The Timberwolves And The Salary Cap
A year ago, under the guidance of then-GM David Kahn, the Timberwolves' roster underwent a series of changes that required some creative cap management, as I wrote about at the time. The Wolves' basketball operations are now headed by Flip Saunders, but that doesn't mean the club's cap machinations have gotten any simpler.
When it was initially reported during the moratorium that the Wolves would be signing Kevin Martin and were unlikely to retain Andrei Kirilenko, it looked as if Minnesota would be an under-the-cap team, using cap space to sign Martin. However, since then, the team has reached a series of agreements and completed multiple deals that make it clear that's not the case.
The Martin signing became official yesterday, but it turned out not to be a signing at all, as the Thunder, Bucks, and Wolves participated in a three-way deal that saw Martin signed-and-traded to Minnesota, while Luke Ridnour was sent to Milwaukee.
Because the Wolves continue to act as an over-the-cap team, the club was allowed to take back 150% (plus $100K) of Ridnour's $4,320,000 outgoing salary. That works out to $6,580,000, so we can probably assume that will be Martin's first-year salary (it'll also be the amount of the Thunder's new trade exception). Throw in annual 4.5% raises and the total figure for Martin's new four-year contract works out to $28,096,600, which is right around the total initially reported.
Without cap space, the Wolves will have to use their non-taxpayer mid-level exception to sign Corey Brewer, which also makes sense, considering Brewer's deal was reported to be worth $15MM over three years. If the team were to commit its full mid-level amount to Brewer, with max raises, his contract would be worth $16,145,250 over three years, so he may not quite get the full amount, but it'll be close.
Word also broke yesterday that Ronny Turiaf will sign a two-year deal with the Wolves for $3.2MM, which works out to more than the veteran's minimum. Having used the MLE on Brewer, the Wolves figure to use their bi-annual exception to accommodate Turiaf's new salary. A two-year deal worth the full bi-annual exception would total $4,122,720, so Turiaf, like Brewer, appears to be getting a portion of the exception, rather than the whole thing.
The Wolves also re-signed Chase Budinger and are working toward bringing back Nikola Pekovic. Since the team holds Bird rights for both players, no mid-level-type exception is required to accommodate their new salaries, as they could be offered any amount up to the max.
The Timberwolves' spending power is reduced slightly by the fact that the Martin sign-and-trade creates a hard cap of $75,748,000 for 2013/14, but even after re-signing Pekovic, the club should have plenty of breathing room. If we assume starting salaries of $5MM each for Budinger and Brewer, and $1.6MM for Turiaf (the actual figures may be a little different), the 2013/14 payroll will sit at about $56MM for 13 players. Even adding a starting salary of $12MM for Pekovic to that figure would bring it up to about $68MM, leaving more than $7MM in space before the team approaches its hard cap.
While there are still a few more steps required before all the Wolves' moves are finalized, the team has ultimately found a creative way to bring back existing talent and bring in new talent, having obtained more spending flexibility by remaining over the cap rather than clearing cap room.
Storyteller's Contracts was used in the creation of this post.
Wolves To Sign-And-Trade For Kevin Martin
JULY 11TH 9:13pm: The Timberwolves have officially announced, via the team's Twitter feed, that they've acquired Martin and cash from the Thunder and will send Ridnour and a 2014 second-round pick to the Bucks. The Wolves own the Lakers 2014 second rounder, which is the selection that will go to Milwaukee. Regarding the addition of Martin, Wolves president Flip Saunders said, "He is familiar with Coach Adelman's style of play and had success playing for him in Sacramento and Houston. We expect that to continue in Minnesota." (Twitter link)
The Bucks will send the draft rights to 2003 second round pick Szymon Szewczyk to Oklahoma City in the deal and get cash back from the Thunder, the team tweeted. The Thunder will have until July 11 of next year to acquire a player via the trade exception they picked up in the deal, tweets Darnell Mayberry of the Oklahoman.
JULY 11TH 10:18am: The Thunder will send cash to the T-Wolves as part of the sign-and-trade for Martin, and create a $7MM TPE, reports Adrian Wojnarowski of Yahoo! Sports (via Twitter). It's still not entirely clear what the Wolves are sending out in the trade — either that missing piece has yet to be reported, or the team intends to fold its Luke Ridnour deal into this one.
JULY 10TH: Marc Stein of ESPN.com pegs the deal in the $30MM range, noting that the Wolves and Thunder will roll the agreement into a sign-and-trade that will net Oklahoma City a trade exception. It's unclear exactly what the Thunder are getting in the trade, but presumably, draft picks and/or cash will be headed OKC's way.
JULY 2ND: Kevin Martin has reached agreement with the Wolves on a four-year, $28MM deal, according to Adrian Wojnarowski of Yahoo Sports (on Twitter). Sam Amick of USA Today (via Twitter) reported earlier tonight that Minnesota offered Kevin Martin a four-year deal in that vicinity. Martin is represented by Dan Fegan of Relativity Sports, according to the Hoops Rumors Agency Database.
Martin, of course, spent last season with the Thunder after coming over from Houston in the James Harden trade. The guard averaged 14.0 PPG while shooting 45% from the floor in 27.7 minutes per contest last season. Martin was a hot commodity this summer and the Blazers and Grizzlies were said to have serious interest in signing him.
It has been a busy day for the Timberwolves, who re-signed Chase Budinger just hours ago. The forward will get a $16MM, three-year deal from Flip Saunders & Co. Martin will pair with Ricky Rubio in the Wolves' backcourt, giving the club one of the more intriguing guard combos in the league.
The Thunder were said to be seeking a sign-and-trade for Martin if they could not retain him, but they'll now watch the guard leave without anything in return.
Bucks Exploring Luke Ridnour Trade
As the Timberwolves continue to explore ways to create enough room to bring aboard Corey Brewer, the Bucks have emerged as a potential destination for trade candidate Luke Ridnour, according to ESPN.com's Marc Stein. Stein reports that the Bucks are prepared to acquire Ridnour from the Wolves, which would allow Minnesota to sign Brewer and acquire Kevin Martin via sign-and-trade (Twitter links).
If the T-Wolves were to send Ridnour to the Bucks, Minnesota would have $47,420,858 in team salary on its books, by my estimation. That figure includes cap holds for Chase Budinger, Nikola Pekovic, Shabazz Muhammad, and Gorgui Dieng. With a cap line of $58,679,000 in play, the Wolves would have about $11.26MM in space to fit in Brewer and Martin.
$11.26MM in cap room would seem to be close to enough to sign both players outright, but Stein's indication that a sign-and-trade deal for Martin is in the works suggests that maybe Minnesota would have to clear a tiny bit more salary. According to Stein (Twitter link), the Thunder are willing to participate in a Martin sign-and-trade in order to acquire a trade exception, but perhaps they'll acquire a small-salary player like Chris Johnson from the Wolves in the proposed deal as well.
From the Bucks' perspective, it's not clear how the potential acquisition of Ridnour would affect their pursuit of Jeff Teague, or the possibility that they bring back Brandon Jennings.
Wolves Closing In On Deal With Corey Brewer
The Timberwolves are closing in on a three-year deal with Corey Brewer worth something in the $15MM range, reports ESPN.com's Marc Stein (via Twitter). The details of whether the Wolves would be able to sign Brewer outright or negotiate a sign-and-trade are still being worked out, according to Stein (via Twitter).
Meanwhile, there are no doubts that Kevin Martin remains on track to join the Timberwolves, according to Stein, who tweets that Martin has agreed to delay his signing to allow Minnesota the chance to obtain Brewer. We heard earlier today that the Thunder and Nuggets were resisting accommodating sign-and-trade deals for Martin and Brewer, respectively, but "rumbles persist" that Luke Ridnour could go to OKC as part of a possible sign-and-trade for Martin, according to Stein (via Twitter).
Darren Wolfson of 1500 ESPN Twin Cities reported today (via Twitter) that sign-and-trade talks involving Martin and Brewer are being pushed by Relativity Sports, the agency for both players.
Thunder Sign Andre Roberson
The Thunder have formally signed first-round pick Andre Roberson to a rookie-scale contract, according to RealGM.com's transactions log.
Roberson, 21, was selected 26th overall by Oklahoma City last month, after the club moved up three spots to snag him. The 6'7" forward averaged a double-double in his junior year at Colorado, recording 10.9 PPG to go along with 11.2 RPG.
Roberson will likely receive a first-year salary of about $1.11MM, 120% of his rookie-scale cap hold.
Spurs Made Run At Andrei Kirilenko
The Spurs explored the possibility of acquiring Andrei Kirilenko from the Timberwolves via a sign-and-trade deal, but talks between the two sides appear to have ended without an agreement, reports Adrian Wojnarowski of Yahoo! Sports.
Although San Antonio seriously considered a multiyear offer for Kirilenko, the club doesn't have the cap space or exception room to add the Russian forward without a sign-and-trade. So far though, Timberwolves president Flip Saunders has shown little, if any, inclination to assist Kirilenko in securing a significant financial commitment from another club, sources tell Wojnarowski.
Kirilenko and the Spurs had been discussing an annual salary worth about $8-9MM, and Minnesota was unwilling to take back the salary necessary to complete a sign-and-trade for that amount, says Wojnarowski. Doing so would have compromised the Wolves' ability to add free agents Kevin Martin and Chase Budinger, and would have affected their continued pursuit of Corey Brewer.
According to Wojnarowski, the Thunder have resisted the idea of accommodating a sign-and-trade for Martin, while the Nuggets have been similarly reluctant to work out a sign-and-trade involving Brewer. Denver isn't interested in acquiring Luke Ridnour or J.J. Barea, which would likely be necessary for Brewer to earn a $5MM annual salary with the Wolves, notes Wojnarowski.
Although the Nuggets were also very interested in re-signing their own free agent swingman, the team has been unwilling to go as high as the Wolves on an offer for Brewer. With other teams also in the mix, it now appears unlikely that Brewer will return to Denver, according to Woj.
World Peace Interested In Knicks If Amnestied
3:49pm: After the Knicks, World Peace's list of preferred destinations if he's amnestied includes the Clippers, Nets, Bulls, Heat, Thunder, Spurs, and Pacers, in that order, reports Sam Amick of USA Today. As Amick notes, the list reads like a who's-who of title contenders, and sends a message to teams with cap space that MWP isn't interested in being claimed by a non-contender.
2:14pm: A report yesterday indicated that the Lakers are preparing to amnesty Metta World Peace, a move that can't be finalized until tomorrow at the earliest, as I explained this afternoon. While nothing is official yet, World Peace would be "upset" if the Lakers cut him, as longtime friend (and head of his foundation) Jose Morales tells Jared Zwerling of ESPNNewYork.com.
"If the Lakers do amnesty him, he might want to retire," Morales said. "If one of these small-market teams picks him up, he won't be happy with that. He doesn't want to play there."
Teams with cap space would have the first shot at World Peace if he were amnestied, since they'd have the ability to submit a waiver bid for him. Most clubs that still have room aren't legit contenders — the Cavaliers, Pistons, Mavericks, and Hawks are a few clubs that figure to have cap space during amnesty week.
With the threat of retirement looming, those teams may not want to risk claiming World Peace. If he were to go unclaimed, he'd become an unrestricted free agent, able to sign with any team besides the Lakers. Morales tells Zwerling that MWP would be interested in joining the Clippers, and that joining his hometown Knicks would also have strong appeal.
"If the Lakers amnesty him, he's going to have a point to prove that he can still be that player in New York," Morales said.
2013 Amnesty Primer
Today is the last day of the July moratorium, which means NBA teams can officially resume full activity beginning tomorrow. In addition to signaling the end of the moratorium, July 10th also marks the first day that teams are eligible to amnesty players. This year's amnesty period will run from the 10th until the 16th — after that, teams that still haven't used their amnesty clause won't get another chance to do so until next July.
With amnesty week upon us, here's a refresher on how the process works, which teams still have the amnesty option available, and which players remain amnesty-eligible….
How does it work?
The amnesty provision provides a team an opportunity to clear a bad contract from its books for salary cap and luxury tax purposes. Although a team still has to pay the remainder of the amnestied player's salary, as it would for any released player, the player's salary no longer counts against the team's cap (except for minimum payroll purposes) when the amnesty clause is used. For instance, if and when the Lakers amnesty Metta World Peace, they'll still pay him his full $7,727,280 salary for 2013/14, but will remove that figure from the cap, significantly reducing the team's tax bill.
The amnesty provision can be used on any player, as long as the following rules are observed:
- A team can only amnesty one player — not one player per season.
- The amnesty provision can only be used on a player who signed his contract prior to July 1st, 2011. If a contract was signed, extended, or renegotiated after that date, the player cannot be amnestied.
- A team can only use its amnesty provision on a player who was on its roster on July 1st, 2011. If a player was traded after that date, he cannot be amnestied.
- The amnesty clause can only be used during the seven days following the July moratorium. If a team doesn't amnesty a player during that week, it won't get another chance to do so until the following July.
- A team that has yet to use its amnesty clause can do so in any of the next three years. The 2015/16 season is the last year in which a player can be amnestied under the current CBA.
Amnestied players are placed on waivers, but the waiver rules are slightly different than usual. An under-the-cap team can still place a full waiver claim on an amnestied player, if it doesn't mind being on the hook for the rest of the player's contract. However, clubs also have the option to submit partial waiver claims, in what essentially amounts to an auction for the player's services. If no team places a full claim, the team with the highest partial claim is awarded the player. If two teams bid the same amount, the club with the worse record wins out. If neither a full or partial claim is submitted, the player becomes an unrestricted free agent.
For a few more details on the amnesty process, check out our complete explanation in the Hoops Rumors glossary.
Which teams still have the amnesty provision available?
Exactly half of the NBA's 30 teams have used the amnesty provision in the last two offseasons, leaving 15 clubs with the option of amnesty still at their disposal. These are the teams still in play, per our amnesty provision tracker:
- Atlanta Hawks
- Boston Celtics
- Charlotte Bobcats
- Chicago Bulls
- Detroit Pistons
- Los Angeles Lakers
- Memphis Grizzlies
- Miami Heat
- Milwaukee Bucks
- New Orleans Pelicans
- Oklahoma City Thunder
- Sacramento Kings
- San Antonio Spurs
- Toronto Raptors
- Utah Jazz
The Pelicans no longer have any amnesty-eligible players left on their roster, and reports have suggested the Bobcats will amnesty Tyrus Thomas, while the Lakers will amnesty World Peace. That would leave just 12 teams with the amnesty option available.
Which players are still eligible to be amnestied?
While there are 35 players still eligible to be amnestied, some are likelier candidates than others. I examined a few of this summer's potential amnesty candidates back in March, but here's the complete list of players that technically remain amnesty-eligible, along with the total money left on their deals:
- Atlanta Hawks: Al Horford ($36MM)
- Boston Celtics: Rajon Rondo ($24.86MM), Avery Bradley ($2.51MM)
- Charlotte Bobcats: Tyrus Thomas ($18.08MM)
- Chicago Bulls: Joakim Noah ($36.7MM), Carlos Boozer ($32.1MM), Luol Deng ($14.28MM)
- Detroit Pistons: Charlie Villanueva ($8.58MM), Greg Monroe ($4.09MM)
- Los Angeles Lakers: Kobe Bryant ($30.45MM), Pau Gasol ($19.29MM), Metta World Peace ($7.73MM), Steve Blake ($4MM)
- Memphis Grizzlies: Zach Randolph ($34.3MM), Mike Conley ($26.08MM)
- Miami Heat: LeBron James ($61.77MM), Chris Bosh ($61.77MM), Dwyane Wade ($60.49MM), Mike Miller ($12.8MM), Udonis Haslem ($8.96MM), Joel Anthony ($7.6MM)
- Milwaukee Bucks: Drew Gooden ($13.37MM), Larry Sanders ($3.05MM)
- New Orleans Pelicans: No players eligible
- Oklahoma City Thunder: Kevin Durant ($56.99MM), Kendrick Perkins ($18.63MM), Nick Collison ($4.83MM), Thabo Sefolosha ($3.9MM)
- Sacramento Kings: John Salmons ($14.58MM), DeMarcus Cousins ($4.92MM)
- San Antonio Spurs: Tony Parker ($25MM), Matt Bonner ($3.95MM)
- Toronto Raptors: Amir Johnson ($13.6MM), Linas Kleiza ($4.6MM)
- Utah Jazz: Derrick Favors ($6.01MM), Gordon Hayward ($3.45MM)
Wolves Rumors: Pekovic, Martin, Trades, Rubio
According to reports from Darren Wolfson of 1500 ESPN Twin Cities and Jerry Zgoda of the Star Tribune, the Timberwolves have formally extended a multiyear contract offer to restricted free agent Nikola Pekovic. Zgoda, who expects Pekovic to sign a four-year deal worth $12MM or more, says the offer was made on Friday and that the Wolves expect an answer from the big man's camp early this week.
Here's more out of Minnesota from Wolfson:
- The Thunder have interest in signing-and-trading Kevin Martin to the Wolves, but an outright signing is more likely. Andrei Kirilenko's camp is also pushing for a sign-and-trade, says Wolfson, but the Wolves are more likely to simply renounce his rights.
- In their search for a defensive-minded wing, the Wolves are exploring trades involving Luke Ridnour and J.J. Barea. While Ridnour is drawing more interest, the team may prefer to move Barea, since head coach Rick Adelman likes Ridnour.
- Prior to being waived yesterday, Greg Stiemsma was offered to every team in trade talks, but no clubs were willing to give up anything of value.
- The Wolves have inquired on Chauncey Billups, but are focusing on other needs for now.
- Barring an unforeseen catastrophe, Ricky Rubio will be offered a new five-year contract next summer, when he becomes extension-eligible.
- While Wizards exec Milt Newton appeared to be a candidate for the Wolves' GM job, he'll likely remain in Washington. Wolves president Flip Saunders figures to promote internally for the team's GM job, with Wolfson citing Rob Babcock as a possibility.
Mutual Interest Between Thunder, Derek Fisher
There's mutual interest between Derek Fisher and the Thunder, according to Ken Berger of CBSSports.com. The Thunder are considering Fisher, among several options, for the role of third point guard behind Russell Westbrook and Reggie Jackson, but history and "mutual respect" are helping Fisher's case, Berger writes (Twitter links).
Fisher has finished the last two seasons with the Thunder after signing in the middle of the year. The veteran has played a key role in the team's last two playoff runs, averaging 22.3 minutes per contest in the 2011/12 postseason and 23.7 MPG this spring.
If the Thunder bring back the Landmark Sports Agency client, it figures to be on a minimum-salary deal. Even though Kevin Martin agreed to sign with the Wolves, Oklahoma City is still in line to be over the cap, so the team will have to rely on exceptions to replace Martin and improve the roster for next season.