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Hoops Rumors Glossary: Cap Holds

March 14th, 2019 at 9:56am CST by Luke Adams

The Warriors have committed only about $82MM in guaranteed money to player salaries for 2019/20, but that doesn’t mean the team will begin the offseason with $27MM of room under the projected $109MM salary cap. In fact, the Warriors won’t open the new league year with any cap space at all. Each of Golden State’s own free agents will be assigned a free agent amount – or “cap hold” – until the player signs a new contract or the Warriors renounce his rights.

The general purpose of a cap hold is to prevent teams from using room under the cap to sign free agents before using Bird rights to re-sign their own free agents. If a team wants to take advantage of its cap space, it can renounce the rights to its free agents, eliminating those cap holds. However, doing so means the team will no longer hold any form of Bird rights for those players — if the team wants to re-sign those free agents, it would have to use its cap room or another kind of cap exception.

The following criteria are used for determining the amount of a free agent’s cap hold:

  • First-round pick coming off rookie contract: 300% of previous salary if prior salary was below league average; 250% of previous salary if prior salary was above league average.
  • Bird player: 190% of previous salary (if below average) or 150% (if above average).
  • Early Bird player: 130% of previous salary.
  • Non-Bird player: 120% of previous salary.
  • Minimum-salary player: Two-year veteran’s minimum salary, unless the free agent only has one year of experience, in which case it’s the one-year veteran’s minimum.
  • Two-way player: One-year veteran’s minimum salary.

A cap hold for a restricted free agent can vary based on his contract status. A restricted free agent’s cap hold is either his free agent amount as determined by the criteria mentioned above, or the amount of his qualifying offer, whichever is greater.

No cap hold can exceed the maximum salary for which a player can sign. For instance, the cap hold for a Bird player with a salary above the league average is generally 150% of his previous salary, as noted above. But for someone like Kevin Durant, who is earning $30MM this season, 150% of his previous salary would go far beyond the maximum salary threshold.

Durant’s cap hold – assuming he turns down his 2019/20 player option, as expected – will be equivalent to the maximum salary for a player with 10+ years of NBA experience. That figure currently projects to be $38.15MM, based on a $109MM salary cap.

One unusual case involves players on rookie contracts whose third- or fourth-year options are declined, such as Dragan Bender, who had his fourth-year option turned down by the Suns. Because they declined that option, the Suns wouldn’t be able to pay Bender more than what he would have earned in the option year ($5,896,519).

That rule is in place so a team can’t circumvent the rookie scale and decline its option in an effort to give the player a higher salary — the rule applies even if the player is traded, so if a team had acquired Bender before this year’s deadline, that team would have faced the same limit. Rather than coming in at 300% of this year’s salary, as would be the case with most players coming off rookie scale contracts, Bender’s 2018 cap hold will equal the amount of his option: $5,896,519.

If a team holds the rights to fewer than 12 players, cap holds worth the rookie minimum salary are assigned to fill out the roster. So, even if a front office chooses to renounce its rights to all of its free agents and doesn’t have any players under contract, the team wouldn’t be able to fully clear its cap. In 2019/20, incomplete roster charges project to be worth $897,158, meaning a team with 12 of those charges would have nearly $11MM on its cap even before adding any players.

Cap holds aren’t removed from a team’s books until the player signs a new contract or has his rights renounced by the club. For example, the Warriors are still carrying cap holds on their books for David West and Matt Barnes, who haven’t signed new contracts since playing for Golden State. Keeping those cap holds allows teams some degree of cushion to help them remain above the cap and take advantage of the mid-level exception and trade exceptions, among other advantages afforded capped-out teams.

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 the Basketball Insiders salary pages were used in the creation of this post.

Earlier versions of this post were published in previous years by Luke Adams and Chuck Myron.

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Knicks, Hawks, Suns Carrying Most 2018/19 Dead Money

March 12th, 2019 at 2:59pm CST by Luke Adams

All but two of the NBA’s 30 teams are carrying some sort of “dead money” on their salary cap for 2018/19. This dead money is created as a result of having, at some point, waived a player who had guaranteed money left on his contract (or having 10-day contracts expire).

In some cases, teams are carrying cap hits for players even though they released them several years ago. That’s the case in Detroit, for instance, where the Pistons have a $5,331,729 cap charge for Josh Smith this season — the Pistons cut Smith in 2014.

For other clubs, the dead money is a result of having waived players more recently. The Knicks, for example, shot to the top of 2018/19’s dead money list after the trade deadline when they released Enes Kanter and Wesley Matthews, both of whom had cap hits of $18,622,514.

Carrying a significant amount of dead money isn’t necessarily a sign of cap mismanagement — the Hawks, for instance, have nearly $44MM in dead money on their books, but a significant portion of that money came as a result of acquiring and waiving Carmelo Anthony and Jamal Crawford. Both of those players came with first-round picks attached, so Atlanta doesn’t mind the fact that they’re taking up a chunk of the team’s cap room this year.

Conversely, the Hornets are one of just two teams with absolutely no dead money on their cap this season, but that doesn’t mean they’ve been well-managed. After all, many of Charlotte’s highest-paid players aren’t giving the team much in the way of on-court production.

Here’s the full list of 2018/19 dead money by team, as of March 12, starting with the Knicks:

  1. New York Knicks: $60,490,344
  2. Atlanta Hawks: $43,703,050
  3. Phoenix Suns: $39,609,580
  4. Brooklyn Nets: $39,363,271
  5. Los Angeles Clippers: $30,930,897
  6. San Antonio Spurs: $20,306,394
  7. Chicago Bulls: $18,918,503
  8. Dallas Mavericks: $15,593,061
  9. Los Angeles Lakers: $14,354,067
  10. Sacramento Kings: $11,827,028
  11. Indiana Pacers: $10,888,661
  12. New Orleans Pelicans: $10,196,784
  13. Milwaukee Bucks: $7,412,562
  14. Detroit Pistons: $7,189,209
  15. Portland Trail Blazers: $5,091,108
  16. Oklahoma City Thunder: $4,799,674
  17. Memphis Grizzlies: $3,884,469
  18. Minnesota Timberwolves: $2,945,201
  19. Toronto Raptors: $1,885,458
  20. Philadelphia 76ers: $1,740,276
  21. Cleveland Cavaliers: $1,572,152
  22. Washington Wizards: $1,553,515
  23. Orlando Magic: $1,333,333
  24. Golden State Warriors: $945,126
  25. Houston Rockets: $931,943
  26. Denver Nuggets: $412,389
  27. Miami Heat: $397,459
  28. Boston Celtics: $92,857
  29. Charlotte Hornets: $0
  30. Utah Jazz: $0

Contract information from Basketball Insiders was used in the creation of this post.

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Poll: Will Sixers Re-Sign Butler, Harris?

March 12th, 2019 at 11:06am CST by Luke Adams

After failing to land a marquee free agent with their maximum-salary cap room last offseason, the Sixers instead turned to the trade market to secure an impact player, acquiring Jimmy Butler from Minnesota. Then they did it again a few months later, completing a trade with the Clippers for Tobias Harris.

The idea of putting together a “Big Three” has been popular in the NBA over the last decade or so, but with their acquisitions of Butler and Harris, the 76ers pulled off a rare feat, compiling a “Big Four.” Butler and Harris joined Joel Embiid and Ben Simmons in a starting lineup that now features four players with All-NBA potential.

Neither Butler nor Harris is on a long-term contract, however, as both players are expected to reach unrestricted free agency this summer. The Sixers will hold Bird rights on each player, allowing the team to go over the cap to re-sign them, and Philadelphia will have the flexibility to do so. Even with Embiid’s $27.5MM cap hit on the books for next season, the 76ers’ cap sheet is relatively clean — they’re only carrying approximately $41MM in guaranteed money, per Basketball Insiders.

Of course, Butler and Harris are each expected to be eligible for salaries worth up to about $32.7MM, so if the Sixers re-sign both players, and perhaps veteran sharpshooter J.J. Redick, it will be tricky to add many additional reinforcements to complement them. Adding extra help would get even more difficult in future seasons, since Simmons’ rookie contract expires in 2020 and he figures to be in line for a huge new deal of his own.

With major personnel decisions looming, the next couple months will be huge for the Sixers, who need to assess the potential long-term fit of an Embiid/Simmons/Butler/Harris core. Does retaining all four players create diminishing returns for those third or fourth options whose talents might not be maximized? Are Butler and Harris – neither of whom was an All-Star this season – worthy of long-term, maximum-salary (or near-max) investments?

Philadelphia’s performance in the postseason figures to play an important part in that equation — a first-round exit would raise serious questions about whether it makes sense to invest in both Butler and Harris, whereas an NBA Finals run would incentivize re-signing both players.

What do you think? Will the Sixers re-sign both Butler and Harris this offseason? Will they choose one or the other? Or will they go in a completely different direction, opening up cap room to pursue other players?

Vote in our poll, then head to the comment section below to weigh in!

Trade Rumors app users, click here to vote.

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Community Shootaround: Rookie Of The Year

March 11th, 2019 at 6:58pm CST by Dana Gauruder

The Mavericks’ Luka Doncic seemed to have the Rookie of the Year award locked up after his dazzling performances the first half of the season.

Doncic still appears to be the favorite, but a couple of players have narrowed the gap.

Doncic jumped right into Dallas’ starting lineup and has averaged an impressive 21.1 PPG , 7.4 RPG and 5.6 APG and 1.1 SPG in 62 games. The 20-year-old from Slovenia is so talented that Dennis Smith Jr. realized quickly he’d never be the primary play-maker again in the Mavs’ attack. The Mavs wound up trading the second-year guard to the Knicks as part of the blockbuster that delivered another young star, Kristaps Porzingis, to Dallas.

Doncic’s numbers have actually gone up recently, in large part because the trade left the current roster pretty barren. He averaged 24.4 PPG, 9.4 RPG and 7.4 APG in February and has posted 22.4 PPG, 8.4 RPG and 4.4 APG in five March outings.

The Hawks looked foolhardy for dealing away Doncic for point guard Trae Young and a future first-rounder on draft night last June. The deal doesn’t seem so lopsided now, as Young has come on strong in the past month-and-a-half. Over the last 22 games, Young has averaged 23.5 PPG and 9.0 APG. Young has moved up to fifth in the league in assists per game, trailing only Russell Westbrook, Kyle Lowry, LeBron James and Ben Simmons.

The splashy debuts of Doncic and Young has made it easy to forget that Deandre Ayton was considered a no-brainer choice as the top pick last summer. The Suns’ poor season has masked Ayton’s solid start in the league. He’s averaging 16.6 PPG and 10.3 RPG. Ayton hasn’t been a shotblocking force (0.9 per game) and like many young big men, tends to get into foul trouble. He’s increased his production during Phoenix’s improved play lately, averaging 18.3 PPG in six March games while committing a total of just five turnovers.

That leads us to our question of the day: Is Luka Doncic still the clear choice as Rookie of the Year? Has either Trae Young or Deandre Ayton pulled even with Doncic or even surpassed him?

Please take to the comments section to weigh in on this topic. We look forward to your input.

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Roster Moves Required Soon For Raptors, Heat, Rockets

March 11th, 2019 at 2:58pm CST by Luke Adams

When the Thunder signed Deonte Burton on Sunday, the move ensured that the team got back to the NBA-mandated roster minimum of 14 players (not including two-way contracts). Teams are permitted to dip below 14 for up to two weeks at a time, and Oklahoma City had been at 13 since February 24, so a roster move was required on Sunday.

Since the Thunder project to have the NBA’s most expensive tax bill in 2019, it makes sense that they’d take the entire allowable two weeks before signing a 14th player — by not paying a 14th man for those two weeks, the team will save approximately $500K on that year-end tax bill.

Currently, there are three teams in a similar boat to the Thunder. The Raptors, Heat, and Rockets are all carrying just 13 players on their 15-man rosters, and will have to make roster moves within the next week to get back up to 14 players. All three teams are trying to either stay out of tax territory or limit the amount of their projected tax penalties, so they – like OKC – may take the full two weeks to add a 14th man.

Toronto and Miami have been at 13 players since March 2, when 10-day contracts expired for Jodie Meeks and Emanuel Terry, respectively. They’ll have until this Saturday to get back to 14 players. Meeks and Terry remain on the free agent market, making them candidates to rejoin the Raptors and Heat, but both teams could end up going in different directions.

As for the Rockets, their roster count briefly dipped to 12 players on March 4, when Terrence Jones‘ and Chris Chiozza‘s 10-day deals expired. Jones was quickly re-signed, but Houston has been carrying just 13 players since then. The club will have another week to get to 14. With Jones’ second 10-day contract set to end on Wednesday night, a pair of roster moves will be necessary for the Rockets.

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2018/19 Disabled Player Exceptions Set To Expire

March 11th, 2019 at 9:52am CST by Luke Adams

A pair of disabled player exceptions are set to expire, assuming they go unused today. Three teams were granted DPEs this season and two of those teams – the Mavericks and Grizzlies – have yet to use them.

We go into more detail on how exactly disabled player exceptions work in our glossary entry on the subject. But essentially, a DPE gives a team the opportunity to add an injury replacement by either signing a player to a one-year contract, trading for a player in the final year of his contract, or placing a waiver claim on a player in the final year of his contract.

The Wizards, who were granted a disabled player exception worth $8.641MM (the amount of the mid-level exception) after John Wall went down with a season-ending injury, used their exception to acquire Wesley Johnson in a deadline-day trade with the Pelicans.

Using the DPE to accommodate that deal, which saw Markieff Morris sent to New Orleans, allowed Washington to create a trade exception worth Morris’ salary ($8.6MM). That trade exception won’t expire until February 7, 2020, which gives the Wizards some additional flexibility. Their disabled player exception would have expired today, as a team with a DPE has until March 10 (or the next business day) to use it.

As for the Mavericks and Grizzlies, their disabled player exceptions are far more modest than Washington’s. Dallas received one worth $1,855,425 (half of J.J. Barea‘s salary), while Memphis’ is worth just $689,121 (half of Dillon Brooks‘ salary).

With the trade deadline behind us and no player on waivers, the only option for those teams would be to sign a free agent using the DPE, but that seems unlikely at this point — there’s little incentive for either lottery-bound club to sign a player to a one-year contract worth more than the minimum. The more probable outcome is that both exceptions simply expire.

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Free Agent Stock Watch 2019: Atlantic Division

March 10th, 2019 at 8:55pm CST by Dana Gauruder

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 turn our attention to the Atlantic Division:

Terry Rozier, Celtics, 24, PG (Up) – Signed to a four-year, $8.8MM deal in 2015
Rozier has struggled most of the season after his breakout performances in last season’s playoffs, when he averaged 16.5 PPG, 5.3 RPG and 5.7 APG while subbing for an injured Kyrie Irving. So why is his stock up? Irving’s commitment to the organization is shaky at best, which makes restricted free agent Rozier a major insurance policy. Rozier would clearly benefit from becoming a starter in Boston or elsewhere. He has averaged 14.5 PPG, 5.8 RPG and 5.7 APG the last six games in which Irving missed and he played. He rarely turns the ball over, which makes any coach happy.

Ed Davis, Nets, 29, PF (Up) – Signed to a one-year, $4.45MM deal in 2018
Davis consistently stays in a team’s rotation by knowing his role and his limitations. He’s told to rebound and play defense and he does those well. Davis is averaging a career-high 8.5 RPG while playing pretty much the same minutes he logged for Portland the previous three seasons. He sports a strong 1.7 Defensive Box Plus/Minus rating, according to Basketball-Reference. He’ll continue to find work as a second-unit fixture who doesn’t mind letting his teammates do all the scoring.

Mario Hezonja, Knicks, 24, SF (Down) – Signed to a one-year, $6.5MM deal in 2018
Hezonja had a second chance to shed the label of ‘bust’ by signing with the rebuilding Knicks after three forgettable seasons with Orlando. Perhaps his label should now read ‘colossal bust.’ Hezonja is destined to go down as one of the worst top-five picks in the last two decades. In 46 games, Hezonja has averaged 7.6 PPG on 39.7% shooting and 3.7 RPG while compiling more turnovers than assists. He hasn’t played since mid-February due to a knee injury or coach’s decision. It wouldn’t be surprising if the Croatian native spends the remainder of his career in Europe.

Boban Marjanovic, 76ers, 30, C (Down) — Signed to a three-year, $21MM deal in 2016
Marjanovic has been sidelined recently by a knee injury. He’s been highly productive and always entertaining when he plays. The 7’3″ center is a throwback to another era when slow-footed giants were more prevalent in the league. Marjanovic is impossible to stop when he gets the ball down low but his lack of mobility make it tough to play him for long stretches. The happy-go-lucky Marjanovic is a fan and locker-room favorite who might get a short-term deal as a third-string backup but it’s doubtful he’ll receive another three-year offer.

Danny Green, Raptors, 31, SG (Up)– Signed to a four-year, $40MM deal in 2015
Green was the ‘other’ starter in the blockbuster Spurs-Raptors trade this offseason. Green isn’t an All-Star talent like Kawhi Leonard or DeMar DeRozan, but he’s a solid NBA starter on one of the top teams in the league. He gained that status in San Antonio and nothing’s changed north of the border. Green has taken two-thirds of his shots from beyond the arc and made 43.3%, his best long-distance average since the 2011/12 season. His Defensive Box Plus/Minus rating has dropped this year but he’s still a plus 1.2. Green’s 3-point shooting alone will guarantee him a nice payday this summer.

Photo courtesy of USA Today Sports Images.

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Weekly Mailbag: 3/4/19 – 3/10/19

March 10th, 2019 at 12:59pm CST by Arthur Hill

We have an opportunity for you to hit us up with your questions in this, our weekly mailbag feature. Have a question regarding player movement, the salary cap or the NBA draft? Drop us a line at HoopsRumorsMailbag@Gmail.com.

Do you think Kyrie Irving will move to the Knicks with Kevin Durant next season or try to entice Durant to join the Celtics, as they’re both good buddies? — Greg Dizon

The interplay between Irving and Durant was one of the most interesting subplots of All-Star Weekend. ESPN’s Brian Windhorst compared them to a “middle school couple” on his “Hoop Collective Podcast” because they spent so much time together. Their conversations that weekend surely included the topic of becoming teammates next year, but we’ll have to see how the postseason plays out before setting any odds on that possibility. If it does happen, it will probably be in New York. Boston won’t have the cap space to sign Durant unless Al Horford opts out of a $30.1MM salary or the Celtics can find a taker for Gordon Hayward.

If the Knicks get the second or third pick, is there a possibility of selecting Ja Morant, and do you think he is better than Dennis Smith Jr.? — Howie

The Knicks keep investing in point guards and changing their minds, so who knows for sure? Considering their personnel, a wing like R.J. Barrett or Cam Reddish makes more sense. However, anything less than the No. 1 pick will instantly become trade bait. Morant put on a sensational performance in this week’s Ohio Valley Conference tournament, getting rave reviews from many observers, including Tony Jones of The Athletic, who considers Morant far more skilled than Smith (Twitter link).

Who do you think the Lakers will sign in the free agency? Is there any chance Brook Lopez returns? Where will Kawhi Leonard land? — Raphael Brandao
The Lakers will target stars in hopes of landing another elite player to team with LeBron James. If an Anthony Davis deal takes away their ability to offer a max contract, they’ll gladly pay that price. If that doesn’t happen, L.A. will turn to Leonard, Durant, Irving, Klay Thompson and anyone else they consider to be at that level. The rumor for months has been that Leonard’s first choice is the Clippers if he decides to leave Toronto. Durant and Irving seem to be looking elsewhere, while Thompson will stay with the Warriors if he gets a max offer, so the Lakers may have to be aggressive in their pursuit of a player such as Kemba Walker or Jimmy Butler. They may target Lopez if they have money left over, but he’s such a good fit in Milwaukee that the Bucks will fight to keep him.
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Community Shootaround: Trading LeBron James

March 9th, 2019 at 10:01pm CST by Arthur Hill

The most surprising part of tonight’s ABC prime time game between the Lakers and Celtics was a first quarter discussion among the announcing crew on whether L.A. should consider trading LeBron James after the season.

Jeff Van Gundy raised the topic, arguing that the Lakers should keep all their options open in an effort to improve the team. He conceded that trading James is unlikely and it would take a monumental offer for team president Magic Johnson and GM Rob Pelinka to even consider the idea. However, Van Gundy noted that the savings from unloading James’ contract could put L.A. in position to chase other free agents such as Kevin Durant and Kawhi Leonard.

Broadcast partner Mark Jackson quickly shot down the idea, pointing out that the Lakers’ reputation around the league would suffer if they traded the NBA’s highest-profile player a year after he agreed to sign with them.

Van Gundy found an ally on social media in ESPN’s Bobby Marks, who formerly served as assistant GM with the Nets. “Everything needs to be on the table for the Lakers this summer including no. 23,” Marks tweeted.

In the real world, the idea of trading LeBron without his consent is laughable. He and his representatives wield too much power and he sells too many tickets, jerseys and other merchandise for the Lakers to ever entertain the idea. But hypothetically, it could be in the best interest of the team.

Although he has continued to play at an All-Star level, LeBron’s first year in L.A. has been a disaster. He hasn’t been able to make a playoff team out of a collection of young talent and journeymen players on one-year contracts. Things might have gone differently if the Lakers hadn’t been overwhelmed by a string of injuries, but they always faced an uphill climb in a challenging Western Conference.

If LeBron couldn’t lift the Lakers into contention this year, will he ever be able to? He turns 35 in December and there’s no guarantee the team will be successful in its pursuit of Anthony Davis or hit the jackpot in free agency again. Reports have indicated that some elite free agents, most notably Durant and Leonard, may not be interested in teaming up with LeBron.

James is owed more than $117MM over the next three seasons, assuming he opts in to a $41MM salary in 2021/22. Trading him would open significant cap room and might make the Lakers more attractive to free agents who don’t want to play in LeBron’s shadow or deal with the drama that seems to surround him. Plenty of teams courted James last summer and likely would be willing to part with a nice collection of talent to make a deal happen.

We’re not saying it would ever take place, but we still want to get your opinion on the suggestion. Would the Lakers be smart to consider trading away LeBron this summer? Please leave your answers in the space below.

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Hoops Rumors Originals: 3/2/19 – 3/9/19

March 9th, 2019 at 3:01pm CST by Luke Adams

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

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