Hoops Rumors Originals

Designated Veteran Extension History, Eligible Players

When the NBA and the Players’ Association introduced the Designated Veteran Extension in the 2017 Collective Bargaining Agreement, it seemed aimed at helping teams keep their very best players.

The extra year and the slightly larger raises that teams can give to their own Bird Rights free agents already gave the home team a slight advantage over outside suitors. But allowing a player’s starting salary to begin at 35% of the cap rather than 30% if he meets the DVE performance criteria and re-signs with his own team made the difference between the two options even more significant.

Still, as Tim Bontemps of ESPN.com details, the Designated Veteran Extension – also known as the super-max – hasn’t necessarily worked as planned. Players like Paul George, Kawhi Leonard, and Anthony Davis have been willing to pass on super-max opportunities in the hopes of joining new teams. And teams like the Bulls and Kings have opted to trade their stars – Jimmy Butler and DeMarcus Cousins – rather than reckon with the possibility of committing super-max money to them.

In the view of NBPA executive director Michele Roberts, the introduction of the DVE may not have worked as anticipated for teams, but it also hasn’t negatively impacted those star players.

“I mean, the players that are eligible, frankly, are players that are going to get paid, and they’re going to have any number of alternatives,” Roberts told ESPN. “It hasn’t hurt them. It was something that they were able to secure and they were interested in getting it, and it was going to be a tremendous advantage in terms of just the amount of money.

“But I still don’t see a downside. The only downside is to the extent that people absolutely believed that it was a slam-dunk way to keep their guys. And it just isn’t. And if they doubted it, they can now take a look at Anthony [Davis] and see, ‘Oh, wow, there is no way.'”

Even if the Designated Veteran Extension hasn’t reduced player movement or helped teams keep their own stars, commissioner Adam Silver doesn’t think that means it hasn’t been an effective change. After all, knowing that George and Leonard weren’t interested in the super-max allowed the Pacers and Spurs to trade them in advance of their respective free agencies.

“Part of the goal in ‘early-ing’ up the discussion was that those players then wouldn’t reach the end of their contracts and, frankly, surprise teams by then announcing they were leaving,” Silver said last month. “The fact that a player left the market doesn’t mean it was a failure, because at least in those cases the teams got value.”

Silver acknowledges that “there’s still room for improvement” within the framework of the Designated Veteran Extension. The next round of super-max deals should help provide a clearer picture of how they’ll work long-term.

Four players signed these contracts in 2017, the first year they were available, but no players signed one in 2018. After this week’s All-NBA announcement, a handful of additional players gained eligibility, increasing the likelihood that we’ll see more Designated Veteran Extensions signed this year or next. Now it’s just a matter of waiting to see whether those deals are offered, and whether they’re accepted.

Here’s a breakdown of the players that have signed DVEs since the rule went into effect in 2017:

  1. Stephen Curry, Warriors (five years, $201,158,790; started in 2017/18)
    • Note: This was technically a free agent contract rather than an extension.
  2. Russell Westbrook, Thunder (five years, $206,794,070; started in 2018/19)
  3. James Harden, Rockets (four years, projected value of $170,912,000; starting in 2019/20)
  4. John Wall, Wizards (four years, projected value of $170,912,000; starting in 2019/20)

Here are the players who are eligible to sign a DVE this offseason:

  1. Kemba Walker, Hornets (five years, projected value of $221,270,000; starting in 2019/20)
    • Note: This would technically be a free agent contract rather than an extension.
  2. Anthony Davis, Pelicans (five years, projected value of $235,480,000; starting in 2020/21)
  3. Damian Lillard, Trail Blazers (four years, projected value of $191,296,000; starting in 2021/22)

And here are the players who are eligible to sign a DVE in 2020:

  1. Giannis Antetokounmpo, Bucks (five years, projected value of $247,660,000; starting in 2021/22)
  2. Rudy Gobert, Jazz (five years, projected value of $247,660,000; starting in 2021/22)

Joel Embiid (Sixers) is probably the next star to keep an eye on in terms of super-max eligibility. If he earns a spot on an All-NBA team in 2019/20, he’ll become eligible to sign a Designated Veteran Extension during the 2021 offeason.

Photo courtesy of USA Today Sports Images.

Five Key Offseason Questions: Minnesota Timberwolves

Things seemed to be on the upswing for the Timberwolves in 2017/18, when the team snapped a 13-year postseason drought, winning 47 games and winning a playoff game for the first time since 2004. However, that positive momentum came to a halt last fall, when Jimmy Butler‘s trade demand disrupted and derailed the Wolves’ season before it began.

Butler was eventually traded to Philadelphia, but Minnesota was never really in the playoff hunt in 2018/19, and Tom Thibodeau‘s handling of the Butler saga ultimately led to his dismissal. Heading into the 2019 offseason, the Wolves now employ a new president of basketball operations (Gersson Rosas) and a new permanent head coach (Ryan Saunders) as the organization looks to get back on track and resume contending for the postseason.

Here are five key questions facing the franchise this summer:

1. Which players will Gersson Rosas view as keepers?

When a team overhauls its front office, that doesn’t necessarily mean a roster overhaul will follow. But executives generally have stronger attachments to players that they’ve drafted, signed, or traded for than the ones they’ve inherited.

This will be the first time Rosas has decision-making power in an NBA front office. While his long stint in Houston’s front office is somewhat instructive, we’ll be learning for the first time in the next year or two what sort of players he likes, and which Timberwolves players fit that bill.

The front office changes in Minnesota are unlikely to impact someone like Karl-Anthony Towns, who would be a franchise cornerstone no matter who is running the team. But how invested will Rosas be in players like Robert Covington and Dario Saric? They were the key assets the team received in return for Butler last fall and would still have positive trade value if Rosas isn’t attached to them. Assuming he likes them, they could become long-term building blocks for the Timberwolves.

Rosas’ evaluation of the players on his new roster will impact young prospects under contract (like Josh Okogie and Keita Bates-Diop) and veteran free agents (such as Derrick Rose and Taj Gibson) alike, so it should be an interesting summer in Minnesota as Rosas gets his first opportunity to oversee a series of roster moves.

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Poll: Which Team Will Win Bucks/Raptors Series?

When we asked for conference finals predictions 10 days ago, before each series had gotten underway, the Bucks were the clear choice in the Eastern Conference over the Raptors. In that poll, Milwaukee received just over 64% of the vote, while Toronto received less than 36%.

Now, with the series tied at two games apiece, the series is essentially in the same place it was then — it’s simply a best-of-three instead of a best-of-seven. We also have four games worth of data at our disposal, even if it’s not clear what conclusions we should – or can – draw from that data.

Are the Bucks the team we saw in Game 2, when they dominated the Raptors on both ends of the court en route to a 22-point win? Giannis Antetokounmpo posted 30 points and 17 rebounds in that contest, but he got plenty of help from his supporting cast, with Ersan Ilyasova, Nikola Mirotic, Malcolm Brogdon, George Hill, and Khris Middleton all scoring double-digit points.

The Raptors, meanwhile, got 31 points from Kawhi Leonard in that game, but only two other players – Kyle Lowry and Norman Powell – scored more than eight.

Since the series shifted back to Toronto though, the Bucks’ stars and role players alike struggled with consistency, with no Milwaukee players stringing together two consecutive great games. It was the Raptors’ depth, on the other hand, that thrived in Game 4, as the team cruised to a 120-102 victory despite getting only 19 points out of Leonard.

With the series back in Milwaukee tonight, the Bucks will be looking to rebound, and the odds are in their favor — they haven’t lost three straight games all season. Additionally, Leonard looks like he’s favoring a leg injury, and Lowry is still battling a left hand issue.

Still, Lowry has played through his injury and looks as effective as ever, while Leonard’s defense on Antetokounmpo has made the MVP candidate look uncomfortable. Giannis will need more help from struggling point guard Eric Bledsoe and other role players to advance.

What do you think? With the Eastern Conference Finals all tied up at 2-2, which team do you expect to win the series and represent the East in this year’s NBA Finals?

Vote below in our poll, then head to the comment section to weigh in with your thoughts.

Trade Rumors app users, click here to vote.

2019 NBA Offseason Salary Cap Digest: Denver Nuggets

After narrowly missing the playoffs in 2018, the Nuggets expressed confidence in their core by bringing back virtually the same group, and that bet paid off to the tune of 54 regular-season victories, the No. 2 seed in the West, and the club’s first playoff series win since 2009. The Nuggets will count on continued improvement from some of their young players going forward, but the team may also have a little flexibility to add more reinforcements.

Here’s where things currently stand for the Nuggets financially, as we continue our Offseason Salary Cap Digest series for 2019:

Guaranteed Salary

Player Options

  • None

Team Options

Non-Guaranteed Salary

  • None

Restricted Free Agents

Unrestricted Free Agents / Other Cap Holds

Projected Salary Cap: $109,000,000
Projected Tax Line: $132,000,000

Offseason Cap Outlook

  • Cap room projection w/Millsap: $0
  • There are few wild cards on the Nuggets’ books this offseason, but Millsap is a big one. Even if his $30MM option for 2019/20 is declined – which is a safe bet – re-signing him to a more modest deal would likely eat up any available cap room and make Denver an over-the-cap team. In that scenario, the Nuggets would have the mid-level ($9.25MM) and bi-annual ($3.62MM) exceptions available, along with a series of trade exceptions, detailed below.
  • Cap room projection w/o Millsap: $17MM
  • On the other hand, if Millsap is renounced, the team could create up to about $17MM in space without shedding any other salaries. That’s not enough to contend for maximum-salary free agents, but the players a notch or two below that tier could be within reach.

Cap Exceptions Available

  • Trade exception: $12,800,562 (expires 7/8/19)
  • Trade exception: $13,764,045 (expires 7/15/19)
  • Trade exception: $5,919,961 (7/15/19)
  • Mid-level exception: $9,246,000 4
  • Bi-annual exception: $3,619,000 4

Footnotes

  1. The salaries for two-way players don’t count against a team’s cap, but their cap holds do during the offseason.
  2. Because Lydon’s fourth-year rookie scale option was declined, the Nuggets are ineligible to offer him a starting salary greater than his cap hold.
  3. The cap hold for Jefferson remains on the Nuggets’ books because he hasn’t been renounced after going unsigned in 2018/19. He can’t be used in a sign-and-trade deal.
  4. These are projected values. In the event the Nuggets use cap room, they’d lose these exceptions, plus their trade exceptions, and would instead would gain access to the $4,760,000 room exception.

Note: Minimum-salary and rookie-scale cap holds are estimates based on salary cap projections and could increase or decrease depending on where the cap lands.

Salary information from Basketball Insiders, ESPN.com, and RealGM was used in the creation of this post. Photo courtesy of USA Today Sports Images.

Five Key Offseason Questions: Charlotte Hornets

Since being reborn in 2004 as the Bobcats, Charlotte’s NBA team – now the Hornets – has failed to win more than 48 games or advance past the first round of the postseason. Improbably, the 2018/19 season represented the first time during that stretch that the Hornets had even finished higher than third place in the Southeast. Unfortunately for Charlotte, that spoke more to the weakness of the division than the strength of the Hornets, as the team still missed the playoffs for a third straight season.

Entering the 2019 offseason, the Hornets find themselves at a crossroads. Given the organization’s struggles in recent years – and its inability to build a legit contender over the last 15 seasons – it might be time to blow things up and attempt another rebuild. However, it remains to be seen if ownership and management are ready to go down that road.

Here are five key questions facing the franchise this summer:

1. Is this the end of the Kemba Walker era in Charlotte?

Walker was the subject of trade rumors leading up to the 2018 trade deadline, but the Hornets overhauled their front office shortly thereafter and talk of dealing Kemba died down. He and the team said all the right things, with both sides expressing interest in a long-term union. There’s no reason to think that either side was lying or that that interest doesn’t still exist, but it’s hard to make the case that this remains the right fit.

Walker has long been the face of the Hornets, but he’s about to become eligible for a five-year contract worth up to nearly $190MM — or $221MM, if he earns All-NBA honors. Charlotte has had a hard enough time building around Walker while he has been on one of the most team-friendly contracts in the NBA ($12MM annually). Paying him upwards of three times that much as he prepares to enter his age-29 season could hamstring the team’s financial flexibility for the rest of Kemba’s prime.

As for Walker, he was probably miscast as a franchise player in Charlotte, but he has done all he could over the last eight years to try to turn the Hornets into a winner. It hasn’t worked out, and if he wants to look elsewhere for a better situation for contending, no one would blame him. The Charlotte Observer’s editorial board even encouraged the Hornets to let him do just that.

It will be fascinating to see how this situation plays out in July. Some ill-advised investments elsewhere on their roster have put the Hornets in a sort of no-win situation here. If they re-sign Walker, they won’t have the cap flexibility necessary to get him the help he needs. But if they let him walk, they may not have enough attractive assets on hand to jump-start their rebuild. It could be years before they sniff the postseason again.

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Community Shootaround: Warriors Without Durant

When Kevin Durant limped off the court on May 8, there were concerns that his strained calf could end the Warriors’ quest for a third straight NBA title and maybe even knock them out in the second round.

Golden State pulled out Game 5 against the Rockets that night and hasn’t lost since, building a 3-0 lead in the Western Conference Finals. The Warriors have reverted back to a brand of basketball that was successful before Durant arrived, with Stephen Curry, Klay Thompson and Draymond Green all taking expanded roles on offense.

That’s important not only for the rest of the playoffs, but maybe for next season as rumors continue  that Durant will leave for the Knicks or possibly somewhere else this summer. Although the Warriors finally have full Bird rights on Durant and can offer him more than anyone else, the challenge of succeeding in a new situation might be more important to him than money.

Although it won’t be easy to replace 26.0 points, 6.4 rebounds and 5.9 assists per game, Golden State would essentially go back to the same team that won a title and then 73 games in the two seasons before Durant arrived. Curry has reverted to his MVP form since Durant’s injury, and Thompson and Green have been better as well with more shots available.

There has been talk that the Warriors are better without Durant, but Sam Amick of The Athletic dismisses that as a ridiculous notion. He points out that Durant has been the MVP of the last two NBA Finals and that the team didn’t reach a dynasty level until Durant arrived.

Durant’s teammates don’t believe it either.

“I think everybody in this organization knows that we’re a better team with Kevin,” Quinn Cook told Amick after Thursday’s game. “… He’s been a superstar since he’s been in the league, so there’s a different narrative every day. I think he’s used to that. (But) he has a relationship with everybody on the team, so I think he knows how we all feel about him. … Everybody has to step up in his absence. That’s really the biggest thing. Everybody has been stepping up because we know we don’t have the best player on our team.”

We want to get your opinion on how the Warriors will survive without Durant — during the rest of the playoffs if he can’t return and next season if he signs somewhere else. Please leave your answers in the space below.

Hoops Rumors Originals: 5/11/19 – 5/18/19

Every week, the Hoops Rumors writing team creates original content to complement our news feed. Here are our segments and features from the past seven days:

Free Agent Stock Watch 2019: Conference Finals

Every week, Hoops Rumors takes a closer look at players who will be free agents or could become free agents next offseason. We examine if their stock is rising or falling due to performance and other factors. This week, we take a look at some of the players currently in the conference finals:

DeMarcus Cousins, Warriors, 28, C (Down) — Signed to a one-year, $5.3MM deal in 2018
Cousins made a snap decision on the second day of free agency last July to bet on himself and chase a ring. There’s a very good chance he’ll get the latter; as for landing a big multi-year contract this summer, that’s a major question mark. He’s unlikely to play against Portland due to the quad injury he suffered in the opening round. There’s no guarantee he’d be back for the Finals. Cousins played well after returning from his one-year rehab for an Achilles tear but it’s fair to question whether the injuries will continue to pile up for the big man.

Seth Curry, Trail Blazers, 28, SG (Up) — Signed to a one-year, $2.8MM deal in 2018
Seeing the Curry brothers go at each other has added to the entertainment value of the conference finals. Seth didn’t fare so well in Game 1 (three points on 1-for-7 shooting) but he was a major factor in Game 2 with 16 points, including four 3-pointers, and four steals. After missing all of last season with a left leg injury, the less-heralded Curry has proven to be a valuable rotation player. The Pistons reportedly have him high on their list of free agent targets. They certainly won’t be alone — career 43.9% 3-point shooters tend to attract a crowd.

Marc Gasol, Raptors, 34, C (Down) – Signed to a five-year, $113.2MM deal in 2015
Gasol said earlier this month he’s undecided whether to exercise his $25.6MM player option. At this stage of his career, Gasol is probably more focused on being a good fit and feeling comfortable than his bank account. But he’d be losing many millions if he doesn’t opt in. Quite frankly, he’s no longer a $25MM player. More than half of his field-goal attempts in the playoffs have come from beyond the arc and he’s not making them. He shot 26.9% from deep against the Sixers in the conference semis and went 2-for-7 in Game 1 against the Bucks. He’s scored in single digits in 10 of 13 games this postseason.

Brook Lopez, Bucks, 31, C (Up) – Signed to a one-year, $3.4MM deal in 2018
Following a series of forgettable conference semifinal outings, Lopez blew up in Game 1 against Toronto. He piled up 29 points, 11 rebounds and four blocks to carry the Bucks to an early lead in the series. Lopez was arguably the biggest bargain in free agency last summer. He was an ideal fit for the Bucks’ high-powered attack as a ‘stretch five.’ His advanced defensive numbers this season were the best of his career. Milwaukee has other free agency concerns, most notably Khris Middleton, but re-signing Lopez should be a high priority as well.

Photo courtesy of USA Today Sports Images.

Five Key Offseason Questions: Memphis Grizzlies

The Grizzlies made the postseason for seven years in a row before a dismal 2017/18 season in which they won just 22 games. The team hoped that nosedive in the standings would be short-lived and entered the 2018/19 campaign aiming to return to the playoffs.

While Memphis rebounded to some extent, it wasn’t enough. After a 33-win showing this season, Marc Gasol has been traded to the Raptors and there’s a chance that Mike Conley will follow him out of town in the not-too-distant future.

The Grizzlies never advanced further than the Western Conference Finals with Conley and Gasol as their centerpieces. With that era coming to an end, new cornerstones Jaren Jackson and – barring a draft-day surprise – Ja Morant will be tasked with helping the organization get back to contention in the coming years.

Here are five key questions facing the franchise this summer:

1. Will the Grizzlies trade Mike Conley?

This year’s draft lottery results altered the outlook of the Grizzlies’ offseason. Halfway through the announcement of those results, we knew that the Lakers had jumped into the top four from No. 11, and it looked like the Grizzlies – who were No. 8 in the lottery standings – might not even have a first-round pick at all, since their top-eight protected first-rounder was owed to the Celtics.

Instead of landing at No. 9 though, that selection moved all the way up to No. 2. Not only do the Grizzlies still have their pick, but they’re now in great position to draft Morant, the Murray State point guard who appears to have emerged as the clear-cut top prospect behind Zion Williamson in the 2019 draft class.

With over a month until draft day, there are still a number of directions the Grizzlies could go with that pick, including trading down or choosing R.J. Barrett over Morant. But early reports suggest they’re “locked in” on Morant, so we’ll assume that’s the case. What happens with Conley now?

Having lost his longtime running mate Gasol earlier this season, Conley seemed resigned to the fact that his time in Memphis would soon be up too, and there are no shortage of possible trade partners for the Grizzlies. The Jazz, Pistons, and Pacers were said to be in the mix for the veteran at the trade deadline, and the Heat and Mavericks are among the other clubs cited as potential suitors.

If the Grizzlies favor a high draft pick, the Heat (No. 13) and Mavericks (No. 15) could be the best matches in that group. On the other hand, if they don’t get an offer to their liking, hanging onto Conley wouldn’t be the worst outcome. He’d be a great mentor for Morant, and Memphis could revisit the trade market before 2020’s deadline.

Based on the success Conley had last season, his stock may never be higher than it is right now, but the Grizzlies shouldn’t simply take whatever they can get for him if the offers this summer are underwhelming.

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2019 NBA Offseason Salary Cap Digest: Philadelphia 76ers

With a pair of homegrown franchise players in place for the 2018/19 season, new Sixers general manager Elton Brand decided the time was right to push his chips into the middle of the table. The team went out and acquired Jimmy Butler and Tobias Harris to team up with Joel Embiid and Ben Simmons, creating perhaps the most dominant starting lineup in the NBA. After a second-round exit, the club will now need to decide how aggressive it will be in trying to keep that group together to give it more time to jell.

Here’s where things currently stand for the Sixers financially, as we continue our Offseason Salary Cap Digest series for 2019:

Guaranteed Salary

Player Options

Team Options

  • None

Non-Guaranteed Salary

  • Jonathon Simmons ($4,700,000) 1
  • Total: $4,700,000

Restricted Free Agents

  • None

Unrestricted Free Agents / Other Cap Holds

Projected Salary Cap: $109,000,000
Projected Tax Line: $132,000,000

Offseason Cap Outlook

  • Realistic cap room projection: $0
  • This projection assumes that the Sixers retain both Butler and Harris, whose cap holds total nearly $53MM combined. In that scenario, Philadelphia would almost certainly remain an over-the-cap team.
  • Maximum cap room projection: $59.2MM
  • This is the Sixers’ cap room projection in the event that Butler, Harris, and Redick are all renounced. That seems extremely unlikely.
  • There are several variations that fall somewhere in between having no cap room and having $59MM+. For instance, if the 76ers only re-sign Butler, renouncing Harris and Redick, they could have $29.4MM in space. If they only bring back Harris and not those other two free agents, that figure could be $37.9MM. Re-signing Harris and Redick without Butler could result in $22.8MM in space, or even more if Redick signs for less a salary worth less than his cap hold.
  • Of course, other players, such as Ennis, Scott, and Pasecniks, could be wild cards here — the above projections assume that they’re not on next season’s roster.

Cap Exceptions Available

  • Trade exception: $957,480 (expires 11/12/19)
  • Trade exception: $2,339,880 (expires 2/7/20)
  • Mid-level exception: $9,246,000 4
  • Bi-annual exception: $3,619,000 4

Footnotes

  1. Simmons’ salary becomes fully guaranteed after July 1.
  2. Pasecniks was the 25th overall pick in the 2017 draft. His cap hold (the equivalent to the 25th overall pick in the 2019 draft) will remain on the Sixers’ books unless the team receives permission to remove it, which would ensure Pasecniks won’t be signed in 2019/20.
  3. Because Korkmaz’ fourth-year rookie scale option was declined, the Sixers are ineligible to offer him a starting salary greater than his cap hold.
  4. These are projected values. If the Sixers are at risk of going into tax territory, they may forfeit the bi-annual exception and have to use the taxpayer mid-level exception ($5,711,000) rather than the full mid-level exception. In the event they use cap room, they’d lose these exceptions, plus their trade exceptions, and would instead would gain access to the $4,760,000 room exception.

Note: Minimum-salary and rookie-scale cap holds are estimates based on salary cap projections and could increase or decrease depending on where the cap lands.

Salary information from Basketball Insiders and RealGM was used in the creation of this post. Photo courtesy of USA Today Sports Images.