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NBA AM: Don’t Bank On Contract Extensions

The current Collective Bargaining Agreements makes extending an existing contract bad business for stars at the top of their game… The NBA can’t take away the fan vote for All-Stars.

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The Problem With Extensions:  Unless you are a NBA player on your rookie scale contract or a player that’s not going to command top dollar, agreeing to a contract extension while you are in the prime of your career making less than maximum money is bad business. As much as fans want to see closure on their favorite players, the truth is that signing a contract extension is often the worst deal a player can make.

Take New York’s Carmelo Anthony for example, or insert Miami’s LeBron James or Dwyane Wade if it makes you feel better. The way the Collective Bargaining Agreement works is that in an extension you can never have a combination of existing years and new contract years equaling a number greater than four. So for all three guys, while they can opt for free agency in July, they all have one more year at their discretion on their deals. So even though they can be free agents, they have one more year. Equally, this year counts too, so for the sake of discussion all three have two on their deal. The most either could add by way of an extension in two more years. If they wait and opt for free agency in July they can come away with new five year deals from their existing team.

»In Related: The Salary Cap Position Of Every Team In The NBA.

It’s not hard math. Two contracts years now or four contracts years in July. Almost no one takes the deal now, because the guaranteed salary is so much greater in just a few months.

This is undoubtedly going to cause problems for the Knicks and to a lesser extent the HEAT. None of these guys are inking extensions, which means in theory each could walk away and leave their respective franchises with nothing.

As the trade deadline approaches each team is going to have to come to grips with their own demons about what could happen this summer. The HEAT feel extremely confident that all of their guys are staying where they are. The Knicks on the other hand have more to be concerned about, given the dysfunction and frustrations that are boiling over in the Big Apple.

The Sacramento Kings have a similar situation brewing with Rudy Gay. He too can opt for free agency, and while it’s unlikely anyone pays Gay a single season salary equal to the $19.31 million he can opt in for in Sacramento next season, would he be open to leaving $19 million on the table in exchange for a four year $40-$45 million deal somewhere else? The Kings will have to come to grips with that scenario before the trade deadline or they could lose him for nothing in return too.

The Boston Celtics are reported to have offered Rajon Rondo a new contract, in an attempt to lock him in and end some of the speculation, but as Celtic’s president of basketball operations Danny Ainge told 98.5 The Sports Hub’s Toucher & Rich, the way the rules work its smarter for Rondo to hit free agency than sign an extension.

“We did talk to Rondo about extending him,” Ainge said. “But that’s all part of the negotiation that will happen again this summer and most likely the summer after. I don’t know [if he will sign an extension], time will tell.”

“In the Collective Bargaining Agreement, there are limits on what can and can’t be done. Really it’s not that Rondo doesn’t want to accept an extension, but it’s just not financially smart for him to accept it right now,” said Ainge. “We didn’t think he would [sign], but we did tried.”

»In Related: The Celtics Need A Decision On Rondo.

Ainge isn’t the only GM to have broached this concept with a soon-to-be free agent. The Chicago Bulls are reported to have tried to strong-arm Luol Deng into an extension before they ultimately traded him to Cleveland.

It’s very likely that as the February 20 trade deadline gets closer that teams with players holding options for free agency ask those players to opt-in before they make their decisions on whether to entertain trades involving those players.

But given how the contract system is constructed the best scenario for almost all of them is to wait until July and opt-out, if only to insure they get the highest possible dollar and the longest possible contract.

So when you wonder why a player doesn’t just sign an extension now. It’s likely because its bad business for them to leave money and years on the table and that’s exactly what they’d have to do to remove the uncertainty.

» From the In Case You Missed It Files — Tommy Beer wonders if it’s time to trade Carmelo Anthony?… Jabari Davis gives you the Six Things You Need To Know About The Lakers… Moke Hamilton dropped his first NBA Power Rankings for Basketball Insiders, did you miss it?

The No-Win Scenario:  With the 2014 NBA All-Star starters announced last night. There was no shortage of outrage and commentary about the ten players selected as starters.

In case you missed it, none of the Rockets stars were named starters, and Rockets GM Daryl Morey took to twitter to express his disgust:

Let’s face it, there is no way that the NBA can have fans vote and the outcome be fair or balanced. It cannot happen without diluting the number or the value of the participants. We have seen this in other sports where the fan vote is only a percentage of how a player gets in and the number of votes cast ends up being much lower.

AllStar2014_StartersIf the NBA takes the power of selecting the starters out of the fans hands, it will dilute the impact the process has. Why vote, if your vote can’t swing the process?

Fan voting is big business for the NBA. It’s an interactive process that puts a brand marketer in the face of millions of fanatic and emotional transactions. It’s a huge branding tool and the NBA makes a tremendous amount of money selling it. Let us not forget that the NBA All-Star Game is 100 percent about making and generating revenue and tying sponsors to the biggest names in the game.

None of that might make sense to players who have bonus money tied to the process, or smaller fan-base teams that feel snubbed, but the truth of the matter is the system is not designed to anoint starter status to the most deserving or even the most qualified. The system is designed to anoint the biggest stars, and that’s determined by popular appeal. Small market players will get penalized. Players that are not house hold names will get overlooked despite how they play, because the system is designed to appeal to the widest range of consumers.

Add in the push that individual teams make on game night on through their own broadcasts and you get an unfair and unbalanced result.

»In Related: Who Got Snubbed By The Fan Vote?

That’s how it has to be to create the hype and traffic that All-Star balloting generates.

The outcome may not sit well with some, but the truth of the matter is there is no other exhibition contest in sports that draws as much chatter, media impressions and discussions as the NBA All-Star Game, and that’s exactly what the NBA wants.

Taking the vote of out the fans hands would only diminish that and that is not going to change any time soon.

So while you may disagree with who was named a starter and why, the truth of the matter is that the fans get to pick and that means logic almost never applies to the selection.

» Still trying to find your way around the NEW Basketball Insiders website? Here are the things you need to bookmark: NBA Salaries landing page, Top 100 NBA Draft Prospects, the NBA Page, the new Out Of Bounds section for the funny, amusing things of the day, and the daily NBA Rumors Round Up, notes and commentary on the rumors of the day, every day.

More Twitter:  Make sure you are following all of our guys on Twitter to insure you are getting the very latest from our team: @stevekylerNBA, @AlexKennedyNBA, @TheRocketGuy, @LangGreene, @EricPincus, @joelbrigham, @SusanBible @TommyBeer, @JabariDavisNBA , @NateDuncanNBA , @MokeHamilton , @JCameratoNBA and @YannisNBA.

Steve Kyler is the Editor and Publisher of Basketball Insiders and has covered the NBA and basketball for the last 17 seasons.

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Jazz agree to trade Derrick Favors, first-round pick to Thunder

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First reported by ESPN’s Adrian Wojnarowski, the Utah Jazz are trading power forward/center Derrick Favors and a first-round pick to the Oklahoma City Thunder for a future second-round pick. The goal here was to help reduce their tax bill. While the six-foot-eight Georgia native does not have any notable NBA awards or honors on his basketball résumé, in the 2020-21 NBA season, Favors averaged 5.4 points, 5.5 rebounds, and a field goal percentage of 63.8 percent. The 11-year NBA veteran also recorded a free throw shooting percentage of 73.8 percent last season.

The 2020-21 Thunder finished 27-50 (.306), ranking 14th overall in the Western Conference. They could use another first-round pick. Plus, per ESPN’s Bobby Marks, this trade will put Utah $13 million below the luxury tax. On November 24, 2020, Favors signed a three-year, $29.2 million contract with the Jazz. Favors is set to earn $9,720,900 next season. This is the second time in his career he has left the Jazz.

He played with them from the 2010-11 season to the 2018-19 season, before he was traded to the New Orleans Pelicans on July 7, 2019 for a 2021 second-round pick and a 2023 second-round pick. For the 2022-23 season, he has a player option of $10,183,800. The Jazz plan to also re-sign Mike Conley, so this was somewhat of a drastic move to help clear up cap space. On July 6, 2019, Conley was traded by the Memphis Grizzlies to the Jazz, in exchange for Grayson Allen, Darius Bazley, Kyle Korver, and a 2020 first-round pick.

Moreover, scoring-wise, the 33-year-old point guard has not lived up to his performances from his last few seasons on the Grizzlies, but the Jazz need all the help they can get. Jazz general manager Justin Zanik will make it a top priority to re-sign Conley here soon. Conley earned $34,504,132 in the 2020-21 season.

According to Spotrac, Conley has a cap figure of $39,344,900. Center Rudy Gobert and shooting guard Donovan Mitchell have a combined percentage of 47.61 percent of Utah’s total salary cap. On December 20, 2020, Gobert signed a five year, $205 million extension with the team. He will earn $35,344,828 next season.

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Wizards, Lakers agree to Russell Westbrook and Three-Player Trade Deal

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The Los Angeles Lakers have agreed with the Washington Wizards to acquire Russell Westbrook in a three-player trade, sending Kyle Kuzma, Montrezl Harrell, Kentavious Caldwell-Pope, and the No. 22 pick in Thursday’s 2021 NBA Draft to the Wizards. According to ESPN, the Wizards are also giving up their 2024 and 2028 second-round picks as well. During last night’s draft, at pick No. 22, the Lakers sent Wildcats’ center Isaiah Jackson to the Pacers via the Wizards. At pick No. 15, the Wizards drafted Gonzaga forward Corey Kispert. In the second round, at pick No. 31, the Milwaukee Bucks traded NBA G League player Isaiah Todd to the Wizards via the Pacers.

On Thursday, Harrell decided to pursue his $9.7 million player option for next season. Yesterday, rumors surfaced across social media regarding a possible Lakers-Kings trade involving Harrell. Despite the outlandish predictions and mindless speculation from fans over these last couple of days, this trade move could work out great for both teams.

After all, Westbrook is a 9-time NBA All-Star and three-time assists leader. In his MVP season back in the 2016-17 season, over the course of 81 games, he averaged a career-high 31.6 points, 10.7 rebounds, 10.4 assists, and 1.6 steals per game. On Twitter, Westbrook tweeted, “I’m blessed to have been a part of such a stand up organization. It didn’t take long to make a home in DC, and I will forever be grateful and appreciative of my experience with the organization. Thank you!”

In the 2020-21 NBA season, Caldwell-Pope averaged 9.7 points, 2.7 rebounds, and 1.9 assists per game in 67 games started for the Lakers. The 28-year-old shooting guard will make $13 million next season. As for Kuzma, in 68 games played last season, he averaged 12.9 points, 6.1 rebounds, and 1.9 assists per game. Kuzma is set to earn $13 million next season. For Harrell, in 69 games played last season, he averaged 13.5 points, 6.2 rebounds, and 1.1 assists per game. The six-foot-seven power forward/center is also a six-year player. Instead of having one or two notable super stars, the Wizards having several contributing players might work out better in their favor.

Last season, in 65 games played in his only season spent on the Wizards, Westbrook averaged 22.2 points, 11.5 rebounds, and 11.7 assists. The 32-year-old point guard finished the 2020-21 season with 38 triple-doubles, ranking first in the league and second highest in his own playing career. Westbrook also surpassed Oscar Robertson last season for the most all-time assists; Robertson accumulated 181 triple-doubles in 14 seasons. Now, the two-time NBA scoring champion has 184 career triple-doubles, the most all-time for any player. Furthermore, this is Westbrook’s fourth team in his NBA career.

He is the fifth former MVP in league history to play on four different teams over the course of four seasons or less, adding to the existent list of Bob McAdoo, Allen Iverson, Shaquille O’Neal, and Derrick Rose. Moreover, on December 2, 2020, Westbrook was traded by the Houston Rockets to the Wizards for John Wall and a 2023 first-round draft pick. He is set to earn $44.2 million in the upcoming season. His player option for the 2022-23 season is $47 million. This trade deal will not be official until August 6th.

Per Bovada’s NBA Futures odds, the Lakers now have +300 odds of winning their eighteenth championship in the 2021-22 season. This is a move from 4/1 odds before the trade, leaping the Milwaukee Bucks and Golden State Warriors, and they now have the second best odds behind the Brooklyn Nets (+250). Westbrook also has the best odds of leading the league in assists next season, with first place odds showing EVEN. He is ahead of James Harden (+150), Trae Young (+450), and Luka Doncic (+600). With +6600 odds, he also ranks 19th in the NBA for next season’s MVP odds, trailing Lakers’ teammates such as James (+1200) and Davis (+2800).

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Russell Westbrook joins L.A. Lakers in One of the biggest trades in NBA History

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(Image courtesy of AP)

In one of the biggest NBA Draft trades ever, Los Angeles Lakers acquired the services of Washington Wizards’ former MVP, Russell Westbrook, last night!

As a result of the trade, the Lakers can now boast a holy trinity of attacking talent in Westbrook, Anthony Davis, and, of course, Lebron James, unlike anything seen in recent memory. Assuming this new contingent clicks into gear, it might just be the most frighteningly talented trio to play together in NBA history, rivaling the Bulls triple horn of Michael Jordan, Scottie Pippen, and Dennis Rodman, or that great Lakers team of the late 80s with Magic Johnson, James Worthy, and Kareem Abdul-Jabbar.

In exchange for their star man, the Wizards received three players and what was the No 22 overall pick in last night’s NBA Draft. The former Lakers tasked with replacing Westbrook in Washington will be Kyle Kuzma, Kentavious Caldwell-Pope, and Montrezl Harrell.

Washington then spent the Lakers No.22 pick on Kentucky’s Isaiah Jackson, but immediately traded him on to the Indiana Pacers in a deal that saw the Wizards acquire pick No.31 and point guard Aaron Holiday. Wizards then used pick No.33 to draft Isaiah Todd to bolster their ranks at power forward.

 

(Image courtesy of AP)

The effervescent Westbrook had another great year in 2020-21, averaging 22.2 points, 11.7 assists, and 11.5 rebounds per game in his first season with the Wizards.

In joining the Lakers star cast, which already boasts the likes of LeBron James and Anthony Davis, Westbrook, a 9x NBA All-Star & 2016-17 MVP, will now be hoping to end his NBA championship drought.

Westbrook has since taken to social media to thank the WashingtonWizards franchise for a great year spent in the capital, tweeting:

“Thank you DC! You welcomed my family and I with open arms from day one,” he wrote. “Everyone from the front office, to the training staff, the coaches, my teammates, and the fans. I’m grateful y’all took a chance on me and supported me every step of the way.”

“I’m blessed to have been a part of such a stand up organization. It didn’t take long to make a home in DC, and I will forever be grateful and appreciative of my experience with the organization. Thank you!”

With a legendary point guard now fixed among the ranks, 2020 NBA Championship winners the Lakers have all the talent required to wrestle back the title from the freshly-crowned Milwaukee Bucks.

So, get yourselves ready for an influx of NBA betting lines on Antetokounmpo, Holiday, and Middleton vs. LeBron, Davis, and Westbrook for next year’s championship games!

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