Mavericks Rumors

Financial Impact Of Kristaps Porzingis Blockbuster

Besides having a huge impact on the on-court prospects for the Knicks and Mavericks for the foreseeable future, Thursday’s Kristaps Porzingis trade will also drastically reshape each team’s cap situation for the coming summer.

With that in mind, we’ll use this space to take a closer look at the financial impact of Thursday’s blockbuster, exploring how salary-matching worked in the trade, how it will affect each team’s long-term cap outlook, and much more.

Let’s dive in…

Hardaway gets a trade bonus:

As one of nearly two dozen players with a trade kicker in his contract, Tim Hardaway Jr. is in line for some bonus money as a result of being traded on Thursday. A player with a trade kicker can opt to waive the bonus if he wants to, but there was no reason for Hardaway to do so, since collecting that extra money didn’t affect either team’s ability to complete the swap.

Hardaway’s trade kicker was for 15% of the money left on his contract, not including any option years. That meant that the bonus would apply to the rest of this season’s prorated salary ($6,851,695) and all of next season’s salary ($18,150,000). Those figures add up to $25,001,695, and 15% of that amount is $3,750,254. That’s the amount of THJ’s bonus.

For salary cap purposes, a trade bonus is split up and applied equally to each non-option season, meaning Hardaway’s cap hits for this season and next season each increased by $1,875,127. Here’s what those changes look like, as Jeff Siegel’s cap sheet at EarlyBirdRights.com shows:

  • 2018/19
    • Old cap hit: $17,325,000
    • New cap hit: $19,200,127
  • 2019/20
    • Old cap hit: $18,150,000
    • New cap hit: $20,025,127

If Hardaway is traded again before the end of his contract, his trade kicker will no longer apply, since he has already collected it.

How salary-matching worked in the trade:

Each team involved in a trade can organize the pieces differently in order to maximize their ability to match salaries and generate traded player exceptions. In this deal, the Mavericks were able to create a sizable trade exception while the Knicks were unable to create one.

Here’s how the trade worked from the Mavericks’ perspective:

Read more

Latest On Anthony Davis

Anthony Davis has no interest in remaining sidelined while the Pelicans work out his future, tweets Will Guillory of The Athletic. In his first public statements since making his trade request, Davis said he will get his injured left index finger re-evaluated after Saturday’s game in San Antonio and intends to return to action once he is medically cleared.

Davis hasn’t played since January 18 because of a volar plate avulsion fracture. There has been speculation that the Pelicans will keep him sidelined until at least the trade deadline and possibly even the rest of the season to prevent further injury in anticipation of a deal. New Orleans coach Alvin Gentry told reporters that Davis won’t be able to play this week (Twittter link), adding that there’s nothing else to stay about his future status (Twitter link from Scott Kushner of The Advocate).

Speaking with reporters today, Davis insisted he never gave the Pelicans “a timetable or a destination” regarding his desire to be traded (Twitter link). He explained that he felt like he has accomplished all he could in New Orleans and wants to try a new challenge, relays Stefano Fusaro on ESPN Now.

“I just feel like it is my time,” Davis said. “Gave the city, organization, fans, everything I felt like I could do. I don’t know how long I’m going to play this game. People’s careers are short. I felt like it is my time to move on.”

There’s more Davis-related news today:

  • The Lakers remain Davis’ first choice in any trade, tweets Shams Charania of The Athletic. The Knicks are also high on his list and made an offer to the Pelicans that included Kristaps Porzingis before trading him to Dallas yesterday. Porzingis had no plans to sign a long-term deal with New Orleans if he had gone there, according to Kevin O’Connor of The Ringer (Twitter link).
  • The Celtics may try to collect trade chips to improve an eventual offer to New Orleans, writes ESPN’s Brian Windhorst. Boston is investigating the cost of acquiring a few young players who might interest the Pelicans. Management in New Orleans wants to avoid trading  Davis to L.A., Windhorst adds, and might be waiting for summer when the Celtics can get involved in the bidding.
  • Davis’ representatives have put out a message that he won’t re-sign with the Celtics in 2020 unless Kyrie Irving remains with the team, according to Sean Deveney of Sporting News. Irving seems to be having second thoughts about the verbal commitment he made to stay in Boston and may explore his free agency options this summer. However, front-office sources tell Deveney that the statements from Davis’ camp might be a “smokescreen” to scare off the Celtics and give Davis an easier path to L.A. If Irving does leave, the Celtics would likely drop out of the bidding for Davis without a commitment that they can keep him past next season. That may leave the Pelicans without a strong alternative to sending Davis to the Lakers, which Deveney also states that the front office is trying to avoid.

Nowitzki, Wade Added To All-Star Game

A pair of NBA veterans will make one last All-Star appearance before retirement, as the league announced today that Dirk Nowitzki and Dwyane Wade will be “special team roster additions” for the February 17 game.

“Dirk Nowitzki and Dwyane Wade embody the best of the NBA: remarkable skill, drive and professionalism as well as a deep devotion to strengthening their communities and growing the game around the world,” said NBA commisioner Adam Silver. “As a global celebration of basketball, our All-Star Game is an ideal setting to salute these first-class NBA champions and Finals MVPs.”

Nowitzki and Wade won’t be part of the regular draft when LeBron James and Giannis Antetokounmpo choose up sides on February 7. They will be selected in a third round that allows each team to add a 13th player. The remaining eight starters as chosen by the fans will be taken in the first round, with the reserves going in the second round.

This will be the 14th All-Star appearance for Nowitzki, who is in his 21st NBA season, all with the Mavericks. He is the seventh-leading scorer in league history with 31,275 points, has made 12 All-NBA teams and has won both an MVP and Finals MVP award. He hasn’t announced his retirement plans, but there is speculation that this will be his final season.

Wade, who is conducting his “Last Dance” tour around the league, will be headed to the game for the 13th time. He was named All-Star MVP in 2010 and put together a triple-double in 2012. He has won three NBA titles and an Olympic gold medal and was named MVP of the 2006 Finals.

Wade was an eight-time selection to the All-NBA team and made three appearances on the All-Defensive Team. He is the Heat’s career leader in points, assists, steals, field goals made, free throws made and games played.

Photo courtesy of USA Today Sports Images.

Porzingis Notes: Knicks, Durant, Mavs, Reactions

While NBA fans waited for word on a possible Anthony Davis trade, the Knicks came out of nowhere on Thursday to shake up the trade market by sending potential star Kristaps Porzingis to the Mavericks in a blockbuster deal that involved seven players and a pair of draft picks.

We’ve got plenty of notes and reactions related to that trade to round up this morning, so let’s dive right in, separating them by team…

Knicks notes:

  • An “acrimonious divorce” between the Knicks and Porzingis has seemed inevitable since he blew off his exit meeting with the franchise two years ago, writes Frank Isola of The Athletic. Isola’s look at the situation includes a handful of other interesting details, including the fact that the Knicks had Thursday’s trade lined up for “a couple of days.” Isola also hears from a source that Porzingis’ camp had begun to wonder if the Knicks would be comfortable with a European as their franchise player.
  • The meeting that took place on Thursday between Knicks management and Porzingis – as well as his brother Janis – took less than five minutes, reports Ian Begley of ESPN.com. “When the meeting occurred this morning, we’d already been having many conversations with a number of teams,” GM Scott Perry said on Thursday. “So we decided to act upon one.”
  • According to Sam Amick of The Athletic, executives around the NBA were left with the same impression after Thursday’s trade: Knicks management must be confident that the team can land Kevin Durant this summer. Amick adds that some rival executives have indicated that Knicks officials themselves have been conveying “a very high level of optimism” regarding 2019 free agency.
  • Stefan Bondy of The New York Daily News examines some of the other top-tier free agent targets the Knicks will now be targeting this summer besides Durant.
  • Porzingis issued a cryptic message on Instagram on Thursday, writing “The truth will come out :)” (Twitter link via JD Shaw of Hoops Rumors). He later deleted the post, but it seems he may not have loved Knicks management characterizing Thursday’s move as their reaction to a “trade request.”

Mavericks notes:

  • The Mavericks aren’t sure when Porzingis, who is still recovering from his ACL tear, will be able to return to action, but they’re not too concerned about that, tweets Tim MacMahon of ESPN.com. The club made the deal with an eye toward the next 5-10 years, not just 2018/19.
  • Luka Doncic was enthusiastic about the Mavericks’ acquisition of Porzingis, as Dan Murphy of ESPN.com relays. “He’s such an amazing player, so this could be a good thing,” Doncic said. “He’s big, he can shoot, he can rebound, he can do a lot of things. I think he can be one of the best players in this league.”
  • Longtime Mavs franchise player Dirk Nowitzki also liked the move, calling Porzingis “a perfect fit for the new NBA,” according to Murphy. “If you have a chance to add a franchise-caliber player like Porzingis you’ve just gotta go for it,” Nowitzki said. “… He’s mobile enough to play the four. He can be a spread five. He can move, block shots, post. Before he got hurt he played a great all-around game. He’s got the work ethic to be great. He’s a good dude.”
  • While the Mavs are adding a potential star, the deal cost the team multiple players who are well-liked in the locker room, according to Brad Townsend of The Dallas Morning News, who explores how Dallas’ veterans reacted to news of the trade. “It’s tough,” Devin Harris said. “The human emotion part of it, losing your teammates, and the shock of it, we all felt it this afternoon. We’ve still got a job to do. I thought the guys did a good job of coming out and still trying to win (Thursday’s) game.”

Mavericks Waive Ray Spalding

The Mavericks waived forward Ray Spalding after agreeing to a trade with New York on Thursday, the team announced in a press release. He’ll clear waivers and become a free agent on Saturday, assuming no team places a claim.

Having acquired four players, including Kristaps Porzingis, in a blockbuster deal with the Knicks, the Mavs only sent out three players in the swap, meaning the club had to waive a player to avoid exceeding the 15-player max. Spadling was ultimately the odd man out.

Spalding appeared in just one game with Dallas and was selected with the No. 56 pick in 2018. His rights were traded to Dallas from Philadelphia on draft night, with the 21-year-old now set to enter unrestricted free agency during his rookie season.

Spalding, who spent four seasons at Louisville, has spent most of the 2018/19 season with the Texas Legends — G League affiliate of the Mavericks. He’s held per-game averages of 15.9 points, 9.3 rebounds and 2.2 blocks in 29 games with Texas on the year.

Knicks Trade Kristaps Porzingis To Mavericks

The Knicks have traded Kristaps Porzingis, Courtney Lee, Trey Burke and Tim Hardaway Jr. to the Mavericks for Dennis Smith Jr., DeAndre Jordan, Wesley Matthews and two first-round picks, both teams announced in press releases Thursday.

News of this deal comes just shortly after word broke that Porzingis had met with Knicks management to express frustration with the direction of the organization, leaving the team with the impression that he wanted to be moved. While Porzingis’ preference to be dealt may have jump-started these talks, it didn’t take the Knicks long to find a potential deal they liked, suggesting that they may not have been fully invested in the relationship either.

“As is standard for this time of year, we were exploring various options on potential trades,” Knicks general manager Scott Perry said in a statement. “Considering the uncertainty regarding Kristaps’ free agent status and his request today to be traded, we made a trade that we are confident improves the franchise.”

From the Knicks’ perspective, moving on from Porzingis by attaching two unwanted multi-year contracts to him creates some tantalizing free agent possibilities for the franchise. By replacing Porzingis’ cap hold ($17.09MM), Hardaway’s salary ($18.15MM), and Lee’s salary ($12.76MM) with Smith’s modest $4.46MM salary on the 2019/20 books, the Knicks will reduce their commitments by approximately $43.5MM, which should open up enough cap room for two maximum-salary free agents.

The Knicks’ only players with guaranteed contracts for 2019/20 are Smith, Frank Ntilikina, Kevin Knox, and Mitchell Robinson. Armed with those youngsters and a likely top-five pick, New York will enter free agency with the ability to potentially land two free agents from a group that includes Kevin Durant, Kemba Walker, Kyrie Irving, and others.

Besides creating substantial cap flexibility, the Knicks will acquire Smith, a second-year guard who wasn’t happy with his role in Dallas. The ninth overall pick in the 2017 draft, DSJ saw his responsibilities dialed back due to Luka Doncic‘s emergence this season. Smith has still built upon some of last year’s numbers, averaging 12.9 PPG, 4.3 APG, and 3.0 RPG with a .440/.344/.695 shooting line. He now appears poised to take over point guard duties in New York, a year after the team passed on him to draft Ntilikina.

New York also acquired a 2021 unprotected first-round pick and 2023 protected first-round pick (1-10) in the trade agreement, ESPN’s Adrian Wojnarowski and Ian Begley reported.

“We feel like we did the right thing,” Knicks president Steve Mills said, according to Begley. “When you try to think about how you want to build your team for the long term, you don’t want to commit a max (contract) to a player who clearly says to you he doesn’t want to be here.”

Jordan and Matthews, who are on pricey expiring deals, likely don’t have a future in New York. Rival executives expect the Knicks to explore the trade market over the next week for potential deals involving those veterans, according to Jake Fischer of SI.com (Twitter link). Both Fischer and ESPN’s Bobby Marks (Twitter link) suggest that Jordan and Matthews will be intriguing buyout candidates if they’re not flipped by the Knicks.

Perry emphasized in a conference call Thursday that both Jordan and Matthews could have a positive impact on their young players for the remainder of the season, as relayed by Begley. This, of course, is provided they aren’t traded or bought out from their current deals. This statement drew a questioning response on social media from Knicks center Enes Kanter, another candidate to be traded by the deadline.

Meanwhile, the deal represents a huge swing for the Mavericks, who will pair Porzingis with Doncic with an eye toward keeping both players in Dallas for years to come. By taking on the multiyear contracts for Hardaway and Lee in exchange for Jordan and Matthews, Dallas will almost certainly give up its chance to create cap room in 2019, but will be on track to open up significant space in 2020, while Doncic is still on his rookie contract. Porzingis posted a clip of him shaking hands with Doncic after the trade became official, clearly excited for his new partnership in Dallas.

An All-Star a year ago, Porzingis averaged 22.7 PPG, 6.6 RPG, and 2.4 BPG with a .439/.395/.793 shooting line in 48 games in 2017/18, displaying franchise-player potential. However, a torn ACL ended his season early and has sidelined him for the entire 2018/19 campaign so far. He’ll be a restricted free agent this summer, at which point he could sign his one-year qualifying offer, sign an offer sheet with another team, or negotiate a new deal directly with the Mavs.

[RELATED: Porzingis plans to tell Mavs he’ll sign qualifying offer?]

Dallas also created a $12.9MM trade exception in the agreement, according to ESPN’s Adrian Wojnarowski (Twitter link).

Additionally, Marks notes (via Twitter) that the two teams will have to account for Hardaway’s 15% trade bonus, which is currently worth $3.75MM. Assuming THJ doesn’t waive it, his cap hits will increase by $1.875MM annually for this season and next, and the Knicks will have to pay the bonus money.

Photo courtesy of USA Today Sports Images.

Porzingis Plans To Inform Mavs He’ll Sign QO?

3:37pm: Porzingis has yet to make any formal decisions on his future with the Mavs, tweets ESPN’s Adrian Wojnarowski.

3:31pm: With the Mavericks and Knicks in the process of finalizing a trade that will send Kristaps Porzingis to Dallas, Shams Charania of The Athletic has provided another fascinating detail. According to Charania (Twitter link), Porzingis intends to inform the Mavs that he plans to sign his qualifying offer as a restricted free agent this summer.

In order to make a player a restricted free agent, a team must submit a one-year qualifying offer to that player. This QO serves as a placeholder one-year contract offer, which the player can accept if he wants to. Accepting a qualifying offer puts the player on track to reach unrestricted free agency the following year, but typically pays him far less than he’d receive on a multiyear contract.

In Porzingis’ case, because he has failed to meet the “starter criteria” this season (by making at least 41 starts or playing 2,000+ minutes), his qualifying offer will be worth just $4.5MM. By comparison, a maximum-salary offer from the Mavericks would be worth a projected $27.25MM in 2019/20 and approximately $158MM over five years.

While Porzingis could potentially cash in with a huge payday in 2020, playing on a one-year, $4.5MM deal next year would be a huge gamble for a young player coming off ACL surgery. If he thrives next season, he’d be in position to reach the open market in ’20 and choose his destination without any restrictions, but if he struggles at all or battles more injuries, his long-term value could take a major hit.

It appears the Mavericks are comfortable going through with the trade despite not having any long-term assurances from Porzingis, which makes sense. The franchise likely figures it can use the next year and a half to convince the 23-year-old to stay in Dallas long-term. If he ultimately leaves, the cost – Dennis Smith Jr., plus the expiring contracts of Wesley Matthews and DeAndre Jordan and a future first-rounder – wasn’t too damaging, and the Mavs would be in position to open up a massive amount of cap room in 2020.

Assuming the Mavs and Knicks make their deal official and Porzingis informs Dallas of his summer plans, this will be a fascinating story to watch in the coming months, as there’s no guarantee the big man won’t re-think his stance.

The Mavs could potentially point to Nerlens Noel – who signed his qualifying offer with Dallas after turning down a reported four-year, $70MM offer from the club, then had to settle for a minimum-salary contract the following year – as a cautionary tale during their discussions with Porzingis.

Porzingis May Prefer Trade; Knicks Expected To Explore Market

After meeting with Knicks management to express his concern about the team’s direction, Kristaps Porzingis left the franchise with the impression that he prefers to be traded, according to Adrian Wojnarowski and Ramona Shelburne of ESPN.com (Twitter link). The Knicks are expected to begin discussions about possible Porzingis trades ahead of next week’s deadline, the ESPN duo reports.

As we relayed in our earlier Porzingis story, the injured big man – along with his brother (and agent) Janis – reportedly spoke to the Knicks today about his frustration with the team’s losing, the franchise’s history of dysfunction, and his concern about whether sustainable organizational success is possible.

While ESPN’s report suggested that Porzingis would like to win in New York, it seems that he’s not confident that can happen anytime soon. He’ll be a restricted free agent during the summer of 2019, so the Knicks are in position to hang onto him for at least another season, if they so choose, but it sounds like the club is willing to test the market to see what kind of offers are out there. The Knicks previously considered trading Porzingis when Phil Jackson was in charge of basketball decisions.

An All-Star a year ago, Porzingis averaged 22.7 PPG, 6.6 RPG, and 2.4 BPG with a .439/.395/.793 shooting line in 48 games in 2017/18, displaying franchise-player potential. However, a torn ACL ended his season early and has sidelined him for the entire 2018/19 campaign so far.

Considering Porzingis still hasn’t returned to action following that ACL tear, it’s not clear what the trade market for him would look like at this point. If he’s able to get back on the court during the final couple months of the season and prove he’s healthy, it would increase his value, but it’s not clear when he’ll return — plus, it may be tricky for the Knicks to pull off a sign-and-trade deal in the offseason.

The Celtics, Clippers, Thunder, and Spurs figure to be among the teams with interest in trading for Porzingis, tweets Frank Isola of The Athletic. Wojnarowski names the Clippers and Spurs as well, adding the Nets, Heat, and Raptors to the list of potential suitors (Twitter link). Kevin O’Connor of The Ringer (Twitter link) throws the Mavericks into the mix as well.

As we noted earlier today, Porzingis will have a limited ability to jump ship anytime soon if he’s not traded during the season or in a sign-and-trade. He could accept his qualifying offer this summer and become an unrestricted free agent in 2020, but settling for a one-year, $4.5MM deal would be a big risk for a 7’3″ player coming off an ACL tear.

His other option would be to sign a shorter-term offer sheet with a rival suitor — the Knicks would almost certainly match it, but Porzingis would have the opportunity to get back on the open market sooner than if he signs a four- or five-year contract with New York.

If the Knicks don’t move Porzingis before the deadline, it will be interesting to see if he reconsiders his stance at all in the coming months. New York has a good deal of cap flexibility and is in position to land a top-five draft pick, so it’s not as if the club is poised to stay stuck in lottery territory forever. Some good luck in the draft lottery or on the free agent market could substantially accelerate the Knicks’ rebuilding process.

Photo courtesy of USA Today Sports Images.

NBA G League Assignments/Recalls: 1/28/19

Here are Monday’s assignments and recalls from around the NBA G League:

  • The Nets assigned rookie forward Dzanan Musa to the Long Island Nets, the G League team tweets. Musa has been working his way back from a left shoulder injury suffered during a G League game in mid-December. The 29th overall pick hasn’t seen action in an NBA game since December 1st.
  • The Mavericks recalled rookie forward Ray Spalding from the Texas Legends for the first time this season, Dwain Price of Mavs.com tweets. Spalding, a late second-round selection acquired from Philadelphia, has averaged 15.9 PPG, 9.3 RPG and 2.2 BPG in 30.1 MPG over 29 games with the Legends.

And-Ones: McCullough, Trades, 2020 Draft

Former first-round pick Chris McCullough has signed a G League contract and entered the NBAGL player pool, tweets Adam Johnson of 2 Ways & 10 Days, noting that the former Syracuse power forward is eligible to be claimed off waivers.

The 29th overall pick in the 2015 draft, McCullough spent a season and a half in Brooklyn, followed by a season and a half in Washington. He appeared in just 59 total games for the two clubs, averaging 3.3 PPG and 1.9 RPG in 9.0 minutes per contest. Most recently, the 23-year-old joined the Pistons for training camp, then played in China for a month in the fall. He’ll be looking to earn another shot in the NBA once he lands with a G League team.

Here are a few more odds and ends from around the basketball world:

  • In an entertaining piece for The Athletic, Sam Amick speaks to veteran front office executives John Hammond (Magic general manager), Travis Schlenk (Hawks general manager), and Mike Zarren (Celtics assistant GM) about the process of negotiating and completing trades in the NBA. The three men revisited some of the deals they’ve made over the years in their current or previous management roles.
  • We’re still about five months away from the 2019 draft, but that didn’t stop ESPN’s Jonathan Givony (Insider-only link) from looking ahead to 2020’s draft. Prep star Jaden McDaniels is Givony’s new pick for the No. 1 prospect in the 2020 class.
  • Keith Smith of Yahoo Sports provides some information on this season’s two-way contracts, listing the 13 deals which run for two years and don’t expire until 2020 (Twitter links). The Sixers, Mavericks, and Grizzlies each have both of their two-way players locked up through the 2019/20 season, per Smith.