Hoops Rumors Originals

Six Free Agents Signed Five-Year Contracts

The NBA’s current Collective Bargaining Agreement is designed to give teams certain benefits when it comes to re-signing their own free agents. Many players who reach free agency, for instance, are permitted to get 7.5% annual raises from their own teams, while they can only get 4.5% raises from another team. More notably, Bird rights free agents can sign five-year contracts with their own teams, but can only go up to four years with other clubs.

In some cases, that extra year doesn’t make much of a difference. Al Horford left Atlanta for Boston and signed a four-year contract with the Celtics, even though there were reports suggesting the Hawks were open to going to five years (albeit not quite for the max). Kevin Durant signed with the Warriors on a two-year contract that he’ll likely opt out of after the first year in order to maximize his future earnings.

Still, for at least a handful of players, that five-year contract appears to have played a part in their decisions to return to their own teams. As our Free Agent Tracker shows, six free agents signed five-year deals this year, and all six of those contracts were worth at least $85MM. Three of them were maximum-salary pacts.

Here are those five-year contracts, which will run through the 2020/21 season:

  • Mike Conley (Grizzlies): Five years, $152,605,578 (partial guarantee in year five)
  • DeMar DeRozan (Raptors): Five years, $137,500,000 (player option in year five)
  • Andre Drummond (Pistons): Five years, $127,171,313 (player option in year five)
  • Bradley Beal (Wizards): Five years, $127,171,313
  • Nicolas Batum (Hornets): Five years, $120,000,000 (player option in year five)
  • Evan Fournier (Magic): Five years, $85,000,000 (player option in year five)

Although Conley drew significant interest from the Mavericks, he was always a favorite to return to the Grizzlies, and none of the other five players on this list were seriously linked to another suitor, which is interesting.

Drummond and Beal were restricted free agents who got max deals, so there was never any suspense about their destinations, but plenty of teams would have been interested in prying away DeRozan from the Raptors, Batum from the Hornets, or Fournier from the Magic. The fact that those players’ teams were willing to offer five years likely made negotiations much simpler, since no rival suitor could offer that fifth year.

A five-year contract provides additional long-term security for free agents, and also gives the team the opportunity to give the player some agency as well. In four of the six deals listed above, the contract features a fifth-year player option.

That means DeRozan, Drummond, Batum, and Fournier have a safety net for that 2020/21 season — if they’re still playing at a high level at that point, it might make sense to opt out and sign a new longer-term contract. If their production has slipped, or if they’re battling injuries, they’ll have the option of remaining in their current contract and collecting a big pay check in that fifth year.

The ability to offer an additional year to their own free agents hasn’t always prevented teams from losing top-tier players on the open market, but there are still plenty of instances where that fifth year seems to make a difference. As the CBA opt-out date nears and the NBA and NBPA explore potential changes to their current agreement, it makes sense for this aspect of the CBA to remain unchanged. That extra long-term security may not appeal to every marquee free agent, but it does give a player’s current team a leg up, which is crucial if the league is worried about potential imbalance.

Extension Candidate: Derrick Favors

Veteran contract extensions rarely occur in the NBA. The current Collective Bargaining Agreement places heavy restrictions on contract restructuring and extensions. In most cases, it doesn’t make sense for one party or the other.

NBA: Los Angeles Clippers at Utah JazzThis summer, a couple of notable exceptions have popped up. James Harden agreed to a max extension, allowing the Rockets to lock up their franchise player for at least another year beyond the two seasons remaining on his contract. Russell Westbrook, who could have become an unrestricted free agent next summer, agreed to a max extension with the Thunder that will keep him under contract for at least another season.

Both players could remain with their respective teams — Harden in 2019/20 and Westbrook in 2018/19 — for an additional season if they decide not to opt out of the final year of those extensions.

Jazz power forward Derrick Favors doesn’t have the star power or resume of that duo but he, too, is eligible for a veteran extension this offseason. The player’s current contract must be at least four years to qualify for an extension and Favors signed a four-year, rookie-scale extension in October 2013.

Favors could officially sign a veteran’s extension during training camp on the third-year anniversary of his current contract. There’s ample financial reasons for Favors to work out such an agreement.

Favors is scheduled to make $11.05MM this season and $12MM in 2017/18. If he received a bottom tier max from the Jazz, he could essentially double his salary for the next two seasons.

Utah currently has more than $10MM in salary-cap space and could open up a little more by waiving a player with a non-guaranteed contract. They have two such players on the books — Chris Johnson and Jeff Withey.

From that point, Favors could receive two more years on his deal, though the numbers could range wildly. He could either get the max 7.5% raises in those two years. Conversely, the numbers could nosedive by as much as a 40% maximum decrease in the first year of the extension and another 7.5% decrease in the final season.

As Eric Pincus of Basketball Insiders details, that means Favors could wind up with a four-year restructuring/extension worth anywhere from $70MM to $99MM. If Favors waited until he became an unrestricted free agent in the summer of 2018, the max he could earn over the next four years would be approximately $86.3MM.

LIke Harden and Westbrook, he could aim for an opt-out in the final year of the extension, though the Jazz might not be interested in doing so. If they agreed to an opt-out, they’d be giving him a whopping raise while only being assured of having him an additional season. That would be a very generous offer to a player who hasn’t made an All-Star team.

The Jazz also have major decisions to make regarding two of their other top players. Leading scorer Gordon Hayward will almost assuredly opt out of the final year of his contract and become an unrestricted free agent next summer. Utah will have to decide whether to sit back and hope Hayward re-signs next summer or whether to explore trade possibilities, though Hayward has a 15% trade kicker in his contract.

Center Rudy Gobert is eligible for a rookie-scale extension before the start of the season, though the Jazz could also lock him up next summer when he becomes a restricted free agent.

Favors is undoubtedly a productive, if somewhat brittle, player who is entering his prime years. He’s just 25 years old and coming off back-to-back years in which he averaged at least 16 points, eight rebounds and 1.5 blocks. Favors has missed some time with assorted injuries since he started playing regularly — nine games in 2013/14, eight in 2014/15 and 20 last season.

Advanced stats are generally kind to Favors. He posted a rock-solid 21.71 PER last season, well above the 15.0 average. His offensive and defensive box ratings via BasketballReference.com are also above average, though he’s never had an OBR above 1.0. His overall Box Plus/Minus of 2.7 last season was a career best.

There’s another factor the Jazz must consider in their decision whether to extend Favors — what kind of player do they project Trey Lyles to be over the next few seasons?

The 2015 lottery pick posted modest stats in his first season, averaging 6.1 points and 3.7 rebounds. On the flip side, Lyles played well enough to remain in the rotation all season and he’s just 20 years old. If Utah believes Lyles could develop into a starter at power forward and possibly replace Favors two years down the road, what’s the incentive to extend Favors?

Either Favors or the club could decide to put off extension talks until next summer. He’d still be eligible for an extension entering the final year of his contract, as Westbrook was this summer. The tricky part is there’s no guarantee the current rules will still be in place.

Negotiations between the league and the Players’ Association appear to be going well but if they break down, either side could opt out of the CBA next summer. Even if the sides reach an agreement on a new CBA, the rules could change in terms of veteran extensions.

Given his team-friendly contract, Favors and agent Wallace Prather have plenty of motivation to get something done this summer. The Jazz will probably be willing to accommodate them, as long as Favors doesn’t shoot for the max and an opt-out clause.

Photo courtesy of Jeff Swinger / USA Today Sports

Community Shootaround: San Antonio Spurs

Gregg Popovich will be coaching Team USA at the next Olympics. The team he regularly coaches had quite an eventful summer.

Topping that list was the retirement of the Spurs’ longtime franchise player Tim Duncan. The franchise began its succession plan to replace Duncan last season when coveted free agent LaMarcus Aldridge chose to chase championships with a perennial contender. Aldridge will have another veteran big man who knows all about winning titles alongside him next season, as 36-year-old Pau Gasol also selected the Spurs via the free agent route.

San Antonio, which lost David West to the rival Warriors, didn’t stop there in its frontcourt makeover. It signed Dewayne Dedmon and another graybeard by NBA standards, 33-year-old David Lee.

The Spurs imported a couple of their draft-and-stash prospects, combo forwards Livio Jean-Charles and Davis Bertans, on low-cost deals with two-year guarantees. They also did well in the draft, nabbing guard Dejounte Murray, a player who was projected to go much higher than the 29th pick.

The newcomers join current franchise player Kawhi Leonard, along with the backcourt trio of Tony Parker, Danny Green and Manu Ginobili, as well as promising rotation pieces Jonathon Simmons and Kyle Anderson.

Clearly, the Spurs have a roster built to go deep in the playoffs, especially if some of those younger players blossom. They probably won’t have to worry about getting knocked out by the Thunder again in next year’s postseason. But the team that was easily second-best in the league during the regular season last year must once again contend with a star-laden Warriors roster fortified by the addition of superstar Kevin Durant.

This leads to our question of the day: Do the Spurs have enough firepower on their current roster to overcome the heavily-favored Warriors next season?

Take to the comments section below to share your thoughts and opinions on the topic. We look forward to what you have to say.

Free Agent Signees Who Could Be Back On Market In 2017

While many NBA players don’t necessarily love the uncertainty that free agency brings, reaching the open market and signing a new contract doesn’t always mean that a player will avoid the experience for several more years. For a number of the free agents who signed contracts this summer, there’s a good chance that they’ll head right back to the open market in the 2017 offseason.

In some cases, a player may choose to return to free agency sooner rather than later. Kevin Durant, for instance, could have signed a four-year contract with the Warriors, locking himself in through the 2019/20 season. Instead, he inked a two-year deal with an opt-out after year one. Durant will surely decline that player option next year in order to sign a new contract that will feature a much higher starter salary.

In other cases though, a team will simply be unwilling to give a player the sort of longer-term security he might want. Teams value flexibility, and the ability to easily create room and jettison big salaries can be important. That’s why, even though clubs have the ability to sign players to four- or five-year contracts, they’ll often opt for one- or two-year deals instead, including perhaps a team option or a non-guaranteed salary on that second year.

Listed below are the players who have signed free agent contracts this offseason who are decent bets to return to the open market next July. In addition to players on one-year contracts, this list includes players who have options or non-guaranteed salaries in year two, following a guaranteed salary for 2016/17. However, it doesn’t include players whose ’16/17 salaries aren’t yet fully guaranteed — those players could be free agents next July, but they could also become available well before then.

Let’s dive in…

Players who signed one-year contracts:

Players who signed two-year deals with second-year player options:

Players who signed multiyear deals with team options or non-guaranteed salaries in year two:

Information from Basketball Insiders and the Hoops Rumors Free Agent Tracker was used in the creation of this post.

Free Agent Spending By Division: Recap

Last week, we examined each team’s 2016 free agent spending, broken down by division, which illuminated some interesting statistics and trends. For instance, in the Northwest, the Trail Blazers committed over $240MM to free agent contracts, while their four division rivals combined to commit about a third of that total. In the free-spending Southeast, all five teams committed at least $150MM to free agent contracts.

These divisional breakdowns don’t necessarily present a full picture of teams’ offseason spending. Some notable free agents, including LeBron James, remain unsigned, so there’s still money out there to be spent. Our lists also don’t include money spent on this year’s first- and second-round picks or draft-and-stash signings. There are a few free agent names missing in some instances as well, since those deals aren’t yet official or terms haven’t been reported.

Still, if a team committed a huge chunk of money to a player this offseason, it can likely be found in this statistical breakdown. Now that we’ve covered all six divisions, we’ll take a closer look at the overall results. Let’s dive in…

1. Southeast

  • Total money committed: $972,415,880
  • Guaranteed money committed (including player options): $944,422,130
  • Highest-spending team: Washington Wizards ($239,223,166)
  • Largest contract: Bradley Beal, Wizards (five years, $127,171,313)

As noted above, all five Southeast teams committed at least $150MM in total money to free agent contracts, a staggering number. The Hawks spent the least free agent money in the division, and Atlanta still handed out $70MM+ contracts to both Dwight Howard and Kent Bazemore. Each Southeast team had a least one big-money free agent of their own to re-sign (including Beal, Bazemore, Evan Fournier, Nicolas Batum, and Hassan Whiteside), and most clubs in the division aggressively pursued outside targets as well.

By our count, NBA teams committed more than $3.5 billion to free agent contracts this summer, including non-guaranteed money. Nearly $1 billion of that came from the Southeast.

2. Southwest

  • Total money committed: $767,231,583
  • Guaranteed money committed (including player options): $714,468,634
  • Highest-spending team: Memphis Grizzlies ($266,310,613)
  • Largest contract: Mike Conley, Grizzlies (five years, $152,607,578)

No team committed more free agent money this offseason than the Grizzlies, which makes sense, considering they also handed out the largest contract in NBA history to Conley. That deal isn’t fully guaranteed, but it should become guaranteed before it reaches its fifth year.

Also, for all the talk we hear months or years in advance about NBA teams trying to open up enough cap room for multiple maximum-salary free agents, only one club this year actually signed two free agents to max deals. That would be the Grizzlies, who also locked up Chandler Parsons to a four-year contract worth nearly $100MM. By comparison, perennially active teams like the Mavericks and Rockets practically played it safe, despite committing a combined $344MM+ to free agents themselves.

3. Atlantic

  • Total money committed: $576,554,546
  • Guaranteed money committed (including player options): $538,193,337
  • Highest-spending team: New York Knicks ($164,387,929)
  • Largest contract: DeMar DeRozan, Raptors (five years, $137,500,000)

The Knicks’ offseason additions were among the summer’s top talking points, the Celtics finally landed a star free agent in Al Horford, and DeRozan’s contract was second-largest behind Conley’s. Outside of that, things were fairly quiet in the Atlantic on the free agent front. The Nets looked like they would make a significant move or two, but they ultimately had their offer sheets for Allen Crabbe and Tyler Johnson matched, meaning their big free agent expenditure was Jeremy Lin, who inked a three-year, $36MM pact.

4. Pacific

  • Total money committed: $468,048,642
  • Guaranteed money committed (including player options): $436,048,642
  • Highest-spending team: Los Angeles Lakers ($186,000,000)
  • Largest contract: Luol Deng, Lakers (four years, $72,000,000)

A lack of truly high-end contracts limited the Pacific’s overall total, but there were still a handful of active teams in this division. Of course, in terms of impact, the biggest free agent contract of the summer was Kevin Durant‘s. Because it was just a two-year deal, however, it’s just a small piece of the largest Pacific division picture — Deng’s and Timofey Mozgov‘s contracts with the Lakers had larger overall values than Durant’s.

Elsewhere in the division, the Clippers showed that it’s not necessary to have cap room or star free agents to spend a lot — Los Angeles signed four of its own free agents (Jamal Crawford, Austin Rivers, Wesley Johnson, and Luc Mbah a Moute), then added a few outside free agents on minimum-salary deals, but the club’s overall bill was still north of $105MM.

5. Central

  • Total money committed: $447,506,792
  • Guaranteed money committed (including player options): $425,577,871
  • Highest-spending team: Detroit Pistons ($207,171,313)
  • Largest contract: Andre Drummond, Pistons (five years, $127,171,313)

The Central division’s spending total figures to rise in the coming days, weeks, or months — whenever LeBron James gets around to finalizing his new deal with the Cavaliers. J.R. Smith is also likely to return to Cleveland, and while that still probably won’t make the Cavs the division’s highest-spending team, it will increase their current free agent total ($9,573,362) exponentially.

For now, Drummond’s five-year pact with the Pistons is the only mega-deal in the Central this offseason — Miles Plumlee‘s $49.6MM contract with the Bucks takes second place.

6. Northwest

  • Total money committed: $327,499,219
  • Guaranteed money committed (including player options): $306,812,499
  • Highest-spending team: Portland Trail Blazers ($242,414,220)
  • Largest contract: Allen Crabbe, Trail Blazers (four years, $74,832,500)

As mentioned previously, the Blazers were the only Northwest team that was overly active in free agency this summer. The Thunder sat out of the process once Durant departed; the Jazz focused on acquiring talent via trades; and neither the Timberwolves nor the Nuggets are ready to make a major splash in free agency quite yet.

In Portland, a good chunk of the Blazers’ money was spent on retaining their own free agents, like Crabbe, Maurice Harkless, and Meyers Leonard. However, the team also went out and brought in Evan Turner and Festus Ezeli on multiyear deals.

2016 NBA Contract Extension Tracker

So far this summer, we’ve been keeping close tabs on the way teams are acquiring new players, tracking free agent signings, draft pick signings, draft-and-stash signings, and trades. However, there’s another form of transaction worth monitoring: contract extensions.

Extensions, of course, don’t involve adding a new player to the roster. By extending a contract, a team ensures that a current player will remain locked up for multiple years to come. While it may not change the club’s outlook on the court, it can have a major impact on that team’s salary cap situation — in terms of total value, the extensions signed this summer by James Harden and C.J. McCollum ranked among the top eight contract signed, including free agent deals.

Rookie-scale extensions like McCollum’s are the most common form of contract extension, occurring in the offseason before a former first-round pick enters the final year of his rookie contract. Teams have until October 31 to work out new deals with those players, though if a club intends to ultimately sign its player to a maximum-salary contract, it could make sense to wait until next summer — that way, a club can keep a more modest cap hold on its 2017 books, and maximize its cap room next offseason. Still, we can probably expect to see a few rookie-scale extensions finalized before November.

[RELATED: Players eligible for rookie-scale extensions]

While they’re less common than rookie-scale extensions, veteran extensions – like Harden’s – are happening a little more frequently these days, now that more teams than ever are going under the cap, rather than staying over it. Utilizing cap room to renegotiate a player’s current-year salary while extending him incentivizes extensions for players, making those players more likely to re-up right away, rather than waiting for free agency.

[RELATED: Players eligible for veteran extensions]

Listed below are the players who have agreed to contract extensions so far in the 2016/17 league year. This list, which can be found on the right-hand sidebar under “Hoops Rumors Features,” will be kept up to date throughout the offseason, and even into the ’16/17 season, if any veteran players ink an extension at that point.

Rookie-scale extensions:

Veteran extensions:

Community Shootaround: Ray Allen

Only a handful of players have suited up for an NBA game past their 40th birthday. Ray Allen, who turned 41 last month, is hoping to join that list.

Allen has been out of the league since walking off the court after Game 5 of the 2014 NBA Finals. He remained a productive player to the end, averaging 9.6 points in 73 games while helping Miami capture the Eastern Conference title.

Allen didn’t return to the Heat after that season, but he never really retired either. Over the past two years, there have been rumors that he was working out and getting ready to sign with a contender, but nothing ever materialized. Those rumors have started again, and Allen confirms that there’s a lot of truth behind them.

The 10-time All-Star says he has had conversations with the Celtics and Bucks about possibly joining them next season. Boston is where he won his first NBA title in 2008 and Milwaukee is the team he broke into the league with in 1996, so he has fond memories of both places.

Allen also says that Spike Lee, one of the Knicks’ most famous fans, has been texting him in an effort to convince him to come to New York. The Cavaliers, Warriors, Spurs and Clippers are other teams that have been mentioned in the rumor mill.

Allen may be the best 3-point shooter the NBA has ever seen. He holds the career record with 2,973 made, more than 400 better than his closest challenger, and the career playoff 3-point record with 385. In his two seasons in Miami, he shot 42% and 38% from 3-point range.

That brings us to tonight’s question: Do you believe Allen can still play in the NBA, and which team would be best for him? Take to the comments section below to share your thoughts and opinions on the topic. We look forward to what you have to say.

Poll: 2005 NBA Draft Take Two (Pick No. 6)

Drafting players is far from an exact science, and many a GM has been second-guessed for his draft night decisions. While life, and the NBA, doesn’t often allow for second chances, we at Hoops Rumors believe it’s fun to give our readers a second take at picking players, complete with the benefit of hindsight.

We’ve previously tackled the 2003 and 2013 NBA Drafts and the next one we’re tackling is 2005’s, the year that the Bucks nabbed big man Andrew Bogut with the No. 1 overall pick. That year’s draft class is generally viewed as one of the weaker ones in recent memory, though, there were quite a few second-rounders that year (Ersan Ilyasova, Monta Ellis, Lou Williams, Amir Johnson and Marcin Gortat) who have gone on to have very solid NBA careers.

In the weeks ahead, we’ll be posting a series of reader polls that ask you to vote on the player whom you believe should have been selected with each pick. We’ll continue onward with the Trail Blazers, who held the No. 6 pick that season. Readers, you are now on the clock! Cast your vote for Portland’s pick and check back Monday night for the results, as well as for your chance to vote for whom the Raptors should have taken at No. 7. But don’t limit yourself to a simple button click. Take to the comments section below and share your thoughts on the pick and why you voted the way that you did. Also, if I fail to list a player who you think should be selected, feel free to post that in the comments section and I’ll be certain to tally those votes as well.

Selections

  1. Bucks — Chris Paul [Actual Pick — Andrew Bogut]
  2. Hawks — Deron Williams [Actual Pick — Marvin Williams]
  3. Jazz — Monta Ellis [Actual Pick — Deron Williams]
  4. Hornets/Pelicans — Andrew Bogut [Actual Pick — Chris Paul]
  5. Bobcats/Hornets — Danny Granger [Actual Pick — Raymond Felton]
  6. Trail Blazers  — ? [Actual Pick  — Martell Webster]

If you’re a Trade Rumors app user, click here.

Community Shootaround: Franchise Tag

If the NBA operated under the NFL’s rules, Kevin Durant would still be in Oklahoma City.

That’s because football teams can use a franchise tag each year to lock up their best free agent for another season. That allows them to try to work out a long-term contract while preventing the player from negotiating with other teams.

After receiving the franchise tag, the player receives either 120% of his previous year’s salary or the average of the top five salaries at his position throughout the league, whichever number is higher. It’s a price the Thunder would have gladly paid to keep Durant in their lineup for another season while trying to work out a longer deal.

As we count down toward the expected reopening of the NBA’s collective bargaining agreement in December, many owners want to adopt some form of the franchise tag. The concept had several vocal supporters at an owners’ meeting last month in Las Vegas, writes Tim Bontemps of The Washington Post.

Such a measure would gives teams in smaller markets, such as Oklahoma City, a better shot at retaining their own free agents. It would also discourage the formation of “super teams” like the Warriors who have many league observers concerned about competitive balance.

While not publicly endorsing a franchise tag, Commissioner Adam Silver is among those who believe the current arrangement needs to be tweaked.

“I do think to maintain those principles that I discussed in terms of creating a league in which every team has the opportunity to compete, I think we do need to re-examine some of the elements of our system so that I’m not here next year or the year after again talking about anomalies,” Silver said. “There are certain things, corrections we believe we can make in the system.”

The players union is strongly opposed to a franchise tag, and Bontemps speculates that it could be one of the most divisive issues during the next round of negotiations. The union is fighting for more player control and wants to see free agency arrive earlier rather than later. Players see the nine years Durant spent with the Thunder franchise as long enough and believe he earned the right to play wherever he desires.

That brings us to tonight’s question: Does the NBA need a provision similar to the franchise tag that will level the playing field in free agency, or do the players deserve full free agency without more restrictions?  Take to the comments section below to share your thoughts and opinions on the topic. We look forward to what you have to say.

Salary Cap Snapshot: Detroit Pistons

With the free agent signing period winding down and teams looking ahead to the preseason, we at Hoops Rumors will be tracking the Salary Cap figures for each team around the league.  These posts will be maintained throughout the season once financial data is reported. They will be located on the sidebar throughout the year, once all the teams’ cap figures have been relayed. You can always check RosterResource.com for up-to-date rosters for each franchise, with the Pistons’ team page accessible here.

Here’s a breakdown of where the Pistons currently stand financially:


Guaranteed Salary

Total Guaranteed Salary= $107,901,937


Cash Sent Out Via Trade: $0 [Amount Remaining $3.5MM]

Cash Received Via Trade: $0 [Amount Remaining $3.5MM]


Payroll Exceptions Available

  • Room Exception: $2,898,000

Total Projected Payroll: $107,901,937

Salary Cap: $94,143,000

Estimated Available Cap Space: $13,758,937

Luxury Tax Threshold: $113,287,000

Amount Below Luxury Tax: $5,385,063

Last Updated: 1/11/17

The Basketball Insiders salary pages and The Vertical’s salary database were used in the creation of this post.