Hoops Rumors Originals

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.

Five Key Offseason Questions: Chicago Bulls

The Bulls entered the 2018/19 season hoping to take the sort of steps forward that fellow rebuilding teams like the Kings and Hawks did. Instead, the team got off to a slow start, fired head coach Fred Hoiberg, and installed Jim Boylen in his place en route to a 22-60 finish.

Having doubled down on Boylen with a multiyear contract extension, the Bulls will enter the 2019/20 campaign counting on another year of prospect development – and Boylen’s bond with his players – to begin translating to on-court success.

Here are five key questions facing the franchise this summer:

1. How will the Bulls address their point guard position?

Kris Dunn was one of the key components of the trade that sent Jimmy Butler from Chicago to Minnesota in 2017, but unlike the two other players the Bulls acquired in that swap – Zach LaVine and Lauri Markkanen – Dunn hasn’t established himself as a crucial piece of the team’s future.

After a pair of up-and-down seasons in Chicago, Dunn will at the very least find himself facing competition for his starting point guard job this fall, if he’s not usurped outright by a newcomer. It’ll be a big offseason for the former No. 5 overall pick, who will be extension-eligible for the first time.

With about $20MM in projected cap room at their disposal, the Bulls have the flexibility to pursue a veteran on the free agent market to address the point guard spot. They won’t be in play for Kyrie Irving, Kemba Walker, or D’Angelo Russell, and investing big money in a second-tier restricted free agent like Terry Rozier may be ill-advised, but there are a number of options available.

All the way back in January, one report identified Ricky Rubio and Darren Collison as two free-agents-to-be who will be of interest to the Bulls. Collison’s teammate Cory Joseph could be another option, as could Chicago native Patrick Beverley.

Two of the more intriguing players to watch on this front are Derrick Rose and Rajon Rondo — Rose, is of course a former Bulls MVP, while Rondo was well-liked by the team’s young players during his lone year in Chicago. A reunion with either player might not be out of the question.

Of course, the Bulls hold the No. 7 overall pick in the draft and could use it to draft a point guard. However, Ja Morant appears likely to come off the board at No. 2, and Darius Garland may not be available for Chicago either. After those two prospects, there are probably no true point guards worth considering that high in the draft.

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Hoops Rumors Glossary: Base Year Compensation

As Larry Coon explains in his invaluable CBA FAQ, the term “base year compensation” technically no longer shows up in the NBA’s Collective Bargaining Agreement, and hasn’t since 2011. A relic of past agreements, the base year compensation rule was intended to prevent teams from signing free agents to new contracts that were specifically intended to facilitate salary-matching in trades.

While the base year compensation rules have mostly been adjusted and/or removed from the CBA in recent years, there’s still one situation where they apply. Teams have to take them into account when completing sign-and-trade deals.

The BYC rules apply to a player who meets the following criteria in a sign-and-trade:

  • He is a Bird or Early Bird free agent.
  • His new salary is worth more than the minimum.
  • He receives a raise greater than 20%.
  • His team is at or above the cap immediately after the signing.

If the player meets those criteria and is included in a sign-and-trade deal, his outgoing salary for matching purposes is considered to be his previous salary or 50% of his new salary, whichever is greater. For the team he is being signed-and-traded to, his incoming figure for matching purposes is his full new salary.

Here’s a specific example to help make things a little clearer: Let’s say the Celtics want to sign-and-trade Kyrie Irving this offseason. He’s a Bird free agent, his new salary will be well above the minimum, and the Celtics project to be an over-the-cap team. Having made $20,099,189 in 2018/19, Irving will also receive a raise significantly higher than 20% if he inks a maximum salary contract, which is projected to start at $32,700,000. So he meets the BYC criteria.

In that scenario, Irving’s salary for matching purposes from the Celtics’ perspective would be $20,099,189, since his previous salary is greater than 50% of his new salary. From his new team’s perspective, Irving’s incoming figure would be his actual salary, $32,700,000.

Typically, a team acquiring a player via sign-and-trade doesn’t have the cap room to sign the player outright, or else there would be little need to negotiate a sign-and-trade. That means salary matching is often required, and is complicated by base year compensation rules.

In this example, the Celtics wouldn’t be able to take back more than $25,223,986 in exchange for Irving, due to the league’s salary-matching rules. However, in order to take on $32,700,000 in salary, Boston’s trade partner would have to send out at least $26,080,000 in order to account for those salary-matching rules themselves. The discrepancy between those two figures would complicate sign-and-trade talks, likely requiring both teams to include additional pieces to make the deal work.

The base year compensation concept doesn’t surface frequently, as there have only been four sign-and-trades completed around the NBA in the last four offseasons. However, it looms large over most sign-and-trade attempts, reducing the likelihood of teams finding a deal that can be legally completed.

Note: This is a Hoops Rumors Glossary entry. Our glossary posts will explain specific rules relating to trades, free agency, or other aspects of the NBA’s Collective Bargaining Agreement. Larry Coon’s Salary Cap FAQ and salary information from Basketball Insiders was used in the creation of this post.

2019 NBA Offseason Salary Cap Digest: Houston Rockets

After an early-season slump that was widely attributed to the loss of key role players during the 2018 offseason, the Rockets bounced back in a big way, adding new contributors to the rotation and roaring into the postseason with a ton of momentum. For a second straight year, however, Houston saw its momentum halted in the playoffs by the Warriors, sending Daryl Morey and the front office back to the drawing board.

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

Guaranteed Salary

Player Options

  • Nene ($3,825,360)
  • Total: $3,825,360

Team Options

  • None

Non-Guaranteed Salary

Restricted Free Agents

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
  • The Rockets won’t be in position to create cap room this summer. They’re more likely to end up over the tax line rather than below the cap, unless they fill out the back half of their roster on the cheap.

Cap Exceptions Available

  • Trade exception: $1,544,951 (expires 8/2/19)
  • Trade exception: $2,584,136 (expires 9/2/19)
  • Trade exception: $955,172 (expires 1/7/20)
  • Trade exception: $1,512,601 (expires 1/22/20)
  • Trade exception: $3,620,016 (expires 2/7/20)
  • Trade exception: $3,206,160 (expires 2/7/20)
  • Trade exception: $1,621,415 (expires 2/7/20)
  • Trade exception: $1,544,951 (expires 2/7/20)
  • Trade exception: $1,512,601 (expires 2/7/20)
  • Taxpayer mid-level exception: $5,711,000 5

Footnotes

  1. This is a projected value.
  2. Hartenstein’s salary becomes fully guaranteed after July 15.
  3. The salaries for two-way players don’t count against a team’s cap, but their cap holds do during the offseason.
  4. The cap holds for Black, Johnson, and Brown remain on the Rockets’ books because they haven’t been renounced after going unsigned in 2018/19. They can’t be used in a sign-and-trade deal.
  5. This is a projected value. If the Rockets stay below the tax apron, they’d instead have access to the full mid-level exception ($9,246,000) and the bi-annual exception ($3,619,000).

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.

2019 NBA Offseason Salary Cap Digest: Boston Celtics

After making the Eastern Conference Finals in 2018 without Kyrie Irving and Gordon Hayward in their lineup, the Celtics were widely viewed as the favorites to come out of the East in 2019. Instead, Boston struggled all season to live up to those preseason expectations, with fit and role concerns plaguing the team’s veterans and young players alike. Bringing back the same group seems unpalatable, so it could be a summer of change in New England.

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

Guaranteed Salary

Player Options

Team Options

  • None

Non-Guaranteed Salary

Restricted Free Agents

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
  • With less than $65MM in guaranteed money on their books, the Celtics have a path to cap room, but unless they clean house, it’s hard to imagine them getting there. If Horford exercises his player option, that would make Boston an over-the-cap team. The team also must consider Baynes’ player option, Rozier’s cap hold, cap holds for three draft picks, and a new salary for Irving. Perhaps Rozier and/or Irving depart, but it seems likely that at least one of them is retained.
  • If we account for the Celtics’ six players on guaranteed contracts and their three first-round picks, the team could create up to $33.1MM in cap room. But that figure wouldn’t include any of Horford, Irving, Baynes, Rozier, Morris, or Ojeleye, making it a real long shot.

Cap Exceptions Available

  • Trade exception: $450,000 (expires 7/23/19) 3
  • Trade exception: $1,349,383 (expires 2/7/20) 3
  • Mid-level exception: $9,246,000 4
  • Bi-annual exception: $3,619,000 4

Footnotes

  1. Ojeleye’s salary becomes fully guaranteed after July 1.
  2. Larkin’s cap hold remains on the Celtics’ books because he hasn’t been renounced after going unsigned in 2018/19. He can’t be used in a sign-and-trade deal.
  3. The Celtics will lose these exceptions if they go under the cap to use room.
  4. These are projected values. If the Celtics 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 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.

2019 NBA Draft Picks By Team

While the Sixers and Celtics suffered disappointing losses in the Eastern Conference Semifinals and face uncertain futures, both teams can at least fall back on the fact that they’re still loaded with draft assets. Philadelphia and Boston are two of only three NBA teams – the Hawks are the other – that possess at least four picks in the 2019 NBA draft.

As our full 2019 draft order shows, there are five other teams that more than two selections in this year’s draft. On the other end of the spectrum, nine teams own just one pick in 2018, while two teams – the Nuggets and Rockets – don’t have any selections.

To present a clearer picture of which teams are most – and least – stocked with picks for the 2019 NBA draft, we’ve rounded up all 60 picks by team in the space below. Let’s dive in…

Teams with more than two picks:

  • Atlanta Hawks (5): 8, 10, 35, 41, 44
  • Philadelphia 76ers (5): 24, 33, 34, 42, 54
  • Boston Celtics (4): 14, 20, 22, 51
  • New Orleans Pelicans (3): 1, 39, 57
  • Charlotte Hornets (3): 12, 36, 52
  • Brooklyn Nets (3): 17, 27, 31
  • San Antonio Spurs (3): 19, 29, 49
  • Sacramento Kings (3): 40, 47, 60

Teams with two picks:

  • New York Knicks: 3, 55
  • Cleveland Cavaliers: 5, 26
  • Phoenix Suns: 6, 32
  • Chicago Bulls: 7, 38
  • Minnesota Timberwolves: 11, 43
  • Detroit Pistons: 15, 45
  • Orlando Magic: 16, 46
  • Indiana Pacers: 18, 50
  • Utah Jazz: 23, 53
  • Golden State Warriors: 28, 58
  • Los Angeles Clippers: 48, 56

Teams with one pick:

  • Memphis Grizzlies: 2
  • Los Angeles Lakers: 4
  • Washington Wizards: 9
  • Miami Heat: 13
  • Oklahoma City Thunder: 21
  • Portland Trail Blazers: 25
  • Milwaukee Bucks: 30
  • Dallas Mavericks: 37
  • Toronto Raptors: 59

Teams with no picks:

  • Denver Nuggets
  • Houston Rockets

Poll: Were NBA’s Draft Lottery Changes Effective?

Two weeks before Tuesday’s NBA draft lottery, we took a closer look at four lottery scenarios that – based on the odds – were more likely than not to happen. As we cautioned in that story, not all of those scenarios would actually play out. For instance, the Knicks technically defied the odds by landing in the top three (40.1% chance) rather than fourth or fifth (59.1%).

However, the first scenario we outlined in that story did, in fact, play out. As we explained, there was a 45.5% chance that a team in the 5-14 range of the lottery standings would land the No. 1 overall pick, as opposed to just a 42% chance that one of the NBA’s three worst teams – the Knicks, Cavaliers, and Suns – would win the lottery.

The Pelicans, who won the first overall pick, were seventh in the lottery standings, while the Grizzlies (picking No. 2) were eighth.

Neither New Orleans nor Memphis had a great chance to move up. The Pelicans only had a 6.0% chance at the No. 1 pick, and the Grizzlies’ odds of moving into the top two were just 12.3%. But those odds would’ve been substantially lower under the NBA’s old lottery format (2.8% and 6.1%, respectively).

In other words, by smoothing out the odds and giving middle-of-the-pack teams a greater chance to move up, the NBA got the chaos it expected, with three teams moving way up in the draft order and bottom-of-the-pack clubs like the Cavs, Suns, and Bulls getting pushed out of the top four. The league’s new lottery format worked as designed, writes Jeff Zillgitt of USA Today.

“One year doesn’t tell the whole story,” NBA executive VP of basketball operations Kiki VanDeWeghe told ESPN’s Zach Lowe after the lottery. “But the intent was to make it a little more random. It certainly doesn’t solve everything, but I think it was a good move by the Board of Governors.”

A common refrain in the wake of last night’s results was that the outcome should discourage tanking going forward. One team executive told Mike Vorkunov of The Athletic that “the war on tanking was a success,” while Rudy Gobert declared on Twitter that “we just witnessed the end of tanking.”

Still, others pushed back against that idea. After all, even if it wasn’t a great night for the Knicks, Cavs, Suns, and Bulls, teams like the Pelicans and Lakers intentionally held their stars out of action down the stretch, and were ultimately rewarded for it. Given how many mid-lottery teams benefited, is it possible that borderline postseason contenders in future years will wave the white flag on the playoff chase earlier than anticipated in an attempt to move into a similar position?

What do you think? Were the NBA’s new lottery changes effective, or do you think they’ll end up creating more issues (related to tanking or anything else) going forward?

Vote in our poll, then head to the comment section to share your thoughts!

Trade Rumors app users, click here to vote.

Full 2019 NBA Draft Order

Now that the NBA’s draft lottery results are in, the full 2019 draft order has been set.

We’ll likely see some of these picks change hands on June 20, or in the days leading up to draft night — we’ll be sure to update the list below if and when picks are traded.

Here’s the full 2019 NBA draft order:

First Round:

  1. New Orleans Pelicans
  2. Memphis Grizzlies
  3. New York Knicks
  4. Los Angeles Lakers (will be traded to Hawks via Pelicans)
  5. Cleveland Cavaliers
  6. Phoenix Suns (will be traded to Timberwolves)
  7. Chicago Bulls
  8. Atlanta Hawks (will be traded to Pelicans)
  9. Washington Wizards
  10. Atlanta Hawks (from Mavericks)
  11. Minnesota Timberwolves (will be traded to Suns)
  12. Charlotte Hornets
  13. Miami Heat
  14. Boston Celtics (from Kings)
  15. Detroit Pistons
  16. Orlando Magic
  17. Brooklyn Nets (will be traded to Pelicans via Hawks)
  18. Indiana Pacers
  19. San Antonio Spurs
  20. Boston Celtics (from Clippers)
  21. Oklahoma City Thunder
  22. Boston Celtics
  23. Utah Jazz (will be traded to Grizzlies)
  24. Philadelphia 76ers
  25. Portland Trail Blazers
  26. Cleveland Cavaliers (from Rockets)
  27. Brooklyn Nets (from Nuggets)
  28. Golden State Warriors
  29. San Antonio Spurs (from Raptors)
  30. Milwaukee Bucks (will be traded to Pistons)

Second Round:

  1. Brooklyn Nets (from Knicks)
  2. Phoenix Suns (will be traded to Pacers)
  3. Philadelphia 76ers (from Cavaliers)
  4. Philadelphia 76ers (from Bulls)
  5. Atlanta Hawks (will be traded to Pelicans)
  6. Charlotte Hornets (from Wizards)
  7. Dallas Mavericks
  8. Chicago Bulls (from Grizzlies)
  9. New Orleans Pelicans
  10. Sacramento Kings (from Timberwolves)
  11. Atlanta Hawks (from Lakers) (will be traded to Warriors)
  12. Philadelphia 76ers (from Kings)
  13. Minnesota Timberwolves (from Heat)
  14. Miami Heat (from Hornets via Hawks)
  15. Detroit Pistons
  16. Orlando Magic (from Nets)
  17. Sacramento Kings (from Magic)
  18. Los Angeles Clippers
  19. San Antonio Spurs
  20. Indiana Pacers
  21. Boston Celtics
  22. Charlotte Hornets (from Thunder)
  23. Utah Jazz
  24. Philadelphia 76ers
  25. New York Knicks (from Rockets)
  26. Los Angeles Clippers (from Trail Blazers)
  27. New Orleans Pelicans (from Nuggets) (will be traded to Hawks)
  28. Golden State Warriors
  29. Toronto Raptors
  30. Sacramento Kings (from Bucks)

Five Key Offseason Questions: Sacramento Kings

The Kings have the NBA’s longest postseason drought, having not appeared in the playoffs since 2006. Still, while they were unable to snap that streak in 2018/19, it represented the team’s most promising season in years — in fact, Sacramento’s 39-43 record was its best mark since that ’05/06 campaign.

While breakout years by young building blocks like De’Aaron Fox and Buddy Hield bode well for the Kings going forward, it’s not clear that the dysfunction plaguing Sacramento for years is totally behind the organization.

Here are five key questions facing the franchise this summer:

1. Did the franchise make the right call hiring Luke Walton?

That dysfunction I mentioned in the introduction surfaced during the 2018/19 season in large part due to tension between head coach Dave Joerger and the front office — specifically assistant GM Brandon Williams. There was a disconnect between the two sides on how much playing time veterans and prospects should receive, and Joerger made some comments hinting that he might not have been entirely on board with the Kings’ decision to draft Marvin Bagley over Luka Doncic.

By parting ways with both Joerger and Williams, the Kings made an effort to remove that potential discord from the equation entirely going forward. They quickly replaced Joerger with Luke Walton, a coach who received some praise for his work with young players during his early days with the Lakers.

However, the Kings perhaps moved too quickly to lock up Walton. Just a week after they announced his hiring, word broke that he was being sued and accused of sexual assault.

The Kings now found themselves in a tricky situation. Hiring Walton and then dismissing him before he coaches a single game would be a bad look for the franchise, but it would arguably be an even worse look if the team retains him despite finding the claims against him to be credible.

Before determining whether he’s the right fit on the court, the Kings will have to do their best to determine whether there’s truth to the off-court allegations against Walton, and whether that would disqualify him from keeping the job. The Kings and the NBA are currently investigating the allegations.

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2019 NBA Offseason Salary Cap Digest: Utah Jazz

For a second straight year, the Jazz finished the regular season with a strong home stretch after an up-and-down first half. And for a second straight year, they ran into the Rockets in the playoffs, unable to mount a serious threat against James Harden‘s squad. With the current squad having perhaps reached its ceiling, the Jazz will likely look to make some changes to their roster this summer.

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

Guaranteed Salary

Player Options

  • None

Team Options

  • None

Non-Guaranteed Salary

Restricted Free Agents

Unrestricted Free Agents / Other Cap Holds

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

Offseason Cap Outlook

  • Maximum cap room projection: $38.9MM
  • This projection takes into account Utah’s seven players on fully guaranteed salaries, O’Neale’s non-guaranteed salary, and the cap hold for their first-round pick. It also assumes that Korver is waived and stretched.
  • The Jazz could end up with significantly less cap room. If Favors is retained, for example, his cap hit would reduce Utah’s cap space by nearly $17MM. Retaining other non-guaranteed players like Neto and Niang would further cut into that space. If the Jazz were to waive-and-stretch Korver but retained Favors, Neto, and O’Neale, they’d have $20.8MM in cap room.

Cap Exceptions Available

  • Room exception: $4,760,000 6

Footnotes

  1. Favors’ salary becomes fully guaranteed after July 6.
  2. Korver’s salary becomes fully guaranteed after July 7.
  3. Neto’s salary becomes fully guaranteed after July 6.
  4. The salaries for two-way players don’t count against a team’s cap, but their cap holds do during the offseason.
  5. McCree can’t be used in a sign-and-trade deal.
  6. This is a projected value. In the event the Jazz remain over the cap, they’d instead have access to the full mid-level exception ($9,246,000), the bi-annual exception ($3,619,000), and their lone trade exception ($3,976,515; expires 11/29/19).

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.