- Although Dwyane Wade hasn’t ruled out the possibility of returning to the Heat within the next few years, his desire to join a championship contender trumps his desire to reunite with his old team at this point in his career, league sources tell Adrian Wojnarowski of ESPN.
SEPTEMBER 25, 4:25pm: Wade has been formally placed on waivers, Shams Charania of The Vertical tweets. He will clear waivers on Wednesday, Charania adds.
SEPTEMBER 24, 8:36pm: The Bulls and Dwyane Wade have reached an agreement on a buyout, K.C. Johnson of the Chicago Tribune tweets.
The early favorites for Wade’s services are the Spurs, Cavaliers and Heat, Adrian Wojnarowski of ESPN tweets. Miami is currently positioned to pay him the most money this season.
Within minutes, Wojnarowski followed up with another tweet saying that Cleveland was a “clear frontrunner.”
Per Bobby Marks of ESPN, the Heat can sign Wade for $4.2MM and the Spurs can sign him for $3.3MM. The Cavaliers at $2.5MM could pay little over the veteran’s minimum.
The idea of Wade suiting up elsewhere in 2017/18 has been a popular topic ever since the organization traded Jimmy Butler to the Timberwolves earlier this summer.
It’s been said that Wade felt misled by the organization at the beginning of the offseason, given assurances that the team would remain competitive in his final year with the squad should he opt into his 2017/18 player option.
Wade, of course, did opt in but the Bulls soon changed course, trading Butler for a package centered around Zach LaVine and Minnesota’s No. 7 overall pick.
In the months since, the Bulls and Wade have gone back and forth in seemingly amicable negotiations.
Per Wojnarowski (also on Twitter), Wade will forfeit about $8MM of his $23.8MM contract, leaving the Bulls on the hook for around $16MM through 2017/18.
Considering that Chicago currently runs the risk of falling below the salary floor for the season, keeping the bulk of the veteran’s deal on their books isn’t particularly cumbersome.
Chicago came to an agreement with Nikola Mirotic earlier today that would have pushed the Bulls above the $89.2MM floor but the Wade buyout will drop them below yet again as training camps around the league begin in earnest.
Photo courtesy of USA Today Sports Images.
- The Cavaliers, Thunder and Heat were consider the early favorites to sign Wade, but the competition may be more intense than originally believed, according to Tim Reynolds of The Associated Press (Twitter link), who adds that “many more teams” are pursuing him.
The Bulls reached a buyout agreement with Dwyane Wade on Sunday, and while that transaction hasn’t yet been made official, the future Hall-of-Famer is expected to be waived and reached the free agent market very soon.
We heard on Sunday night that the Cavaliers are the early frontrunners for Wade’s services, and that hasn’t changed today — Alex Kennedy of HoopsHype notes (via Twitter) that LeBron James and other Cavs are recruiting the veteran guard, and TNT’s David Aldridge tweets that there’s a “strong belief” Wade will end up in Cleveland.
Still, the Cavs will hardly be the only team in the running for Wade. Let’s dive in and round up all the latest on the situation…
- Carmelo Anthony and Paul George have started recruiting Wade on behalf of the Thunder, sources tell Kennedy (Twitter link). The Lakers are also among the teams that have reached out to Wade, Kennedy adds (via Twitter).
- The Heat would welcome back Wade with open arms, with one player suggesting that the locker room is “100% hoping it happens,” tweets Tim Reynolds of The Associated Press. However, Miami hadn’t formally reached out as of Sunday night, per Kennedy (Twitter link).
- Speaking to Reynolds, Wade indicated on Sunday night that he’s looking to find a new NBA home quickly. “I’m going to take tonight and some of tomorrow and speak to the teams or players that are on my list and go from there,” Wade said on Sunday night. “My decision is a pure basketball decision and I’ll make the one that fits me best at this point in my career, and with what I feel I have to offer a team that needs what I have to offer.”
- In a conversation with K.C. Johnson of The Chicago Tribune, Wade praised the Bulls and said he had no complaints about the way the franchise dealt with him, though he questioned the club’s decision to trade Jimmy Butler and embark on a full-fledged rebuild. “You’ve got one of the top five or six players in the game [in Butler],” Wade said. “That’s what you want and you were able to build that in-house. I was a little disappointed because being up 2-0 versus Boston on the road, Rondo goes down. If that doesn’t happen, we’re having a different conversation.”
For a team that brought back nearly all its key players over the offseason, the Heat head into training camp with a lot of unanswered questions. Barry Jackson of the Miami Herald examines position battles and several other topics in his latest column:
- The starting small forward position will be wide open when camp begins Tuesday, with Justise Winslow, Josh Richardson and Rodney McGruder all having a shot at it. The Heat exercised their fourth-year option on Winslow this week as the former first-rounder tries to battle back from a shoulder injury that limited him to 18 games last season. Miami was only 3-12 when he started last year and he wasn’t part of the team’s surge after the All-Star break. Richardson, who received a four-year extension this week, came into the league as a guard, but played 80% of his minutes last season at forward.
- James Johnson is the favorite to start at power forward, but free agent addition Kelly Olynyk will be an intriguing addition because of his outside shooting. Olynyk shoots .368 from 3-point range for his career, compared to .296 for Johnson, although he raised that number to 34% last season. Olynyk, who was used mainly in a reserve role in Boston, will see plenty of minutes in Miami whether he starts or not.
- Johnson, Olynyk and Hassan Whiteside will take up most of the center/power forward opportunities, leaving little for first-round pick Bam Adebayo, whom the Heat believe has a bright future. Winslow may also be utilized as a stretch four in small-ball lineups, so Adebayo will need a strong showing in camp to earn playing time.
- Okaro White and Jordan Mickey are likely to make the roster, with A.J. Hammons holding a slight edge for the 15th spot. However, the Heat have concerns about Hammons’ work ethic and he will be challenged by shooting guard Matt Williams. Former Michigan point guard Derrick Walton has been impressive over the summer, but he has a two-way contract and can’t spend more than 45 days in the NBA.
- The front office isn’t unanimous in wanting Dwyane Wade back if he agrees to a buyout with the Bulls. There are concerns about his defense at age 35, and the Heat already have five guards who can make a case for playing time.
While a buyout for Dwyane Wade is a popular topic of speculation around the NBA this fall, Heat president Pat Riley declined today to say whether his club would have interest in Wade as a free agent. Speaking to reporters, Riley praised Wade extensively and reminisced about the first championship the future Hall-of-Famer won with the franchise, but was careful to avoid tampering with a player under contract with the Bulls, wishing Wade the best in Chicago.
Wade was just one topic of discussion today for Riley, who also said that the Heat’s roster is set for training camp at 19 players, with he and Erik Spoelstra feeling as if it wasn’t necessary to fill that 20th and final spot. Riley also made a few other comments worth passing along, so with the help of Barry Jackson of The Miami Herald, we’ll round up some of those comments below. Be sure to check out Jackson’s piece for even more from Riley.
Let’s dive in…
On the fact that there are no All-Stars on the Heat’s roster:
“There were only 12 All-Stars in the Eastern Conference last year. We felt there were players last year who had All-Star years [on the Heat] but they weren’t selected. We have stars on our team but they’re not considered that.
“I respect the fact Kevin Durant gave us an audience when we went to the Hamptons to talk to him [in July 2016]. I felt we were a long shot. The same thing happened with Gordon Hayward [this past summer]. If we have the opportunity, we will always continue to pursue a player of that ability to come here. We made the decision to stay with this team. I like this team. … We are way ahead of a rebuilding cycle. We are one step away from being a very good team. One step away could be the collective effort of an ensemble cast, or one step away could be a move to bring a player here.”
On expectations for Hassan Whiteside:
“If he wants to achieve the goals he talks about in the media, and puts out on social media, which are great, great goals — to be Defensive Player of the Year and make the All-Defensive Team and be respected. Those are things you must bring every single night [and you] must bring every single day in the offseason. H is on the road to achieving some of those goals. He wants to win. He appreciates the team and his teammates around him. That kind of growth has come slowly but it’s there. We’re expecting a great year out of Hassan and we need a great year out of Hassan.”
On Josh Richardson‘s extension:
“He’s a prototype contemporary player and he’s young. … When you take a look at player value, there are a lot intangibles you have to look at. We didn’t want him to go in the open market next year and coming off a great year, having to match some crazy contract. If the average salary in the NBA is close to $9-10MM, that’s where a lot of these guys are falling. When these words come out of my mouth, $8MM or $9MM as the average salary, if I’m a player in this league, I am saying to myself, ‘I am going to stay straight, be right, do whatever I can to have a 10-year career in this league and set up my family for life.’ We felt he was worth it and we expect great things from him.”
On being happy with the team’s current point guard depth:
“If we didn’t feel comfortable with Tyler Johnson and Josh Richardson and Dion Waiters, then we would have gotten a veteran with 10, 12 years in the league. We don’t feel like we need that. If we did, it would have been easy for us to acquire that type of player.”
Don’t expect the Heat to shy away from utilizing Bam Adebayo in Year 1, Barry Jackson of the Miami Herald writes. Adebayo has already established himself as a defensive force and has even surprised team execs with his offensive range.
“He can defend fours [power forwards] and fives [centers] at this point. For a man that has a great body, he has good feet and that’s so crucial defending the ball,” Miami’s vice president of player personnel Chet Kammerer said.
It’s within reason, Jackson writes, that Adebayo could step up as the primary backup to Heat center Hassan Whiteside.
Jackson also relays a story that Adebayo surprised the team during his pre-draft interview when he suggested that he had three-point range. The squad, per Kammerer, later gave him a chance to prove it and were impressed with the results.
There’s more from Miami:
- The Heat have agreed to a jersey sponsorship deal with Ultimate Software, Ira Winderman of the Sun-Sentinel writes. Ultimate Software is the “official human resources/payroll provider” of the franchise.
- The Heat will approach the luxury tax mark in 2018/19, even with Chris Bosh‘s contract coming off of the books, Barry Jackson of the Miami Herald writes. Jackson breaks down the options Miami had heading into the summer and why they chose the path that they did.
- Slovenia’s success at EuroBasket 2017 has further validated the trade that brought Goran Dragic to the Heat, Ira Winderman of the Sun-Sentinel writes, at least in the eyes of team president Pat Riley. “I’m proud that we have him. And he’s right now the player that I think Erik Spoelstra relies on as much as some of the other guys or maybe even more so in how he wants to play,” Riley said.
ESPN’s Zach Lowe and Brian Windhorst have published an expansive and well-researched report on NBA teams’ finances, providing details on the league’s revenue sharing system, the impact from national and local television deals, and how a lack of net income for NBA franchises could push the league toward considering relocation or expansion.
The report is wide-ranging and detailed, so we’re going to tackle it by dividing it up into several sections, but it’s certainly worth reading in full to get a better picture of whether things stand in the NBA. Let’s dive in…
Which teams are losing money?
- Nine teams reportedly lost money last season, even after revenue sharing. Those clubs were the Hawks, Nets, Pistons, Grizzlies, Magic, Wizards, Bucks, Cavaliers, and Spurs. The latter two teams – Cleveland and San Antonio – initially came out ahead, but paid into the league’s revenue sharing program, pushing them into the red.
- Meanwhile, the Hornets, Kings, Pacers, Pelicans, Suns, Timberwolves, and Trail Blazers also would have lost money based on net income if not for revenue sharing, according to Lowe and Windhorst.
- As a league, the NBA is still doing very well — the overall net income for the 30 teams combined was $530MM, per ESPN. That number also only takes into account basketball income, and doesn’t include income generated via non-basketball events for teams that own their arenas.
- The players’ union and its economists have long been skeptical of NBA teams’ bookkeeping, alleging that clubs are using techniques to make themselves appear less profitable than they actually are, Windhorst and Lowe note. The union has the power to conduct its own audit of several teams per season, and it has begun to take advantage of that power — according to ESPN, the union audited five teams last season, and the new CBA will allow up to 10 teams to be audited going forward.
How does the gap between large and small market teams impact income?
- Even after paying $49MM in revenue sharing, the Lakers finished the 2016/17 with a $115MM profit in terms of net income, per ESPN. That was the highest profit in the NBA, ahead of the second-place Warriors, and could be attributed in large part to the $149MM the Lakers received from their huge local media rights deals.
- On the other end of the spectrum, the Grizzlies earned a league-low $9.4MM in local media rights, which significantly affected their bottom line — even after receiving $32MM in revenue sharing, Memphis lost money for the season. The Grizzlies will start a new TV deal this year that should help boost their revenue, but it still won’t come anywhere close to matching deals like the Lakers‘.
- The biggest local TV deals help drive up the NBA’s salary cap, with teams like the Lakers and Knicks earning in excess of $100MM from their media agreements. According to the ESPN report, the Knicks made $10MM more on their TV deal than the six lowest-earning teams combined.
- As one owner explained to ESPN, “National revenues drive up the cap, but local revenues are needed to keep up with player salaries. If a team can’t generate enough local revenues, they lose money.”
- Playoff revenue from a big-market team like the Warriors also helps push up the salary cap. Sources tell Lowe and Windhorst that Golden State made about $44.3MM in net income from just nine home playoff games last season, more than doubling the playoff revenue of the next-best team (the Cavaliers at about $20MM).
How is revenue sharing affecting teams’ earnings?
- Ten teams paid into the NBA’s revenue sharing system in 2016/17, with 15 teams receiving that money. The Sixers, Raptors, Nets, Heat, and Mavericks neither paid nor received any revenue sharing money. Four teams – the Warriors, Lakers, Bulls, and Knicks – accounted for $144MM of the total $201MM paid in revenue sharing.
- While there’s general agreement throughout the NBA that revenue sharing is working as intended, some teams have “bristled about the current scale of monetary redistribution,” according to ESPN. “The need for revenue sharing was supposed to be for special circumstances, not permanent subsidies,” one large-market team owner said.
- The Grizzlies, Hornets, Pacers, Bucks, and Jazz have each received at least $15MM apiece in each of the last four years via revenue sharing.
- However, not all small-market teams receive revenue-sharing money — if a team outperforms its expectations based on market size, it forfeits its right to that money. For instance, the Thunder and Spurs have each paid into revenue sharing for the last six years.
Why might league-wide income issues lead to relocation or expansion?
- At least one team owner has raised the idea of expansion, since an expansion fee for a new franchise could exceed $1 billion and it wouldn’t be subject to splitting 50/50 with players. A $1 billion expansion fee split 30 ways would work out to $33MM+ per team.
- Meanwhile, larger-market teams who aren’t thrilled about their revenue-sharing fees have suggested that small-market clubs losing money every year should consider relocating to bigger markets, sources tell ESPN.
- As Lowe and Windhorst observe, the Pistons – who lost more money than any other team last season – are undergoing a relocation of sorts, moving from the suburbs to downtown Detroit, in the hopes that the move will help boost revenue.
What are the next steps? Are changes coming?
- The gap between the most and least profitable NBA teams is expected to be addressed at the NBA’s Board of Governors meeting next week, per Lowe and Windhorst. Team owners have scheduled a half-day review of the league’s revenue sharing system.
- Obviously, large- and small-market teams view the issue differently. While some large-market teams have complained about the revenue sharing system, they’re outnumbered, with smaller-market teams pushing those more successful clubs to share more of their profits, according to ESPN.
- Trail Blazers owner Paul Allen is one of the loudest voices pushing for more “robust” revenue sharing, sources tell ESPN. Some team owners have argued that the system should ensure all teams make a profit, while one even suggested every team should be guaranteed a $20MM profit. There will be “pushback” on those ideas, Lowe and Windhorst note. “This is a club where everyone knows the rules when they buy in,” one owner said.
- On the other end of the spectrum, some teams have floated the idea of limiting the amount of revenue sharing money a team can receive if it has been taking payments for several consecutive years.
- Any change to the revenue sharing system that is formally proposed at the NBA’s Board of Governors meeting would require a simple majority (16 votes to 14) to pass.
The Heat have exercised their fourth-year team option on Justise Winslow, the club announced today in a press release. Winslow’s status for the coming season won’t be affected by the move, but it will guarantee his salary for the 2018/19 season.
Winslow, the 10th overall pick in the 2015 draft, missed nearly all of his second NBA season in 2016/17 due to a shoulder injury. After playing in 78 games in his rookie year, Winslow appeared in just 18 last season, averaging 10.9 PPG, 5.2 RPG, and 3.7 APG. He looks good to go for the 2017/18 campaign, however, and is expected to battle for the starting small forward job in the preseason.
By exercising their final team option on Winslow, the Heat ensure that he’ll count for $3,448,926 against the cap in 2018/19. The move will also make Winslow eligible for an extension during the 2018 offseason. If he and the Heat don’t strike a deal at that time, the 21-year-old would be on track to reach restricted free agency in 2019.
Decisions on 2018/19 rookie scale team options are due by the end of October, so we should start hearing about more of those moves in the coming weeks. You can follow along with those team option decisions right here.
It has been an eventful few days for the Heat, who saw point guard Goran Dragic lead Slovenia to its first EuroBasket championship with an impressive 35-point performance in the final game of the tournament, earning MVP honors. Dragic’s 35 points in the championship game were the highest EuroBasket Final output since Pau Gasol poured in 36 back in 2003.
Meanwhile, the Heat also officially announced its contract extension with Josh Richardson today. According to reports, Richardson’s new deal will lock him up through the 2020/21 season, with a player option for 2021/22. Miami also added undrafted rookie Erik McCree to its roster for training camp.
Here’s more from out of South Beach:
- Justise Winslow has been “off the board with his commitment this summer,” a source tells Barry Jackson of The Miami Herald, suggesting the third-year forward is working hard to develop his jump shot and his all-around game. As Jackson notes, the Heat are expected to exercise Winslow’s 2018/19 team option in the coming weeks. Winslow will compete with Richardson and Rodney McGruder for the starting job at small forward, Jackson adds.
- According to Jackson, Heat president Pat Riley was “intrigued” by Jared Sullinger, who visited the team earlier this summer. However, Sullinger wasn’t in shape at the time, and Miami didn’t make him an offer. The big man has since signed with a team in China.
- Jackson also notes that the Heat still have one of their two-way slots open, suggesting that camp invitee Matt Williams is a candidate for that spot since his contract can be converted into a two-way deal.
- In an Ask Ira feature, Ira Winderman of The South Florida Sun Sentinel wonders if all the incentive bonuses on new contracts for players like Dion Waiters and Kelly Olynyk may put head coach Erik Spoelstra in a difficult spot this season.
- If you haven’t weighed in already, be sure to vote on the Heat’s win total for 2017/18. Polling will close on Tuesday morning.