Financial Impact Of Deadline Trades: Southeast
Last week’s trade deadline was a dizzying affair, with 39 players and 17 teams involved in a dozen trades, including a trio of three-team transactions. The day had wide-ranging effects on the salary structures of those 17 teams, and we’ll examine the aftermath for each of them in this multipart series.
We’ll begin today with the Southeast Division, home to the Heat, who acquired Goran Dragic, arguably the top player involved in the deadline-day trades, and the Wizards, who engineered an Andre Miller trade for the second deadline in a row. The salary figures listed here denote this season’s salaries, though we’ll also discuss salary for future seasons.
Miami Heat
In: ($9,206,250)
- Goran Dragic ($7,500,000)
- Zoran Dragic ($1,706,250)
Out: ($6,159,673)
- Norris Cole ($2,038,206)
- Shawne Williams ($1,227,985)
- Justin Hamilton ($816,482)
- Danny Granger ($2,077,000)
The Heat slightly lowered their financial commitments for 2015/16, since Zoran Dragic‘s salary for next season is about $464K less than Danny Granger‘s player option. That’s rare for a team that acquires a star, but it’s not nearly the most significant financial upshot here. There was no reasonable chance that Miami would have had been able to clear the cap room to chase Goran Dragic with a fair offer in free agency if they hadn’t traded for him at the deadline. Making a play for Dragic without already having him in the fold would likely have required Dwyane Wade to down his $16.125MM for next season and agree to re-sign for mid-level exception money. Even a “Heat lifer” such as Wade would no doubt hesitate to do that. The motivation to trade for Dragic was much greater for the Heat than for the Knicks or the Lakers, two of the other teams Dragic was reportedly eyeing, and two teams expected to have enough cap room to pay him the max this summer. Those teams will still be out there once Dragic turns down his $7.5MM player option, as he plans to do, but now Miami has the financial advantage of Dragic’s Bird rights to go over the cap to sign him.
For the time being, the trade makes it more difficult for the Heat to find a way to offset the loss of Chris Bosh for the season, since it causes the Heat’s team salary to leap by $3MM, putting them only around $1MM shy of the tax line. That makes it unlikely the team uses the full value of its nearly $2.653MM disabled player exception.
Washington Wizards
In: ($2,077,000).
- Ramon Sessions ($2,077,000)
Out: ($4,625,000)
- Andre Miller ($4,625,000)
Sacramento used a trade exception to accommodate this swap, which gave the Kings more than twice as much salary as they gave up, and that in turn allowed the Wizards the chance to create a trade exception of their own. The precise value of that new exception is unknown, since J. Michael of CSNWashington.com writes that the team used part of its $4,329,089 Trevor Ariza trade exception to absorb Sessions, while Eric Pincus of Basketball Insiders figures the Wizards kept that exception intact (Twitter link). Michael’s way lets the Wizards create a new exception equivalent to Miller’s $4,625,000 salary, leaving the Ariza exception at $2,252,089. Pincus has the Wizards creating a new exception worth the difference between the salaries for Miller and Sessions, which comes to $2.548MM. If I had to take a guess, I’d say the Wizards did it as Michael indicates, since in that case the larger exception would be the newer of the two, giving it a later expiration date. However, that’s just my speculation.
What is clear is that Washington gave up some cap flexibility next season, taking on Sessions’ 2015/16 salary of more than $2.17MM instead of Miller’s contract, which expires at the end of this season, for some relief against the tax threshold this season. The Wizards were $1MM shy of the tax line going into the deadline, and now they have $3.548MM in breathing room. Even without the trade, Washington could still have added any player on a prorated portion of the minimum salary, which is all they have to give, and avoided the tax, assuming unlikely bonus clauses in the contracts of the players already on the roster didn’t trigger. I’d imagine the move was motivated more by Washington’s belief that Sessions can outperform Miller than by any immediate tax concerns, though that’s just my speculation. In any case, the team wouldn’t have had a chance to open enough cap room this summer to chase a marquee free agent before the trade, so adding Sessions’ salary for next season doesn’t do much harm. The Wizards should still have enough room beneath the projected $81MM tax threshold for 2015/16 to use the full biannual and non-taxpayer’s mid-level exceptions.
The Basketball Insiders salary pages were used in the creation of this post.
And-Ones: Durant, Heat, Celtics, Hawks
The Thunder announced via press release that Kevin Durant underwent a procedure on his right foot to help alleviate the soreness he has been experiencing. There’s no exact timetable for KD’s return at the moment, but we should have a better idea when he’s reevaluated a week from now. Here’s tonight’s glance around the Association..
- Because of luxury-tax implications, the Heat may have to bypass spending the entire $2.65MM salary-cap exception received for Josh McRoberts‘ knee injury, Ira Winderman of the Sun Sentinel writes. The Heat have until March 10th to use that DPE, but they’re only $1.4MM below the 2014/15 luxury tax line of $76.8MM. The immediate luxury tax payment would be minimal, but it would reset the team’s luxury tax clock.
- Even with Isaiah Thomas now in the fold, the loss of Jared Sullinger may be enough to sink the Celtics‘ playoff hopes, Jeremy Gottlieb of Boston.com writes. The C’s announced on Sunday that Sullinger will miss the remainder of the season because of a metatarsal stress fracture in his left foot. Sullinger was averaging 14.4 points and 28.7 minutes per game this season, both career highs.
- Who says you need a superstar to win? The Hawks are shunning convention with their roster and soaring, Eric Koreen of the National Post writes.
Southeast Notes: Beasley, Dragic, Cole, Magic
Former Heat forward Michael Beasley could be an option to replace Chris Bosh, reports Ira Winderman of The Sun Sentinel. Bosh was diagnosed with blood clots in his lungs this morning and will miss the rest of the season. Winderman notes that Beasley recently finished his season in China and has been holding workouts at Miami’s AmericanAirlines Arena. Another possibility is free agent center Andray Blatche, whom the team considered earlier this season. Miami has a $2.65 MM disabled-player exception from the knee injury suffered by Josh McRoberts.
There’s more news from the Southeast Division:
- Newly acquired Goran Dragic isn’t committing to staying with the Heat yet, but he’s offering hints that he would like to see it happen, Winderman tweets. Dragic adds that his focus for now is helping Miami for the rest of the season (Twitter link), and he hopes that he has “a lot more years” with the Heat, but the business side of basketball is unpredictable (Twitter link).
- Heat coach Erik Spoelstra told Winderman in a separate story that parting with Norris Cole was the most difficult part of the three-team trade that brought Dragic to Miami. Cole won two NBA titles in his three full seasons in Miami. “When you send a player like Norris Cole,” Spoelstra said, “to another team, a two-time champion, somebody that came up through our ranks — we developed him, we spent a lot of time when we drafted him — that’s always tough in this business.” For the record, the Bulls drafted Cole in 2011 and shipped him the next day to the Wolves, who flipped him to the Heat that same day.
- The Magic aren’t planning any buyouts before the end of the season, reports Josh Robbins of The Orlando Sentinel. At age 33, Willie Green had been considered a possible candidate, but he flatly stated that he has no interest. “‘Buyout’ is not really in my language,” Green said. “I get paid to come in here to be professional and play hard and go out and try to help the team win. As far as I’m concerned, I’m with Orlando for the rest of the year.”
Five Teams In Talks With Thomas Robinson
Thomas Robinson has had conversations with the Spurs, Nets, Suns, Heat and Hornets in the wake of his buyout deal with the Nuggets, reports Shams Charania of RealGM (Twitter link). The former No. 5 overall pick went to Denver in the deadline-day trade that sent Arron Afflalo to the Blazers.
The Suns can spend the most, with more than $3.247MM in cap room. Miami has a disabled player exception worth nearly $2.653MM it can spend. The Spurs have a prorated portion of their mid-level, worth about $2.4MM, while the Hornets have their room exception, which comes to about $2MM at this point. The exceptions that San Antonio and Charlotte possess reduce in value daily. The Nets are limited to the minimum salary, which also prorates on a daily basis.
Robinson has seen his minutes decline each season after his rookie campaign, when he was traded midseason from the Kings to the Rockets. Portland acquired him when Houston sent him out in a cap-clearing move that helped the Rockets sign Dwight Howard, but at each stop, the power forward has failed to live up to his draft position. Still, he’s an efficient rebounder, averaging 4.2 boards in 12.2 minutes per game this season.
Southeast Notes: Dragic, Sessions, Wizards
Dwyane Wade is extremely pleased that the Heat acquired Goran Dragic, calling his new teammate the best point guard he’s ever been paired with, Ira Winderman of The Sun Sentinel writes. “I haven’t played with a point guard with his ability since I’ve been here, in the league,” Wade said. “This is going to be great for everyone, a guy who can penetrate, set guys up, but also a guy who can score the basketball, as well, someone who’s very tough. You want a tough guy to play with. He is that. Needless to say, I was very happy about what we were able to do at the trade deadline.”
Here’s more from the Southeast Division:
- The trade of Andre Miller to the Kings for Ramon Sessions gave the Wizards approximately $2.5MM more space beneath the luxury tax threshold to work with, which could come in handy if Washington needs to sign another player, Jorge Castillo of The Washington Post notes.
- The Wizards hope that Sessions will perform well enough to lock down the backup point guard duties for next season, when he is owed a reasonable $2,170,465, J. Michael of CSNWashington.com writes. “There’s no question about that. We’re not going to take on any real long-term contracts. We don’t want to hurt our long-term flexibility,” Washington GM Ernie Grunfeld said. “At the same time, when a player comes available you want to look at it. He’s under contract this year and next year and if you look at backup point guards that are going to be available next year, it’s not a great list. It’s not that many of them.“
- Sessions is happy to be a member of the Wizards, Jeff Zillgitt of USA Today relays. “Washington is a great situation for Ramon,” Sessions’ agent Jared Karnes said. “He’s obviously looking forward to going to the playoffs. He has a contract year coming up and this gives him a chance shake things up and be part of a playoff team. Ramon appreciated his time in Sacramento and wishes them success.“
Chris Bosh Out For The Season
SATURDAY, 3:39pm: Bosh is officially out for the remainder of the season, the Heat announced in a press release. The team’s statement added, “Bosh, who is receiving care under the guidance of Miami Heat team physicians at a Baptist Health System Hospital, is currently resting comfortably. Chris is OK and his prognosis is good.”
5:08pm: The Heat are expected to announce that Bosh’s season is over, Joseph Goodman of The Miami Herald reports (Twitter link). However, Heat coach Erik Spoelstra has stated that no decision regarding Bosh has been made yet, Jason Lieser of The Palm Beach Post tweets. “We’re still in the info collecting process. Anything right now is premature. We’ll know more as soon as we can,” Spoelstra said.
12:46pm: Bosh has blood clots in both lungs, Zwerling hears (Twitter link).
11:49am: Heat coach Erik Spoelstra cautioned that while the team is concerned, Bosh’s diagnosis isn’t final, as USA Today’s Jeff Zillgitt relays.
9:49am: Bosh has a blood clot in one lung, according to Bleacher Report’s Jared Zwerling (Twitter link). Heat team president Pat Riley understands that Bosh’s condition typically sidelines players for the season, tweets Barry Jackson of the Miami Herald, who wrote earlier that it’s “difficult to envision” Bosh playing again this season.
FRIDAY, 8:19am: The Heat are worried that Chris Bosh has multiple blood clots on his lungs that would force him to miss the rest of the season, reports Joseph Goodman of the Miami Herald. Initial tests proved inclusive after Bosh was admitted to a Miami-area hospital Thursday, according to Goodman. The treatment for pulmonary embolus, or multiple clots, would involve blood thinners, which could keep the Heat’s star out for even longer than the balance of 2014/15, Goodman writes. The condition appears to have come on rather quickly for Bosh, who played just this past Sunday in the All-Star Game.
An absence of any significant length would be a devastating blow to the Heat, who are in a dogfight to make the playoffs in the Eastern Conference, and on Thursday they acquired Goran Dragic in part to help that postseason push. The deadline to apply for a disabled player exception passed last month, so Miami couldn’t gain any additional salary flexibility if Bosh were to be ruled out for the season, though the team does already have a disabled player exception worth $2,652,500 for Josh McRoberts. That exception doesn’t expire until March 10th.
The Heat have a pair of open roster spots, though they’re reportedly set to sign Henry Walker to a 10-day contract. Center Kendrick Perkins seems headed for a buyout from the Jazz, while the Nuggets and Thomas Robinson have apparently already agreed to one, and the Heat reportedly showed interest in free agent Andray Blatche earlier this season. It’s unclear if Miami would pursue any of them at this point, and none would come close to the production of Bosh, who’s averaged 21.1 points and 7.0 rebounds per game. Bosh, 30, is making $20.644MM in the first year of a five-year max contract. One NBA player is already being forced to miss the rest of this season with multiple blood clots in his lungs, as the condition struck Nets forward Mirza Teletovic last month.
Heat Sign Henry Walker To 10-Day Deal
SATURDAY, 3:37pm: The deal is official, the Heat announced.
FRIDAY, 7:54am: The Heat will sign swingman Henry Walker to a 10-day contract, according to David Pick of Eurobasket.com (Twitter link). Walker is a four-year NBA veteran who went by the name Bill Walker when he played for the Celtics and Knicks between 2008/09 and 2011/12. He’s been with the Heat’s affiliate in the D-League this season.
Walker was part of the rotation for the Knicks in 2011/12, when he saw his last NBA action, averaging 5.8 points in 19.4 minutes per game across 32 appearances that year. He was an 11.9 PPG scorer in 27.4 MPG in 27 contests for the Knicks in the second half of the 2009/10 season. The now 27-year-old has spent part of each of the last three seasons in the D-League, with a short stint in Venezuela thrown in. He’s been on a shooting tear of late, nailing 44.8% of his three-point attempts in 17 D-League contests this season, as Pick points out.
Miami has a pair of open roster spots after Thursday’s three-way trade with the Suns and Pelicans that brought the Dragic brothers to town. The Heat signed Tyler Johnson to a two-year deal after inking him to a pair of 10-day contracts earlier this season, so surely Walker, a Mike Naiditch client, will hope for the same.
Execs Losing Faith That Ray Allen Will Sign
There is a growing feeling among GMs and league executives who are interested in signing Ray Allen that the veteran guard won’t play this season, Adrian Wojnarowski of Yahoo! Sports reports. Allen has been mulling a comeback all season, but neither he, nor his agent Jim Tanner, have made any definitive statements that the player would return to the hardwood during the 2014/15 campaign, Wojnarowski adds. It was rumored that the 39-year-old sharpshooter was going to make a choice regarding his future shortly after the All-Star break.
Allen has been working out, but not at a pace that would allow him a quick transition into NBA playing shape, sources tell Wojnarowski. There’s still time for Allen to make a decision to return, but as one GM told the Yahoo! Sports scribe, “It’s getting late in the game for this to happen.”
The Grizzlies are one team that’s maintained an interest in Allen, as Ronald Tillery of The Commercial Appeal writes in a subscription-only piece. Other teams that have been reportedly linked to the veteran include the Warriors, Wizards, Cavs, Spurs, Heat and Hawks.
Lakers Remain Free Agent Contender For Dragic
12:22pm: The Heat were believed to be the No. 1 team on the list of preferred destinations that agent Bill Duffy reportedly gave the Suns before the trade, according to Chris Mannix of SI.com.
10:12am: New Heat trade acquisition Goran Dragic views the Lakers as a “perfect fit” and would love the opportunity to join the team in free agency this summer, a source with knowledge of Dragic’s thinking told Mark Medina of the Los Angeles Daily News. Still, the point guard will probably re-sign with the Heat this summer, as Sean Deveney of The Sporting News heard Thursday, and the expectation is that the Heat will make a five-year max offer, as Ramona Shelburne of ESPNLosAngeles.com also reported Thursday.
Miami’s ability to offer that fifth year gives the team a financial edge on the other 29 clubs who are limited to offers of no more than four seasons, though USA Today’s Sam Amick heard before the trade that the fifth year wouldn’t hold sway over his decision on where to sign. The Heat also have the ability to offer more money through 7.5% raises instead of the 4.5% raises to which the Lakers and other teams are limited. Dragic has a $7.5MM player option for next season, but he’s said he plans to turn it down.
The Lakers made a hard push to trade for Dragic in advance of Thursday’s deadline, as Medina confirms. The team has reportedly been eyeing him for months for free agency as well as a trade, and Dragic has said it would be “cool to play with” Kobe Bryant. Still, Rade Filipovich, one of Dragic’s agents, told Barry Jackson of the Miami Herald that there’s no question Dragic will like playing with Dwyane Wade and Chris Bosh, and Filipovich also praised Heat team president Pat Riley and coach Erik Spoelstra.
“It’s a great fit,” Filipovich said of the Heat. “Goran and Wade to bring the ball up, create offense, very good shooters –– very interesting team. A playoff team. He feels lucky he ended up in Miami. He’s very happy.”
Eastern Notes: Sessions, Heat, Pacers
Ramon Sessions‘ agent, Jared Karnes, is excited to see his client join the Wizards, Jeff Zillgitt of USA Today Sports writes. “Washington is a great situation for Ramon,” Karnes said. “He’s obviously looking forward to going to the playoffs. He has a contract year coming up and this gives him a chance shake things up and be part of a playoff team. Ramon appreciated his time in Sacramento and wishes them success.”
Here’s more from the Eastern Conference:
- The Pacers made a serious bid to acquire Reggie Jackson from the Thunder, according to Adrian Wojnarowski of Yahoo Sports (on Twitter). Of course, the Pacers wound up losing out to the Pistons.
- The Heat made Hassan Whiteside an untouchable in trade talks along with Dwyane Wade and Chris Bosh, according to Marc J. Spears of Yahoo Sports (on Twitter).
- Knicks president Phil Jackson can learn a lot about being a successful NBA executive from the Heat‘s Pat Riley, Mike Vaccaro of The New York Post writes.
- Raptors GM Masai Ujiri was happy enough with his roster to not make any moves prior to the trade deadline, Holly MacKenzie of NBA.com writes. “We feel confident in this team,” Ujiri said. “In terms of growth, in terms of growing, we’re still a long ways away. We understand that, but a lot of things that were put in front of us were things that maybe [helped] immediately, something that makes you a slightly better now, but it also takes away from younger guys continuing to grow. We felt it wasn’t the time.”
- Goran Dragic is likely to sign a long-term deal this summer to remain with the Heat, Sean Deveney of The Sporting News writes. More than anything else, Dragic desires stability in his career, Deveney adds. “Finding a place where I can be a part of something and build toward something, that is what I have wanted most, really. Having stability,” Dragic told the Sporting News scribe.
Zach Links contributed to this post.