Timberwolves Rumors

Observations On 2013/14 Mid-Level Exceptions

Earlier this afternoon, we published a piece detailing the current status of the 2013/14 mid-level exceptions for all 30 NBA teams. While the list is straightforward, for the most part, it's worth examining it a little more closely and breaking down a few issues and questions….

1. Who has the most exception money available?

With all of the major free agents off the board, there likely won't be many more bidding wars for highly-coveted players, but it could still be beneficial for a team to have extra spending flexibility. If a player is bought out by his current team later in the season, for instance, it could take more than the minimum salary to sign him. In that case, the following teams could be in good position:

  • Oklahoma City Thunder: $5.15MM remaining.
  • Memphis Grizzlies: $4.62MM remaining, though a portion will likely be used to officially sign Nick Calathes.
  • Miami Heat: $3.18MM remaining.
  • Boston Celtics: $2.66MM remaining.

Several teams have $2.65MM in leftover exception money, while the 76ers and Bucks also have good chunks of cap space available.

2. Some MLE money technically available can't or won't realistically be used.

Teams using more than the taxpayer portion of the MLE aren't permitted to exceed the tax apron ($75,748,000, or $4MM above the tax line) at any point before next July. That means that if the Celtics were to use the rest of their MLE, their flexibility would be extremely limited, since they'd be left with only about $56K in wiggle room before hitting that hard cap. That doesn't mean the C's can't use the full non-taxpayer MLE, but it makes it unlikely.

Similarly, a few teams have very small portions of their MLEs available. In some cases, those could theoretically be used. A team like the Warriors, for example, could use the $50K remaining on their mid-level to sign a player late in the season — if they wanted to sign that player for three years, rather than the two allowed by the minimum salary exception, they could use the $50K on their MLE, since its value pro-rates starting on January 10th.

On the other hand, the $1,650 left on the Knicks' MLE is too small an amount to even use to sign a player on the last day of the season, so it can't be used.

3. Which form of MLE do the Pelicans have available?

The salary databases compiled by Mark Deeks of ShamSports.com and Eric Pincus of HoopsWorld.com are at odds when it comes to how two teams acquired players this summer. The Pelicans are the first — Deeks has New Orleans listed as having signed Greg Stiemsma using a portion of the non-taxpayer mid-level exception, while Pincus suggests the Pelicans have the full room exception available, which must mean Stiemsma was signed using cap space.

The Pelicans pulled off a tricky series of moves in July that don't make the answer obvious, but the deal in which they acquired Jrue Holiday provides a big clue. The Holiday deal couldn't have been consummated using rules for over-the-cap trades, since New Orleans didn't send out enough salary. Therefore, the team must have absorbed Holiday's contract using cap space, in which case, the non-taxpayer mid-level exception was no longer available.

Based on my math, the Pelicans must have finalized the Holiday deal and Stiemsma's signing using cap space before they formally landed Tyreke Evans, Jeff Withey, and Anthony Morrow. If the club made the Holiday and Stiemsma deals official prior to the other moves, team salary would have stood at $58,668,416, just a hair below the league's $58,679,000 salary cap. The Evans deal then could have been completed using over-the-cap trade rules, with Morrow signed using the minimum salary exception.

In short: The Pelicans used cap space this summer, and should still have their full room exception available.

4. Which form of MLE do the Timberwolves have available?

The Timberwolves are the other team on which Deeks and Pincus seem to disagree. Deeks' data suggests the team went below the cap and then signed Ronny Turiaf to a portion of the room exception, while Pincus' numbers have the club above the cap, with Turiaf signing for a portion of the bi-annual exception, while Corey Brewer got most of the MLE. Based on my calculations, it appears the Wolves could have used either approach.

In Deeks' scenario, Minnesota would have renounced Andrei Kirilenko, absorbed Kevin Martin's signed-and-traded contract using cap space, squezed Brewer's deal into the remaining cap room, then gone over the cap to finalize contracts for Chase Budinger, Gorgui Dieng, Shabazz Muhammad, Nikola Pekovic, and Turiaf.

In Pincus' scenario, the team would have used over-the-cap trade rules to take on Martin's salary in exchange for Luke Ridnour's contract. That would have allowed the Wolves to keep all their exceptions, including a small trade exception created when they traded Malcolm Lee on draft night. Brewer and Turiaf would have subsequently been signed using the MLE and BAE, respectively.

My guess is that the team opted for the former scenario for a couple reasons. First, by using cap space, the team would be able to avoid using its bi-annual exception this year, keeping it available for next season. Additionally, the Wolves would still have $1.152MM on their room exception to use on a single player, rather than having $650K of the MLE and $516K of the BAE, two amounts that couldn't be combined.

In short: The T-Wolves probably used cap space this summer, and should still have $1,152,000 of their room exception available.

HoopsWorld and ShamSports were used in the creation of this post.

Wolves, Nikola Pekovic Agree To Five-Year Deal

The Timberwolves and Nikola Pekovic have reached an agreement on a new contract, according to team president Flip Saunders (via Twitter). While Saunders didn't reveal the terms of the deal, ESPN.com's Marc Stein reports (via Twitter) that it will be a five-year pact worth $60MM. According to Stein (Twitter link), Pekovic will also have the opportunity to earn about $8MM more in incentive-related bonuses.

Pekovic had been the last major free agent on the market, and had long been expected to eventually reach an agreement with the T-Wolves. The team reportedly offered him a four-year, $48MM deal several weeks ago, so it looks like Pekovic and agent Jeff Schwartz convinced Minnesota to agree to an additional year at the same annual salary. As Darren Wolfson of 1500 ESPN Twin Cities tweets, it's a compromise both sides can live with, since Pekovic wanted a fifth year, while the Wolves didn't want to exceed $12MM per season.

Pekovic, 27, had a breakout year for the Wolves in 2012/13, averaging 16.3 PPG, 8.8 RPG, and a 20.2 PER while playing a career-high 31.6 minutes per game. Teams like the Trail Blazers, Cavaliers, and others were expected to show interest in him this offseason, but it doesn't appear that any rival suitor made a legit run at the big man — any teams with interest likely expected the Wolves to match any reasonable offer.

Depending on the salary in the first year of Pekovic's deal, the Wolves figure to head into 2013/14 with somewhere in the neighborhood of $65MM+ on their books, well below the tax line. The club will also still have its designated player tag available for Ricky Rubio, since that rule only applies to five-year contracts for players coming off rookie-scale contracts. Pekovic wasn't a first-round draft pick, and therefore wasn't subject to the NBA's rookie scale.

According to Wolfson (via Twitter), all five years of Pekovic's contract will be guaranteed. Jerry Zgoda of the Star Tribune tweets that Pekovic will fly to Minnesota tomorrow, with a press conference to officially announce the new deal scheduled for Friday.

T-Wolves Want To Sign Pekovic By Start Of Camp

The Timberwolves have said repeatedly that they have every intention of retaining restricted free agent Nikola Pekovic.  The saga has now dragged into mid-August without a pact between the two sides, but president of basketball operations Flip Saunders says that he has earmarked the start of training camp as the deadline for a deal, writes Tim Leighton of the Pioneer Press.

"I believe we are the best situation for him,'' Saunders said. "I do believe that Pek knows what we have brought in and that this is a positive place. I think we are moving in the right direction.''

The 6-foot-11, 290-pound big man earned $4.8MM last season and he can expect a sizable pay raise in his next deal.  The question for Pekovic, who averaged 16.3 PPG and 8.8 RPG in 62 games, is how much of a bump he will get.  The Wolves are dangling a four-year extension worth about $48MM plus incentives while the 27-year-old's agent is said to be seeking something with an average annual value of $15MM.  

Odds & Ends: Collins, Irving, Wolves, Harrington

Let's check in on a few Monday odds and ends from around the Association:

  • A report over the weekend indicated that the Pistons have shown exploratory interest in Jason Collins, but Vincent Goodwill of the Detroit News hears that the team is unlikely to actually sign him.
  • Although his friend John Wall recently inked a new long-term deal with the Wizards, Kyrie Irving won't be eligible for an extension until next summer, so he's not thinking about his contract situation yet, as he tells Sam Amico of FOX Sports Ohio.
  • Timberwolves president Flip Saunders spoke to reporters today, including Jerry Zgoda of the Star Tribune, and confirmed that the team expects Robbie Hummel, Lorenzo Brown, and Othyus Jeffers to be in training camp. Saunders also discussed Nikola Pekovic, Shabazz Muhammad, and Milt Newton.
  • While Al Harrington appears on track to land a deal with the Wizards, several other teams showed interest, including the Clippers, Kings, and Pelicans, tweets Jared Zwerling of ESPNNewYork.com.
  • Subbing in for David Aldridge at NBA.com, Steve Kerr presents some ideas for how to improve the NBA's draft lottery.

Timberwolves To Interview Milt Newton

MONDAY, 10:45am: According to Saunders, the Wolves have yet to formally interview Newton, but have asked for and received permission from the Wizards to speak to him. Saunders would like to talk to Newton about a front office job involving scouting and personnel (Twitter links via Jerry Zgoda of the Star Tribune).

SUNDAY, 8:56am: Wizards vice president of player personnel Milt Newton sat down this week for a formal interview with the Timberwolves for their GM position, reports Marc Stein of ESPN.com (Twitter link). Stein first reported two and a half months ago that the team was considering Newton for the job. Minnesota president of basketball operations Flip Saunders wants to hire a pair of executives to assist him in the front office. Darren Wolfson of 1500 ESPN Twin Cities reported early in July that Newton was likely to stay with the Wizards, but a week later, Wolfson said Newton was still in the mix to join the Wolves.

Wolves director of basketball operations Rob Babcock also appears to be a candidate for the GM job, though he could instead become the team's vice president of basketball operations, the other position Saunders is looking to fill. The Wolves also had their eyes on Tim Connelly before he became Nuggets GM.

Newton, who grew up in Washington, D.C., has spent the past decade in the Wizards organization. Before that, he served as an executive with the D-League, scouted for the Sixers, and worked for USA Basketball.

Northwest Notes: Nuggets, T’Wolves, Brown, Curry

Flip Saunders is the leading man in the Timberwolves' front office, but he's searching for two executives to help assist him in day-to-day operations.  This morning, we learned that Wizards vice president of player personnel Milt Newton sat down with the T'Wolves to formally interview for the GM position while they could also promote former Raptors GM Rob Babcock from within.  Here's the latest out of the Northwest Division..

  • The Northwest Division is the best example this offseason of the cyclical nature of the league, writes Royce Young of CBSSports.com.  The Nuggets have slipped after losing their GM and failing to re-sign their top offseason target in Andre Iguodala.  Meanwhile, the Timberwolves could take the divisional crown after making a few shrewd moves and getting Kevin Love back.
  • Bobby Brown has until August 15th to exercise his opt out clause with China's DongGuan Leopards and AJ Mitnick of Sheridan Hoops sees the Jazz as a good fit for the lighting quick point guard.  Brown averaged 18.3 PPG in Euroleague last year and improved greatly as a true one-guard.
  • Seth Curry says that Timberwolves are among the teams that have extended a training camp invitation to him, writes Mark Berman of The Roanoke Times.  The Warriors, Spurs, and Bobcats have also invited the undrafted Duke guard to camp.
  • Earlier today, we looked at the latest on the Thunder.

Odds & Ends: Olympics, Bibby, Cooley, Saunders

The movement to prevent a 23-and-under age restriction for Olympic basketball may have taken a hit. The International Olympic Committee has rejected a proposal to increase the number of teams from 12 to 16 and shorten the length of the competition, USA Today's Jeff Zillgitt reports. Many NBA and pro basketball executives around the world believe the Olympics place too much of a strain on their stars, and some of them thought the proposal would have been an acceptable compromise. While we wait to see if the 2016 games are the last to feature rosters reminiscent of the Dream Team, here's the latest from around the NBA:

  • Mike Bibby didn't play in the NBA this past season, but the 35-year-old is still trying to get back in the league, as he tells Alex Kramers of Kings.com. Whenever Bibby decides to stop playing, he says he'd like to get into coaching.
  • Undrafted center Jack Cooley reportedly drew training camp invitations from more than 10 NBA teams after a strong showing in summer league, but he's decided to sign with Trabzonspor of Turkey, a source tells Sportando's Emiliano Carchia. It's a "substantial" deal, according to Alex Kennedy of HoopsWorld (Twitter link).
  • Using the specter of a D-League assignment as a way to threaten first-round pick Shabazz Muhammad into proper behavior demonstrates how Wolves executive Flip Saunders holds an unsophisticated view of the D-League, opines Matt Moore of CBSSports.com.
  • Jeff Caplan of NBA.com examines how the Lakers can be better in 2013/14 than they were last season, even after losing Dwight Howard

Poll: Which Summerlong Story Ends First?

It seemed like we were finally on the verge of seeing the Sixers hire a head coach last night, when news broke that they'd offered the job to Brett Brown. Later we heard that people close to Brown were urging him to say no to GM Sam Hinkie and company, and as of this morning, there isn't a timetable for the Spurs assistant to give his answer to Philadelphia.

There was also movement yesterday on the Nikola Pekovic front, with Timberwolves executive Flip Saunders proclaiming that the team was progressing toward a deal with the restricted free agent on the heels of "positive talks" with the Pekovic camp. Of course, those kind of comments don't get at any specifics, and they present only one side of the story. The Wolves and agent Jeff Schwartz still appear to be going back and forth over money, with the team firm on a four-year, $48MM offer in response to Schwartz's opening gambit for a deal worth $15MM a year.

Pekovic is the top per-36-minute scorer still on the market, and recorded the fourth-best rebound rate among unsigned players, but even beyond those statistical measures, the burly 6'11" center is far and away the best talent without an NBA contract. He's a restricted free agent, and as he's watched comparable talent sop up most of the cap space around the league, the Wolves have emerged with plenty of leverage. The Sixers will enter their fifth month without a coach if they wait longer than another week, and though Brown seems like a rising star in the coaching ranks, there are only 30 NBA jobs, and there's no guarantee another opportunity will come around.

So, which of the two stories we've been tracking this summer will be resolved first? Cast your vote, and add your thoughts in the comments.

Odds & Ends: Pekovic, Paul, Ennis, Knicks

NBA teams hit the hardwood again in October, but some of the news tonight concerns courts of a different nature. Cuttino Mobley dropped his lawsuit against the parent company of the Knicks in the hopes that doing so will make it easier for him to play again in the NBA, while lawyers for the former owners of the Kings have allegedly funded an effort to stymie Sacramento's arena plans. While we await more on those legal matters, here's the latest from around the NBA:

  • The Wolves and Nikola Pekovic's camp are making progress toward a deal, president of basketball ops Flip Saunders tells Jerry Zgoda of the Star Tribune (Twitter link).
  • Four NBA teams invited undrafted Illinois shooting guard Brandon Paul to camp, but he's signing to play in Russia instead, Paul reveals via Twitter (hat tip to Zgoda). Paul doesn't say which Russian team he's joining.
  • Scott Nichols, the agent for James Ennis, tells Shams Charania of RealGM.com that there's a good chance the Heat will sign his client at some point this season, allowing him to invoke the opt-out clause in his contract with an Australian club. Ennis turned down "a lot more money" from Russia's BC Nizhny Novgorod and "a little more" from France's Nantere to sign with the Perth Wildcats, Nichols says to Chris Tomasson of Fox Sports Florida. A team from Germany also made a lucrative offer, according to Charania.
  • Jared Zwerling of ESPNNewYork.com chatted with readers today, dishing on possibilities for the final spot on the Knicks 15-man roster, and passing along word from a source that Jeremy Tyler's two-year deal makes it less likely that the team will sign Ivan Johnson.

Odds & Ends: Sixers, West, Gordon, Jamison

Trail Blazers assistant David Vanterpool appears to have become the leading candidate in the Sixers head coaching search, according to Gary Washburn of the Boston Globe. Most reports have cited Brett Brown and Michael Curry as the front-runners, but it seems there are still several hopefuls who could emerge with the job. We passed along news from Washburn earlier today on the continuing possibility of a Rajon Rondo trade to the Pistons, and here's more from the Globe scribe as we round up the morning's news from around the NBA:

  • The Knicks and Grizzlies have reportedly been in talks with Delonte West, but the Knicks appear to be out, and according to Washburn, no team has shown serious interest.
  • The additions of Jrue Holiday and Tyreke Evans make for a crowded backcourt in New Orleans, but Eric Gordon is glad to have his new Pelicans teammates, he tells Washburn.
  • Clippers boss Doc Rivers didn't make an offer to Antawn Jamison when they met for dinner last night, but the Clippers and Jamison's reps plan to talk soon, reports Ramona Shelburne of ESPNLosAngeles.com.
  • The Hawks waived DeShawn Stevenson on Friday, and in the likely event that he clears waivers and hits free agency, he'd like to sign with the Heat, according to a pair ofdispatches from his Twitter account.
  • Shelvin Mack appears in a tenuous position with the Hawks, since his contract is non-guaranteed and he plays the same position as Jeff Teague and first-round pick Dennis Schröder. If the Hawks waive Mack, he'll be the primary point guard target for Olimpia Milano of Italy, Enea Trapani of Sportando reports.
  • Elston Turner has reached an agreement to become an assistant coach for the Grizzlies, a source tells Chris Haynes of CSNNW.com. The defensively minded Turner also spoke about joining the Timberwolves staff.
  • Stefhon Hannah has signed to play with Juve Caserta in Italy, the team announced (translation via Sportando's Emiliano Carchia). Hannah worked out for the Knicks this summer, and spent two weeks last fall in training camp with the Warriors.