Fallout From Bucks’ Acquisition Of Caron Butler
As I detailed earlier this month when I examined how teams have used their 2013 mid-level exceptions, fewer than half of the NBA's 30 teams claimed cap room this summer. Of those 12 clubs that did go below the cap, seven have since exceeded that threshold, and no longer have space available. With only five teams still holding cap room, the odds weren't high that two of those clubs would work out a trade together, but that's exactly what happened last night, when the Bucks reached an agreement to acquire Caron Butler from the Suns.
Typically, over-the-cap trade rules must be observed by at least one team when two sides agree on a swap. But with both Phoenix and Milwaukee holding cap room, this is one of the few deals that doesn't necessarily require those trade exception rules. Still, it's worth exploring how the two teams made the deal work, and what the fallout will be for the Suns' and Bucks' rosters and cap situations.
For the Bucks:
Butler is earning an $8MM salary in 2013/14, so if the Bucks had been over the cap, they would have needed to send out at least $5,266,667 in the trade to make it legal. That wasn't necessary since Milwaukee had cap space, but the team still couldn't take on Butler without sending out any contracts. According to ShamSports, the Bucks' team salary was $51,175,131 prior to the trade, meaning the club had, at most, about $7.5MM in cap space — a little less than that if Marquis Daniels' $884,293 cap hold remains unrenounced.
Assuming Daniels isn't on the team's books anymore, Milwaukee could have included one of either Ish Smith ($951,463) or Viacheslav Kravtsov ($1,500,000) to sneak under the cap. The team included both players in the deal, which could mean several things: Perhaps the Bucks didn't want to renounce Daniels, or maybe the Suns simply wanted to acquire both players. Milwaukee also had 16 guaranteed contracts on their books prior to the deal, so a two-for-one trade saves the team from cutting a guaranteed contract down the road.
In any case, after the trade becomes official, the Bucks' team salary will jump from about $51.18MM to $56,723,668. Again, the presence of Daniels' cap hold affects the club's remaining cap room, but it's safe to say Milwaukee should have between $1MM and $2MM of leftover space, plus the $2.652MM room exception.
As for the effect on the Bucks' roster, adding Butler at the expense of Smith and Kravtsov balances things out nicely. The depth chart had previously been crowded at point guard, where Brandon Knight, Luke Ridnour, and Nate Wolters all figure to see time, so the loss of Smith isn't a big one. The frontcourt also remains strong without Kravtsov, since Larry Sanders, John Henson, Zaza Pachulia, Ersan Ilyasova, Ekpe Udoh, and Miroslav Raduljica can all contribute at power forward and/or center.
For the Suns:
The cap machinations of the deal for the Suns are less straightforward than they are for the Bucks, due in part to Alex Len. The team has yet to announce the signing of Len, meaning that his cap hold, rather than his actual 2013/14 salary, remains on the club's books. As our chart of likely 2013 rookie salaries shows, Len figures to sign for an amount that's nearly $600K greater than his cap hold. That's important for Phoenix, since the team is currently below the cap, at $58,403,579, but would go over the cap (to $58,985,699) if they signed Len to the full 120%.
Why does this matter? Well, if the Suns were over the cap when they made the deal, they could use those aforementioned over-the-cap trade rules. Swapping Butler's $8MM salary for Smith's and Kravtsov's smaller deals would reduce the Suns' guaranteed salaries by $5,548,537, but Phoenix could create a trade exception worth that amount, which also counts toward team salary. In other words, if the Suns were to sign Len, then finalize the Butler deal, they'd only have $53,437,162 in guaranteed contracts on the roster, but that $5,548,537 TPE would still take them a little over the cap, creating slightly more flexibility.
The difference between the two options isn't significant, so it's possible the Suns will just continue to act as an under-the-cap team, and forgo that trade exception in favor of their leftover cap space. But if the team officially announces the Len signing around the same time that they announce the Butler deal, it wouldn't be a surprise.
As Paul Coro of the Arizona Republic notes, clearing $5.5MM+ in salary should also make it more palatable for the Suns to release Michael Beasley. When Len is signed and the Butler deal is finalized, the Suns will have 17 guaranteed contracts for 2013/14, so at least two players will need to be traded or waived. Beasley, who has had his share of off-court issues, is a strong candidate to be cut, and it may happen sooner rather than later.
Players released on or before August 31st are subject to the stretch provision, which allows teams to "stretch" salary payments over additional years, reducing the short-term cost (and cap hit, if the team chooses). Beasley is owed $9MM in guaranteed money over the next two seasons, but by releasing him this week, the Suns could instead pay him that money over the next five seasons. It's not clear yet if stretching those payments is Phoenix's preference, but it looks like a good bet that Beasley will be gone by opening night.
HoopsWorld and ShamSports were used in the creation of this post.
Bucks, Suns Deep In Talks About Caron Butler
10:35pm: A source confirms the existence of the trade negotiations to Marc Stein of ESPN.com, saying that the deal is still in the works. The Suns are seeking only draft picks and short-term contracts, Stein adds (Twitter links).
9:45pm: The Bucks and Suns are in "serious" negotiations about a trade involving Caron Butler, reports Gery Woelfel of the Racine Journal Times. Woelfel tweeted earlier tonight that Milwaukee made a run at Butler before the Clippers traded him to the Suns last month in the same three-way deal in which the Bucks sent J.J. Redick to L.A. The Suns are barred from trading Butler until September 10th if they include another player in the deal, but they can swap him at any time if they send him out by himself. Woelfel says the deal could be consummated by today.
An injury to free agent acquisition Carlos Delfino is fueling Milwaukee's pursuit of an established small forward, Woelfel writes, adding that he's heard rumors that Delfino could miss part of the regular season after undergoing surgery for a fracture in his right foot. Giannis Antetokounmpo and Khris Middleton are the only other small forwards on the roster.
Butler's $8MM expiring contract would put Milwaukee just above the salary cap, so they'll have to send salary out as part of the deal. The Bucks have eight different players capable of playing either power forward or center, so it figures that they'd try to include one of them in a trade. In any case, it's not likely to be a marquee name heading to Phoenix, according to Woelfel, as the Suns are prioritizing assets that can help them in the future over immediate returns. Draft compensation will probably be the jewel of the swap for Phoenix, though that's just my speculation.
Bucks GM John Hammond and new Suns GM Ryan McDonough have been among the most active executives on the trade market this summer. If they strike a deal involving Butler, it would be Milwaukee's fifth trade since the beginning of July, and Phoenix's third. And while few players would welcome a winter in Milwaukee instead of Phoenix, Butler is a native of nearby Racine, Wisconsin, so presumably he'd be on board.
Bucks Seeking SF, Made Run At Caron Butler
With this week's press conference to announce the Larry Sanders extension, it seemed like the Bucks, like most teams, were done with their significant offseason work. That may not be the case, as sources tell Gery Woelfel of the Racine Journal Times that they're seeking to add an established small forward (Twitter link). Milwaukee attempted to trade for Caron Butler last month, Woelfel adds, but the former All-Star wound up going to the Suns in the same three-way trade that saw the Bucks cut ties with J.J. Redick.
Milwaukee is one of only two teams with significant cap room, with about $7.5MM worth of space, so they may be exploring free agents in addition to trades. There aren't any players of Butler's caliber left on the market, but other veteran options like Mickael Pietrus, Josh Childress and Stephen Jackson are among the unsigned small forwards with extensive NBA experience. Childress has reportedly drawn interest from multiple clubs of late, so perhaps the Bucks are in on him as well. Jackson seems least likely, since it would be tough to envision a reunion after he feuded with former coach Scott Skiles and found himself on the outs with the Spurs this season just as the playoffs were about to start.
Hedo Turkoglu could be another possibility, as he's acknowledged that it's unlikely he'll remain with the Magic for much longer. He's in talks with Orlando about a buyout of his expiring contract, which is worth $12MM but only 50% guaranteed. At least one team from overseas is already poised to make an offer if he becomes a free agent, but it looks like the Magic may try to see what they can get in a trade. The Bucks would have to send some salary out to make such a deal work, but with their glut of big men, they may be willing to make a deal, though that's just my speculation.
With dwindling free agent options and a quiet trade market, the Bucks may extend their search for a small forward into the season, or at least training camp, when other teams are more open to trades and some veterans — as Quentin Richardson was last year — might be cut loose.
Eastern Notes: Sanders, Bulls, Contract Years
Let's round up a few Wednesday items out of the Eastern Conference….
- According to Gery Woelfel of the Racine Journal Times (via Twitter), there were some Bucks officials who wanted to cut Larry Sanders a year ago, making his lucrative new four-year extension with the club even more remarkable.
- The Heat will head into 2013/14 as the favorites to come out of the East for a fourth straight year, but Lang Greene of HoopsWorld warns that sleeping on the Bulls, despite their fairly quiet offseason, would be a mistake.
- Ira Winderman's latest mailbag at the South Florida Sun Sentinel includes questions on the Heat's inactivity and on whether Mikhail Prokhorov's willingness to go deep into the luxury tax will have an effect on the league's other owners.
- In an Insider-only piece for ESPN.com, David Thorpe poses "burning questions" facing the five Atlantic Division teams.
- Danny Granger (Pacers), Kyle Lowry (Raptors), and Paul Pierce (Nets) are a few of the players in contract years who Alex Kennedy of HoopsWorld believes are worth watching.
Odds & Ends: Brewer, Bucks, McGrady, Heat
Ronnie Brewer considered signing with the Bulls, Jazz and Lakers before ultimately choosing the Rockets, the 28-year-old swingman tells Mark Berman of Fox 26 Houston. He also reiterated his assertion from June that the Thunder were in play to re-sign him, too, but Houston's up-tempo style of play helped sway him. Despite having only a partially guaranteed deal on a team with a league-high 19 players under contract, he's not worried about getting cut. "If I come in and I do what I'm supposed to do, all of that goes out the window," he said to Berman. As Brewer gets set to officially sign his contract, here's more on the league's comings and goings with about a month to go before training camp:
- The Bucks have hired David Morway as assistant GM and Jim Cleamons as the team's top assistant coach, notes Charles F. Gardner of the Journal Sentinel.
- So much of Tracy McGrady's talent vanished long before he announced his retirement today, and he went underappreciated in Orlando during his peak years, as John Denton of Magic.com argues. The Magic, Raptors and Rockets are all left wondering what might have been, the Toronto Sun's Ryan Wolstat writes.
- Toure Murry still hasn't committed to the Knicks nearly a month after the club extended him a training camp invitation, but the 6'5" guard is expected to pick a team later this week, according to Ian Begley of ESPNNewYork.com (Twitter link).
- In his latest mailbag for the South Florida Sun Sentinel, Ira Winderman discusses the Heat's luxury-tax situation, their mid-level exception, and the possibility of the team signing Richard Hamilton.
- Now that 14 NBA teams have one-on-one relationships with their respective D-League affiliates, the remaining 16 teams are sharing three D-League clubs. Nonetheless, those squads with five or six NBA affiliations can still help young NBA players develop, as Gino Pilato of Ridiculous Upside outlines.
Luke Adams contributed to this post.
Eastern Notes: Sanders, Casey, Celtics, Newton
In his latest piece for Grantland.com, Zach Lowe explores what Larry Sanders has to do to justify his new, long-term contract with the Bucks. In breaking down Sanders' footwork and positioning on specific plays, Lowe goes much more in-depth than I did when I examined the big man's four-year extension earlier today, but we ultimately reached similar conclusions. Even though Sanders has only had one productive NBA season, I liked the deal for Milwaukee, and Lowe agrees, writing that it "should turn out just fine for the Bucks."
Here's more from around the Eastern Conference:
- Even though Dwane Casey is heading into the final year of his deal, the Raptors head coach doesn't intend to "spend a waking moment" worrying about his uncertain long-term contract situation, as he tells Sean Deveney of the Sporting News.
- Eric Pincus of HoopsWorld explains how the Celtics/Grizzlies swap of Fab Melo and Donte Greene worked financially, adding that Boston sent $1.66MM in cash to Memphis to complete the deal.
- The Celtics also officially finalized their coaching staff today, formally announcing the hirings of assistants Ron Adams, Micah Shrewsberry, and Walter McCarty in a press release.
- After some conflicting reports on whether or not Timberwolves president Flip Saunders had interviewed Milt Newton for the team's GM job yet, Jerry Zgoda of the Star Tribune tweets that Saunders is in Washington today to meet with the Wizards executive.
- In today's mailbag for the South Florida Sun Sentinel, Ira Winderman addresses the unlikely possibility of a Chris Bosh trade and agrees that the Heat could use another athletic perimeter player.
Examining New Deals For Pekovic, Sanders
While most of the summer's most lucrative new contracts were signed last month, a pair of big men have cashed in within the last week. Nikola Pekovic reached an agreement with the Timberwolves on a five-year, $60MM deal, which includes up to $8MM in potential incentives. And just yesterday, Larry Sanders and the Bucks finalized a four-year, $44MM extension, which could include another $4MM in incentives.
Comparing Pekovic's and Sanders' deals is a little tricky — the Timberwolves center wasn't coming off a rookie-scale contract, is already 27 years old, and was available on the open market (albeit as a restricted free agent). Sanders, on the other hand, remained under Bucks control for another year, is just 24, and received a rookie-scale extension.
Still, both players fall into a group of big men that has received four- or five-year contract in recent years, after playing three or four NBA seasons. Here's a look at how Pekovic and Sanders stack up against a few other players who have inked similar deals, along with their career stats at the time they signed their respective contracts (sorted by overall dollar amount):
There are a few caveats worth mentioning here: All these players were signed three years into their NBA careers except JaVale McGee, who had four years of experience when he re-upped with the Nuggets. Additionally, only Sanders, Taj Gibson, Serge Ibaka, and Al Horford signed rookie-scale extensions. Pekovic, McGee, and DeAndre Jordan were re-signed as restricted free agents.
Taking these factors into account, our first instinct may be to assume that the Bucks overpaid for Sanders, who ranks noticeably behind most of the players on this list when it comes to experience, playing time, and scoring. Some of his career numbers compare favorably to Gibson's, Jordan's, and McGee's, but Gibson is being paid nearly $3MM per year less than Sanders, and overpaying for Jordan and McGee was more defensible, since their deals came in free agency, rather than a year earlier.
Of course, the Bucks aren't paying for Sanders' career stats; they're paying for his potential, which he began to realize during the 2012/13 season. Sanders' '12/13 averages (9.8 PPG, 9.5 RPG, 2.8 BPG, 18.7 PER) are easily better across the board than the numbers Gibson and Jordan put up in the season prior to their new contracts. McGee's pre-free-agency season was perhaps a little more productive than Sanders', but it's worth mentioning again that McGee was in his fourth season, not his third.
If we assume that Sanders will take another step forward in year four of his NBA career, and also consider how difficult it is for the Bucks to attract marquee free agents, that four-year, $44MM looks like a solid value for the team. It's about in line with the market rate, and it was probably a necessary investment for a club that saw multiple impact players (Brandon Jennings, Monta Ellis) choose to leave Milwaukee this offseason.
As for Pekovic, when I asked last week whether the Wolves got a good value, Hoops Rumors readers were nearly split between viewing the deal as an overpay or just about right. Horford provides the easiest point of comparison, since the two contracts are virtually identical, and their career numbers are nearly identical as well, with Pekovic perhaps being a little more efficient in less overall playing time.
Unlike the other players on this list though, Pekovic didn't sign his first NBA deal out of college, but rather spent multiple years overseas before joining the T-Wolves. As such, he's actually a few months older than Horford, despite the fact that the Hawks big man inked his extension nearly three years ago, while Pekovic is just seeing his first huge payday now. When Atlanta locked up Horford at age 24, the club was banking on continued development, whereas there's a good chance that with Pekovic, at age 27, what you see is what you get.
In the short-term, the Wolves should be just fine if Pekovic produces at the same rate he did in 2012/13, when he averaged 16.3 PPG, 8.8 RPG, and a 20.2 PER. After all, those stats look pretty similar to what Horford did this past season while playing a few extra minutes per game (17.4 PPG, 10.2 RPG, 19.8 PER), and Horford's contract is generally considered an excellent value for the Hawks.
In the longer-term, Pekovic's contract may prove to be an overpay, but he'll only be 32 when it expires, so his production shouldn't fall off a cliff. Considering Pekovic had the chance to talk to any of the NBA's other 29 teams, and the Wolves were still able to lock him up at a rate of $12MM annually, I don't mind the investment, even if it may end up being for one year too long.
Pekovic and Sanders may never become top-20 players in the NBA, but they're talented enough that they should be worth eight-digit salaries. For Minnesota and Milwaukee, which aren't exactly prime free agent destinations, landing a scoring center like Pekovic or a rim-protecting power forward like Sanders isn't easy. I think both teams managed to lock their players up to fair deals, but even if they overpaid by a few million dollars, it will likely be worth it, considering the lack of alternatives available.
Odds & Ends: Sanders, Nets, Jazz, McCarty
Larry Sanders has a brand new deal with the Bucks that will make him the face of the franchise after the departures of Monta Ellis and Brandon Jennings. However, he'll have to get accustomed to an entirely new system in Milwaukee this season, writes Yannis Koutroupis of HoopsWorld. Many are expecting a drop off from last season based off what the Bucks lost, but if Sanders can take another step forward, they could still be in the mix for a playoff spot. Here's more from around the Association..
- The Nets announced that they have finalized their coaching staff by hiring assistants John Welch, Joe Prunty, and Charles Klask. That brings the total staff count underneath coaching neophyte Jason Kidd to six.
- The Nets also announced that Doug Overton has been appointed as the head coach of their D-League affiliate, the Springfield Armor. Overton enjoyed a lengthy playing career that included two stints with the Nets.
- The Jazz announced that Justin Zanik will serve as an assistant GM. Utah GM Dennis Lindsey says that he's excited about being able to draw on the insight of a former agent, tweets Bill Oram of the Salt Lake Tribune.
- Walter McCarty confirmed to Jeff Goodman of ESPNBoston.com (on Twitter) that he'll be joining the Celtics staff as an assitant coach under Brad Stevens.
Bucks Sign Larry Sanders To Extension
The Bucks have officially signed Larry Sanders to a long-term contract extension, the team announced today in a press release. Sanders himself broke the news this afternoon on Instagram, writing, "It's official. Can't believe I've been granted this opportunity to represent Milwaukee for the next five years and hopefully the rest of my career." The caption accompanied a photo of Sanders signing his new deal.
ESPN.com's Marc Stein first reported earlier this month that Sanders and the Bucks were nearing an extension agreement. Adrian Wojnarowski of Yahoo! Sports chimed in last Friday with a similar report, adding that the deal figured to be for four years and $44MM, with a few incentives that could boost the overall value to about $48MM for the Dan Fegan client. Prior to that report, Chuck Myron of Hoops Rumors had predicted that Sanders would be in line for an annual salary in the neighborhood of $11-12MM.
Sanders, 24, didn't appear to be a real extension candidate heading into the 2012/13 season, but enjoyed a breakout year and established himself as a core piece in the Bucks' frontcourt. After averaging 4.0 PPG, 3.0 RPG, and a 12.0 PER in limited minutes during his first two years in the NBA, Sanders increased those averages to 9.8 PPG, 9.5 RPG, and an 18.7 PER this past season.
Because his extension won't take effect until the 2014/15 season, the new deal will keep Sanders under contract through 2018, assuming it's a four-year pact as initially reported. It will also make him Milwaukee's highest-paid player starting next season, exceeding O.J. Mayo's $8MM salary.
By finalizing his agreement with the Bucks, Sanders becomes the second of 18 eligible players to extend his rookie-scale contract this offseason. John Wall and the Wizards agreed on a five-year max extension earlier this summer.
Bucks, Larry Sanders Near Deal On Extension
The Bucks and Larry Sanders are nearing agreement on a four-year, $44MM contract extension, according to Adrian Wojnarowski of Yahoo Sports. The deal will include bonuses that could push the value of the contract to the $48 million range, according to sources.
Sanders, 24, enjoyed a breakout season in Milwaukee last year, averaging 9.8 PPG, 9.5 RPG, and 2.8 blocks per contest. Even though the Bucks were swept by the Heat in the opening round of the playoffs, Sanders showed that he could produce in the postseason with 10.8 PPG and 8.3 RPG.
The Bucks have had a very busy offseason which has seem them add free agents O.J. Mayo, Carlos Delfino, and Zaza Pachulia while parting ways with a number of players including Monta Ellis and J.J. Redick. Milwaukee also replaced interim coach Jim Boylan with former Hawks head man Larry Drew.
Recently, our own Chuck Myron examined Sanders as an extension candidate and concluded that he would wind up with a contract that would give him between $11MM and $12MM annually. That's pretty much what the big man has in this deal as his base AAV is $11MM with incentives that could bump him to $12MM. Sanders is a client of Relativity Sports' Dan Fegan, according to the Hoops Rumors Agency Database.