Hoops Rumors Originals

Four Common Misconceptions About NBA Trades

The NBA’s Collective Bargaining Agreement is a complex and often confusing document outlining the rules related to player contracts, trades, the salary cap, and much more. These rules are convoluted enough that we introduced a Hoops Rumors Glossary dedicated to unpacking a number of CBA intricacies and breaking them down in simpler terms.

While our readers are far more familiar than the average NBA fan with the terms and rules found in our glossary, we still see a few of the same trade-related questions and misconceptions surface in the comment sections of our articles or in the replies to our tweets. So, with the February 8 trade deadline right around the corner, we wanted to address a few of those misconceptions, ensuring that you have an even clearer sense of what sort of deals can and can’t be made this week.

Let’s dive right in…

Misconception #1: A player can’t be traded twice in a row.

There are a number of rules in the CBA that limit a team’s ability to reacquire a player after trading him. For instance, the Bucks weren’t able to re-sign Greg Monroe after the Suns bought him out last week, since Milwaukee traded Monroe to Phoenix earlier this season. The Celtics currently aren’t able to reacquire Avery Bradley in a trade, since they dealt him to Detroit at the start of the 2017/18 league year.

However, even though the Celtics and Pistons can’t currently acquire Bradley from the Clippers, the veteran guard is eligible to be traded again this week. The CBA only prevents the Clips from aggregating Bradley’s salary with another player’s salary in a trade for two months after acquiring him.

What exactly does that mean? Well, Bradley is currently earning $8,808,989. So if the Clippers want to acquire a player earning $20MM by packaging Bradley with Austin Rivers (whose salary is $11,825,000), they wouldn’t be able to do so, since Bradley’s salary would have to be aggregated with Rivers’ to match that $20MM cap figure. But if the Clips simply want to acquire a player earning $9MM, sending out Bradley on his own would be fine, since his salary isn’t been aggregated with another player’s salary in that scenario.

This doesn’t mean that Bradley has to be the only outgoing piece in any trade involving him. For instance, if the Clippers wanted to trade Bradley and DeAndre Jordan ($22,642,350) for a player earning $25MM, that would be okay. Jordan’s salary on its own is large enough to “match” a player earning $25MM, so Bradley’s salary doesn’t need to be aggregated with Jordan’s, even though it’d be a two-for-one deal.

Misconception #2: Injured players can’t be traded.

This misconception may be rooted in the NBA 2K video game series, which has historically prevented users from trading injured players. Despite existing in the game, this rule doesn’t exist in the real NBA.

Players involved in a trade generally must pass physical examinations with their new teams before a trade is made official, and there are certain situations in which this becomes problematic. At the 2016 trade deadline, for example, a three-team trade fell apart when the Pistons voided the agreement over the results of Donatas Motiejunas‘ physical.

More recently, the Cavaliers‘ concerns over Isaiah Thomas‘ physical last August delayed the completion of their blockbuster trade with the Celtics by a week, with Boston ultimately sending another draft pick to Cleveland to help ease the Cavs’ concerns.

In each of those cases though, the problem wasn’t that a player involved in the deal had health concerns — it was that one team was caught off guard by the extent of those health concerns. If an injured player needs to be included in a deadline deal for salary-matching purposes, there’s no rule stopping that. The team acquiring that injured player just needs to be on board — and willing to waive the requirement that the player must pass his physical.

Misconception #3: A team can agree to pay a player’s salary when trading him away.

In an MLB trade, a team can trade a player with, say, $25MM left on his contract and agree to pay most or all of that salary. That flexibility makes it a little easy for teams to dump overpaid players from their roster, and a club’s willingness – or lack thereof – to pay a traded player’s salary will often have an impact on what kind of return the club gets for its player. Pay that entire $25MM in remaining salary, and maybe you’ll get a good prospect or two in exchange.

NBA trades don’t provide this same kind of financial flexibility. A team can include cash in a trade, but there are annual limits on how much can be sent or received in trades, and that money isn’t technically applied specifically to a player’s salary.

There are ways to get around this rule in certain cases. A July 2017 trade between the Heat and Mavericks is a good case study. In the deal, Dallas acquired Josh McRoberts ($6,021,175 cap hit), $5.1MM in cash, and a future second-round pick from Miami in exchange for A.J. Hammons ($1,312,611 cap hit). The Heat desperately needed a little more cap room to finalize agreements with Dion Waiters, James Johnson, and Kelly Olynyk, and since cash included a trade doesn’t count toward either team’s cap, the McRoberts/Hammons swap allowed Miami to clear $4,708,564 in cap room, the difference between the two players’ salaries.

By including $5.1MM in cash in the deal, the Heat covered that difference, adding a little extra money in for good measure. So while the move cost the Mavs some cap room, they came out ahead from a spending perspective, and even picked up a second-round pick in the process.

The Heat essentially agreed to pay McRoberts’ salary in that deal, but it was a somewhat unique scenario, and it also shows how limited a team’s ability to sweeten the pot with cash can be. Because $5.1MM is the maximum amount a team can trade or receive this year, the Heat immediately became ineligible to include cash in another deal until next July. Additionally, while that annual limit allowed Miami to cover a modest expiring contract like McRoberts’, it wouldn’t help the Knicks much as they try to trade Joakim Noah.

In addition to still being owed the prorated portion of this year’s $17,765,000 salary, Noah has nearly $38MM left on his deal over the following two years. New York can’t offer to cover a significant portion of that remaining salary in order to dump Noah. The most the Knicks could attach in cash would be this season’s limit, $5.1MM.

Misconception #4: Teams can’t trade away first-round picks in consecutive years.

The Ted Stepien Rule, which we described in an updated glossary entry last month, is another complicated rule that is often misinterpreted. The rule prevents a team from leaving itself without first-round picks in back-to-back future seasons. However, a team can still trade its first-round pick every year, if it so desires.

Consider the Wizards. A year ago, Washington traded its 2017 first-round pick in a deadline deal for Bojan Bogdanovic. Does that mean the Wizards can’t trade their 2018 first-rounder? Nope. As soon as the 2017 draft passed, that 2018 first-rounder once again became trade-eligible, since Washington still has its 2019 pick. Trading the 2018 first-round selection now wouldn’t leave the team without first-rounders in consecutive future seasons, so it doesn’t violate the Stepien rule.

The rule also technically does allow a team to trade away its own first-round picks in consecutive future seasons as long as the team has acquired at least one first-round pick from another club in either of those two years. For instance, the Cavaliers have already traded away their 2019 first-rounder, but they could still trade away their 2018 first-round pick, since they’re owed the Nets‘ first-rounder in 2018. The Stepien rule would only block Cleveland from trading both of its 2018 first-rounders without securing another first-round pick for ’18 or ’19 in the process.

Are there other common misconceptions about NBA trade rules that we’re leaving out? Let us know in the comment section!

Weekly Mailbag: 1/29/18 – 2/4/18

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.

Who would be a better fit for the Thunder, Jonathon Simmons or Avery Bradley? — Duhhkari Sanchez, via Twitter

Bradley is almost a perfect replacement for Andre Roberson, who is out for the season with a ruptured left patellar tendon. Bradley has been an elite wing defender for years and is a better 3-point shooter than Roberson. He has an $8.8MM contract that expires after this season, so he won’t require a long-term financial commitment. The obstacle in the way of any deal is the Thunder’s lack of resources. They can’t offer a first-round pick until at least 2022 and they don’t have enough young players with small contracts to interest the Clippers. They’ve been reluctant to part with Terrance Ferguson, but that will probably be the price to obtain Bradley. Simmons may not be an option, depending on whether Orlando’s front office wants to do a complete overhaul. He is averaging 13.7 points per game and has an affordable contract at $6MM for next season and a non-guaranteed $5.7MM for 2019/20.

Which player is the most realistic option for the Bucks: Malik Monk, Tyreke Evans or Avery Bradley? — Kyle Wagner, via Twitter

The Bucks are focused on winning right away, so Monk isn’t an option. The word out of Charlotte is that he needs significant improvement, especially on defense, before being ready to play regular minutes. Evans and Bradley would both be nice additions, but they will come at a high cost with so many teams being interested. The Grizzlies and Clippers will each be seeking first-round draft picks, and Milwaukee sent this year’s first-rounder (with protections) to Phoenix in the Eric Bledsoe deal. The priority in Milwaukee seems to be finding another center, so don’t expect Evans or Bradley to be heading north.

Phoenix GM Ryan McDonough said he is ready to advance the timeline and swing big with all assets for a young star to grow with Devin Booker and T.J. Warren. Is an Anthony Davis or a similar young star realistic? Please say yes. — Nathan Dylong, via Twitter

It looks like Suns fans are the latest to join the waiting party for Anthony Davis. However, Davis reportedly loves being in New Orleans and there’s almost no incentive for the Pelicans to trade him. He’s still just 24 years old and is signed through the 2019/20 season, with a $28.75MM player option for 2020/21. That salary may be a bargain for his level of production, especially in light of some of the super max deals signed over the past two seasons. Davis is the heart of the Pelicans and the best player in franchise history. Trading him would mark the beginning of another long rebuilding process for an organization that hasn’t enjoyed much success. A lot of stars change teams in the NBA every season, so there will be plenty of opportunities for the Suns to grab one, but don’t count on getting Davis out of New Orleans.

Hoops Rumors Originals: 1/27/18 – 2/3/18

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

  • Two substantial trades occurred this week, and Luke Adams delivered an in-depth analytical salary cap analysis of both the Blake Griffin trade and the Nikola Mirotic trade.
  • As part of our Community Shootaround series, we focused on the following questions:
  • In his Weekly Mailbag, Arthur Hill answered readers’ questions on a potential – and now completed – Pelicans‘ trade for Mirotic, and potential trades for Tyreke Evans and Aaron Gordon.
  • We took a look at the two teams remaining below the 2017/18 salary floor – the Mavericks and the Bulls.
  • Our 2018 Free Agent Stock Watch focused on the Bulls.
  • Luke Adams also dove into a deep analysis of the 2017/18 disabled player exceptions granted so far this season.
  • With the trade deadline now less than a week away, we identified several players in the Pacific division who could be on the move.

Seven Pacific Trade Candidates To Watch

The NBA trade deadline is less than one week away, and there’s no shortage of players around the league who could change teams. With that in mind, we’re taking a closer look at some of those top trade candidates, breaking them down by division.

While our focus will be primarily on teams expected to be sellers at the deadline, our lists may also include some players on contenders who could be used as trade chips when those teams look to make upgrades.

So far, we’ve covered the Southeast, Southwest, Atlantic, Northwest, and Central. We’re wrapping things up today by examining the Pacific Division, so let’s dive in and identify seven players who could be on the move on or before February 8…

  1. DeAndre Jordan verticalDeAndre Jordan, C (Clippers): It’s a virtual lock that no trade completed between now and next Thursday will feature a bigger name than Blake Griffin, who was dealt to Detroit on Monday. Still, his former frontcourt partner in Los Angeles is no slouch — Jordan has an All-Star appearance and three All-NBA nods on his résumé. The numbers that Jordan has posted this season suggest he’s not the same dominant rim protector he has been in past years. For instance, his 1.0 BPG average is his lowest mark since 2009/10, back when he was playing nearly half the minutes he is now. Still, the 29-year-old remains an elite rebounder and is leading the NBA in field goal percentage for a sixth consecutive year. He could be a game-changing addition for a team in need of a center. The only roadblock will be his contract situation, as his $24MM+ player option for 2018/19 raises some questions. Will he be a rental, opting out this summer in search of a max deal? Or will a dearth of teams with cap room prompt him to exercise that $24MM option? Uncertainty about Jordan’s looming decision could influence what a team is willing to offer for him.
  2. Lou Williams, SG (Clippers): While Jordan’s contract situation is somewhat tricky, potential suitors for Williams know exactly what they’re getting, as Lou Will’s $7MM cap hit is very team-friendly, and his contract will simply expire this summer. That means he’ll probably be a rental, but any team acquiring him would also land his Bird rights, creating some flexibility to re-sign him in the offseason. Even if he only spends a few months with a new team, Williams is worth investing in. He’s putting up career-high numbers nearly across the board, averaging 23.5 PPG and 5.2 APG to go along with a .443/.390/.895 shooting line. If the Clippers are looking to move some multiyear money, they could look to attach a player like Wesley Johnson, Austin Rivers, or even Danilo Gallinari to Williams in a trade.
  3. George Hill, PG (Kings): Hill put up some of the best numbers of his career in 2016/17, but his age (31) and injury history prevented him from landing a mega-deal as a free agent. Even so, the $40MM in guaranteed money that Hill received this past offseason – including a $20MM cap hit for 2017/18 – may stand in the way of the Kings completing a deal. The Cavaliers still look to me like the best fit for the veteran point guard, but Kevin Love‘s hand injury complicates matters, since suddenly Channing Frye and his expiring contract don’t look so expendable for Cleveland — Sacramento would likely be unwilling to take back more than one expensive multiyear contract in exchange for Hill.
  4. Jordan Clarkson, G (Lakers): If the Lakers truly want to land two maximum-salary free agents this offseason, they’ll almost certainly have to trade Clarkson and his $12.5MM annual salary by July. It might make more sense to hang onto him until the summer to see if their ambitious free agency plan is realistic, but if the Lakers get an appealing offer for the veteran guard now, they probably won’t wait. For Rob Pelinka and Magic Johnson, an “appealing” offer may include an expiring contract and a draft pick, though it seems unlikely that any team covets Clarkson to that extent. Given his relatively modest production (14.7 PPG, 3.3 APG, .316 3PT%), he’s probably overpriced, with a guaranteed contract that runs through 2019/20.
  5. Julius Randle, PF (Lakers): The seventh overall pick in the 2014 draft, Randle is still just 23 years old, and has played some of his best ball in recent weeks. Since entering the Lakers‘ starting lineup on December 29, Randle is averaging 16.3 PPG and 9.2 RPG with a .554 FG% in 17 games. It seems as if the former Kentucky standout should be a part of Los Angeles’ long-term plans, but that may only happen if the club doesn’t land its top free agent targets. Randle will be a restricted free agent this summer, and it would make some sense for the Lakers to keep him around — his qualifying offer could simply be renounced if they secure commitments from a top free agent or two. If they don’t get those commitments, Randle would be a great Plan B. Still, if L.A. wants to avoid the risk of losing the fourth-year big man for nothing in the offseason, an opportunistic team – perhaps the Mavericks? – could swoop in and make a play for him at the deadline, securing his Bird rights and the right of first refusal before he reaches the RFA market.
  6. Alex Len, C (Suns): After buying out Greg Monroe, there’s no real urgency for the Suns to trade Len or Tyson Chandler, who figure to split time at center going forward. Still, a case can be made for moving either player — Len is on an expiring contract and the 35-year-old Chandler probably won’t be a part of Phoenix’s next playoff team. Of the two, Len looks to me like the more viable trade candidate. Chandler’s veteran presence is valued in the Suns’ locker room, and his pricey multiyear contract will be difficult to move. Len, on the other hand, is just 24 years old, and is having the best season of his five-year NBA career, with 8.5 PPG, 8.1 RPG, and a .558 FG%. If the Suns don’t expect him to be part of the team’s long-term plans, they should shop him. The only problem? Len would lose his Bird rights if he’s dealt, which gives him veto rights. So even if Phoenix gets an offer it likes, the club may not be able to complete a deal.
  7. Patrick McCaw, SG (Warriors): The Warriors envisioned McCaw as eventually slotting into an Andre Iguodala-type role with the franchise, but he’s struggling through an up-and-down sophomore season, averaging just 3.9 PPG and knocking down 25% of his three-point attempts. He’s only 22 years old, so Golden State isn’t giving up on him yet, but if the team has any concerns about its bench production this season, dangling McCaw in trade talks would make sense, as Tim Kawakami of The Athletic suggested this week. The second-year shooting guard is eligible for restricted free agency this offseason, but shouldn’t get too expensive, based on this year’s performance. For a team that believes in his potential, acquiring him now and securing the right of first refusal for his free agency could be worthwhile.

Here are a few more potential Pacific trade candidates to monitor:

  • Avery Bradley, G (Clippers): The Clippers can’t aggregate Bradley’s salary with another player’s salary in a trade after acquiring him this week, but he’s trade-eligible. We’ll see if the Clips view him as a long-term piece.
  • Larry Nance Jr., PF (Lakers): Nance is a surprising trade candidate, but ESPN’s Adrian Wojnarowski reported last month that his name has come up in the Lakers‘ discussions. Of course, the club would rather move Luol Deng or Brook Lopez, but their unwieldy contracts will make that very challenging.
  • The rest of the Kings’ veterans: Hill has been involved in the most trade rumors, but for the right offer, the rebuilding Kings would also be willing to move Zach Randolph, Kosta Koufos, Vince Carter, or Garrett Temple.
  • Skal Labissiere, PF (Kings): In addition to shopping their veterans, the Kings reportedly made Labissiere and Malachi Richardson available. I’d be a little surprised if Sacramento trades either player.

Photo courtesy of USA Today Sports Images.

Cap Details On Nikola Mirotic Trade

The Nikola Mirotic trade consummated on Thursday by the Bulls and Pelicans wasn’t a blockbuster like the Blake Griffin deal completed by the Pistons and Clippers earlier this week. Still, there were a number of complicated moving parts in the Mirotic swap, so it’s worth taking a closer look at the salary cap machinations involved in the deal, as we did earlier this week with the Griffin trade.

Let’s jump in…

The trade exceptions:Nikola Mirotic vertical

One confusing aspect of the NBA’s salary cap is the fact that a team can function as an “over-the-cap” club despite its player salaries not exceeding this season’s $99MM cap. For instance, if a club with $80MM in player salaries also has $20MM in unrenounced exceptions (mid-level, bi-annual, traded player, etc.) and/or cap holds, that team is considered to be over the cap. Those exceptions could be renounced at any time if the club wants to use its potential cap room, but until that’s absolutely necessary, functioning as an over-the-cap team can help a franchise maximize its options.

The Bulls are in this boat this season. Despite heading into Thursday with just over $83MM in team salary on their books, the total value of their exceptions has kept them over the cap. One of those exceptions was an $11.457,398 traded player exception initially acquired in last June’s Jimmy Butler trade. Originally worth $15,311,329, the TPE was used in September to take on Quincy Pondexter, and then was used again on Thursday to acquire Omer Asik, whose cap hit is $10,595,505. After being used twice, it’s now worth less than $1MM and almost certainly won’t be used again.

The other two incoming players for Chicago were on one-year, minimum salary contracts, meaning the team could use the minimum salary exception to acquire them. Having utilized various exceptions to take on all three incoming players in the swap, the Bulls didn’t need Mirotic’s $12.5MM cap charge for salary-matching purposes. Since they essentially traded Mirotic for “nothing,” they’ll get a new trade exception worth $12,500,000, and will have up to a year to use it.

[RELATED: Outstanding NBA Traded Player Exceptions]

Of course, the Bulls could create more than $12.5MM in cap room by renouncing that new TPE and their other exceptions, but there’s no reason to do so at this point. If Chicago wants to use its cap room at any time – either to absorb a big contract in a trade or to sign a player in free agency – it will have to renounce those exceptions, including that big new one.

As for the Pelicans, their side of the deal is simpler. They swapped Asik’s salary for Mirotic’s, then sent the minimum salary contracts of Tony Allen and Jameer Nelson out for no return. As such, they’ll create two very modest exceptions worth Allen’s and Nelson’s cap hits — $1,471,382 and $1,429,818, respectively.

Read more

2017/18 NBA Disabled Player Exceptions

Last month, we published an updated glossary entry outlining how the NBA’s disabled player exception functions. As we explain in that article, the disabled player exception can be granted when a team has a player go down with an injury deemed to be season-ending. The exception gives the club some additional spending flexibility, functioning almost as a cross between a traded player exception and a mid-level exception.

We go into more detail on how exactly disabled player exceptions work in the glossary entry linked above, and in a piece from earlier in the season on the Celtics’ DPE. Essentially, a DPE gives a team the opportunity to add an injury replacement by either signing a player to a one-year contract or trading for a player in the final year of his contract.

Because the rules related to disable player exceptions are somewhat restrictive, and the exceptions themselves often aren’t worth a lot, they often simply expire (this year’s deadline is March 12). According to ESPN’s Bobby Marks, only about one in four teams granted DPEs since 2007 have used them.

However, the Celtics are one team well positioned to take advantage of their DPE this season — it’s worth the maximum allowable amount ($8.4MM), the Celtics aren’t close to the tax line, they have an open roster spot, and they have a collection of extra draft picks that could be used to accommodate a trade.

While Boston may be the team most likely to use its DPE this season, there are several other clubs that have those exceptions available. Here’s a breakdown:

(Note: List updated on 2-9-18)

Teams that have been granted disabled player exceptions:

As noted above, the Celtics are the best bet to use their disabled player exception, and not just because it’s worth the most (and can therefore accommodate a wider range of potential trade targets). Even if teams like the Clippers or Pelicans identify a modestly-paid player worth acquiring, they’re unlikely to use their DPEs because of how close they are to the luxury tax line and hard cap, respectively.

Teams ineligible for disabled player exceptions:

The Grizzlies, Pelicans, and Thunder had the misfortune of having their key players ruled out for the season after the January 15 application deadline. Since they can no longer apply for a DPE, they’ll have to make do with any remaining exceptions they have. As for the Suns, a DPE to replace Knight would have been worth about $6.8MM, but Phoenix remains nearly $9MM below the cap, rendering that exception unnecessary.

2018 Free Agent Stock Watch: Chicago Bulls

After navigating the drama of last season and coming out in a solid position, the Bulls will need to do everything they can to keep the momentum of their rebuild rolling.

The club has shown glimpses of being a competent squad at times this season, with a number of intriguing assets already on the roster. However, nobody would bat an eye if the Bulls end up bottoming out with a solid pick in the lottery.

Much of Chicago’s long-term success will come down to the eventual growth of players like Lauri Markkanen and Kris Dunn, but don’t think that the forthcoming free agency period won’t represent its own opportunities for progress.

Zach LaVine, SG, 23 (Up) – Signed to a four-year, $9.6MM deal in 2014
It’s hard to believe that LaVine is still so young considering how long he’s been in the league. This summer he’ll hit the market as a restricted free agent following a torn ACL that sidelined him for parts of each of the past two seasons. That’s good news and bad news for Chicago. Like the rest of us, the Bulls are intrigued by LaVine’s ceiling and an abbreviated campaign isn’t enough to base such an important long-term decision on. That said, other teams will have even less to base a substantial offer on. Given the uncertainty around his health and even his ability to be a primary offensive weapon, it’s hard to imagine the Bulls offering a max contract but they’ve got enough cap flexibility to make him their highest-paid player in 2018/19 and beyond, assuming they like what they see out of him down the stretch.

Nikola Mirotic, PF, 27 (Up) – Signed to a two-year, $25MM deal in 2017Nikola Mirotic vertical
It’s hard to imagine that Mirotic will still be in a Bulls uniform come next summer considering that earlier today it seemed all but certain he would be traded to the Pelicans. Nonetheless, Mirotic’s contract situation will be similar wherever he lands up — his $12.5MM team option for 2018/19 is a bargain. Mirotic has shown that he’s capable of having a major impact on his ball club and any team that brings him on ahead of the February 8 trade deadline would be wise to lock him in at the discount. The open-ended contract buffs his value as a trade chip for Chicago but at the end of the day he’s a stretch four with no major red flags. That’s worth $12.5MM.

David Nwaba, SG, 25 (Up) – Signed to a two-year, $1.4MM deal in 2017
The Bulls are rebuilding their roster from the ground up, so players like Nwaba hold appeal even if they don’t necessarily scream team cornerstone. Nwaba is a respected perimeter defender that gels well with other, more offensively inclined weapons on the roster. There may be a few teams interested in poaching him for the intangibles that he brings to the court, just as Jonathon Simmons had suitors last summer, but a dearth of league-wide cap space may keep things in check. My guess is that the Bulls would be happy to cut Nwaba a check similar to Simmons’ (~$6MM per) so long as it’s on a short-term deal.

Quincy Pondexter, SF, 30 (Down) – Signed to a four-year, $14MM deal in 2014
It’s impressive enough that Pondexter is back on the court after his years-long battle with injuries and illness. This year, his first with the Bulls after coming over in a salary clearing trade from the Pelicans, is the last of a four-year contract extension that’s basically felt like 12. It’s hard to envision Pondexter back in Chicago once the deal expires, but he could stick around the league if he can prove to other teams that he’s healthy enough to play the role of veteran gunner. He’s certainly earned the opportunity, at least.

Photo courtesy of USA Today Sports Images.

Cap Details On Blake Griffin Blockbuster

The blockbuster trade that sends Blake Griffin from Los Angeles to Detroit is now official. The deal will significantly shape the futures of both the Clippers and Pistons, so there are countless aspects of it worth discussing. We’re going to use this space to focus on a few minor details, as we examine the salary cap minutiae involved in the trade.

Let’s dive in…

Three trade exceptions created:Blake Griffin vertical

Even in a trade where each team sends out and receives the same number of players, the deal can be structured in ways that are designed to create traded player exceptions.

[RELATED: Outstanding NBA Trade Exceptions]

The trade rules in the NBA’s Collective Bargaining Agreement allow teams to take back 125% of their outgoing salary (plus $100K) in a trade when the outgoing salary exceeds $19,600,000. So from the Clippers‘ perspective, sending out Griffin’s $29,512,900 salary allowed the team to comfortably take on the $31,808,989 in combined salary for Tobias Harris, Avery Bradley, and Boban Marjanovic.

Since the inclusions of Willie Reed and Brice Johnson weren’t actually required for salary-matching purposes, those players were essentially traded for “nothing” from the Clippers’ point of view. That means that L.A. can create two trade exceptions, one worth Reed’s salary ($1,471,382) and one worth Johnson’s salary ($1,331,160). Those TPEs are pretty modest, so they may end up going unused, but they’ll be available for a year.

As for the Pistons, they’ll structure the trade a little differently. Combining Harris’ $16,000,000 salary with Bradley’s $8,808,989 cap hit would allow the team to take back up to $31,111,236 (125% plus $100K). Griffin’s $29,727,900 cap charge and Johnson’s $1,331,160 cap charge add up to $31,059,060 — success! As for Reed, the Pistons don’t need to worry about matching his incoming salary since he’s on a one-year, minimum salary contract — that means Detroit can take him on using the minimum salary exception, which can be used to sign players or to acquire them in trades.

That leaves Marjanovic, whose inclusion wasn’t required for salary-matching purposes from the Pistons’ perspective. As such, Detroit can create a trade exception worth Marjanovic’s $7,000,000 salary. That TPE is a little more interesting, especially since the Pistons figure to be well over the cap for the next year. They’ll have until January 29, 2019 to use it.

(Note: The Clippers could technically create another trade exception worth $4,703,911 in this deal. However, doing so would mean sacrificing the $7,273,631 TPE they acquired in last June’s Chris Paul trade. If they went that route, they’d essentially be extending the exception’s availability by seven extra months, but reducing its value by nearly $2.6MM. ESPN’s Bobby Marks suggests (via Twitter) they won’t do that.)

Blake gets a bonus:

If you were following closely above, you’ll have noticed that I listed two different amounts for Griffin’s 2017/18 salary. That’s because his contract included a trade kicker, which allows him to collect a modest bonus as a result of Monday’s swap.

Griffin’s trade kicker was worth 15% of his contract, but his bonus will ultimately be far less than that. A trade bonus can’t increase a player’s salary beyond the maximum salary, which for Griffin this season is $29,727,900. The longtime Clipper had been earning just $215,000 below that max, so that will be the amount of his bonus, applied annually for the next four years, for a total of $860,000. The bonus isn’t applied to the fifth year of his contract, since it’s a player option.

For salary-matching purposes, as calculated above, the Clippers used Griffin’s old cap hit ($29,512,900), while the Pistons had to use his new one ($29,727,900).

Clippers create cap flexibility; Pistons sacrifice it

Because Griffin’s contract still has four years and $142MM+ left on it after this season, the long-term salary cap outlook for each team involved in this deal has been altered drastically. Harris and Marjanovic remain under contract through 2018/19, so the deal won’t have a major impact on potential 2018 cap room (though the Clippers did create a bit more flexibility by acquiring Bradley’s expiring deal).

Instead, the summer of 2019 looks like the one to watch for now. Griffin is set to earn $34,449,964 in 2019/20, while the Harris, Marjanovic, and Bradley contracts will all have expired by that offseason. In other words, the Clippers created enough extra potential 2019 cap room to sign nearly any player in the NBA. Currently, Danilo Gallinari‘s $22,615,559 salary is the only guaranteed money on L.A.’s cap for ’19/20.

As for the Pistons, they may flirt with the luxury tax again in 2018/19, since the deal leaves them with $111,974,245 in guaranteed money already on their books. And assuming rookie scale options for Luke Kennard and Henry Ellenson are exercised, the Pistons already have $108,487,008 on their cap for 2019/20. Barring major changes, the team won’t have a chance to use cap space anytime soon.

Both teams avoid the tax

A deal of this magnitude wasn’t easy for either team, given their proximity to the luxury tax line. The Pistons entered Monday within about $2-3MM of the tax threshold of $119,266,000; the Clippers were even closer. As such, the incoming and outgoing 2017/18 salary for each team had to be nearly identical to allow them to avoid going into tax territory. They were able to do just that, with the Clips sending out a total of $32,315,442 and receiving $31,808,989.

The Clippers are now about $629K below the tax line, per Bobby Marks, which gives the team the ability to fill its 15th roster spot down the stretch without becoming a taxpayer. The club’s razor-thin margins illustrate why Reed and Johnson had to be included in the trade — taking out either player would have put L.A. over the tax line.

Avery Bradley still a trade candidate?

It remains to be seen what the Clippers’ plan is for Bradley, who is the only key player involved in this deal who will reach free agency this summer (Reed and Johnson are also on expiring contracts, but aren’t major pieces in this trade). Bradley’s Bird rights will go along with him to Los Angeles, so the Clips would have the ability to offer the veteran guard any amount up to the max without having to earmark cap room for such a deal.

However, if the Clippers don’t view Bradley as a long-term building block, it’s also possible he could be moved again before the February 8 trade deadline. CBA rules prevent L.A. from aggregating Bradley’s salary with another player’s salary to accommodate a trade within the next two months, but he’s eligible to be traded on his own. The Clips are known to be exploring possible trades involving DeAndre Jordan and Lou Williams, so it will be interesting to see if Bradley’s name comes up in those discussions too.

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

Hoops Rumors Community Shootaround: Griffin Trade

The Pistons were expected to make some sort of move before the trade deadline to improve their playoff prospects. But did anyone see this coming?

Likewise, the Clippers were shopping a couple of their veterans, namely Lou Williams and DeAndre Jordan. But how many thought they’d move Blake Griffin this quickly after re-signing him to a five-year, $171.1MM contract over the summer?

Both organizations made very different decisions regarding the direction of their franchises by agreeing to a blockbuster deal on Monday. The Pistons took on Griffin and his huge contract along with a couple of reserves. Detroit shipped two starters, Tobias Harris and Avery Bradley, along with Boban Marjanovic and two draft picks to the Clippers. Los Angeles will get a first-rounder in the June draft unless it’s a top-four pick.

Harris and Bradley lead the Pistons in scoring, though Bradley’s production has dipped since he suffered a groin injury in December. Harris has become an above-average 3-point shooter this season and his contract expires after next season. Bradley is on an expiring deal.

The Clippers gave themselves major cap relief by dealing Griffin’s contract and picked up two solid veterans along with a likely lottery pick. Detroit received a perennial All-Star to pair up with Andre Drummond in the frontcourt, though Griffin’s injury history adds to the risk. But the Pistons clearly weren’t going anywhere with their current roster and now have a marquee player who might bring some more fans into the usually half-empty Little Caesars Arena.

That brings us to our question of the day: Who do you think will benefit the most from the blockbuster trade involving Blake Griffin, the Clippers or the Pistons?

Please share your thoughts in the comments section. We look forward to what you have to say.

Two Teams Remain Below 2017/18 Salary Floor

When we discuss the NBA’s salary cap, we often refer to a team’s position in relation to either the cap itself or to the luxury tax line. For the 2017/18 season, the league has a salary cap of $99.093MM, with a luxury tax threshold of $119.266MM. With the exception of a few potential taxpayers and a few clubs with cap room, most team salaries fall between those two figures.

There’s at least one more key figure related to the salary cap though, and that’s the salary floor, as it’s informally known. The salary floor, which is 90% of the salary cap, is the minimum amount that a team must spend on its roster in a given NBA season. For 2017/18, that amount is $89,183,700.

While it’s possible that more teams will dip below the salary floor based on moves they make at the trade deadline, for now there are just two teams below that line, according to Basketball Insiders’ salary data. Those teams are the Mavericks ($85,669,472) and the Bulls ($83,223,828).

Both the Mavs and Bulls are actually functioning as over-the-cap teams at the moment, since they have various mid-level and trade exceptions that they haven’t renounced — added to their respective team salaries, those exceptions take them over the $99.093MM cap line. Still, that exception money isn’t technically being spent on any players right now, so it doesn’t count toward each club’s minimum salary.

Under the NBA’s old Collective Bargaining Agreement, it was fairly easy for teams below the salary floor to game the system. At the deadline, a team could simply acquire a highly-paid player whose cap hit would take the team over the salary floor, despite the fact that the club would only owe that player a prorated portion of his salary.

For instance, a year ago, the Sixers took on Andrew Bogut‘s $11MM+ salary as part of the deal that sent Nerlens Noel to Dallas. Bogut’s full $11MM+ cap hit counted for minimum team salary purposes for Philadelphia, but the Mavs had already paid a majority of the center’s salary, since the trade happened with less than two months left in the season. In other words, despite only having to pay about $3MM that was left on Bogut’s contract, the Sixers were able to artificially put an extra $8MM toward the calculation of their minimum team salary.

The league’s new Collective Bargaining Agreement closed that loophole. Now, players traded or acquired during the season will only count toward a team’s minimum salary for the amount that they were paid by that team. So the Bulls can’t simply acquire a player earning $7MM to get above the salary floor — if 40% of the season remains, that player would only count for $2.8MM toward Chicago’s minimum team salary, with the other $4.2MM applying to his old club’s minimum team salary.

With those new rules in mind, it will be interesting to see how the Bulls and Mavericks approach the trade deadline. In order to reach the salary floor based on the new guidelines, each team would have to use nearly all of its remaining cap room. While Chicago and Dallas should be willing to take advantage of that cap space to take on a contract or two if it means acquiring some extra assets in the process, that sort of deal may not be worth it if it adds major long-term money to the books. In that case, it may simply make more sense for the teams to finish the year below the salary floor, then make up the difference at season’s end by paying out the shortfall to their players.