Hoops Rumors Originals

Suns’ Contract Options For De’Anthony Melton

The Suns acquired Ryan Anderson, a veteran stretch four they like, in their trade with the Rockets last week, but the prize of the deal looks to be rookie guard De’Anthony Melton. Melton was highly regarded by several draft experts and flashed his NBA potential in Las Vegas in July with a strong Summer League performance.

However, Melton remains unsigned, meaning the Suns will have to lock him up to an NBA contract now that they’ve traded for him. And because Melton was a second-round pick, he’s not subject to any sort of rookie scale — Phoenix will have to use cap room or an exception to sign him.

NBA teams have increasingly used either cap space or the mid-level exception to sign these second-round picks, since doing so allows clubs to offer three- or four-year contracts to those players. Nearly all of this year’s second-rounders have signed for at least three years, with only a small handful of exceptions, such as Jevon Carter of the Grizzlies and Alize Johnson of the Pacers.

[RELATED: 2018 NBA Draft Pick Signings]

The Suns’ options for signing Melton are somewhat limited though, since the team has used up its cap room, going over the cap as part of that trade with Houston. Here are Phoenix’s potential avenues for signing Melton:

Minimum salary exception:

The minimum salary exception can be used by any team at virtually any time. However, the exception limits contract offers to two years and – of course – the minimum salary.

Going this route would put Melton on track to reach restricted free agency in 2020, at which point the Suns could match any offer and the Arenas provision would limit other teams’ ability to do a huge offer sheet. This is how the Grizzlies signed Carter.

It wouldn’t be the end of the world to only offer Melton two years, but there’s a chance he’d hit free agency just as he’s starting to hit his stride.

Room exception:

Like the minimum salary exception, the room exception can’t be used for contract offers exceeding two years. The difference is that the Suns could offer more money with the room exception, going all the way up to $4.449MM in year one.

It’s possible that the Suns will go this route, but there’s little incentive to do so. A guaranteed two-year, minimum-salary contract is already a solid outcome for the No. 46 overall pick, so if Phoenix makes a two-year offer, I’d expect the club to stick to the minimum salary exception.

Creating cap space:

Having used cap room this offseason, the Suns have forfeited their right to the full mid-level exception, meaning the only way they can offer Melton more than two years is to do so with cap space. Right now, Phoenix is over the cap, but there are a couple ways the team could sneak back under…

(Note: We’re assuming Isaiah Canaan‘s non-guaranteed deal is a summer contract that doesn’t currently count against the cap. If that’s not the case, he would need to be waived as part of most of the plans outlined below.)

  • Waiving Shaquille Harrison and Richaun Holmes: Both Harrison and Holmes are on non-guaranteed salaries, so the Suns could clear their cap hits from the books by waiving them, creating enough room to sign Melton. The Suns could subsequently go back over the cap by re-signing Harrison and Holmes to new minimum deals, if they want to. This is risky though. Both players would be prime candidates to be claimed off waivers, and the Suns probably won’t want to lose them just to get Melton an extra year or two.
  • Buying out Darrell Arthur or Tyson Chandler: Of the two veteran big men, Arthur looks to be the more likely buyout candidate. If he’s willing to give up the equivalent of his minimum salary, the Suns could reduce his cap hit by nearly $2.4MM, opening about $1.45MM in cap space, more than enough for Melton. Arthur would have to be motivated to get out of Phoenix and would probably need to have a new destination lined up in order to agree to a buyout though.
  • Making a trade that cuts costs: The Suns are said to be in the market for a point guard after sending Brandon Knight to Houston. If they could find a way to make a deal that also reduces their team salary by $2MM or so, it’d be an ideal outcome, allowing them to upgrade their point guard spot while also creating the cap room necessary to offer Melton a longer contract. This would require a willing trade partner and the right sort of salaries though, making it the trickiest of these options.

It may ultimately not matter much whether Melton signs a two- or three-year deal with the Suns. But if the club makes a roster move in the near future that looks designed to trim team salary, Melton’s first NBA contract is probably the motivating factor.

Weekly Mailbag: 8/27/18 – 9/2/18

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.

With the Lakers buying out Luol Deng‘s contract, is it still possible we could see a move made for Kawhi Leonard before the season begins? What would it take to make that transaction? — Omar A. Gonzalez, via Twitter

The Raptors aren’t going to pull up off a blockbuster trade that involves giving up DeMar DeRozan, one of the most popular players in franchise history, without seeing what they have in Leonard. If he’s fully healed from the quad issue that limited him to nine games last season, Leonard has a chance to be the best player in the East and the Raptors are legitimate contenders for the NBA Finals. But Lakers fans should be patient. Leonard is still coming up on his option year, and nothing stands in his way of leaving for Los Angeles in 10 months if he’s not happy in Toronto. If the Raptors aren’t confident by the February deadline that they can re-sign Leonard, a trade with the Lakers becomes much more likely.

With Deng out, who’s in? Kawhi Leonard or Damian Lillard? — Boy Roy, via Twitter

A free agent signing next summer is more likely than a trade this year. With nearly $37MM in projected cap space after the Deng buyout, the Lakers will be on the radar for just about every marquee free agent. Leonard should be considered the favorite if he’s fully healthy, but the list of free agents for next summer is impressive. It starts with Kevin Durant and includes Kyrie Irving, Jimmy Butler, Klay Thompson, DeMarcus Cousins, Kemba Walker, Al Horford and Khris Middleton. Who wants a max contract to play alongside LeBron James, live in Los Angeles and be part of one of the league’s glamour teams? Just about everybody.

Do you think Carmelo Anthony will be a big boost and fit in with the Rockets as a championship contender?– Greg Dizon

The good news is that Anthony doesn’t have to do a whole lot to make the situation in Houston work. He doesn’t have to be part of a Big Three or challenge for the scoring title. James Harden and Chris Paul do the heavy lifting for the Rockets’ offense. Anthony just has to hit the open shots that are created for him and be willing to move the ball so the offense doesn’t stagnate. The main doubts involve whether he can help replace the contributions on defense from Trevor Ariza and Luc Mbah a Moute, who both left in free agency. The Rockets have other options if Anthony doesn’t work hard on both ends of the court, and his effort on defense may determine how large his role is.

Community Shootaround: Luol Deng’s Next Stop

Could the “Timber-Bulls” be getting another member?

Minnesota is considered a possible destination for Luol Deng, who reached a buyout agreement with the Lakers today. Once he clears waivers, Deng could become the latest ex-Bull to reunite with Wolves coach/executive Tom Thibodeau, joining Jimmy Butler, Taj Gibson and Derrick Rose. Free agent guard Aaron Brooks is another Thibodeau Bull who played for Minnesota last season.

Wolves management has been keeping an eye on Deng as the buyout process played out, along with another former Chicago player, Knicks center Joakim Noah, according to Darren Wolfson of 5 Eyewitness News in Minneapolis. Today marked the first day that teams could lock in salaries for the 2018/19 season, meaning that the final year of Deng’s and Noah’s contracts could be stretched separately.

While Deng would certainly fit in with the Wolves, there are reports that several contending teams are interested in the two-time All-Star. The Rockets lost a pair of perimeter defenders to free agency this summer in Trevor Ariza and Luc Mbah a Moute and might see Deng as a low-cost replacement. The Spurs have a history of getting the most out of veteran players, new Hornets GM Mitch Kupchak was responsible for signing Deng in L.A., and Deng’s name appeared on the infamous leaked photos of the Magic’s whiteboard that made their way to social media last year.

The main problem for anyone thinking about signing Deng is that he’s had virtually a year off from the game. Coach Luke Walton used Deng for 13 minutes in last year’s opener, then never put him into another game. Deng averaged 7.6 PPG and 5.3 RPG in his first season with the Lakers, and a year without wear and tear might be good for the 33-year-old, but no one knows for sure. He got a chance to show his skills in last month’s NBA Africa game and finished with 14 points, three steals and three rebounds.

We want to get your opinion on Deng’s future. Which team can offer him the best situation, or do you believe he’s too far past his prime to help anybody? Please leave your responses in the space below?

Hoops Rumors Originals: 8/26/18 – 9/1/18

Every week, the writing team here at Hoops Rumors creates original content to complement our news feed. With the NBA offseason in full swing, here are our numerous segments and features from the past seven days:

Few Early NBA Salary Guarantee Dates This Fall

Over the summer, NBA teams faced a number of decisions on whether to keep a player and guarantee his salary or waive him and avoid that extra cost. In total, nearly 50 players had some sort of guarantee deadline on their contracts in June, July, and August.

Typically, that pattern continues to some extent in the fall. All NBA contracts for a given year become guaranteed on January 10 (not counting 10-day deals), but several contracts include trigger dates that come before the new year, most frequently around the start of the regular season.

A player with a mid-October salary guarantee date in his contract receives a sizable bonus if he makes his club’s regular season roster, perhaps even having his entire salary guaranteed. If he doesn’t earn a spot on his team’s 15-man squad, he’s waived without getting that guarantee, but has the opportunity to seek a new job elsewhere.

For the 2018/19 league year though, fall salary guarantee dates are scarce. While there are plenty of players on non-guaranteed contracts around the NBA, virtually all of those contracts will remain non-guaranteed until January 10.

According to data from Basketball Insiders and ESPN, the Knicks are one of the few teams carrying players with salary trigger dates this fall. Trey Burke, whose deal is currently partially guaranteed for $100K, will have that partial guarantee bumped to $400K if he remains under contract for the first game of the regular season. Noah Vonleh, on a non-guaranteed contract for now, will receive a $100K partial guarantee if he’s not waived by September 25.

Outside of those two dates, September 1 represents the other deadline of note for salary guarantees. The Thunder and Abdel Nader reportedly agreed to push his guarantee deadline from August 1 to September 1, so Nader – who currently has a $450K partial guarantee – should be in line for a fully guaranteed salary if he’s not waived by Saturday.

Elsewhere, there’s some conflicting info on a pair of Pelicans players. Emeka Okafor and DeAndre Liggins have $100K and $75K partial guarantees, respectively, according to Basketball Insiders. However, ESPN’s Bobby Marks indicated this week (via Twitter) that those partial guarantees won’t actually lock in until after September 1. If Okafor remains under contract through October 16, his guarantee would increase to $200K, per Basketball Insiders.

Salary details are still trickling in for some recent signees, and it’s possible that a few more free agent deals between now and the start of the season will feature trigger dates. For now though, there aren’t many salary guarantee deadlines worth keeping an eye on this fall.

2018 Extension Candidate Series

Multiple NBA players have signed contract extensions so far this offseason, as Devin Booker secured a new deal with the Suns and Kevin Love committed to the Cavaliers for several more years. In Booker’s case, the Suns quickly put a five-year, maximum-salary offer on the table, meaning negotiations didn’t take long.

For most players eligible for contract extensions this year though, including Love, that won’t be the case. Teams will have to decide how aggressive they’re willing to be to lock up their players, and those players will have to weigh the pros and cons of accepting a deal now vs. waiting for free agency.

Up until the regular season begins, we’ll be taking a closer look at several extension-eligible players, examining their case for a new deal and exploring the likelihood that they can get something done with their team.

We’ll continue to update the list below each time we write about a new player, so be sure to check back for the latest links. Here are the extension-eligible players we’ve discussed so far:

Extension Candidate: Larry Nance Jr.

Twenty-three players became eligible for rookie scale extensions when the 2018/19 NBA league year began in July. One of those 23, Devin Booker, quickly finalized a new deal with the Suns, leaving 22 other players who could sign rookie scale extensions before the October 15 deadline. In the weeks leading up to that deadline, we’ll be taking a closer look at some of the strongest candidates for new contracts.

Our examination of this year’s candidates for rookie scale extensions continues today with Cavaliers big man Larry Nance Jr. Let’s dive in…

Why the Cavaliers should give him an extension:

The Cavaliers liked Nance enough at last season’s trade deadline that they were willing to give up a first-round pick and take on Jordan Clarkson‘s contract – not exactly a bargain – to acquire him from the Lakers, despite the fact that the deal helped pave the way for LeBron James to eventually sign with L.A.

Nance struggled a little to adjust to his new team, playing just 15.4 minutes per game in the postseason, but he provided the Cavs with the sort of energy and athleticism that their frontcourt had been lacking. For the season, Nance established new career highs with 8.7 PPG, 6.8 RPG, and a .581 FG%, showing an ability to run the floor, finish at the rim, and guard multiple positions on defense.

While the sample size wasn’t huge and his numbers were certainly boosted by playing major minutes alongside James, Nance’s on/off-court stats for the Cavs were impressive — the team had a 102.7 defensive rating during his minutes, compared to a 110.9 mark for the rest of the season.

Taking into account his on-court ability, his age (25), and his familial ties to the franchise – Larry Nance Sr. was one of the best players in Cavs history – it makes sense that the Cavs would view Nance Jr. as a long-term building block.

Why the Cavaliers should avoid an extension:

Nance has yet to enjoy a true breakout season, and it’s not entirely clear what such a year would look like. He doesn’t have an outside shot and probably isn’t the type of player who will ever average 20 PPG in a season.

Of course, that same sentiment applies to Clint Capela, who just secured a five-year deal with the Rockets worth between $80-90MM, so it’s not as if Nance doesn’t have value. But unlike Capela, who has developed into one of the NBA’s best interior defenders, Nance isn’t an elite rim protector. While he’s solid on that end of the floor, Nance may not be capable of anchoring a defense.

Even if the Cavs do view Nance as part of their future, the team may want to see what he looks like in a LeBron-less rotation during the 2018/19 season before making a significant financial investment in him. After years of the Cavs’ game plan revolving around James and Kyrie Irving, it remains to be seen how the leftover pieces will fit together going forward.

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Community Shootaround: Luol Deng’s Future

As of this coming Saturday, teams waiving a player can no longer stretch that player’s 2018/19 cap hit — only the player’s future cap charges can be stretched.

That’s an item of interest for a player like Luol Deng, who has two years and $36.81MM left on his contract with the Lakers. If he were stretched today, Deng would count against the team’s cap for $7.362MM over each of the next five years. Waiving and stretching him on Saturday would leave his 2018/19 cap hit as is, creating $6.27MM annual cap charges for the following three seasons.

[RELATED: Hoops Rumors Glossary: Stretch Provision]

In an in-depth and interesting piece for GiveMeSport.com, cap expert Mark Deeks argues that, as of Saturday, the time is right for the Lakers to make a move involving Deng. The Lakers want to create as much cap room as possible for the 2019 offseason and trading Deng in a salary-dump deal is their best path to maximizing that cap space, but Deeks doesn’t view that as a realistic or desirable option. Any deal that clears Deng’s salary from the Lakers’ books would cost the team at least a first-round pick, and likely more than that, given how unappealing the contract is.

In Deeks’ view, the Lakers’ best bet is to push for a buyout sometime after September 1. Deng has spoken about wanting the opportunity to play this coming season, and if he doesn’t think he’ll get the chance to get back on the court in Los Angeles, he could be open to giving back a portion of his salary to play elsewhere. Deng won’t surrender a huge chunk of the money owed to him, but Deeks believes a buyout in the $5MM range isn’t unrealistic — after all, the veteran forward could essentially make that money back by signing minimum-salary contracts over the next two seasons.

In that scenario, the Lakers would apply a pro-rated portion of the buyout to each of Deng’s remaining seasons, reducing his cap hit for 2019/20, which in turn would reduce the annual cap charges created by stretching him.

The Lakers are under no pressure to do anything with Deng right now. Stretching Deng on September 1 and doing so next July would have the same impact on the team’s cap. So it may be in the team’s best interests to be patient, exploring the trade market at the deadline and again next summer to see if any takers are out there — if not, the club could simply waive and stretch Deng in 10 months.

Still, Deeks argues that the Lakers’ leverage in buyout talks won’t improve over the course of the year, since allowing Deng to reach free agency now would give him the chance to catch on with a new team for the 2018/19 season. In other words, this may be the club’s best chance to reduce Deng’s stretched cap hits as much as possible.

Additionally, even if the Lakers are able to eventually find a trade involving Deng, they’ll have to give up young players and/or picks to make it happen, and Deeks doesn’t believe surrendering those assets would be worth creating a little extra cap room — even if that extra cap room helps open up a 35% maximum-salary slot.

What do you think? Should the Lakers start working on a Deng buyout now and try to resolve the situation soon? Or does it make sense to hang onto him until at least next summer in order to maximize their potential options?

Head to the comment section below to weigh in on Deng and the Lakers.

NBA’s Top 50 Highest-Paid Players For 2018/19

While many of the NBA’s highest-paid players are on contracts considered maximum-salary deals, the 2018/19 salaries for those players vary significantly depending on when the player signed his contract and how much NBA experience he has. That’s why a player like Stephen Curry can earn $17MM+ more than Kyrie Irving in ’18/19 despite both star point guards technically being on max deals.

When a player signs a maximum-salary contract, he doesn’t necessarily earn the NBA max for each season of that contract — he earns the max in year one, then gets a series of identical annual raises. In Curry’s case, his 2018/19 salary actually exceeds this year’s maximum, since his deal started last summer and includes 8% annual raises, while the cap only rose by about 3% this season.

Listed below, with the help of salary data from Eric Pincus of Basketball Insiders, are the top 50 highest-paid NBA players for the 2017/18 season. The players on this list don’t necessarily have the contracts with the largest overall value. Jabari Parker‘s $20MM salary, for instance, places him among the highest-paid players for this season, but the total value of his deal is modest, since it’s only guaranteed for one year, with a second-year option. The list below only considers salaries for 2018/19.

Additionally, we’ve noted players who could potentially increase their earnings via incentives or trade bonuses. We didn’t add those notes for players like Curry, LeBron James, and others who have trade bonuses but are already earning the maximum — their salaries for this season can’t increase beyond their max.

Here are the NBA’s 50 highest-paid players for the 2018/19 season:

  1. Stephen Curry, Warriors: $37,457,154
  2. LeBron James, Lakers: $35,654,150
  3. Chris Paul, Rockets: $35,654,150
  4. Russell Westbrook, Thunder: $35,654,150
  5. Blake Griffin, Pistons: $32,088,932
  6. Gordon Hayward, Celtics: $31,214,295
  7. Kyle Lowry, Raptors: $31,200,000 (plus incentives)
  8. Paul George, Thunder: $30,560,700
  9. Mike Conley, Grizzlies: $30,521,116
  10. James Harden, Rockets: $30,421,854 (15% trade kicker)
  11. Kevin Durant, Warriors: $30,000,000 (15% trade kicker)
  12. Paul Millsap, Nuggets: $29,230,769 (plus incentives)
  13. Al Horford, Celtics: $28,928,710 (15% trade kicker)
  14. Damian Lillard, Trail Blazers: $27,977,689
  15. DeMar DeRozan, Spurs: $27,739,975
  16. Otto Porter, Wizards: $26,011,913
  17. Jrue Holiday, Pelicans: $25,976,111 (plus incentives)
  18. C.J. McCollum, Trail Blazers: $25,759,766
  19. Joel Embiid, Sixers: $25,467,250
  20. Andrew Wiggins, Timberwolves: $25,467,250
  21. Andre Drummond, Pistons: $25,434,263 (8% trade kicker)
  22. Hassan Whiteside, Heat: $25,434,263
  23. Bradley Beal, Wizards: $25,434,262
  24. Anthony Davis, Pelicans: $25,434,262
  25. Nikola Jokic, Nuggets: $24,605,181 (plus incentives)
  26. Steven Adams, Thunder: $24,157,304 (7.5% trade kicker)
  27. Giannis Antetokounmpo, Bucks: $24,157,304
  28. Marc Gasol, Grizzlies: $24,119,025 (15% trade kicker)
  29. Kevin Love, Cavaliers: $24,119,025
  30. Harrison Barnes, Mavericks: $24,107,258 (8% trade kicker)
  31. Chandler Parsons, Grizzlies: $24,107,258
  32. Nicolas Batum, Hornets: $24,000,000
  33. Rudy Gobert, Jazz: $23,241,573 (plus incentives)
  34. Kawhi Leonard, Raptors: $23,114,067
  35. DeAndre Jordan, Mavericks: $22,897,200
  36. LaMarcus Aldridge, Spurs: $22,347,015 (15% trade kicker)
  37. Serge Ibaka, Raptors: $21,666,667
  38. Aaron Gordon, Magic: $21,590,909 (plus incentives)
  39. Danilo Gallinari, Clippers: $21,587,579
  40. Victor Oladipo, Pacers: $21,000,000
  41. Jimmy Butler, Timberwolves: $20,445,779
  42. Ryan Anderson, Suns: $20,421,546
  43. Kyrie Irving, Celtics: $20,099,189
  44. Jabari Parker, Bulls: $20,000,000
  45. Zach LaVine, Bulls: $19,500,000
  46. Tyler Johnson, Heat: $19,245,370
  47. John Wall, Wizards: $19,169,800
  48. George Hill, Cavaliers: $19,000,000
  49. Jeff Teague, Timberwolves: $19,000,000
  50. Klay Thompson, Warriors: $18,988,725

Note: Some outlets suggest Anthony Davis has a 15% trade kicker, but it’s not listed on Basketball Insiders.

Note: Carmelo Anthony is not included on this list because his $25,534,253 buyout with the Hawks will be paid over three seasons, even though Atlanta kept the entire cap hit on this year’s team salary. If included, he would come in at No. 15, since his Hawks buyout plus his Rockets salary totals $27,928,140.

Photo courtesy of USA Today Sports Images.

Decisions On 2019/20 Rookie Scale Team Options

Under the NBA’s current Collective Bargaining Agreement, the deadline for teams to sign fourth-year players to rookie scale extensions was moved up from October 31 to the last day before the regular season begins, but Halloween remains an important date on the NBA’s calendar. It’s the last day that clubs can exercise team options on the rookie scale contracts of former first-round picks.

All the players whose options will be exercised or declined by October 31 are already under contract for the 2018/19 season. Their teams will have to make a decision on whether they want to lock in those players’ contracts beyond the coming season, picking up or turning down team options for the 2019/20 campaign.

For players who signed their rookie scale contracts in 2016 and have been in the NBA for two years, teams must decide on fourth-year options for 2019/20. For players who just signed their rookie deals last year and only have one season of NBA experience under their belts, teams will already be faced with a decision on third-year options for ’19/20.

In many cases, these decisions aren’t hard ones. Rookie scale salaries are affordable enough that it usually makes sense to exercise most of these team options, even if a player isn’t a key cog on the roster. And for those players who do have a significant role on a team’s roster, the decision is even easier — it’s not as if the Jazz would ever consider turning down their option on Donovan Mitchell, for instance.

Still, we’ll wait for a trusted reporter, the NBA, a player (or his agent), or a team itself to confirm that an option is indeed being exercised or declined, and we’ll track that news in this space.

Listed below are all the rookie scale decisions for 2019/20 team options that clubs must make by October 31. This list will be updated throughout the rest of the offseason and into the first couple weeks of the regular season, as teams’ decisions are reported and announced. The salary figures listed here reflect the cap hits for each team.

Here are the NBA’s rookie scale team option decisions for 2019/20 salaries:

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