Could Be A Tough Restricted Market
Last summer was a little brutal to some of the guys that bet on themselves and for teams that rolled the dice on restricted free agency. Most early cap projections have the 2018-19 NBA Salary cap increasing slightly from the $99.093 million it landed at this season to just around $101 million.
While the NBA is doing better than it ever has in the revenue department, the salary cap system is simply a mechanism to ensure the players, as a group, receive the agreed 49-51 percent of total Basketball Related Income. Part of the calculation to reach the cap figure is based on what’s already owed to players in salaries and benefits. Because NBA teams spent like drunken sailors when the salary cap exploded two seasons ago, the cap isn’t jumping up nearly as much as some expected when all the new television rights revenue started to pour in.
The end result is after two years of aggressive spending, most teams will be either over the cap or in some cases way over the luxury tax line before free agency even opens.
This will have an impact on the marketplace, especially for players hoping for a whopper of an offer sheet in restricted free agency.
Current cap projections peg the Atlanta Hawks, Brooklyn Nets, Chicago Bulls, Dallas Mavericks, LA Lakers, Philadelphia 76ers, Phoenix Suns and possibly the Indiana Pacers as having meaningful cap space.
While they say it only takes one team to set a market, having so few teams with meaningful cap space could make for a tough summer.
It is important to point out that restricted free agency is a multi-step process which starts with the issuance of a qualifying offer. A player does not have to accept the offer, and the team can, at any point, pull that offer making the player unrestricted.
All pending restricted free agent players have two values to keep in mind – the qualifying offer value and a cap hold value. Cap holds are in essence cap placeholders which take up a fixed and defined amount of cap space. While teams can exceed the cap to re-sign their own players, there is always a placeholder on the cap until a new deal is reached or the team renounces that player.
Here are some of the notable pending restricted free agents and what we know today:
Jabari Parker – Milwaukee Bucks
[$8.85m Qualifying Offer – $20.3m Cap Hold]
The Milwaukee Bucks entertained a number of offers on Parker at the trade deadline and at least seriously considering moving him. This is actually really common for teams that may be struggling to understand a player’s worth on the market.
Given Parker’s knee issues the balance of the season will be important for setting a real price on Parker.
Most NBA insiders believe the Bucks are not only going to pay Parker, but they may not force him to play out of the Offer Sheet game.
The Bucks are going to be way over the salary cap, so there is zero reason not to retain Parker on a new deal, simply because they won’t get below the salary cap line with or without a new Parker deal, so in essence any money paid to Parker is money that’s only available to Parker and no one else.
There are Luxury Tax concerns, and that would be meaningful for a smaller revenue market like Milwaukee, but with a brand-new area ready to come online, the word is Bucks ownership isn’t worried about the cost of the roster.
Aaron Gordon – Orlando Magic
[$7.26m Qualifying Offer – $16.51m Cap Hold]
Like Parker, the odds that Aaron Gordon is not re-signed in Orlando is pretty small; however, unlike Parker, the Magic may let the market drive the value of the next deal.
That’s not a reflection on how management views Gordon, simply that they are trying to shed cap dollars and get themselves right sided on a number of fronts and overpaying for Gordon is a concern.
The Magic are a team in transition, and there has been a growing sense that if Gordon did not want to come back, they might be open to a sign and trade, especially if the NBA draft yields a better fitting cornerstone player.
Like Parker, the Magic are going to be over the cap in a significant way, so money paid to Gordon is only available to him, and he would become tradable in January.
There is a scenario in which someone tries to poach Gordon with a max. level offer, but even then, the Magic would be smarter to match a deal unless it’s loaded with unfavorable terms to the Magic’s rebuild plan.
Dante Exum – Utah Jazz
[$6.61m Qualifying Offer – $14.97m Cap Hold]
Injuries have derailed Dante Exum’s NBA career, but there is a window this season for him to establish something of a market value in Utah with the team’s push toward the playoffs.
Unfortunately for Exum, he hasn’t done enough to live up to his draft hype, and he may be a player that takes the qualifying offer. In his case, one more year in Utah at $6.61 million, and the ability to veto any trades might be smarter than trying to find a deal that doesn’t tie him into a lower dollar deal.
The prevailing thought is the Exum will be back in Utah, but it would take something pretty spectacular to think its on a new long-term deal.
Marcus Smart – Boston Celtics
[$6.05m Qualifying Offer – $13.61m Cap Hold]
The Boston Celtics had numerous offers for Smart at the trade deadline and opted to hang on to him. That bodes well for him staying in Boston beyond this season; the question becomes does another team test Boston’s taste for luxury tax?
Smart seems to be a player that will get offers; the question is will anyone offer more than the $13.6 million cap hold?
It is going to be hard to pry Smart out of Boston at value—it’s going to take an offer sheet that’s more than Boston will match, which means something in the $12-$14 million per year range on a multi-year deal.
With Celtics guard Kyrie Irving’s future a little uncertain (Irving is eligible for a contract extension this summer) would the Celtics be wise to let Smart leave before getting an answer from Irving?
If there is a player on the list that reasonably could be elsewhere next season, it might be Smart, but that seems far from certain.
Julius Randle – Los Angeles Lakers
[$5.56m Qualifying Offer – $12.44m Cap Hold]
Randle’s future is squarely tied to the Lakers pursuit of marquee free agents. While there is little doubt Randle has emerged as a promising young star, the Lakers are going to have a hard time clearing the necessary cap space to pursue two max-level free agents and hang onto Randle’s Bird Rights.
While Randle’s $5.56m qualifying offer is an easy number for the Lakers, it’s his $12.44 million cap hold that handicaps things. Unless the Lakers can find a way to jettison the lingering contract of forward Luol Deng without taking anything meaningful back against the cap, it’s going to be nearly impossible to get to two max slots and retain Randle.
There are scenarios where it becomes possible to add players and retain Randle; it would simply require the added player to not receive max level money.
The danger for the Lakers is that there appear to be two early suitors for Randle that may force the Lakers’ hand. The Dallas Mavericks have had an eye on Randle for some time and is the team most expect to be on Randle’s doorstep at 12:01 am on July 1.
Another team to watch is the Sacramento Kings. After dumping George Hill’s contract off on the Cavaliers, the Kings could have some cap money, and Randle is a name linked to them as well.
The easy answer for the Lakers is to simply lock Randle up early, which means the front office will have to ask for quick decisions from would-be free agents before another team puts an offer in front of Randle he is willing to sign and start the clock on the matching rights of restricted free agency.
Elfrid Payton – Phoenix Suns
[$4.53m Qualifying Offer – $9.99m Cap Hold]
The Orlando Magic dealt Payton to the Suns at the trade deadline after finding very little interest from other teams. The Suns, according to sources, were high on Payton and wanted to the opportunity to try out the fit before committing.
So far, Payton has been productive enough to think the Suns may hang on to him.
The wrinkle to watch in all of this is what could be as many as three first-round draft picks (most insiders believe one of those later first round picks is going to be traded), and a boatload of free agent money.
Assuming the Suns don’t find a better option in the draft, there is a good chance Payton is back in Phoenix on a new deal, but its unlikely the Suns are going to break the bank for Payton – meaning he might be poachable.
Zach LaVine – Chicago Bulls
[$4.42m Qualifying Offer – $9.60m Cap Hold]
There has been a lot of talk in Chicago about how much Zach LaVine is really going to command. Given the lack of cap money around the NBA and the Bulls ability to match anything reasonable, LaVine may be in a tough spot if he is expecting the marketplace to boost his deal.
Sources close to the situation said it would take a whopper of an offer for the Bulls not to match. The NBA has cautioned teams about declaring their willingness to match offers publicly, but Bulls sources that would comment on the subject found it laughable that LaVine wouldn’t be back in Chicago on a new contract, the question remaining is what’s the amount that gets it done?
Jusuf Nurkić – Portland Trail Blazers
[$4.14m Qualifying Offer – $8.84m Cap Hold]
It seems for some time that maybe the Blazers had cooled on Nurkić, as they explored trades for other centers for several weeks leading up to the trade deadline. In the end, the Blazers held firm and have gone a crazy run—enough to suggest that Nurkić might actually get a new deal in Portland.
The big issue facing both the Blazers and Nurkić is their proximity to the luxury tax. It’s possible the Blazers look to shed some contract money this offseason to clear up their cap, but with both Nurkić and fellow potential restricted free agent Shabazz Napier looking for new deals, the long-term may impact the short-term.
Blazers ownership has never had a problem spending money, but once a team rolls over the luxury tax line, it becomes harder and more expensive to make trades.
Given how well Nurkić has played (especially recently) it seems unlikely that Portland doesn’t retain him, especially considering how low both his qualifying offer and his cap hold are, the Blazers are in the driver seat on a new deal.
Rodney Hood – Cleveland Cavaliers
[$3.47m Qualifying Offer – $7.16m Cap Hold]
The prevailing thought around the Cavaliers is that Hood is not a rental. The Cavs made the deal to acquire Hood not only for the short term, but to re-sign him this summer.
While the future of LeBron James is going to weigh on every decision the Cavs make, the belief if even if James leaves,Hood is a good future piece to build around making his next deal something of a formality.
There is a window in which another team could try to poach Hood with a hefty offer, but given where the Cavs are cap wise, there is zero reason not to match, even a crazy offer.
As some on this list, the money paid to Hood is really only available to him, as the Cavs won’t get anywhere near cap space in the next couple of years.
Clint Capela – Houston Rockets
[$3.42m Qualifying Offer – $7.0m Cap Hold]
The cap hold on Capela makes it nearly impossible that he won’t be back in Houston. While the Rockets do have big dreams of what could be possible this summer, they can make all of their moves and still exceed the cap to re-sign Capela.
There is always the chance a team tries to force the Rockets hand and timing, but at the end of the day, just because a team makes an offer doesn’t mean Capela has to accept it.
It’s pretty safe to say the only uncertainty on Capela is how many years and how many dollars.
There are other players who could be restricted free agents based on being a second-round pick, being undrafted or simply signing shorter-term deals. As we get closer and closer to free agency, we’ll look at these in more depth.
Until then you can check out all the 2018-29 Free Agents here.
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NBA Daily: Lee Awaiting Opportunity, Staying Positive With Knicks
Drew Maresca has a chat with Courtney Lee about his situation with the New York Knicks and staying ready for when an opportunity comes his way.
Basketball if a fun sport that’s grown into a multi-billion-dollar industry. It brings people of all ages great joy, employs thousands and allows millions of fans to remove themselves from their daily lives and immerse themselves in the sport of their choice.
But there is a colder side to the sport, one in which ability is overlooked in favor of intangibles. The NBA is, after all, a business. And like any business, office politics play a role. This is a side that we’re all at least marginally familiar with. We’ve all seen players traded or cut because they do not fit the team’s timeline or because they were brought in or drafted by the previous management team.
This is not to infer that there’s anything insidious about the business of basketball, but players are people with families and bills and routines just like the rest of us. Of course, teams have the right to operate as they see fit – after all, we’re talking about individual contracts worth between $385,000 and $37.5 million per year that add up to payrolls exceeding $100 million annually.
But often times, players are reduced to their contracts and cap holds rather than being valued for their contributions on – and off – the court. Players understand the business they’re in, but there’s something that feels wrong about the league’s politics when it supersedes the natural order – when effective players sit in favor of less qualified ones. This is probably most prevalent when a team fast tracks a rebuild.
And for the first time in what feels like forever, this issue is front and center in New York. To the delight of Knicks fans, the team has finally embraced the concept of bottoming out. Tanking is a notion the Knicks have toyed with and ultimately either balked at or botched nearly every season since 2001. They’ve instead chosen to side with short-term fixes over long-term solutions.
With Scott Perry at the helm this season as general manager, the Knicks are making smart, calculated decisions. They are playing their young guys, which allows for them to develop valuable experience that can’t be learned from the bench or in practice. It also has the residual payoff of more losses, which means better odds come the 2019 NBA Draft Lottery.
But losing is tough. It can cause fatigue within a fanbase, a roster and an organization. Dennis Schroder, backup point guard for the Thunder, recently spoke about his experience with the Hawks regarding this very topic with The Oklahoman.
“I wanted to be in a winning organization,” Schroder said. “You just can’t go out there and try to lose.”
Back in New York, no one on the Knicks sympathizes more strongly with what Schroder went through than Courtney Lee. Lee is in an unusual position. He is too good to get on the court for his team because playing him would result in more wins and less playing time for younger guys. But he’s relatively expensive for his age, counting for $12 million against the salary cap this season and he’s owed nearly $13 million for 2019-20.
Lee is 33 years old, but has played some of his best basketball in recent seasons. In fact, he averaged a career high 12 points per game just last season. Furthermore, he is a career 38.9 percent shooter from deep, and he is viewed as a capable defender, a good teammate and someone who doesn’t need touches to impact the game. And yet, he’s received nine consecutive DNP-Coach’s Decisions (including Thursday’s game against the Wizards in London).
Theoretically, the Knicks can point to the neck injury Lee suffered in training camp. There’s an element of plausible deniability there – he was hurt so he could still be hurt.
But Lee upended any such excuse following the 76ers game on January 13.
“I feel good,” Lee told Basketball Insiders. “It happened back in training camp. I feel 100% now.”
Lee understands the business side of the NBA. He has played for seven NBA franchises in his 11 professional seasons.
“It’s not the first one,” Lee said with a chuckle regarding the DNPs. “I’ve been dealing with it, man. At this point you just understand what’s going on – the thought process behind it. The best thing I can do is just stay positive, keep cheering my teammates on and be ready for whatever happens.
“If it’s here getting in the game or getting traded somewhere, just making sure I’m staying in shape and ready to contribute. I just have to live in the moment. Have to tell myself to stay ready, stay prepared, stay in shape because there’s always light at the end of the tunnel – that’s my mindset.”
And fortunately for Lee, he could reach the end of the tunnel sooner than later. The NBA Trade Deadline is less than a month away, and the Knicks would like to double down on their youth movement. Moving Lee, Enes Kanter and/or Tim Hardaway Jr. would help the team open up the requisite cap space to offer a free agent a max deal this coming offseason.
Lee could easily find himself on a team competing for a playoff spot in the very near future. He would almost certainly help the Rockets, the Nuggets and the 76ers, as well as a number of other teams. But in the NBA, it’s never that straight forward. Teams must not only see the benefit of adding the player in question, but also feel compelled to deal with the other team’s front office. And teams know the Knicks want to go shopping this summer, so nothing is guaranteed for Lee.
One thing Lee has going for him that is far from guaranteed is transparency, which he receives from New York’s coaching staff daily.
“Coach Fizdale communicates a lot,” Lee said. “He’ll talk to me before the game (about the potential for DNPs) or he’ll touch base during the game. He does a good job with that.”
Fizdale has been open about his feelings toward Lee and the position he’s in.
“Courtney has been an incredible pro,” Fizdale said in an interview with NorthJersey.com. “I mean, he’s been like a big brother to all of these guys. They love him. They love being around him. He doesn’t do things like, you see times when veterans aren’t playing, they take young guys down in certain ways. Courtney’s been the guy that’s like no, go play. And like he tells me every day ‘Coach you need me, I’m here. I’m ready.’”
Lee has echoed those same sentiments all season long.
He’s just waiting to be given an opportunity to prove it.
NBA Daily: G League Guards Showing They Belong
Jordan Hicks spoke with NBA hopefuls Trey Lewis and Isaiah Cousins about their current games, playing in the G League and more.
The Utah Jazz currently have three players out due to injury – all three point guards, coincidentally – so one might say they are a little shorthanded. Because of this, both of their two-way players – Tyler Cavanaugh and Naz Mitrou-Long – have been called up to travel with the team. Unfortunately for Utah’s G League affiliate, the Salt Lake City Stars, they are left short-handed.
Add this to the fact that their first overall draft pick – and arguably their most important player, Willie Reed – is done for the season.
Things like this aren’t uncommon for the G League. In essence, that is primarily why it is there. As a developmental league for the NBA, it is used to both groom young talent, as well as have players readily available when needed (for teams lucky enough to have a program in their area).
In recent years, the SLC Stars have helped groom current Jazz rotation players Georges Niang and Royce O’Neale.
In a league that is growing more and more competitive with every game, every advantage a team can get is clearly a plus. Therefore, having the Stars so close has definitely been a huge positive for the Jazz.
Because a couple of heavy contributors are missing games, guys who are typically important role-players need to step up and be the key guys for the team.
Basketball Insiders had the chance to catch up with two of their young guards – Isaiah Cousins and Trey Lewis – after a recent home loss to fellow G League team the Stockton Kings (affiliate to the Sacramento Kings). In a close game where the Stars were slightly outmatched, these players stepped up in a big way and almost led the Stars to an unlikely come-from-behind victory.
Isaiah Cousins is having a career year with the Stars. His third year in the G League – and second with the Stars – Cousins is averaging 12.7 points, 6.4 assists and 4.6 rebounds a night. He’s currently second in the league in assist to turnover ratio at 3.27.
“Making the right reads and [not trying] to force anything,” Cousins told Basketball Insiders. “Whatever the scouting report is, each team has a different defensive scheme each game, so I look at the scouting report and see what they are going to do.”
Isaiah alluded to the fact that preparation is what helps him take care of the ball so well. In a league where taking care of the ball is essential to winning games, solid point guard play is a must. Cousins’ development in that area goes hand-in-hand with his ability to someday make an NBA roster.
“This is my third year in the G League so I’m experiencing and understanding the game now,” Cousins said.
When asked what position Cousins sees himself playing in the NBA, he noted his versatility.
“I think I’m a point guard, but I can play multiple positions and I can guard multiple positions,” Cousins said. “I do a little bit on-ball and off-ball. Basically, wherever a job is open, I’ll take it.”
Trey Lewis has been instrumental to the Stars’ winning record coming off the bench. Averaging 11.6 points and 2.3 assists, the team relies on his scoring and playmaking abilities to pull-ahead.
Although he isn’t in the starting lineup, Lewis finds himself closing out many games, thanks in part to his clutch shotmaking. Just over two weeks ago Lewis hit a big, go-ahead three-pointer with just seconds left to seal a home win. On the season – in which Lewis has only participated in 13 games due to an early-season ankle injury – Trey has already dropped 20+ points on four occasions.
Lewis played for a handful of teams during his collegiate years, ultimately ending up on Louisville with current Jazz star Donovan Mitchell. Lewis and Mitchell are now playing basketball for the same organization and living in the same city. “[Mitchell] is somebody who I talk to on a daily basis. We push each other, we motivate each other, and we support each other so it’s been great.”
Lewis garnered the essential skill of shooting the deep ball in college. While playing for Cleveland State in the Horizon League, he led the conference in threes made, knocking them in at a 42.3 percent rate.
After playing overseas in Germany for two seasons where he was a two-time All-Star in the BBL, Germany’s top basketball league, Lewis came back to the states.
“My goal since a little child has always been to play in the NBA,” said Lewis when asked why he came to the G League. “I feel like I had two great seasons overseas and felt like this was the next step to get to where I want to go.”
As the NBA continues its move to a heavy three-point shooting league, players are finding they need to adapt in this sink-or-swim situation. Players that can’t shoot the deep-ball – at least at a respectable mark – need to hold elite skills in other areas.
Luckily for Lewis, three-point shooting has always been a strength for him.
Basketball Insiders asked him where he gets his confidence from behind the arc.
“Just hard work; my regimen every day, sticking to my routine, getting my reps, and that builds confidence,” Lewis said. “I know I can hit those shots in needed situations.”
The window has opened for NBA teams to sign 10-day contracts. Whether they eventually end up with the Utah Jazz or with an entirely different franchise, it doesn’t matter. Cousins and Lewis will continue to grind so they can have their shot at a spot in the league. But for now, they will continue to work for their current team and help the Stars try and lift the G League championship trophy at the end of the season.
NBA Daily: Potential 10-Day Contract Players
Basketball Insiders takes a look at a few players who could be prime candidates for 10-day contracts.
January 5 was an important deadline in the NBA in that it marked the first day teams can begin signing players to 10-day contracts.
Usually reserved for younger, unproven talent looking to get their first shot in the NBA, recently NBA veterans have started going the 10-day route to refresh their careers and get back in the league. For example, Corey Brewer just recently signed a 10-day contract with the Philadelphia 76ers.
These contracts are very beneficial for teams in that there’s essentially no risk, and the potential for a high reward. It’s a relatively cheap tryout for teams to get a quick look at players who can potentially be helpful. Best case scenario, they end up finding a solid contributor. If not, then the player is no longer with them after 10 days.
Here’s a look at a few players who could be candidates for a 10-day contract.
1. Willie Reed
The veteran big man has had his taste of the NBA. He began last season as the Los Angeles Clippers’ primary backup to DeAndre Jordan. With the emergence of other players, however, his playing time decreased and he was ultimately traded to Detroit in the Blake Griffin trade.
The Pistons then shipped him off to the Chicago Bulls for Jameer Nelson, and the Bulls proceeded to cut him. He ended up being the first overall pick of the Salt Lake City Stars of the G League.
This season with the Stars, he’s been one of the best big men in the G League. Reed has put up 20.1 points per game on 66.5 percent shooting from the field, 11.3 rebounds and 1.8 blocks. He’s still a quality rotation player and could help a playoff team in need of some size off the bench.
2. John Jenkins
Another NBA veteran, Jenkins developed a reputation as a sharpshooter during his early years in the league, but didn’t do much else. His last appearance in the NBA was last season when he was brought to training camp by the Atlanta Hawks.
He ended up being one of the Hawks’ final cuts before the end of camp, and he subsequently chose to play overseas. He returned stateside this season, where he joined the Westchester Knicks, the New York Knicks’ G League affiliate.
Jenkins has had a very strong season thus far, putting up 24.8 points per game on 47.2 percent shooting, 42.8 percent from the three-point line, 3.8 rebounds and 3.8 assists. Perhaps the biggest changes in his game have been his playmaking ability and his development into a more versatile scorer. Any team in need of some bench scoring should give him a look.
3. Anthony Bennett
Keeping with the trend of NBA veterans using 10-day contracts to get back to the league, the former No.1 overall pick in the 2013 draft has begun to put people on notice this season.
Bennett last saw NBA minutes two season ago with the Brooklyn Nets. He wasn’t that bad during his stint in Brooklyn, but the Nets cut him almost halfway through the 2016-17 season. Aside from a brief stop overseas, Bennett has been playing in the G League.
This season with the Agua Caliente Clippers, Bennett has looked like he’s ready for another shot in the NBA. He’s been averaging a modest 13.0 points per game on 54 percent shooting from the field. One of the biggest additions to his game though has been his expanded shooting range. He’s knocking down 43.6 percent of this 5.1 three-point attempts. He’s worth another look for a team in need of a stretch big man.
4. Bruno Caboclo
Another player with NBA experience, it’s probably not fair to call Caboclo a veteran seeing that he rarely saw playing time in the league. When he was drafted by the Toronto Raptors, his selection caused quite a bit of confusion, leading to Fran Fraschilla’s now famous quote of him being, “two years away from being two years away.”
Caboclo toiled on the Raptors’ bench for about four years before being traded to the Sacramento Kings. He finally was able to see some minutes with the Kings, but still didn’t show much. The Houston Rockets invited him to training camp but ultimately cut him.
Caboclo joined the Rio Grande Valley Vipers, the Rockets G League affiliate, and has since been showing that he may very well be worth a 10-day contract. He’s averaging 16 points per game on 51 percent shooting from the field, 42.5 percent from downtown, 7.2 rebounds and 2.9 blocks. When he was drafted, the expectation was he’d develop into a 3&D wing but that didn’t happen. He’s looking much closer to that now. For a team in need of a wing defender who can shoot from distance, he’s worth a look.
Again, 10-day contracts have become a very valuable and inexpensive way for NBA teams to try out potential contributors. If the player pans out, then you have a relatively cheap guy in the rotation. If they don’t, you cut your losses after 10 days. It should be interesting to see if these vets are able to parlay their G League success into a path back to the NBA.