Pelicans Rumors

2020/21 Salary Cap Preview: New Orleans Pelicans

Hoops Rumors is looking ahead at the 2020/21 salary cap situations for all 30 NBA teams. Due to the impact of the coronavirus pandemic on the NBA, it’s impossible to know yet where the cap for 2020/21 will land. Given the league’s lost revenue, we’re assuming for now that it will stay the same as the ’19/20 cap, but it’s entirely possible it will end up higher or lower than that.

The Pelicans were considered a playoff sleeper prior to the 2019/20 season and again by the time the season went on hiatus. In between, things were a little up and down — the team got off to a dismal 6-22 start in the fall while No. 1 pick Zion Williamson recovered from a knee injury. However, New Orleans bounced back nicely and showed some tantalizing potential in the 19 games Williamson played, as he meshed nicely with young building blocks Lonzo Ball and Brandon Ingram.

The priority this offseason for the Pelicans will be re-signing Ingram, who will be in line for either a maximum-salary contract or something close to it. The franchise has enough cap flexibility to accommodate that deal without approaching tax territory.

Here’s where things stand for the Pelicans financially in 2020/21, as we continue our Salary Cap Preview series:

Guaranteed Salary

Player Options

  • None

Team Options

  • None

Non-Guaranteed Salary

Restricted Free Agents

Unrestricted Free Agents / Other Cap Holds

Offseason Cap Outlook

With just $76MM in guaranteed money on their books for next season so far, the Pelicans could theoretically create cap room. However, there would be no better way to use that room than by re-signing Ingram. He’ll be a restricted free agent, giving New Orleans the opportunity to match any offer sheet he signs, and his new deal figures to erase any cap space the Pelicans could carve out.

Fortunately, even with a max deal for Ingram on their books and without a cap increase, the Pelicans would have plenty of room to maneuver below the tax threshold. That should give the team the option of re-signing Favors and/or Moore, or potentially using its full mid-level exception.

Cap Exceptions Available

  • Mid-level exception: $9,258,000 2
  • Bi-annual exception: $3,623,000 2

Footnotes

  1. Miller’s new salary guarantee date is unknown.
  2. These are projected values. If team salary gets high enough, it’s possible the Pelicans would instead be limited to the taxpayer mid-level exception ($5,718,000). If they want to use cap room, they’d have to renounce these exceptions and would gain access to the room exception ($4,767,000).

Note: Minimum-salary and rookie-scale cap holds are based on the salary cap and could increase or decrease depending on where the cap lands.

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

Pelicans Targeting May 18 For Reopening Facilities?

  • The Pelicans aren’t reopening their facility this week and may not do so next week either, tweets Andrew Lopez of ESPN. A source tells Lopez that May 18 may be a target date for the club. We heard on Wednesday that the Rockets are also circling May 18 as their reopening date.

Zion Williamson May Have Minutes Restriction

The Pelicans will consider a minutes restriction for rookie forward Zion Williamson if their season resumes, head coach Alvin Gentry said in a conference call with reporters on Thursday.

Williamson was one of the most eagerly anticipated rookies in years, but he played just 19 games before the hiatus because of a knee injury that delayed his debut until late January. He was placed on a minutes restriction at the time, but it was removed after a few games. Gentry said the team’s medical staff will re-evaluate Williamson and several other players if a restart date is announced for the season.

“It will be something that we talk about when we do resume and as far as how it looks for Zion from a minute standpoint, and we’ll do that really with some of the other players,” Gentry said. “This is unprecedented, really. You play in a basketball game, you play 60 games and then all of a sudden the season ends, and then now it’s going to start back up. So, this is going to be something that is different for every single player that has ever played in the NBA or is playing in the NBA now.”

Although fans in New Orleans only got a brief look at Williamson, he lived up to expectations by averaging 23.6 points and 6.8 rebounds per night while shooting 58.9% from the field. He helped the Pelicans overcome a slow start and inch their way toward playoff contention by the time the season was halted.

“I still think that in all the years that I’ve been in the league, I’ve never seen anyone that has a second jump like this kid,” Gentry added. “It’s amazing how he can hit the ground and be back up before anyone is really reacting to the first move that he had. I would say that’s been a pleasant surprise in those areas right there. I think what we found out is that he’s an excellent passer, also. I think as he gets more comfortable handling a basketball, that’s going to be an area that everyone sees that he can be an elite guy from the position that he’s playing right there.

“He’s such a good guy, just from a teammate standpoint, that I knew our guys would be pulling for him. Our guys have embraced the fact that he’s a guy that we can finish games with, he’s a guy that we can go to when we need a basket, and he’ll make the right play.”

Pelicans Notes: Zion, Ball, Ingram, Holiday

It remains to be seen whether the NBA will be able to resume its 2019/20 season or whether teams outside of the playoff picture will get an opportunity to participate. However, if the Pelicans do get a chance to play this summer, Zion Williamson isn’t worried about needing several weeks to get back into playing shape, as Andrew Lopez of ESPN writes.

“Honestly, I’m ready now,” Williamson told TNT’s Ernie Johnson in an interview earlier this week. “I’ve been staying in shape, working on myself and just staying ready. You never know when the time is going to come when they’re going to say, ‘All right, let’s resume.’ I don’t want to have to look around at my teammates and say, ‘Sorry, guys, I’m not ready.’ So I’m staying ready for my teammates.”

Prior to the suspension of the NBA’s season, the Pelicans were hoping to push for a spot in the postseason, entering the home stretch trailing the eighth-seeded Grizzlies by 3.5 games but facing a favorable schedule. Williamson was disappointed to lose the momentum he and the team were building, but acknowledged to Johnson that the hiatus could be good for his body after he missed the first half of the season with a knee injury.

“It sucks because I had just come back after sitting three, four months without playing basketball or playing in an NBA game,” Williamson said. “As soon as I felt like I was getting going, this happens. It sucks from that perspective. But I think it’s a good thing because it gives me extra time to work on my knee and work on my body overall.”

Here’s more on Zion and the Pelicans:

  • The Pelicans were encouraged this season by the instant chemistry on display between Williamson and Lonzo Ball, one of the centerpieces of last year’s Anthony Davis trade, as Lopez writes in a separate ESPN story. “We think the fit is really, really good,” executive vice president of basketball operations David Griffin said. “(But) I didn’t think it would look quite like this this quickly.” Griffin added that the team believes the two former lottery picks are “just now scratching the surface of what they can do.”
  • Retaining Brandon Ingram this offseason is a “no-brainer,” but the Pelicans may face a tougher long-term decision on Jrue Holiday, John Hollinger says in a conversation with William Guillory of The Athletic. As Hollinger explains, the team will have to decide whether it makes sense to keep Holiday beyond his current contract, well into his 30s, or whether it might be more prudent to shop him before his deal expires in the hopes of gathering assets that would better line up with a Williamson/Ingram timeline.
  • In the second part of their discussion on the Pelicans’ future, Guillory and Hollinger examine what a Holiday trade might look like if the club goes that route, and explore a few other topics, including Alvin Gentry‘s future in New Orleans and the team’s center spot.

How 2020 All-NBA Picks Could Impact Contract Situations

All-NBA selections have become more important than ever in recent years, since teams can agree to increase the overall value of certain maximum-salary contracts based on whether or not a player has earned All-NBA honors in a given season.

Those higher max salaries are also available to players who win MVP or Defensive Player of the Year, but there’s only one of each of those awards per year. There are 15 All-NBA players annually, creating more opportunities for players to become eligible for those more lucrative contracts, informally known as “super-max” deals.

As we explain in our glossary entry on the “Designated Veteran Extension,” a player with between seven and nine years of NBA experience who meets certain contract criteria and hasn’t changed teams since the end of his rookie contract become eligible for a maximum salary worth 35% of the cap – instead of 30% – if he was named to an All-NBA team in the most recent season, or in two of the last three seasons.

Similar incentives are available for players coming off their rookie scale contracts, as noted in our glossary entry on the “Derrick Rose Rule.” Those players can earn max deals worth up to 30% of the cap instead of 25% if they were named to an All-NBA team in the most recent season, or in two of the last three seasons.

The differences between the various levels of maximum salaries can be substantial over the course of a long-term contract. For instance, in 2019/20, a five-year max contract that starts at 25% of the cap and includes 8% annual raises is worth just over $158MM. By comparison, a five-year deal that starts at 35% of the cap with 8% annual raises is worth over $221MM. A five-year contract at the 30% max falls in between, at about $190MM.

We don’t know yet what this year’s All-NBA teams will look like – or even when voting will take place – but as our informal polls last week showed, there are a number of candidates whose future earnings could be affected by whether or not they earn one of those 15 spots.

Let’s take a closer look at some of those players…

Players who have already qualified for super-max contracts:

Antetokounmpo and Gobert didn’t even need to rely on All-NBA spots to qualify for super-max contracts — Giannis’ MVP award last year and Gobert’s back-to-back Defensive Player of the Year awards in 2018 and 2019 secured their eligibility.

Because both players only had six years of experience entering the 2019/20 season, they had to wait one more year to be eligible to actually receive super-max extension offers, which would be worth 35% of the cap instead of 30%.

Antetokounmpo is a lock to receive such an offer from the Bucks, who have publicly said they’ll put it on the table as soon as they can. That was supposed to happen this July, but the NBA’s hiatus has thrown that timeline into flux. Whenever Milwaukee makes its offer, it would be for a five-year extension that would start in 2021/22 and be worth 35% of that season’s cap.

Gobert’s outlook is cloudier. He could also sign a five-year, 35% max-salary extension that would start in 2021/22, but he’s not at the same level of superstardom that Giannis is, so it remains to be seen how aggressive the Jazz will actually be in attempting to lock him up beyond next season.

Players whose already-signed rookie extensions would be impacted by an All-NBA selection:

Siakam and Simmons signed maximum-salary rookie scale extensions with their respective teams last fall. Both contracts will go into effect in 2020/21 and both include Rose Rule language, meaning they’ll be among the players closely monitoring this year’s All-NBA results.

In our series of polls, Siakam earned a spot on the All-NBA Second Team. However, I think there’s a real possibility he could end up on the Third Team. Antetokounmpo, LeBron James, and Kawhi Leonard will likely receive more votes than Siakam. Anthony Davis will place higher than Siakam too if voters consider him a forward. And even if Davis is listed as a center, Jayson Tatum is among those who should give Siakam a strong push for that Second Team forward spot.

While Siakam might be satisfied to end up on any All-NBA team, a spot on the Second Team would be far more satisfying from a financial perspective. His deal calls for a starting salary worth 28% of the cap if he earns All-NBA Second Team honors, but just 25% if he makes the Third Team.

As we outlined in the fall, that difference would have been worth nearly $16MM over four years based on a $116MM cap. The cap is no longer expected to get that high, but even so, missing out on a Second Team spot would cost Siakam millions.

As for Simmons, he wasn’t one of the 15 players voted to an All-NBA team by Hoops Rumors readers, but he looks to me like a viable candidate for the Third Team. If he makes the Third Team, his starting salary would be 28% of next year’s cap, rather than the 25% he’d get if he doesn’t make an All-NBA squad. Those three percentage points would impact Simmons even more than they would Siakam over the life of their contracts, since Simmons’ five-year deal runs for an extra season and the amount of the annual raises are based on the starting salary.

Nuggets guard Jamal Murray also signed a rookie scale extension with Rose Rule language, but isn’t a realistic candidate for an All-NBA nod.

Players whose next contract could be impacted by an All-NBA selection this season:

If Embiid – who was voted onto Hoops Rumors’ All-NBA Third Team – earns an All-NBA spot this season after doing so last year, he’d be in the same position heading into 2020/21 that Antetokounmpo and Gobert were entering 2019 — he’d have qualified for a super-max extension, but wouldn’t yet be eligible to sign one.

Once the 2021/22 league year begins, Embiid would have seven years of NBA experience, with All-NBA nods in at least two of the last three years, making him eligible to sign a four-year super-max extension that would begin in 2023/24, with a starting salary worth 35% of the cap. Even if Embiid doesn’t make an All-NBA team this season, doing so next year would still make him eligible for that same deal.

As for Ingram, he’s a long shot to be named to an All-NBA team, but in the unlikely event that he is, he’d be eligible to sign for a starting salary of up to 30% of the cap on a new free agent contract with the Pelicans. No other team looking to sign him to an offer sheet could exceed 25% of the cap in that scenario.

Other players to start monitoring if they earn All-NBA honors this season:

These players fall into a few separate sub-categories. Jokic and Booker, for instance, are in their fifth seasons and on their second NBA contracts. An All-NBA spot – which is far likelier for Jokic – would be a good start toward earning super-max eligibility, but they’d still have to make another All-NBA team in either 2021 or 2022 to become eligible to sign a Designated Veteran Extension in 2022.

Doncic, an All-NBA lock, and Young, a lesser candidate, are only in their second NBA seasons. If they were to make All-NBA teams this year and next, they’d be eligible to sign rookie scale extensions with starting salaries worth up to 30% of the cap during the 2021 offseason. Those deals would go into effect in 2022/23.

Adebayo, Mitchell, and Tatum are all in their third seasons and will be extension-eligible during the 2020 offseason. Earning an All-NBA spot this year actually wouldn’t do much for their Rose Rule eligibility — they’d still have to do it again in 2021 to qualify, since the criteria calls for an All-NBA berth in either the season before the new contract begins or in two of the three prior seasons.

Still, earning All-NBA honors this year would give those three players additional leverage to negotiate Rose Rule language into their potential rookie scale extensions, which would go into effect in 2021/22.

Strong All-NBA candidates who are notably ineligible for super-max contracts:

Beal was in position to qualify for a super-max extension if he had earned All-NBA honors this season, but the short-term contract extension he signed last October eliminated that possibility. By the time that extension expires, he’ll have 10 years of NBA experience and will be eligible for the 35% max anyway.

Davis has the right amount of NBA experience to gain eligibility and should be an All-NBA lock, but the fact that he changed teams last summer ensures he’ll no longer qualify for a Designated Veteran Contract this offseason — he missed out on the possibility of the super-max as soon as he left the Pelicans.

Various other All-NBA candidates won’t meet the super-max criteria for various reasons. Some, like James Harden, are already on a super-max contract. Others, such as LeBron James, already have 10+ years of experience and can’t qualify for a higher max than the 35% they already get. Recently changing teams (ie. Jimmy Butler) or signing new long-term deals (ie. Khris Middleton) also remove certain players from super-max contention.

Photos courtesy of USA Today Sports Images.

Mike D'Antoni Intriguing Option For Pelicans

The Grizzlies will have to defend their playoff position if the NBA can salvage a significant amount of its regular season, but Jaren Jackson Jr. doesn’t mind as long as he can get back to basketball, writes Jason Munz of The Memphis Commercial Appeal. Memphis held a three-and-a-half-game cushion over the Trail Blazers, Pelicans and Kings for the eighth spot when the hiatus began. The NBA has discussed scenarios that include going straight to the playoffs or fitting in a few more regular-season games.

  • If Houston decides to part with head coach Mike D’Antoni, who is in the final year of his contract, Leroux suggests the Pelicans might be his best destination. Of course, that could only happen if New Orleans decides to fire coach Alvin Gentry. Leroux notes that D’Antoni has connections with Pelicans VP of basketball operations David Griffin from their time together in Phoenix and might bring the best offensive philosophy to help develop Zion Williamson.

Examining Swin Cash's Impact In New Orleans

  • William Guillory of The Athletic examines the role that Pelicans vice president of basketball operations Swin Cash has played in her first year with the franchise and the impact she has had on the team’s young players.

And-Ones: Holiday Brothers, Green, NBA China

Asked in a group interview by Shams Charania of Stadium (video link) about the possibility of playing together in the future, the Holiday brothers expressed interest, even as Pacers guard Aaron Holiday acknowledged that it’s “probably unrealistic” for the time being.

Justin Holiday, who currently plays in Indiana alongside his younger brother on a one-year deal with the Pacers, said that the brothers probably get asked about the idea of teaming up more than they think about it themselves. Pelicans guard Jrue Holiday, meanwhile, said that he thinks the three brothers would “be good together” if they did play on the same team.

Here are more odds and ends from around the basketball world:

  • Top high school recruit Jalen Green, who decided to sign with the G League as part of the league’s revamped developmental program, will be provided with a full-ride college scholarship by the NBAGL if he wants to go to school at a later date, he tells Chris Haynes of Yahoo Sports (Twitter link).I’m still going to be able to go back to college and finish school,” Green said. “So, it’s not really that I’m missing out on college because I can go back and finish whenever I need to.”
  • In a conversation at The Athletic, former NBA team executives Seth Partnow and John Hollinger traded some big-picture, outside-the-box suggestions for how to change the league. Among the ideas proposed: Expanding the league to 32 teams, revamping the draft workout process, and introducing a “suck tax,” which would hit the league’s worst teams with financial penalties.
  • NBA China CEO Derek Chang is stepping down from his position, the league announced on Thursday in a press release. Chang, who assumed the role in June 2018, will officially depart after May 15, as the NBA seeks a new executive for the position. It has presumably been a challenging year for Chang, who had to deal with the rift between the NBA and China as a result of Daryl Morey‘s tweet supporting Hong Kong protestors.

Bulls Receive Permission To Interview Three GM Candidates

Having officially hired Arturas Karnisovas as their new head of basketball operations, the Bulls are now in the market for a new general manager. With Karnisovas leading that search, the club has received permission to interview three candidates so far, sources tell ESPN’s Adrian Wojnarowski (Twitter link).

According to Wojnarowski, Chicago has been granted permission to speak to Sixers senior VP of player personnel Marc Eversley, Clippers assistant GM Mark Hughes, and Magic assistant GM Matt Lloyd.

[RELATED: Bulls Part Ways With GM Gar Forman]

Those three executives were among the candidates initially identified by Wojnarowski for the job last Friday. At the time, Woj also said that Nuggets assistant GM Calvin Booth was a target, so his omission from today’s list is notable. There’s a belief that Denver will attempt to keep Booth after losing Karnisovas — he’s a candidate to be promoted to fill the Nuggets’ newly-opened GM role.

It remains to be seen whether Eversley, Hughes, and Lloyd are the Bulls’ top choices or whether the team’s search will continue to expand to include other candidates.

A source tells Joe Cowley of The Chicago Sun-Times (Twitter link) that Heat assistant GM Shane Battier won’t be interviewing with the Bulls, since Chicago recognizes that Miami values him and won’t be letting him go. Cowley adds (via Twitter) that despite some chatter, Pelicans GM Trajan Langdon won’t be a candidate for the Bulls’ GM position either.

Cowley previously identified Mavericks VP of basketball operations Michael Finley and Thunder executives Troy Weaver and Nazr Mohammed as potential GM targets for Chicago. However, based on a subsequent report, it would be a surprise if Weaver has interest in the job.