much Motiejunas’ condition may deteriorate in two seasons, tweets Calvin Watkins of ESPN.com. Also, because the offer sheet came after November 23rd, which is three months before the trade deadline, Motiejuans can’t be dealt for the rest of the season. He can’t be traded without his consent for a full year. In addition, there are also concerns about whether his post-up style would fit in with coach Mike D’Antoni’s philosophy. The Rockets must make a decision on whether to match by Monday.