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Salary Cap Higher Than Expected For 2015/16

July 8th, 2015 at 7:18pm CST by Chuck Myron

The NBA’s salary cap for 2015/16 will be $70MM, an 11% increase from this past season, and the luxury tax line will be $84.74MM, as sources tell Adrian Wojnarowski of Yahoo Sports (Twitter links) and as the NBA confirms (hat tip to Sam Amico of Amico Hoops). The last cap projection from the league had been $67.1MM, and while Ken Berger of CBSSports.com reported last month that the cap might end up higher than that by $1-2MM, it appears the cap wound up surpassing even the most optimistic of expectations. The projection for the tax had been $81.6MM.

The figures mean the maximum salaries for this coming season are also higher than estimated, so LaMarcus Aldridge, Marc Gasol, Kawhi Leonard and others who’ve agreed to max contracts this month will see more than they thought. Leonard, among those eligible for the max reserved for players with fewer than seven years of experience, will see $16,407,500 as a starting salary on his deal, tweets Jeff Zillgitt of USA Today. The maximum starting salary for players with seven to nine years of experience, like Aldridge and Gasol, is $19,689,000, according to Zillgitt. No player with 10 or more years of experience has agreed to a max contract yet, but LeBron James almost certainly will. The maximum starting salary for those in his bracket is $22,970,500, as Zillgitt reveals in his tweet.

The higher cap will likely have a significant effect on the structure of the trade agreement that is to send Roy Hibbert to the Lakers, as Jake Fischer of SI Now tweets. It had been unclear whether the Lakers would have enough cap room to accommodate Hibbert’s salary of more than $15.5MM, so it was possible that L.A. would have to send players to Indiana as part of the deal, or ship players elsewhere. The Lakers were reportedly exploring trades that wound send out Robert Sacre, Ryan Kelly and Nick Young.

Other teams will benefit from the higher cap, and the higher tax line means less of a burden for the Bulls, Heat, Nets, Cavs, Warriors, and Thunder, all of whom are already in tax territory or are expected to get there. That’s especially so for Brooklyn and Miami, as both would pay repeat-offender tax penalties if they finished the regular season above that $84.74MM threshold. Teams that trigger a hard cap this year will have greater flexibility, since they can spend up to $88.74MM, $4MM above the tax line.

The league also tabulated final payrolls for each team from last season, revealing that players collectively made less than the 50.39% of basketball-related income that the collective bargaining agreement holds that they’re entitled to. Thus, the league will pay out the $57,298,826 shortfall to the union, which will distribute that amongst the players, as Zillgitt relays (Twitter link). Also, both the Magic and Nuggets fell shy of the $56.759MM minimum team salary. Orlando was $1.92MM short, so the players who finished the season on the Magic’s roster will split a $1.92MM payment from the team, salary cap expert Larry Coon tweets. Those on the Nuggets roster will share $773K, Coon adds. This year’s salary floor, locked in at 90% of the cap, will be $63MM, the NBA announced.

Today’s news doesn’t affect the amounts for exceptions, like the mid-level and biannual, and player minimum salaries, as the league and the players set them in stone when they negotiated the collective bargaining agreement in 2011. Thus, those figures have progressively less relative value as the cap rises from year to year.

This year’s cap increase, unlike those projected for years to come, isn’t a direct result of the league’s $24 billion TV deal, which doesn’t kick in until next July. Instead, it appears to be a function of higher than expected revenue during the 2014/15 season. The Warriors collected record gate receipts on their run to the Finals, as Grantland’s Zach Lowe reported, and it would seem likely that the NBA saw unforeseen money from other avenues, too.

Western Rumors: Durant, Cauley-Stein, Lee, Suns

July 8th, 2015 at 10:02am CST by Chuck Myron

The Mavericks believe they’re legitimate contenders for Kevin Durant next summer, buoyed as they are by their agreements to sign DeAndre Jordan and Wesley Matthews, reports Chris Mannix of SI.com. Of course, they’ll have plenty of competition, as many teams will no doubt line up for a chance at the player atop the 2016 free agent class. The Wizards have reportedly loomed as the top threat to the Thunder for the former MVP. Here’s more from around the Western Conference:

One lottery team took Willie Cauley-Stein off its board completely over concerns about his surgically repaired left ankle, while another two teams cleared him, but “just barely,” according to Mannix, who writes in the same piece. The Kings drafted Cauley-Stein sixth overall.
The Warriors didn’t have any option of moving David Lee for no salary in return when they agreed to take on Gerald Wallace from the Celtics, according to Tim Kawakami of the Bay Area News Group. The trade agreement nonetheless shrinks Golden State’s projected outlay from nearly $150MM in combined payroll and tax payments to about $128MM, Kawakami writes.
Suns coach Jeff Hornacek knows and likes Derrick Favors from his time as a Jazz assistant coach, but Utah is firm in its position to keep the power forward, writes Paul Coro of the Arizona Republic, suggesting that Phoenix is more likely to make a major addition via trade than free agency at this point. Speculation linking the Suns to Ryan Anderson doesn’t seem likely to bear fruit, Coro adds.
The Thunder met with free agent Keith Appling on Tuesday, a visit that could lead to a training camp invitation, according to Vince Ellis of the Detroit Free Press. The former Michigan State point guard was with the Lakers for preseason this past fall.

And-Ones: Lee, Randle, Bulls, Clippers

July 7th, 2015 at 11:01pm CST by Eddie Scarito

Clippers guard J.J. Redick vented his frustrations with his team’s offseason during an interview with Bleacher Report Radio, Ben Bolch of The Los Angeles Times relays. When asked to grade Los Angeles’ free agent moves, Redick said, “Is there an F-minus?” The veteran continued expressing his disappointment, saying, “Listen, we had one priority this summer and that was to re-sign D.J. [DeAndre Jordan] and we missed out on that, so barring some miracle, [the] makeup of our team is completely different now.” The center agreed to a four-year, $80MM deal with Dallas last week.

Redick noted the myriad of ways in which the Clippers will miss Jordan, referring to the big man as, “such an integral part of what we did, not just defensively but offensively with his screening, his rolling, his offensive rebounds. His presence down low essentially made teams either commit to the three-point line when Blake [Griffin] or Chris [Paul] penetrated or commit to him, and that either opened up lobs for him or threes for guys like me and Jamal [Crawford] and Matt [Barnes].”

Here’s what else is happening around the league:

Free agent Kevin Seraphin is receiving interest from the Mavericks, Michael Scotto of Sheridan Hoops relays (Twitter link). The 25-year-old center has also had inquiries from the Lakers, Wizards, Suns and Spurs, Scotto adds.
The Lakers‘ first round draft pick of a year ago, Julius Randle, participated in his first organized practice with the team since he suffering a broken leg in his NBA debut last season, Baxter Holmes of ESPNLosAngeles.com writes. Randle, who is on track to be recovered by the start of the 2015/16 season, has lost weight while getting stronger, which should improve his quickness and production, Holmes adds. “The credit goes to my coaches for staying on me and not letting this downtime being injured be a step in the wrong direction,” Randle said. “I’m taking advantage of it the most that I could. It’s also me with my drive and will and people supporting me. The credit goes to all of them.“
The proposed trade that would send David Lee to the Celtics can save the Warriors roughly $5MM in salary and an additional $18MM in luxury tax, which makes the deal worth doing for Golden State, even if Lee’s presence will be missed, Daniel Leroux of The Sporting News writes.
The Bulls missed a major opportunity to take advantage of a still developing Cavaliers roster and reach the NBA Finals, a feat that has grown even more difficult with the improvements that Cleveland, not to mention the Bucks and Raptors, made this offseason, Scoop Jackson of ESPN.com writes.

Lowe’s Latest: Heat, West, Aldridge, Suns

July 7th, 2015 at 12:31pm CST by Chuck Myron

The Heat have “put out Shabazz Napier feelers” as they seek to maximize their cap flexibility for the summer of 2016, Grantland’s Zach Lowe writes within a larger column on free agency. Mario Chalmers and Chris Andersen are available “for nothing,” Lowe adds, presumably meaning that the Heat continue to place a priority on clearing their salaries in an effort to avoid repeat-offender luxury tax penalties. Heat president Pat Riley denied a report last month that the team was shopping the pair, who are set to make a combined $9.3MM this coming season, but it sounds as if Miami is at least open to the idea of moving them if another team comes forward with an offer. Miami could simply decline its 2016/17 team option on Napier, worth about $1.35MM, but the team presumably wants to extract more value than that out of last year’s 24th overall pick. Lowe dishes plenty more in his latest must-read column, and we’ll pass along some of the highlights:

David West turned down an extra $4MM or so from the Wizards and about an extra $2MM from the Warriors when he reportedly agreed to sign for the minimum salary with the Spurs, several league sources tell Lowe. That signals that Washington would have spent its $5.464MM non-taxpayer’s mid-level and Golden State would have used its $3.376MM taxpayer’s mid-level instead of committing part of it to Leandro Barbosa.
The Nuggets tried before the draft to trade the lottery protected 2016 first-round pick it acquired from the Blazers in the Arron Afflalo trade in February, but no one bit, out of fear that the Blazers would lose LaMarcus Aldridge and miss the playoffs two years in a row, Lowe hears. If Portland doesn’t qualify for the postseason in 2016 or 2017, the first-rounder turns into two second-rounders, as RealGM notes.
Aldridge’s interest in the Lakers was serious as free agency began, several sources told Lowe. He took two meetings with the team after the first one apparently didn’t focus enough on basketball for his liking.
Suns owner Robert Sarver is impatient with his team’s playoff drought and has made it clear to the front office that he wants them to be aggressive in free agency, Lowe reports. That explains Phoenix’s pursuit of Aldridge, which had the Suns seemingly co-favorites with the Spurs at one point.
The best information so far indicates that DeMar DeRozan and Chandler Parsons will opt out next summer, Lowe writes, though it’s early.
George Karl loved coaching Kosta Koufos when they were together with the Nuggets, according to Lowe, so Sacramento’s agreement to sign the center leaves the Grantland columnist with the impression that Karl indeed has some degree of sway over Kings personnel.

Hoops Rumors Community Shootaround 7/6/15

July 6th, 2015 at 11:55pm CST by Eddie Scarito

The Lakers have failed to land a marquee free agent thus far this offseason, and unless LeBron James has a major change of heart regarding where he’d like to play next season, that’s not likely to to be altered. No disrespect to reigning Sixth Man of the Year Lou Williams and forward Brandon Bass, but those agreements don’t necessarily qualify as franchise-altering deals. Adding big man Roy Hibbert via a potential trade could turn out to be a solid move for the team, and Los Angeles did add a potential superstar via the NBA Draft in D’Angelo Russell. But this season’s Lakers don’t appear on first pass to be a fundamentally better squad than the 2014/15 version.

But that’s just my take, and this is my segue to the question of the day: How do you grade the Lakers’ offseason moves thus far? If you’re a Laker fan, are you content with what the team has accomplished, or are any of you seriously contemplating switching allegiances to the Clippers as a result of your frustrations? What move that the team has made has impressed you/frustrated you the most? Take to the comments section below to share your thoughts and opinions, or to simply vent your angst at the state of the purple-and-gold. We look forward to what you have to say.

Of course, there will always be differing opinions. While we absolutely encourage lively discussion and debate, we do expect everyone to treat each other with respect. So, please refrain from inappropriate language, personal insults or attacks, as well as the other taboo types of discourse laid out in our site’s commenting policy. Speaking of commenting: we’ve made it much easier to leave a comment here at Hoops Rumors. Just put in your name, email address, and comment and submit it; there is no need to become a registered user.

And-Ones: Health Care, Bucks, Hollins

July 6th, 2015 at 11:43pm CST by Dana Gauruder

The National Basketball Players Association wants to use a chunk of its share of the league’s impending television revenue windfall to cover health-care insurance costs for former players, Adrian Wojnarowski of Yahoo Sports writes. The plan will cost an estimated $10MM-$15MM a year and will be voted on during the membership meeting later this month, Wojnarowski continues. The union’s 30 team player representatives are expected to pass the plan, Wojnarowski adds.

In other news around the league:

California’s 13.3% state income tax, the highest in the nation by a large margin, is a factor why the Lakers and Clippers are having trouble attracting free agents and keeping their own, Tony Nitti of Forbes.com reports. No-income tax states like Texas and Florida essentially nullify any inherent advantage teams in high-tax states have in re-signing their own free agents, Nitti adds.
Bucks president Peter Feigin urged Wisconsin lawmakers on Monday to pass legislation that would make taxpayers split the costs for a proposed $500MM arena, according to Todd Richmond of the Associated Press. Feigin told them if construction did not begin this year, the NBA would move the team, possibly to Las Vegas or Seattle, the story continues. The Bucks, who currently play in the 27-year-old Bradley Center, have been warned by the league that if they don’t have a new arena by 2017, the league will buy the team and move it, the story adds.
Free agent center Ryan Hollins has drawn interest from the Kings and Pelicans, a source told Marc Spears of Yahoo Sports (Twitter link). The Clippers are also looking at Hollins but haven’t made an offer, Brad Turner of the Los Angeles Times tweets.

And-Ones: Drummond, Farmar, Mekel

July 6th, 2015 at 11:00am CST by Chuck Myron

The Pistons could reap greater cap flexibility for next summer if they wait until then to sign Andre Drummond as a restricted free agent instead of giving him an extension this summer, but the team will leave that choice to the Jeff Schwartz client, writes Vince Ellis of the Detroit Free Press. Drummond reportedly wants an extension, so it would seem it’s a strong bet he’ll end up with one before the October 31st rookie scale extension deadline. Here’s more from around the NBA and related circles:

Jordan Farmar has signed with Israel’s Maccabi Tel Aviv, the team announced (hat tip to David Pick of Eurobasket.com). Agent Tony Dutt searched for NBA deals for the point guard who spent part of last season with the Clippers, but found nothing, as Pick hears (Twitter link).
Maccabi Tel Aviv management pushed for the deal with Farmar, while the coaches were higher on former Mavs and Pelicans point guard Gal Mekel, according to Pick, who earlier reported that Mekel and the team had a verbal agreement on a three-year deal with NBA out clauses (Twitter links). However, fellow Israeli club Hapoel Jerusalem is still pursuing Mekel, who remains in talks with teams from the NBA and Europe, reports Marc Stein of ESPN.com (on Twitter).
Lakers co-owner Jeanie Buss clarified in a radio appearance on KPCC-FM last week that this past year was the first on brother Jim Buss‘ three-year window to guide the team to at least the Western Conference Finals, as Baxter Holmes of ESPNLosAngeles.com details. Jim Buss would resign his job as executive VP of basketball operations if the Lakers aren’t back to that point by the end of the 2016/17 season, his sister said.
The Lakers, Heat, Knicks, Suns and Pelicans have expressed interest in Justin Hamilton, reports Darren Wolfson of 1500 ESPN Twin Cities (Twitter link). The Timberwolves elected not to retain the right to match offers for him when they decided against making a qualifying offer.
Serge Ibaka failed to meet an incentive worth $100K this past season, so his cap hit for the Thunder for this coming season shrinks by that amount, to $12.25MM, reports Eric Pincus of Basketball Insiders (on Twitter). That’s unlikely to matter for the Thunder, who are expected to be well above the cap and exceed the tax line. Ibaka’s salary for tax purposes will be determined based on the bonuses that he either triggers or doesn’t trigger this coming season, whereas last season’s figures only affect his cap number.
The Nuggets are hiring German national team coach Chris Fleming, former Magic assistant Wes Unseld Jr., and Kings assistants Ryan Bowen and Micah Nori as assistants to new head coach Michael Malone, reports Christopher Dempsey of the Denver Post. They’ll join Bulls assistant Ed Pinckney, who’s also reportedly joining the Denver coaching staff.

Mavs, Lakers Discussing Jeremy Lin Trade

July 6th, 2015 at 8:26am CST by Will Joseph

MONDAY, 8:26am: Lin is likely to end up in Dallas, tweets Tim MacMahon of ESPNDallas.com (Twitter link), though it’s unclear whether he’s likely to come via sign-and-trade, a straight signing, or either.

SUNDAY, 5:47pm: The Mavericks are engaging with the Lakers on sign-and-trade options for free agent Jeremy Lin, according to Adrian Wojnarowski of Yahoo Sports (Twitter link). The Mavs are low on space to sign Lin to a market-level contract, Wojnarowski adds.

In a full story, Wojnarowski writes, that Lin, according to league sources, sees the Mavs as the best opportunity to reignite his career, especially with a chance to become the starting point guard. Dallas is already set to add DeAndre Jordan and Wes Matthews. Lin, Wojnarowski adds, has a strong chance to thrive in the pick-and-roll with Jordan.

The Lakers have a cap hold of $12.6MM for Lin, Eric Pincus of Basketball Insiders tweets, and thus this allows for a sign-and-trade to Dallas, as long as Roy Hibbert and Lou Williams, who both are set to be acquired, still fit. Of course, the Lakers would be interested in gaining something in return, and Pincus speculates (Twitter link) that could come in the form of a three-way deal involving the Pacers. In theory, the Lakers could get a first-round pick from the Pacers for sending Lin to the Mavs, with Dallas sending Indiana draft considerations, according to Pincus, who described such a deal as “a stretch.”

Lin reportedly has been considering the Mavs even though he could likely command a higher salary elsewhere. That’s because he wants to play for a playoff-caliber team and he remains good friends with Chandler Parsons from their days as teammates in Houston.

Lakers Explore Trading Young, Sacre, Kelly

July 6th, 2015 at 8:11am CST by Will Joseph

MONDAY, 8:11am: The Lakers are exploring trades for Robert Sacre and Ryan Kelly in addition to Young, report Wojnarowski and Yahoo Sports colleague Marc J. Spears, who raise the possibility that either Sacre, Kelly or both end up in the Hibbert deal. They don’t mention Young in the context of that trade agreement with Indiana, however.

Kelly, due more than $1.724MM, and Sacre, due a minimum salary of more than $981K, are entering the final year of their respective contracts. Young makes more than $5.219MM this coming season in year two of a four-year deal.

SUNDAY, 6:53pm: With all the moves the Lakers are set to make, there’s a need to clear some cap space and, as a result, Nick Young is a strong candidate to be dealt, according to Adrian Wojnarowski of Yahoo Sports (Twitter link).

The Lakers are set to acquire Roy Hibbert, sign Lou Williams and sign Brandon Bass. With Williams, who led or tied for the Raptors’ lead in scoring in 18 games, which was second-most for a reserve in the league, on board, Young is expendable. In a separate tweet, Wojnarowski reports, citing league sources, that the Lakers could include a player to Indiana in the Hibbert trade.

Even before the flurry of moves, there was talk of the Lakers unloading Young. It was reported in April that the Lakers planned to shop Young this summer after a subpar season and conflict with coach Byron Scott. Young, 30, slumped to a career-worst 36.6% field goal percentage, and his 13.4 points per game were well off the prior season’s 17.9 PPG mark.

Pacific Notes: Lakers, Stoudemire, Hollins, Rivers

July 5th, 2015 at 12:01pm CST by ChrisCrouse

The agreement to trade for Roy Hibbert caps another dismal free agent season for the Lakers, according to Mike Bresnahan of The Los Angeles Times. L.A. passed on Jahlil Okafor in the draft because team officials were confident they could land a big man through free agency, he writes. But LaMarcus Aldridge, DeAndre Jordan and Greg Monroe all chose to go elsewhere. Bresnahan notes that the pattern of free agents turning down the Lakers began with Dwight Howard two years ago and has included Carmelo Anthony and Pau Gasol.

There’s more news from the Pacific Division:

Outside of money, the Lakers don’t have much to offer free agents, writes J.A. Adande of ESPN.com. That was evidenced by the team’s disastrous first presentation to Aldridge, which reportedly focused more on the off-court advantages of Los Angeles than on basketball matters, Adande claims. Teams need to have good players to attract great players, he states, and the Lakers are struggling to reach the first step.
Amar’e Stoudemire was expected to speak with Clippers President of Basketball Operations Doc Rivers Saturday, according to Adrian Wojnarowski of Yahoo Sports. The forward has interest in several teams, including the Clippers, Mavericks and Pacers, Wojnarowski adds. The Clippers have roughly $2.2MM in exception space left to sign a player beyond the league minimum.
The Clippers have had conversations about bringing Ryan Hollins back, according to Brad Turner of the Los Angeles Times (Twitter link). Hollins played for Doc Rivers when he coached in Boston as well as in his first season as the coach of the Clippers.
Austin Rivers will probably be a late signing for the Clippers, according to Gary Washburn of The Boston Globe. Los Angeles has limited Bird Rights on the free agent guard and can offer up to $3,110,796MM per season, which Washburn speculates will be the best he receives in a shrinking market.
Justin Holiday is unlikely to return to the Warriors, Washburn writes in the same story. The free agent guard will probably leave the defending champs to seek more playing time.
In addition to the Kings‘ max offer, Tobias Harris also received interest from the Celtics, Pistons, Pelicans and Grizzlies, among others, Alex Kennedy of Basketball Insiders tweets. The Lakers and Knicks were not among the teams to reach out to Harris, Kennedy adds (Twitter link).

Arthur Hill contributed to this post.