Hoops Rumors Originals

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.

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.