Thunder Rumors

NBA Sets Salary Cap For 2018/19

The NBA has set the salary cap for the 2018/19 league year, according to Shams Charania of Yahoo Sports, who reports (via Twitter) that the cap will be $101,869,000. The luxury tax threshold will be $123,733,000, Charania adds. Meanwhile, the minimum salary floor will be $91,682,000, according to the NBA.

The finalized cap figure comes in just slightly higher than what we expected. For virtually the entire 2017/18 league year, the NBA had projected that the cap for next season would be $101MM, with a luxury tax line of $123MM. The official figures are slightly higher than that, which is good news for teams looking to maximize their cap room, as well as clubs headed for tax territory.

As we detailed earlier this week, many other cap figures, including minimum and maximum salaries and several exceptions, are tied to the percentage of the salary cap increase. Here are some in-depth details on those numbers:

Here are a few more key cap-related figures:

  • Estimated average salary for 2018/19: $8,838,000 (Twitter link via Larry Coon)
  • Maximum starting salary for certain veteran extensions: $10,605,600 (Twitter link via Jeff Siegel)
  • Maximum cash a team can send, receive in trades in 2018/19: $5,243,000 (Twitter link via Coon)
  • Tax apron: $129,817,000 (Twitter link via Coon)

Meanwhile, the NBA has also issued updated cap projections for the next two seasons, per Eric Pincus of Basketball Insiders (Twitter link). Those projections are as follows:

  • 2019/20: $109MM cap, $132MM tax line
  • 2020/21: $116MM cap, $141MM tax line

According to cap expert Larry Coon (Twitter link), the Cavaliers ($50.7MM), Warriors ($32.3MM), Thunder ($25.4MM), and Wizards ($7MM) finished the 2017/18 season as taxpayers, while the Bulls ($3.4MM) and Mavericks ($3.3MM) were charged for finishing below the salary floor.

Free Agents Reed, Withey Work Out

  • The Thunder recently held a free-agent workout that included centers Willie Reed and Jeff Withey, according to Alex Kennedy of Hoops Hype. Reed played 39 games with the Clippers before he was thrown into the Blake Griffin blockbuster with the Pistons. He was traded to the Bulls shortly thereafter and then waived. Withey played nine games with the Mavericks last season. The cap-strapped Thunder will be seeking low-cost alternatives to fill out their bench.

Thunder Face Competition For Jerami Grant

The Bulls, Pacers, and Magic are among the teams expected to push the Thunder for free agent forward Jerami Grant, a source tells Jordan Schultz of Yahoo Sports (Twitter link). Grant emerged as a key bench piece for Oklahoma City in 2017/18, averaging 8.4 PPG and 3.9 RPG with a .535 FG%. However, the Thunder may be hard-pressed to retain him if Paul George returns, since the club would be well over the tax line, making a competitive offer for Grant worth exponentially more expensive due to potential tax penalties.

  • In an interesting piece for ESPN.com, Royce Young takes an in-depth look at the Thunder‘s year-long recruitment of Paul George, explaining how the club has put itself in position to be a serious suitor for the star forward this offseason.

Lowe’s Latest: James, Thunder, RFAs

The Lakers may not necessarily need a star in place to lure LeBron James, Zach Lowe of ESPN writes in a massive round-up of free agency notes. If James were to sign in Los Angeles alongside the team’s existing young stars and plethora of cap space they’d immediately become one of the league’s most appealing destinations for the next 12 months.

The comment comes in response to the notion that the Lakers are growing desperate to acquire Kawhi Leonard from the Spurs prior to James’ opt-in deadline tomorrow at 10:59pm CST. As things stand, both the Celtics and Sixers appear poised to offer better packages than what Lowe speculates L.A. might.

The King’s decision will have a ripple effect on the rest of the league, especially the Eastern Conference. If the Raptors, for example, were to watch James head to the West, it would make keeping their current core in place more appealing considering that their path to the Finals would be hypothetically easier.

Here’s a taste of the rest of Lowe’s findings:

  • If the Thunder can convince Paul George to return to Oklahoma City, it will be a monumental victory for general manager Sam Presti. If he leaves, the club would be forced to at least think about blowing the current squad up and trading Russell Westbrook.
  • Only six teams have notable amounts of potential cap space and half of those – the Hawks, Bulls and Kings – are telling teams that they’re interested in using that space to absorb bad contracts and pick up assets.
  • It’s unclear that there will be much of a market for Derrick Favors beyond, potentially the Mavs. It may make more sense for the big man to stay with the Jazz after finally starting to click alongside Rudy Gobert in Quin Snyder‘s offense last season.
  • The two best candidates to sign a qualifying offer this summer and approach next summer as unrestricted free agents are Celtics guard Marcus Smart and Trail Blazers center Jusuf Nurkic. Lowe writes that Nurkic turned down a “rich” four-year extension last fall but might have a hard time finding a team willing to offer more than the mid-level exception this summer.
  • It stands to reason that Aaron Gordon, Zach LaVine and Jabari Parker will yield significant offers from the Magic, Bulls and Bucks  respectively but none of those teams have reason to offer a max contract right away.
  • The Pacers could make life harder for the Magic by putting together an offer in the $20MM range for Gordon. Lowe writes that there has been “mild discontent for years” about Gordon’s role in Orlando’s offense.
  • The Nuggets tried “feverishly” to trade for a second first-round pick last Thursday in the hopes of nabbing Zhaire Smith. Denver’s 2019 first-rounder was on the table in those talks.

For more free agency notes, including some potential contract extension candidates and the reasoning behind Nikola Jokic not getting a player option in the fifth year of his new deal with the Nuggets, check out the full feature at ESPN.

Possible Tax Scenarios For Thunder

Paul George Declining Player Option

Paul George has informed the Thunder that he’ll turn down his player option for 2018/19 and will become an unrestricted free agent on July 1, reports ESPN’s Adrian Wojnarowski.

The move had long been anticipated. While it might make sense in some cases for veterans to opt into the final year of their contracts, George’s $20,703,384 option salary is far below his projected $30MM+ maximum salary, so picking up the option would have made little financial sense.

Additionally, the Lakers and Thunder are widely considered the frontrunners to land George. Los Angeles will have the cap space to sign George outright, while Oklahoma City has his Bird rights and can go over the cap to sign him. As such, exercising the option to facilitate a trade was always a long shot for the star forward.

While the Lakers and Thunder are the most serious contenders for George, the Rockets and Sixers are interested in pursuing him too, sources tell Wojnarowski. The Cavaliers were also previously said to be interested in George. However, his option decision will make it tricky for over-the-cap teams like Houston and Cleveland to land him, since those teams don’t have easy paths to cap room, and a sign-and-trade deal would only be permitted if they’re willing to remain below the tax apron ($6MM above the tax line) all season.

George is eligible to sign a five-year contract worth a projected $175MM+ with the Thunder this offseason, or a four-year deal worth approximately $130MM with a rival suitor like the Lakers. The five-time All-Star may ultimately sign a one-plus-one contract (a two-year deal with a player option) though, since doing so would allow him to reach free agency again in 2019, when the cap is projected to increase to $108MM.

Photo courtesy of USA Today Sports Images.

Lakers, Thunder Frontrunners For Paul George

  • Kyler’s latest article also includes some items on DeMarcus Cousins, Chris Paul, and Paul George, along with a couple other top free agents. According to Kyler, there’s a sense that Cousins may get a contract like Joel Embiid did last year — Embiid’s extension included guarantee triggers and exit language in the event that he has recurring injury issues. Meanwhile, Kyler also confirms that the Lakers and Thunder are the strong frontrunners in the George sweepstakes.

Adrian Griffin Reaches Agreement To Join Raptors’ Staff

Thunder assistant coach Adrian Griffin has agreed to join the Raptors’ staff as the lead assistant to new head coach Nick Nurse, Shams Charania of Yahoo Sports reports.

Griffin served as an assistant to Billy Donovan the past two seasons. Griffin, who had a nine-year playing career, has also coached with the Bucks, Bulls and Magic.

Griffin interviewed for head coaching openings with the Rockets and Magic prior to joining Donovan’s staff.

Thunder Notes: George, Grant, Other FAs

  • Erik Horne of The Oklahoman assesses the market for Paul George, suggesting that the Lakers and Sixers look like the biggest threats to pry the All-Star forward away from the Thunder.
  • Although George is the Thunder‘s most important free agent, the club will have decisions to make this offseason on several other contributors, says Brett Dawson of The Oklahoman. As Dawson details, Jerami Grant figures to be Oklahoma City’s most sought-after free agent besides George, so it will be a challenge for the Thunder to bring him back.

Notable Player Option Decisions Still To Come

The lack of salary cap space around the NBA this offseason has resulted in a substantial uptick in veterans exercising player options. In 2016, just three players picked up those options, while five followed suit in 2017. So far in 2018, 16 players have elected to opt into their contracts for 2018/19, and Spurs swingman Danny Green is expected to increase that number to 17.

Player option decisions are due by June 29, this Friday, and there are still several noteworthy decisions to come. Here’s a quick breakdown of the ones we’re still waiting on:

  • LeBron James, Cavaliers ($35,607,968): While it seems like a lock that James would opt out to reach free agency, exercising his option makes more sense if he wants to join certain over-the-cap teams, as we explained here. I still expect LeBron to opt out, but if he picks up this option, he’ll likely be doing so with a specific trade destination in mind.
  • DeAndre Jordan, Clippers ($24,119,025): Jordan is unlikely to get a $24MM starting salary in free agency, but if he could get a three- or four-year contract with an average annual value of $15-20MM, that might be preferable to opting in. His decision will have a huge impact on the Clippers’ offseason, since the club would be well over the cap with Jordan’s salary on its books.
  • Paul George, Thunder ($20,703,384): Of all the options on this list, George’s looks like the easiest call. Even if he wants to stay with the Thunder, he’s more likely to opt out and sign a new deal that starts at his max, $30.3MM. This option is a virtual lock to be declined.
  • Enes Kanter, Knicks ($18,622,514): Picking up the option is probably the right move for Kanter, who wouldn’t get an $18MM+ salary on the open market, but he has talked about opting out. As in Jordan’s case, turning down the option could mean accepting a lesser salary in 2018/19 in exchange for greater long-term security.
  • Thaddeus Young, Pacers ($13,764,045): Young is said to be strongly considering declining his option, and he’s another player who could seek a longer-term deal that increases his overall payday. For example, a new three-year, $30MM contract might appeal more to Young than finishing out a one-year, $13MM+ deal.
  • Garrett Temple, Kings ($8,000,000): Temple is coming off a solid year in Sacramento, but he’s 32 years old and isn’t a starting point guard, so opting in for an $8MM guarantee appears to be the right call.
  • Joffrey Lauvergne, Spurs ($1,656,092): Lauvergne is reportedly considering turning down his option. If he does so, there’s little downside — he’d simply have to find another minimum salary offer in order to match his option salary. The big man may not want to risk following in the footsteps of former Spur David Lee, who declined a minimum-salary player option last summer and then didn’t sign another NBA contract, but at age 26, Lauvergne should a safe bet to receive an offer.

Photo courtesy of USA Today Sports Images.