RJ Barrett Hasn’t Been “Ruled Out” Of Donovan Mitchell Trade
Despite an agreement on a lucrative extension and significant complications from the “poison pill provision,” sources tell Shams Charania of The Athletic (video link via The Rally) that Knicks wing RJ Barrett could still be offered in a trade for Jazz guard Donovan Mitchell.
“It’s not expected that he is going to be ruled out of any potential trade, and I’m told through various sources that RJ Barrett could very well end up being in a potential deal and being in offers depending on the framework of a deal,” Charania said.
According to Charania, New York’s latest offer for Mitchell included Barrett and two unprotected first-round picks, but the Jazz wanted more in return for the three-time All-Star, so the Knicks wound up giving Barrett an extension.
As we outline in our glossary entry, a player who signs a rookie scale extension but remains on his rookie contract has different outgoing and incoming salary-matching figures, which is referred to as a “poison pill” — in Barrett’s case, the gap between his outgoing and incoming figures will reportedly exceed $15MM. That would make it extremely challenging for both the Knicks and Jazz to send out and take back a legal amount of salary if Barrett is part of a package for Mitchell.
As Charania notes, the Knicks still have other assets to include in a deal that doesn’t involve Barrett, with the Jazz reportedly prioritizing landing as many unprotected first-rounders as possible. New York remains “hopeful” that it can still land Mitchell without including Barrett, and wouldn’t have extended him if the team thought it would nix a potential deal, a source tells Marc Berman of The New York Post.
According to Berman, the Lakers are “open to discussions” about a potential three-team trade, and still have interest in Knicks wing Cam Reddish, who received scant playing time after being acquired from Atlanta in January. Charania previously reported that the Lakers are also interested in Jazz forward Bojan Bogdanovic.
Stefan Bondy of The New York Daily News reports (Twitter links) that Barrett’s extension is a straight four-year deal with no options and includes $107MM in guaranteed money. Barrett could earn as much as $120MM from incentives, but he’ll still be making an average of $26.75MM per season from 2023-27.
Chet Holmgren Undergoes Successful Surgery
Thunder rookie Chet Holmgren underwent successful surgery to address a Lisfranc injury in his right foot, the team announced on Tuesday. As we previously relayed, Holmgren will miss the 2022/23 campaign.
Holmgren, 20, was drafted second overall by Oklahoma City in June. The 7’0″ prospect has intrigued teams with his length and offensive skillset, averaging 14.0 points, 8.4 rebounds and 2.8 blocks per game in five summer league contests last month.
As Joe Mussatto of The Oklahoman writes, a Lisfranc injury can be related to ligament damage, bone damage or both. Holmgren suffered ligament damage that will sideline him for several months. He joins a long list of high draft picks to miss their rookie seasons, including all-NBA center Joel Embiid and former No. 1 overall selections like Ben Simmons and Blake Griffin.
The Thunder are coming off a 24-58 season and will have to proceed without Holmgren for the time being. The team is still rebuilding, however, so Holmgren’s absence shouldn’t have a major impact on its place in the 2022/23 standings.
Alex Rodriguez’s Financial Situation Puts Timberwolves Deal In Jeopardy
Alex Rodriguez is struggling to come up with his share of the money to buy the Timberwolves, according to business writer Josh Kosman of The New York Post.
Rodriguez and Marc Lore were originally supposed to be equal partners in the $1.5 billion purchase, which included a $250MM down payment made in July of 2021. However, three sources tell Kosman that Rodriguez wasn’t able to pay 50% of that cost and Lore had to cover the balance. That leaves Lore with about a 13% share of the team, while Rodriguez is at 7%.
Under the purchase agreement, the prospective owners are required to make their next 20% payment by the end of the year. Kosman’s sources said Rodriguez continues to have difficulty raising his share, and Lore may eventually become the team’s majority owner. “I wouldn’t be surprised if A-Rod becomes a subservient No. 2 to Lore,” one of the sources said.
Lore refused to confirm or deny the report, telling Kosman that he and Rodriguez still work together on all their decisions.
“I couldn’t imagine having a better partner. He is one of my best friends,” Lore said. “There is no one else I would rather be partners with than Alex.”
A source familiar with both investors said Lore teamed up with Rodriguez in a failed attempt to buy the New York Mets in 2020 because he was “completely mesmerized” by Jennifer Lopez, whom Rodriguez was engaged to at the time. The star quality of Lopez created a lot of financial opportunities for Rodriguez, but those have disappeared since their breakup last year.
“His ability to raise capital went from strong to meaningfully weaker,” one of Kosman’s sources said. “J.Lo validated him.”
Rodriguez is reportedly worth about $500MM, but sources say most of his assets aren’t liquid and can’t be easily transferred to cash that could be used to buy the Wolves. Kosman notes that NBA rules won’t allow Rodriguez to become a partial owner unless he can cover at least 15% of the total purchase price without help from co-investors. That figure would be nearly $200MM with the team’s debt factored in.
If Rodriguez and Lore make their next payment on time, they’ll have the opportunity to buy an additional 40% from current owner Glen Taylor and take over control of the team by the end of next year. But a league source tells Kosman that Taylor won’t be disappointed if the current arrangement falls through because he believes the franchise is now worth more than $2 billion and he can make more by selling it to someone else.
Donovan Mitchell Trade To Knicks Remains Possible
RJ Barrett‘s extension with the Knicks complicates a potential trade for Donovan Mitchell, but it doesn’t close the door entirely, writes Marc Berman of The New York Post.
Sources tell Berman that the Jazz are most interested in stockpiling unprotected first-round picks in return for Mitchell. Berman has reported that Utah wants four unprotected picks in the trade, while New York is only willing to part with two, along with three conditional selections.
A league source indicates that the market for Mitchell remains limited, telling Berman, “There’s no place for Donovan to go right now. The Knicks can still get him.”
Berman also hears that the Jazz would like to expand the trade to include the Lakers and hopefully pick up L.A.’s 2027 and 2029 first-rounders. Berman notes that the Lakers likely have interest in Cam Reddish, whom they pursued at the trade deadline and who saw limited playing time after coming to New York. Reddish is a client of Rich Paul at Klutch Sports, Berman points out, which means LeBron James and Anthony Davis would probably support bringing him to L.A.
There’s more on a potential Mitchell trade to New York:
- If Barrett’s new contract takes him out of the equation, Utah could become more focused on landing Quentin Grimes, Berman adds in the same piece. The 22-year-old shooting guard established himself as a fixture in coach Tom Thibodeau’s rotation last season, but Berman notes that there would be little chance for him to become a starter in New York with Mitchell and Jalen Brunson on hand.
- The Jazz were aware that the Knicks set a Monday night deadline for a Barrett extension, but they didn’t let it impact negotiations, according to Sarah Todd of The Deseret News. She has heard conflicting reports about whether Utah wants Barrett or would be content with a deal that doesn’t include him. Sources tell Todd that both teams are playing hardball right now in trade talks, but there’s still a chance to complete a deal before training camp.
- The “poison pill provision” means a third team would have to be included to get Barrett to Utah, ESPN’s Bobby Marks says in a video breakdown of Barrett’s extension. He says a team with cap room, such as the Pacers or Spurs, would have to be willing to take Evan Fournier‘s contract, which is worth nearly $56MM over the next three years.
Knicks Agree To Extend RJ Barrett, Complicating Donovan Mitchell Talks
The Knicks and forward RJ Barrett are finalizing a four-year rookie scale contract extension that could be worth up to $120MM, agent Bill Duffy tells Adrian Wojnarowski of ESPN.
The exact base value of Barrett’s new deal isn’t yet known, but Ian Begley of SNY.tv reports (via Twitter) that there are bonuses tied to All-Star, All-NBA, and All-Defensive selections. In other words, it sounds like the former No. 3 overall pick would have to play at a very high level to earn the full $120MM.
A former star at Duke, Barrett has steadily increased his scoring average in his three NBA seasons with the Knicks, registering a career-high 20.0 PPG in 70 games (34.5 MPG) in 2021/22. He also contributed 5.8 RPG and 3.0 APG while shooting .408/.342/.714 last season. Those shooting marks were a step down from his career bests in ’20/21 (.441/.401/.746).
According to Wojnarowski, the Barrett extension will complicate the Knicks’ discussions with the Jazz about a potential Donovan Mitchell trade. Sources tell ESPN that those talks intensified over the weekend as the two teams made some progress, but there was still a gap between what each side was willing to do.
Knicks president of basketball operations Leon Rose set a Monday night deadline to either agree to a deal for Mitchell or commit to an extension for Barrett, per Wojnarowski, who notes that the “poison pill provision” will now almost certainly ensure that the former Blue Devil won’t be part of a package for Mitchell.
As we outline in our glossary entry, a player who signs a rookie scale extension but remains on his rookie contract has different outgoing and incoming salary-matching figures, which is referred to as a “poison pill” — in Barrett’s case, the gap between his outgoing and incoming figures will exceed $15MM, according to Wojnarowski. That would make it extremely challenging for both the Knicks and Jazz to send out and take back a legal amount of salary if Barrett is part of a package for Mitchell.
As Wojnarowski explains, Barrett was a “staple” in several of the proposals for Mitchell that the Jazz and Knicks discussed, with Utah highly valuing the 22-year-old. While New York had apparently been willing to include Barrett, the two teams were still at an impasse over the possible inclusion of Quentin Grimes and the number of unprotected first-round picks in the package, per ESPN.
It remains possible that the Knicks and Jazz will agree to a deal that doesn’t include Barrett, but that would require the Knicks to give up “far more” draft assets than they’ve been willing to surrender thus far, sources tell Wojnarowski.
For now, the two teams are backing off those trade talks, but the Jazz aren’t engaged in serious discussions with any other suitors about Mitchell, so neither they nor the Knicks have ruled out the possibility of resuming their talks before training camps begin in four weeks.
As Wojnarowski notes, Barrett’s extension will end an ignominious streak for the Knicks, as he’ll become the team’s first first-round pick since Charlie Ward in 1999 to sign a multiyear contract extension following his rookie deal.
Barrett will also become the fifth player to finalize a rookie scale extension this offseason. While his deal won’t be worth as much as the maximum-salary extensions signed by Ja Morant, Zion Williamson, and Darius Garland, it will exceed Keldon Johnson‘s four-year, $74MM contract.
Assuming Barrett’s new extension doesn’t include any options, it will keep him under team control through the 2026/27 season.
Trail Blazers Waive Didi Louzada
5:12pm: The Blazers will use the waive-and-stretch provision to get under the tax threshold, Michael Scotto of HoopsHype tweets.
4:09pm: The Trail Blazers have waived wing Didi Louzada, according to a team press release.
Louzada was part of the blockbuster deal with New Orleans that sent CJ McCollum to the Pelicans. At the time, Louzada was recovering from meniscus surgery. He wound up making seven appearances for Portland late last season, averaging 5.0 PPG in 17.4 MPG.
Louzada was entering the second year of a four-year, $7,686,312 contract he signed with New Orleans. The Trail Blazers will take a cap hit of $1,876,222 this season but the last two years of the contract were not guaranteed.
Louzada, a 2019 second-round pick, was one of 15 players with guaranteed contracts on Portland’s roster. The Trail Blazers now have 18 players and can add two more before training camp.
The Blazers could elect to use the stretch provision, Bobby Marks of ESPN notes in a tweet. August 31 is the last day to use the waive-and-stretch provision and Louzada would count as $268,032 annually (over seven seasons) if the Blazers go that route. That would put Portland under the luxury tax threshold.
Raptors Waive Svi Mykhailiuk
1:00pm: The Raptors have officially waived Mykhailiuk, per NBA.com’s transactions log.
11:06am: The Raptors are waiving Svi Mykhailiuk, according to Shams Charania of The Athletic (Twitter link), who says the veteran shooting guard will seek a “fresh start” with a new club.
Currently suiting up for Ukraine’s national team, Mykhailiuk spent the 2021/22 season with the Raptors after signing a two-year, minimum-salary deal with the team last almost exactly one year ago.
The 25-year-old, who previously spent time with the Lakers, Pistons, and Thunder, played a modest role in Toronto, averaging 4.6 PPG and 1.6 RPG on .389/.306/.865 shooting in 56 regular season appearances (12.8 MPG).
Following his down year, Mykhailiuk exercised his player option for 2022/23, but his spot on the Raptors’ roster for the coming season always appeared tenuous. Toronto has a number of viable candidates for back-end spots on its 15-man regular season squad and has enough breathing room below the luxury tax line to eat Mykhailiuk’s $1,878,720 guaranteed salary and carry another player without becoming a taxpayer.
Once Mykhailiuk is officially waived, the Raptors will have 13 players on guaranteed contracts, with Dalano Banton, D.J. Wilson, and Justin Champagnie also vying for roster spots on partially guaranteed deals.
Additionally, Toronto still has two-way qualifying offers out to David Johnson and Jalen Harris, despite having filled its two-way slots with Jeff Dowtin and Ron Harper Jr. — it remains possible that Johnson and/or Harris will factor into the 15-man roster competition. Gabe Brown is also in the picture, but he’s on an Exhibit 10 contract and would probably need to have a huge preseason to earn real consideration for a regular season roster spot.
If the Raptors officially cut Mykhailiuk this afternoon, he’ll clear waivers and become an unrestricted free agent on Wednesday, assuming he goes unclaimed.
Markieff Morris, Nets In Advanced Discussions
The Nets are engaged in “advanced” discussions with free agent forward Markieff Morris, according to veteran NBA reporter Marc Stein (Twitter link).
Morris, who will turn 33 this Friday, was limited to just 17 appearances last season in Miami due to a neck injury that sidelined him for much of the year, but he has a strong overall NBA résumé, having appeared in over 700 regular season games for six teams since entering the league in 2011.
In his last full season, Morris averaged 6.7 PPG and 4.4 RPG in 61 games (19.7 MPG) for the Lakers in 2020/21. He’s known for his toughness and defensive versatility, and can also stretch the floor a little on offense — he has posted a .341 career 3PT%.
Brooklyn’s interest in Morris was reported last week, with a subsequent report from Stein indicating that the division rival Sixers also had an eye on the veteran forward.
Morris’ last couple contracts have been minimum-salary deals and he seems unlikely to earn a raise after losing most of the 2021/22 season to an injury. As such, he and the Nets could be discussing whether the team’s offer would be fully guaranteed and/or what sort of role he might play in Brooklyn.
The Nets currently have 12 players on fully guaranteed standard contracts, with Edmond Sumner on a partially guaranteed deal and Yuta Watanabe on a non-guaranteed pact.
Nets Sign Yuta Watanabe
The Nets have signed free agent Yuta Watanabe, the team announced in a press release. The terms of the agreement weren’t revealed, but Michael Scotto of HoopsHype reports (via Twitter) that Brooklyn signed Watanabe to a one-year, non-guaranteed contract.
A 6’8″ forward, Watanabe has played in 121 NBA games across four seasons with the Grizzlies and Raptors. He appeared in 38 contests with Toronto last season, averaging 4.3 points and 2.4 rebounds in 11.7 minutes per outing. He also shot 41% from the floor and 34% from three-point range.
Brooklyn has 15 players on its 20-man offseason roster. One of those players (Alondes Williams) is on a two-way deal, while the other 14 are on standard contracts — in addition to the 12 with fully guaranteed salaries, Watanabe is now on a non-guaranteed deal and Edmond Sumner has a partial guarantee. Watanabe will presumably join the team for training camp with a chance to earn a roster spot this fall.
The Nets are coming off a tumultuous summer headlined by Kevin Durant‘s trade request. With Durant and the team recently agreeing to move forward with their partnership, the club is now focused on competing for a championship.
Heat Weren’t Aggressive In Pursuit Of Kevin Durant
Kevin Durant reportedly listed Miami as one of his preferred destinations when he demanded a trade from the Nets, but the Heat didn’t make a strong effort to acquire him, Shams Charania of The Athletic said in an appearance on the Stugotz podcast.
Heat officials believed it would cost too much of their roster to trade for Durant, added Charania, who said that the last contact between the two teams regarding Durant occurred either before or during Summer League.
Charania noted that Miami reached Game 7 of the Eastern Conference Finals last season and didn’t see a need for major changes. He pointed to hypothetical trades involving Bam Adebayo and Tyler Herro or Adebayo, Max Strus and another player and asked whether that really gets Miami any closer to winning a title.
On top of that, any consideration of trading Adebayo would have been limited by the designated rookie extension rule, which would have prevented the Nets from having both him and Ben Simmons on their roster at the same time. A third team would have been needed to complete a deal, which made the prospects of a trade even less realistic.
Durant also was interested in joining the Suns, but Charania hears that Brooklyn didn’t want Deandre Ayton in return. Ayton became ineligible for a sign-and-trade this summer after Phoenix matched his offer sheet from the Pacers.
Charania said there were opportunities to deal Durant, but no one was willing to meet the Nets’ asking price. The Celtics wouldn’t part with Marcus Smart or Robert Williams along with Jaylen Brown, while the Raptors weren’t willing to include Scottie Barnes in trade talks. Charania said Brooklyn could have made a deal that was heavy on draft compensation with the Suns, Grizzlies or Timberwolves before they sent their assets to Utah for Rudy Gobert, but the Nets were only interested in trades that would keep them competitive.