Six Free Agents Signed Five-Year Contracts
The NBA’s current Collective Bargaining Agreement is designed to give teams certain benefits when it comes to re-signing their own free agents. Many players who reach free agency, for instance, are permitted to get 7.5% annual raises from their own teams, while they can only get 4.5% raises from another team. More notably, Bird rights free agents can sign five-year contracts with their own teams, but can only go up to four years with other clubs.
In some cases, that extra year doesn’t make much of a difference. Al Horford left Atlanta for Boston and signed a four-year contract with the Celtics, even though there were reports suggesting the Hawks were open to going to five years (albeit not quite for the max). Kevin Durant signed with the Warriors on a two-year contract that he’ll likely opt out of after the first year in order to maximize his future earnings.
Still, for at least a handful of players, that five-year contract appears to have played a part in their decisions to return to their own teams. As our Free Agent Tracker shows, six free agents signed five-year deals this year, and all six of those contracts were worth at least $85MM. Three of them were maximum-salary pacts.
Here are those five-year contracts, which will run through the 2020/21 season:
- Mike Conley (Grizzlies): Five years, $152,605,578 (partial guarantee in year five)
- DeMar DeRozan (Raptors): Five years, $137,500,000 (player option in year five)
- Andre Drummond (Pistons): Five years, $127,171,313 (player option in year five)
- Bradley Beal (Wizards): Five years, $127,171,313
- Nicolas Batum (Hornets): Five years, $120,000,000 (player option in year five)
- Evan Fournier (Magic): Five years, $85,000,000 (player option in year five)
Although Conley drew significant interest from the Mavericks, he was always a favorite to return to the Grizzlies, and none of the other five players on this list were seriously linked to another suitor, which is interesting.
Drummond and Beal were restricted free agents who got max deals, so there was never any suspense about their destinations, but plenty of teams would have been interested in prying away DeRozan from the Raptors, Batum from the Hornets, or Fournier from the Magic. The fact that those players’ teams were willing to offer five years likely made negotiations much simpler, since no rival suitor could offer that fifth year.
A five-year contract provides additional long-term security for free agents, and also gives the team the opportunity to give the player some agency as well. In four of the six deals listed above, the contract features a fifth-year player option.
That means DeRozan, Drummond, Batum, and Fournier have a safety net for that 2020/21 season — if they’re still playing at a high level at that point, it might make sense to opt out and sign a new longer-term contract. If their production has slipped, or if they’re battling injuries, they’ll have the option of remaining in their current contract and collecting a big pay check in that fifth year.
The ability to offer an additional year to their own free agents hasn’t always prevented teams from losing top-tier players on the open market, but there are still plenty of instances where that fifth year seems to make a difference. As the CBA opt-out date nears and the NBA and NBPA explore potential changes to their current agreement, it makes sense for this aspect of the CBA to remain unchanged. That extra long-term security may not appeal to every marquee free agent, but it does give a player’s current team a leg up, which is crucial if the league is worried about potential imbalance.
Grizzlies Re-Sign Tony Wroten
A roller coaster of an offseason for Tony Wroten continued today, as the former first-round point guard formally signed a new contract with the Grizzlies, according to a press release from the team. The club’s official announcement also confirmed previously reported deals for D.J. Stephens, Troy Williams, and Wayne Selden.
[RELATED: Grizzlies’ 2016 free agent signings, via our Free Agent Tracker]
Wroten, the 25th overall pick in the 2012 draft, appeared in just eight games for the Sixers last season before Philadelphia waived him in December. The Knicks later signed Wroten to a two-year deal, minimum-salary deal that contained no guaranteed money for the 2016/17 campaign, but removed him from their roster in June when they acquired Derrick Rose from the Bulls. The Grizzlies claimed him off waivers at that point, but cut him in July.
One recent report from international basketball journalist David Pick indicated that Wroten could end up re-signing with Memphis, so it’s possible the Grizzlies simply wanted to rework the terms of the 23-year-old’s contract before bringing him back. Of course, based on the team’s cap limitations, neither Wroten nor any of the other three signees whose deals were confirmed today will receive more than the minimum salary.
A Washington product, Wroten began his NBA career in Memphis in 2012, before later joining the Sixers. In 145 total games in the NBA, he has averaged 11.1 points and 3.0 assists per contest, but has shot just 41.3% from the floor, including a paltry 23.1% from downtown. When Wroten was waived by the Knicks, a report from Stefan Bondy and Frank Isola of The New York Daily News suggested that the team made the decision due to an undisclosed disciplinary issue, but it appears that issue didn’t scare off the Grizzlies.
Free Agent Spending By Division: Southwest
Over the next week, we’ll be breaking down 2016 NBA free agent spending by division, examining which teams – and divisions – were the most active this July.
These divisional breakdowns won’t present a full picture of teams’ offseason spending. Some notable free agents, including LeBron James, remain unsigned, so there’s still money out there to be spent. Our lists also don’t include money spent on this year’s first- and second-round picks or draft-and-stash signings. There are a few free agent names missing in some instances as well, since those deals aren’t yet official or terms haven’t been reported.
Still, these closer looks at divisional spending should generally reveal how teams invested their money in free agency this summer, identifying which clubs went all-out and which ones played it safe.
With the help of our Free Agent Tracker and contract info from Basketball Insiders, we’ll kick off the series today with a look at the Southwest division. Let’s dive in…
1. Memphis Grizzlies
- Total money committed: $266,310,613
- Guaranteed money committed (including player options): $251,079,762
- Largest expenditure: Mike Conley (five years, $152,607,578)
- Other notable signings:
- Chandler Parsons (four years, $94,438,523)
- Troy Daniels (three years, $10,000,000)
- James Ennis (two years, $5,926,410)
- Notes:
- Wayne Selden‘s deal is not included in these totals, since it’s a summer contract and won’t count toward the Grizzlies’ cap unless he makes the regular-season roster.
- The fifth year of Conley’s deal is not fully guaranteed for now, but will become guaranteed if Conley plays in 55 games in the 2018/19 or 2019/20 seasons.
2. Dallas Mavericks
- Total money committed: $208,352,773
- Guaranteed money committed (including player options): $173,518,115
- Largest expenditure: Harrison Barnes (four years, $94,438,523)
- Other notable signings:
- Dirk Nowitzki (two years, $50,000,000)
- Dwight Powell (four years, $37,268,750)
- Deron Williams (one year, $9,000,000)
- Seth Curry (two years, $5,926,410)
- Notes:
- Keith Hornsby‘s contract with the Mavericks is not included in these figures, since details haven’t yet been reported.
- Nowitzki’s deal contributes significantly to the gap between the Mavs’ total money and guaranteed money committed, since his second year ($25MM) is a team option.
3. Houston Rockets
- Total money committed: $135,784,790
- Guaranteed money committed (including player options): $135,784,790
- Largest expenditure: Ryan Anderson (four years, $80,000,000)
- Other notable signings:
- Eric Gordon (Four years, $52,886,790)
- Nene (One year, $2,898,000)
- Notes:
- The Rockets are believed to have two-year, minimum-salary agreements in place with Pablo Prigioni, Kyle Wiltjer, Isaiah Taylor, and Gary Payton II. However, those deals haven’t been made official, so they’re not included in our totals.
- Bobby Brown‘s deal is not included in these totals, since it’s believed to be a summer contract which won’t count toward the Rockets’ cap unless he makes the regular-season roster.
4. New Orleans Pelicans
- Total money committed: $99,104,431
- Guaranteed money committed (including player options): $99,104,431
- Largest expenditure: Solomon Hill (four years, $48,000,000)
- Other notable signings:
- E’Twaun Moore (four years, $34,000,000)
- Langston Galloway (two years, $10,634,000)
- Tim Frazier (two years, $4,090,000)
- Notes:
- Terrence Jones will earn $1,050,961 on a minimum-salary contract, but the Pelicans will only pay $980,431 of that salary, with the NBA footing the rest of the bill.
- The Pelicans still figure to add non-guaranteed deals to fill out their preseason roster, but all their signees so far have had fully guaranteed contracts.
5. San Antonio Spurs
- Total money committed: $57,678,976
- Guaranteed money committed (including player options): $54,981,536
- Largest expenditure: Pau Gasol (two years, $31,697,500)
- Other notable signings:
- Manu Ginobili (one year, $14,000,000)
- Dewayne Dedmon (two years, $5,926,410)
- David Lee (two years, minimum salary)
- Notes:
- Lee’s contract hasn’t been formally announced, but it’s said to be a two-year, minimum-salary pact with a player option in year two. We’ve included that deal in our count, but not Patricio Garino‘s, since the official terms on that one haven’t been reported.
- Ryan Arcidiacono and Bryn Forbes are the only Spurs free agent signings without fully guaranteed deals so far.
Grizzlies Add Wayne Selden On Camp Deal
- The Grizzlies added Wayne Selden to their offseason roster with a summer contract, according to Eric Pincus of Basketball Insiders, who notes (via Twitter) that the training-camp, minimum-salary deal offers no real injury protection for the former Jayhawk.
Contract Details
- Troy Williams‘ two-year deal with the Grizzlies includes a partial guarantee of $150K for 2016/17, Eric Pincus of Basketball Insiders tweets.
D.J. Stephens Gets $35K Guarantee
- Pincus provides details on a couple more minimum-salary contracts with partial guarantees, reporting (via Twitter) that D.J. Stephens got $35K from the Grizzlies, while Isaiah Canaan will have a $200K guarantee from the Bulls for 2017/18 — Canaan’s 2016/17 salary is fully guaranteed.
Grizzlies Sign Troy Williams
Indiana small forward Troy Williams has signed a partially guaranteed contract with the Grizzlies, tweets international journalist David Pick.
The 21-year-old Williams averaged 13.3 points and 5.8 assists for the Hoosiers as a junior last season. He wasn’t taken in last month’s draft.
Williams joined the Suns’ summer league team and averaged 12.3 points and 4.3 rebounds in Las Vegas.
Grizzlies, D.J. Stephens Agree To Deal
The Grizzlies and swingman D.J. Stephens have agreed on a partially guaranteed two-year deal, Shams Charania of The Vertical reports (on Twitter). Stephens played for the Grizzlies’ summer league team.
The 25-year-old Stephens has three games of NBA experience with Milwaukee in 2014. The Cavs signed Stephens to a training camp deal last September, but then waived him shortly before the season started. In the previous fall, Stephens inked a non-guaranteed minimum-salary camp deal with the Pelicans and was among the team’s final cuts about a week before Halloween in 2014.
Stephens went undrafted out of the University of Memphis in 2013, despite a 46-inch vertical leap. He never averaged double figures in points during his four years at Memphis, but he used his athleticism on the other end of the floor, winning the Conference USA Defensive Player of the Year award in his senior season. He played overseas after his college career.
Community Shootaround: Western Conference Playoff Teams
On Monday, our Community Shootaround discussion focused on 2016’s Eastern Conference playoff teams, as we asked which of those eight clubs is most likely to slide down the standings next season. While the Heat received the most votes, the response was hardly unanimous.
In the Western Conference, however, it seems far more likely that there would be a consensus on which team is in for the biggest slide. The Thunder, after all, lost a perennial MVP candidate in Kevin Durant, and traded a three-team All-Defensive player in Serge Ibaka. The team still has Russell Westbrook on its roster, and was widely lauded for its return in the Ibaka deal, but it’s hard to imagine Oklahoma City as a top-three team and a Conference Finals participant again in the West.
So, as we examine the West’s playoff teams, let’s not focus on which team will slide the most. Instead, let’s discuss which teams’ moves you liked and which ones you didn’t.
The Warriors, of course, made the biggest splash of the offseason when they landed Durant, but is there room for improvement on last year’s 73-win squad, or will it take some time for the team to adjust to its new-look roster?
The Spurs and Clippers have brought back most of their key pieces, but it’s the end of an era in San Antonio, where Tim Duncan has announced his retirement. Adding Pau Gasol to the mix will help, and Duncan had already been surpassed by Kawhi Leonard and LaMarcus Aldridge as the club’s go-to players, but this isn’t the same Spurs team that won a championship just two years ago. As for the Clippers, if their core players stay healthy into the playoffs, there’s still optimism that the team can finally get over the hump, but Chris Paul‘s not getting any younger.
It’s been an eventful summer for the other three Southwest playoffs teams, with the Mavericks bringing in Harrison Barnes and Andrew Bogut while losing Chandler Parsons and Zaza Pachulia. Parsons ended up with the Grizzlies, who also retained Mike Conley with the largest contract in NBA history. The Rockets, meanwhile, saw Dwight Howard walk in free agency, but landed Ryan Anderson and Eric Gordon.
Finally, the Trail Blazers, one of 2015/16’s pleasant surprises, have managed to bring back key restricted free agents like Allen Crabbe and Meyers Leonard, and also made a couple more head-turning moves in free agency, adding Evan Turner and Festus Ezeli on multiyear deals.
So what do you think? Did any of the Western Conference playoff teams besides Golden State and Oklahoma City drastically improve or take a step back this offseason? Or will the storyline in the West next year simply come down to the Thunder losing their best player to the Warriors?
Take to the comments section below to share your opinions on the Warriors, Spurs, Thunder, Clippers, Blazers, Mavs, Grizzlies, and Rockets. We look forward to hearing your thoughts.
Update On NBA Traded Player Exceptions
Traded player exceptions, which we’ve explained extensively in a Hoops Rumors glossary entry, are a tool that over-the-cap teams can use to complete trades. For mid-season deals, when most teams are at or over the salary cap, these exceptions are typically used and created frequently.
This summer, however, with the salary cap increasing by more than $24MM and most teams choosing to use cap room rather than staying over the cap, trade exceptions have become scarcer — and less useful. In order for teams to actually use their available cap room to take on salaries or to sign free agents, those exceptions must be renounced.
Heading into the 2016/17 league year, teams around the NBA held a total of 29 trade exceptions. After the new league year officially got underway and the moratorium ended, the majority of those TPEs were lost. In total, 22 of the 29 previously-existing traded player exceptions were renounced or expired.
Earlier this month, only the Clippers, Cavaliers, and Thunder still held any TPEs, with Cleveland hanging onto five of them, and L.A. and OKC holding one apiece. Over the last week or so, a few new trade exceptions have been created, but with so many teams still under the cap, the full list is much shorter than it has been in past years.
Here’s a breakdown of the newly-created TPEs:
Charlotte Hornets
Amount: $1,666,470
Expires: 7/12/17
How it was created: When the Grizzlies signed Troy Daniels away from the Hornets, they did so in a sign-and-trade deal, allowing Charlotte to create a TPE for half of Daniels’ $3,332,940 salary.
Cleveland Cavaliers
Amount: $1,333,420
Expires: 7/15/17
How it was created: The Cavaliers created this TPE worth Sasha Kaun‘s 2016/17 salary when they sent him to Philadelphia without receiving any NBA salary in return.
(Note: The Cavaliers also created a $4,803,750 trade exception by signing-and-trading Matthew Dellavedova to the Bucks, but immediately used that exception to acquire Mike Dunleavy.)
Los Angeles Clippers
Amount: $1,209,600
Expires: 7/15/17
How it was created: When the Clippers acquired Devyn Marble from the Magic for C.J. Wilcox, the team actually used its old $947,276 TPE (acquired in January’s Josh Smith trade) to absorb Marble’s salary, then created a new exception worth Wilcox’s salary.
The traded player exceptions listed above have been added to our full breakdown of the TPEs available around the league. That list no longer includes the $2,038,206 exception the Thunder created last summer when they sent Perry Jones III to the Celtics — that TPE expired on July 14.
Our full list of TPEs also no longer features the following exceptions, all of which were renounced earlier this month when these teams went under the cap (expiry date listed in parentheses):
- Atlanta Hawks: $947,276 (2/18/17)
- Brooklyn Nets: $2,170,465 (7/13/16)
- Chicago Bulls: $2,854,940 (2/18/17)
- Chicago Bulls: $947,276 (6/22/17)
- Denver Nuggets: $135,000 (2/18/17)
- Detroit Pistons: $6,270,000 (6/29/17)
- Golden State Warriors: $5,387,825 (7/27/16)
- Golden State Warriors: $3,197,170 (7/31/16)
- Memphis Grizzlies: $450,000 (2/18/17)
- Miami Heat: $1,706,250 (7/27/16)
- Miami Heat: $1,294,440 (7/27/16)
- Miami Heat: $2,129,535 (11/10/16)
- Miami Heat: $2,145,060 (2/16/17)
- Miami Heat: $845,059 (2/18/17)
- Miami Heat: $2,854,940 (2/18/17)
- Milwaukee Bucks: $5,200,000 (7/9/16)
- Milwaukee Bucks: $4,250,000 (7/9/16)
- Minnesota Timberwolves: $5,000,000 (7/12/16)
- New Orleans Pelicans: $102,217 (12/24/16)
- New York Knicks: $1,572,360 (6/22/17)
- Phoenix Suns: $578,651 (2/18/17)
Information from Basketball Insiders was used in the creation of this post.