Western Notes: Howard, Grizzlies, Roy, Kings
As we look forward to an evening schedule that includes a Lakers/Timberwolves contest in Minnesota, Dwight Howard, who will miss tonight's game, is heading back to Los Angeles to undergo a platelet rich plasma procedure, the Lakers announced today in a press release. Here's the latest from around the Western Conference on D12 and a number of other topics:
- Ken Berger of CBSSports.com spoke to both Howard and Kobe Bryant about the All-Star center's impending free agency and future in Los Angeles.
- ESPN.com's Kevin Pelton (Insider link) thinks it's worth keeping an eye on J.J. Redick as a potential Grizzlies target, since his salary would fit in the team's new $7.49MM trade exception. However, Pelton notes that a swap would likely have to include Ed Davis, and it's not clear whether Memphis would flip Davis or if the team views him as Zach Randolph's eventual replacement.
- Grizzlies owner Robert Pera believes the team's two recent trades have made Memphis a "far more dangerous playoff team," as Kyle Veazey of the Memphis Commercial Appeal documents.
- Grizzlies coach Lionel Hollins wasn't quite as bullish on the club's latest moves, as he weighed in on the Rudy Gay trade after last night's game: "When you have champagne taste, you can't be on a beer budget," Hollins said, according to John Rohde of the Oklahoman. "It's a small market and I understand the economics of being in a small market."
- In speaking to Chris Haynes of CSNNW.com, Brandon Roy suggested that coaching may be in his future if he has to end his playing career prematurely again. Dwight Jaynes of CSNNW.com cautions Roy that the development process of a coach involves a lot of drudgery, and wonders if Roy is the sort of "special, driven person" that could succeed as an NBA coach.
- Potential Kings bidder Ron Burkle is part of a group that's in the running to buy Anschutz Entertainment Group, according to Dale Kasler of the Sacramento Bee. However, the bid for AEG shouldn't affect his ability to make an offer for the Kings.
Financial Details Of The Rudy Gay Trade
For the teams involved in this week's Rudy Gay blockbuster, the money changing hands in the deal is perhaps as important as the players changing uniforms. The Grizzlies assuaged future luxury-tax concerns, the Pistons created even more potential cap space for the coming summer, while the Raptors essentially spent any cap space they'd have over the next two summers on Gay.
Here's how the trade broke down from each team's perspective:
Memphis Grizzlies
Together, Gay and Hamed Haddadi are earning about $17.76MM this season, while incoming pieces Ed Davis, Tayshaun Prince, and Austin Daye are earning close to $11.93MM. The reduction in 2012/13 salary ensures that the Grizzlies are in no danger of becoming a taxpayer this year, and could even take on a little salary before the trade deadline and still have plenty of breathing room. Memphis also acquired cash from the Raptors in the deal, though the exact amount is unclear.
More importantly, moving Gay's long-term salary should help the Grizzlies stay out of the tax for the next two years. Daye will be off the Grizzlies' books next year unless the team decides to bring him back, while Davis' and Prince's cap hits are significantly less than Gay's.
Although the move saves the Grizzlies about $7.7MM in 2013/14, it actually adds some guaranteed money to Memphis' books for 2014/15, since Gay had a player option for that season. But if we assume Gay would have exercised that $19.32MM option, Prince's $7.71MM salary will result in savings of about $11.61MM for '14/15.
In addition to the cap flexibility gained as a result of the deal, the Grizzlies also created a pair of traded player exceptions, as general manager Chris Wallace confirmed yesterday. Here's how the deal was organized from the Grizzlies' perspective:
- Daye's $2,958,077 was absorbed using the $4.2MM traded player exception created when the Grizzlies sent Marreese Speights to the Cavs. Memphis could still use the rest of that exception on another player at some point before next January, but there's only $1,241,923 left on it now.
- Using Gay's $16,460,538 salary, the Grizzlies took on Davis ($2,207,040) and Prince ($6,764,045). Since Gay is earning $7,489,453 more than those two players combined, the Grizzlies create a trade exception worth that amount, which they'll have a year to use.
- The Grizzlies also essentially sent Haddadi's $1.3MM salary out for nothing, so they'll receive a trade exception worth that amount as well.
As our list of outstanding trade exceptions shows, the Grizzlies now have seven TPEs at their disposal, though many of them are small enough that they likely won't be used.
Detroit Pistons
For the Pistons, the deal doesn't affect their 2012/13 cap figure a whole lot. Prince and Daye combined to make about $9.72MM, so CBA rules allowed the team to take back up to 150% of that amount. Calderon's salary fits comfortably into that window, despite the fact that his contract includes a 10% trade kicker. Calderon had been earning $10,561,982, so the trade ups his salary for '12/13 to over $11MM. Because the point guard's deal was signed under the old CBA, the Pistons, not the Raptors, are on the hook for paying that 10% bonus.
Still, eliminating Prince's long-term contract from their books more than makes up for the addition of a little short-term salary. With Corey Maggette, Jason Maxiell, Will Bynum, and Calderon all coming off the books this summer, the Pistons will have a ton of cap space, even if the team decides not to amnesty Charlie Villanueva or release Rodney Stuckey, whose contract is partially guaranteed.
If the Pistons were to amnesty Villanueva and release Stuckey, the team would only have about $21.18MM in guaranteed commitments for 2013/14, potentially leaving room for two maximum-salary players. Of course, I don't think Dwight Howard or Chris Paul are clamoring to sign with the Pistons, but there are certainly plenty of ways Joe Dumars could take advantage of having that sort of cap room.
Toronto Raptors
With the Grizzlies and Pistons both clearing long-term money from their respective caps, that salary has to be going somewhere — namely, to Toronto. But before we get to that, here's how the move worked for the Raptors in the short-term:
Calderon's outgoing salary, which doesn't include his 10% trade kicker for the Raptors' purposes, isn't quite large enough to absorb Gay's contract on its own, so Toronto needed to combine Calderon's and Davis' salary, for a total of $12,769,022 in outgoing money. Trade rules allow the Raptors to take back that amount plus an additional $5MM, meaning Gay's and Haddadi's combined $17,760,538 just barely fits.
Despite adding extra salary for 2012/13, the Raptors are still in no danger of approaching the tax threshold. However, they can't say the same for next year. If we assume Aaron Gray and Linas Kleiza pick up their player options and the team keeps Kyle Lowry and his non-guaranteed deal (a no-brainer now that Calderon is gone), the Raptors are already essentially at or over the tax line for next season.
With more punitive tax penalties set to take effect starting in 2013/14, it's highly unlikely the Raptors will want to be a taxpayer with a roster that's not exactly a title contender. Whether that means amnestying Kleiza or finding a way to move some combination of Andrea Bargnani, DeMar DeRozan, and/or Landry Fields, we should definitely expect to see some maneuvering from the Raptors to clear some of that money.
If Toronto doesn't end up moving Bargnani, DeRozan, or Fields, the team's flexibility for the 2014/15 season will be limited as well. Those three guys, plus Gay, Jonas Valanciunas, Terrence Ross, and Amir Johnson, will be earning about $60MM, leaving the Raps with little to no cap space in a summer that's expected to feature a handful of impact free agents. For a team that struggles to attract stars without overpaying them, not having cap space isn't the end of the world, but it does mean the Raptors will fewer options when it comes to making roster moves.
ShamSports was used in the creation of this post.
Gay Trade Notes: Grizzlies, Trades, Vujacic, Lowry
On Wednesday, the first major trade of the season was consummated as the Grizzlies shipped Rudy Gay and Hamed Haddadi to the Raptors for Jose Calderon to Ed Davis, then sent Calderon to the Pistons for Tayshaun Prince and Austin Daye. Here are the latest updates on the involved teams in light of the blockbuster deal:
- Alex Kennedy of HoopsWorld writes that Gay voiced his frustrations with the continuing trade rumors to Grizzlies executives, which was part of the impetus for the trade.
- Rob Higgins of the Memphis Commercial Appeal reports that Grizzlies GM Chris Wallace may still make further trades before the deadline.
- Ronald Tillery of the Commercial Appeal tweets that the team is no longer pursuing Sasha Vujacic after they were unable to reach an agreement with his team in Turkey.
- Holly MacKenzie of Sportsnet.ca writes that Kyle Lowry welcomes his new responsibility as the unquestioned starting point guard in Toronto following the trade of Calderon.
Danny Ainge Discusses Pierce, Trades, Grizzlies
Boston Celtics general manager Danny Ainge appeared on WEEI on Thursday and gave a radio interview in which he covered a variety of topics relating to the Celtics' handling of Rajon Rondo's knee injury and the team's plans for the trading headline. Brian Robb of CelticsHub.com has a transcript of some of Ainge's comments.
On the likelihood of a trade:
“I think whether we win every game or whether we struggle, I think it all depends on what opportunties are presented, so we are open and listening and are having discussions regarding a lot of different possibilities, but we don’t feel pressure to do anything. We want to make some change to help improve our team, but we don’t feel pressure.”
On the possibility of trading Paul Pierce:
Nothing is close to being done. I too, would like to see Paul Pierce retire as a Celtic. That would be great. We are all attached to Paul. He’s been great for the city, the franchise, each of us individually, he’s been a true pro. Having said that, if something came up I would talk to Paul, but my job is do what’s best for the Boston fans, and what’s best for the Boston Celtic team, regardless of my personal ties and personal relationships with players.”
On discussions with the Grizzlies prior to the Rudy Gay trade:
“Memphis with new management has been pretty active. We’ve had discussions but nothing that ever got close. It’s been well documented what they were trying to accomplish, to get under the tax and get for Rudy. They got some good players though, and time will tell.”
Trade Exceptions Set To Expire At Deadline
As our list of outstanding traded player exceptions shows, there are a number of trade exceptions that could be in play as this season's deadline approaches. A trade exception allows a team to absorb a salary without sending any salary out in return. For instance, with the $4.2MM exception the Grizzlies obtained when they traded Marreese Speights to Cleveland, Memphis could acquire one or more players who are earning $4.3MM this season ($4.2MM + $100K).
Trade exceptions, which cannot be combined, expire a year after they're initially acquired, so the TPEs that were created at last year's March trade deadline will expire if they go unused on or before February 21st. While the exceptions don't expire until March, teams obviously won't have the opportunity to use them during the few weeks after the deadline passes.
Most notable among those exceptions set to expire in March is the $13MM TPE the Nuggets obtained when they dealt Nene to Washington at the 2012 deadline. The Nuggets are very unlikely to use that entire exception, but it certainly gives them some added flexibility as they weigh their options over the next three weeks.
Here's the complete list of traded player exceptions that will expire if they go unused at the trade deadline:
- Denver Nuggets: $13,000,000
- Golden State Warriors: $3,294,960
- Milwaukee Bucks: $2,506,500
- Brooklyn Nets: $1,390,000
- Brooklyn Nets: $1,377,383
- Los Angeles Clippers: $1,223,166
- Memphis Grizzlies: $1,184,750
- Los Angeles Lakers: $854,389(*)
- San Antonio Spurs: $854,389
- Los Angeles Lakers: $544,340
(* This TPE was initially listed as $1,422,027 and had since been corrected.)
More Reactions/Fallout To The Rudy Gay Trade
Last night, Chuck Myron of Hoops Rumors rounded up a number of links addressing the potential fallout of the blockbuster trade finalized by the Grizzlies, Raptors, and Pistons. Of course, given the magnitude of the deal, plenty more reactions surfaced overnight and this morning, so we'll round many of those up right here:
- Grantland's Zach Lowe passes along a couple interesting tidbits of note related to the trade, reporting that Mike Conley and Zach Randolph are on pace to reach incentives that would increase their cap figures for next season. Lowe also says that Rudy Gay gave the Raptors no assurances that he'd pick up his 2014/15 player option.
- In the long-term, Ed Davis may be the most exciting player the Grizzlies received in the deal, but in the short-term, Tayshaun Prince's play will likely dictate how the move is judged, says Sam Amick of USA Today.
- The Celtics were never too seriously involved in talks for either Gay or Jose Calderon, a source tells Gary Washburn of the Boston Globe.
- Appearing on TSN 1050 in Toronto, Bryan Colangelo said the first question Gay asked him after the deal was why Colangelo didn't draft him in the first place (Twitter link via Josh Lewenberg). The Raptors passed on Gay to draft Andrea Bargnani in 2006.
- In grading the trade for all three teams, Tom Haberstroh of ESPN.com and Matt Moore of CBSSports.com both consider the Raptors the losers, but Zach Harper of CBSSports.com makes the case for why Toronto was smart to acquire Gay.
- Chris Sheridan of Sheridan Hoops also argues that the Grizzlies and Pistons came out ahead in the deal.
- Pistons GM Joe Dumars has often talked about maintaining cap flexibility and building around the team's young core, and this trade reflected that philosophy, writes David Mayo of MLive.com.
- Rick Bonnell of the Charlotte Observer believes the deal was a "ridiculous coup" for the Grizzlies, while Joe Goodman of the Miami Herald isn't so sure (Twitter links).
- Whether you believe the Grizzlies are that much worse than they were yesterday really hinges on your opinion of Gay as a player, writes Geoff Calkins of the Memphis Commercial Appeal.
- Henry Abbott of ESPN.com shares six thoughts on the trade.
Wojnarowski On LeBron, Cavs, Grizzlies
The Grizzlies' decision to trade Rudy Gay is the latest sign that the NBA's era of three-star "super-teams" is coming to an end, writes Adrian Wojnarowski in his latest piece for Yahoo! Sports. Wojnarowski had harsh words for the Grizzlies' new ownership and management groups following the Gay deal, arguing that the new CBA ensures that team owner Robert Pera can "mismanage the Grizzlies into oblivion and still make money on the enterprise." Here are the rest of the notable items from Woj's piece:
- LeBron James' agent, Rich Paul, has been privately discussing the idea of LeBron returning to Cleveland as a free agent in 2014 for the last two years. Wojnarowski notes that James will ultimately make his own free-agent decision, but says Paul figures to be one of the most important voices in his ear.
- As one "high-level associate" of LeBron's inner circle tells Wojnarowski: "[Heat president Pat] Riley has never given them the run of the place in Miami, and they could all be back in business together in Cleveland. For Rich and [business manager] Maverick [Carter], they all see the benefits of getting the credit for bringing LeBron home again."
- Front offices around the NBA were "incredulous" after the Grizzlies dealt Marreese Speights, Wayne Ellington, and Josh Selby, along with a future first-rounder, for cap relief, says Wojnarowski. Many league executives believed Memphis could have waited until closer to the deadline and potentially received a better return on Speights and Ellington individually.
- Said one Eastern Conference GM on the Grizzlies' trade with the Cavs: "Beyond a panic move. Cleveland would always be there with that deal."
- Although GM Chris Wallace made a statement in the Grizzlies' press release announcing the Gay trade, Wallace had little to do with the process, according to Wojnarowski. Wallace isn't making calls to teams and isn't consulted by the new management group — he's simply waiting until they reach an agreement on his "inevitable parting," says Wojnarowski.
Fallout From Rudy Gay Deal
Reaction has been pouring in since the Grizzlies, Raptors and Pistons struck a deal that's headlined by Rudy Gay going to Toronto. Couper Moorhead of Heat.com thinks the trade is a win for the Grizzlies, who pulled off the rare trifecta of shedding salary while improving short-term and long-term (Twitter link). Ken Berger of CBSSports.com sees it as a step back for Memphis, and another reminder of the harsh reality of the new CBA for small and mid-size markets. Here's more of what we're hearing:
- Raptors GM Bryan Colangelo said to expect more deals from the Raptors before the deadline, notes Steve Buffery of the Toronto Sun via Twitter.
- Vince Ellis of the Detroit Free-Press, after discussions with those around the Pistons, wouldn't rule out the idea of the team keeping Jose Calderon around (Twitter link). I assume he means the team would try to re-sign him this summer, rather than merely pass up opportunities to flip him to another team before the trade deadline.
Earlier updates:
- Berger, in the same piece, says it would behoove the Pistons to trade some of the $26.5MM in expiring contracts they have as a result of the deal.
- As Chad Ford of ESPN.com notes via Twitter, the trade nets the Grizzlies an additional three wins according to trade machine metrics that were created by Memphis executive and former ESPN.com scribe John Hollinger.
- Not all of Hollinger's prior work portends the future, as Ford also points out, since Hollinger had new Grizzlies big man Ed Davis, the 13th pick in 2010, rated as the 54th-best prospect that year (Twitter link).
- The Grizzlies and Raptors were calling many other teams in their efforts to faciliate the trade, and the momentum toward the deal picked up steam this afternoon, recounts Vincent Goodwill of the Detroit News (Twitter link).
- The Pistons' cap space for this summer increases from $25MM to $33MM as a result of the trade, as Keith Langlois of Pistons.com notes via Twitter. Langlois speculates that the majority of that space will be used in trades rather than to sign free agents (Twitter link).
- The Pistons, who tried to acquire Jose Calderon around the time of the 2011 draft, have been high on Calderon for a while, Langlois notes. (Twitter links).
- Grantland's Zach Lowe thinks Andrea Bargnani and Linas Kleiza could be the next Raptors on their way out of Toronto (Twitter link).
- Ryan Wolstat of the Toronto Sun, who also believes Bargnani is on his way out, hears that the Grizzlies tried to send Darrell Arthur to the Raptors as part of the deal, but Toronto opted instead for Haddadi, whom they will reportedly waive (All Twitter links).
Kyler’s Latest: Pierce, Josh Smith, Redick, Lakers
HoopsWorld's Steve Kyler chimed in with roundup of trade rumors in advance of the Rudy Gay deal, and though his info about that swap quickly became outdated, he delivered much more from around the league. Let's hit the highlights here:
- The Celtics were entertaining offers for Paul Pierce before Rajon Rondo went down with a torn ACL, but for the moment they want to evaluate their team in the wake of the injury before making a move. Pierce wants to retire with Boston, and Celtics basketball president Danny Ainge and company will consider his special place in the team's history in deciding whether to move him. The C's will seek deals for their other players first.
- Though rumblings seem to indicate Josh Smith may be on his way out of Atlanta, the Hawks haven't considered any deal for him to this point. Still, Kyler believes that if they decide to deal Smith, they already know where they can send him. According to Ryan Wolstat of the Toronto Sun, the Raptors probably aren't one of the teams that would make a deal for the power forward (Twitter link).
- More than half the league has tried to trade for J.J. Redick, but the Magic have rebuffed all offers for the soon-to-be free agent. The Magic front office has kept Redick informed about all the possible deals, and it seems more than likely he'll opt to re-sign this summer.
- The Lakers continue to discuss Pau Gasol deals, but as it stands now, they're more likely to hold off until the summer, when they'll know whether Dwight Howard, a free agent, will be back.
- Kyler also shares Lang Greene's pre-trade video interview with Raptors coach Dwane Casey, and catches up with Greivis Vasquez and new Grizzlies big man Jon Leuer, who revealed that it was former teammate Kyrie Irving who broke the news to him about last week's trade.
Grizzlies, Raptors, Pistons Finalize Rudy Gay Deal
8:23pm: The Raptors sent out a press release confirming the deal for all three teams. The second-rounder headed to the Grizzlies is Toronto's own 2013 pick, and Memphis is receiving cash from the Raptors as part of the deal, the statement notes.
8:20pm: Keith Langlois of Pistons.com tweets that Detroit's side of the deal is official, and that Calderon will join the team in time for Friday's game. Since it was the Pistons-Grizzlies part that seemed to have hit a snag earlier, rather than the Raptors-Grizzlies end of it, the swap appears to be squared away. Pistons GM Joe Dumars has released a statement, as Vincent Goodwill of the Detroit News passes along (All Twitter links).
7:28pm: The trade call has ended, meaning the deal is now official, a source tells Ken Berger of CBSSports.com (Twitter link).
6:55pm: The trade call has been delayed slightly, but it's still going on, tweets Doug Smith of the Toronto Star, who adds that the deal is still going to happen.
6:18pm: Goodwill now hears from a source who says the trade will indeed go down (Twitter link).
6:06pm: A source tells Vincent Goodwill of the Detroit News there's "one hangup" in the deal, though Goodwill doesn't specify what it could be (Twitter link).
5:56pm: The Pistons' side of the trade has not yet been finalized, Aldridge notes via Twitter, though with the trade call scheduled in a few minutes from now, it's likely we'll soon have official word. Both Prince and Daye are inactive for Detroit's game tonight.
5:33pm: The Raptors will likely waive and buy out the rest of Haddadi's two-year contract, reports Ken Berger of CBSSports.com (Twitter link). Haddadi is making $1.3MM this year and is due a partial guarantee of $200K on his fully $1.398MM salary next year. Under terms of the new CBA, the Grizzlies will not be allowed to sign Haddadi again for one year.
5:13pm: The Grizzlies, Raptors and Pistons have all reached agreement on a three-team trade. ESPN's Marc Stein reported the Grizzlies have acquired Jose Calderon and Ed Davis from the Raptors in exchange for Rudy Gay and Hamed Haddadi. TNT's David Aldridge reports the Pistons will receive Calderon from the Grizzlies in exchange for Tayshaun Prince (Twitter link). Stein added that Austin Daye is also headed to Memphis, and noted the Grizzlies will get a second-round pick from the Raptors as well.
The trade call will be placed to the league office at 7pm Eastern, tweets Adrian Wojnarowski of Yahoo! Sports. When the trade becomes official, it will end several weeks of speculation about Gay's future in Memphis, as the Grizzlies look to avoid becoming a repeat taxpayer. It also ends months of chatter about Calderon in Toronto. The Pistons apparently beat out the Mavericks for the point guard, as Dallas refused to part with Vince Carter in any potential deal, Stein tweets.
The Grizzlies save significant money in the deal, as the combined salaries of Prince, Daye and Davis add up to $11.9MM, much less than the total of $17.8MM that Gay and Haddadi are getting. Daye can come off the books next season, as he's a restricted free agent this summer. Davis has one more season left on his rookie deal, at $3.15MM, and is set to hit restricted free agency in 2014 unless the Grizzlies extend his deal. Gay's contract runs through 2014/15, a player option season in which he's due to make $19.3MM. The Grizzlies are now $8MM under the luxury tax, which could give them more flexibility to make other moves this season, as Ken Berger of CBSSports.com points out (Twitter link). The Grizzlies will pay out $37.2MM less as a result of the moves, Berger adds.
Technically, the deal is actually a pair of two-team trades, rather than one three-team trade, notes Mark Deeks of ShamSports (Twitter link). The Raptors, operating exclusively with the Grizzlies, wind up with Gay's sizable contract, adding roughly $5MM to their payroll, which was at about $61.2MM. They're still well below the $70.307MM tax line, and figure to remain that way even when DeMar DeRozan's four-year, $38MM extension kicks in next season.
The Pistons, meanwhile, part ways with the last remaining member of their 2004 championship team, bringing in a point guard to mentor second-year man Brandon Knight. It also clears cap room, since Calderon's expiring $10.56MM contract will come off the books this summer, while Prince is signed through 2015.