Suns Rumors

Suns’ Contract Options For De’Anthony Melton

The Suns acquired Ryan Anderson, a veteran stretch four they like, in their trade with the Rockets last week, but the prize of the deal looks to be rookie guard De’Anthony Melton. Melton was highly regarded by several draft experts and flashed his NBA potential in Las Vegas in July with a strong Summer League performance.

However, Melton remains unsigned, meaning the Suns will have to lock him up to an NBA contract now that they’ve traded for him. And because Melton was a second-round pick, he’s not subject to any sort of rookie scale — Phoenix will have to use cap room or an exception to sign him.

NBA teams have increasingly used either cap space or the mid-level exception to sign these second-round picks, since doing so allows clubs to offer three- or four-year contracts to those players. Nearly all of this year’s second-rounders have signed for at least three years, with only a small handful of exceptions, such as Jevon Carter of the Grizzlies and Alize Johnson of the Pacers.

[RELATED: 2018 NBA Draft Pick Signings]

The Suns’ options for signing Melton are somewhat limited though, since the team has used up its cap room, going over the cap as part of that trade with Houston. Here are Phoenix’s potential avenues for signing Melton:

Minimum salary exception:

The minimum salary exception can be used by any team at virtually any time. However, the exception limits contract offers to two years and – of course – the minimum salary.

Going this route would put Melton on track to reach restricted free agency in 2020, at which point the Suns could match any offer and the Arenas provision would limit other teams’ ability to do a huge offer sheet. This is how the Grizzlies signed Carter.

It wouldn’t be the end of the world to only offer Melton two years, but there’s a chance he’d hit free agency just as he’s starting to hit his stride.

Room exception:

Like the minimum salary exception, the room exception can’t be used for contract offers exceeding two years. The difference is that the Suns could offer more money with the room exception, going all the way up to $4.449MM in year one.

It’s possible that the Suns will go this route, but there’s little incentive to do so. A guaranteed two-year, minimum-salary contract is already a solid outcome for the No. 46 overall pick, so if Phoenix makes a two-year offer, I’d expect the club to stick to the minimum salary exception.

Creating cap space:

Having used cap room this offseason, the Suns have forfeited their right to the full mid-level exception, meaning the only way they can offer Melton more than two years is to do so with cap space. Right now, Phoenix is over the cap, but there are a couple ways the team could sneak back under…

(Note: We’re assuming Isaiah Canaan‘s non-guaranteed deal is a summer contract that doesn’t currently count against the cap. If that’s not the case, he would need to be waived as part of most of the plans outlined below.)

  • Waiving Shaquille Harrison and Richaun Holmes: Both Harrison and Holmes are on non-guaranteed salaries, so the Suns could clear their cap hits from the books by waiving them, creating enough room to sign Melton. The Suns could subsequently go back over the cap by re-signing Harrison and Holmes to new minimum deals, if they want to. This is risky though. Both players would be prime candidates to be claimed off waivers, and the Suns probably won’t want to lose them just to get Melton an extra year or two.
  • Buying out Darrell Arthur or Tyson Chandler: Of the two veteran big men, Arthur looks to be the more likely buyout candidate. If he’s willing to give up the equivalent of his minimum salary, the Suns could reduce his cap hit by nearly $2.4MM, opening about $1.45MM in cap space, more than enough for Melton. Arthur would have to be motivated to get out of Phoenix and would probably need to have a new destination lined up in order to agree to a buyout though.
  • Making a trade that cuts costs: The Suns are said to be in the market for a point guard after sending Brandon Knight to Houston. If they could find a way to make a deal that also reduces their team salary by $2MM or so, it’d be an ideal outcome, allowing them to upgrade their point guard spot while also creating the cap room necessary to offer Melton a longer contract. This would require a willing trade partner and the right sort of salaries though, making it the trickiest of these options.

It may ultimately not matter much whether Melton signs a two- or three-year deal with the Suns. But if the club makes a roster move in the near future that looks designed to trim team salary, Melton’s first NBA contract is probably the motivating factor.

Heat’s Goran Dragic Available In Trade?

The Heat are willing to part with Goran Dragic, and he may be the answer for the Suns in their quest for a point guard, tweets John Gambadoro of Arizona Sports 98.7 in Phoenix.

The Suns traded away presumed starter Brandon Knight this week in a deal that brought Ryan Anderson and De’Anthony Melton from the Rockets. Knight missed all of last season with an ACL tear, leaving Phoenix to try several options at the point with limited success after Eric Bledsoe was traded to Milwaukee. Isaiah Canaan is the most experienced point guard on the roster, while Melton, Shaquille Harrison and Elie Okobo are other options.

Dragic, who started his career with the Suns and later returned for two and a half productive seasons, would provide an instant solution to that problem. The 32-year-old is coming off another stellar year in Miami, posting a 17.3/4.1/4.8 line in 75 games.

With an $18.1MM salary for the upcoming season and a $19.25MM player option for 2019/20, Dragic is the third-highest-paid player on a team that is already above the tax threshold with nearly $127MM in guaranteed salary. While that might explain his availability, the Heat were the sixth seed in the East last year and are hoping for another postseason trip. It’s not clear what Phoenix could offer in return that would be enough for Miami to part with Dragic.

Gambadoro adds that the Suns understand they need to find a point guard, but won’t rush the process (Twitter link). With more than three weeks until training camp and six weeks until the season starts, they plan to take time to explore their options.

Devin Booker: I Feel Like I'm Off To A Good Start

  • Suns guard Devin Booker is off to a strong start in his career and he only sees better things ahead. Speaking to a group of 300 kids at a youth camp, Booker said that he feels the playoffs are within reach, given the team’s acquisitions and young talent, Greg Moore of the AZCentral.com writes. “I want to build my own legacy here in Phoenix,” Booker said. “I feel like I’m off to a pretty good start. Just gotta keep going. Turn these losses into wins and make the playoffs and go from there.”

Rockets Trade Anderson, Melton To Suns For Knight, Chriss

AUGUST 31: The trade is official, the Rockets and Suns announced in separate statements.

AUGUST 30: The Rockets and Suns have agreed to a trade, reports ESPN’s Adrian Wojnarowski (via Twitter). According to Wojnarowski, Phoenix will acquire Ryan Anderson and De’Anthony Melton from Houston in exchange for Brandon Knight and Marquese Chriss.

Anderson has been on the trade block in Houston for over a year, with his expensive long-term contract having stood in the way of a deal until now. While the Rockets will finally shed the two years and $41.69MM remaining on Anderson’s deal, they’ll take back another pricey multiyear contract — Knight is owed $30.28MM over the next two seasons.

Chriss will earn $3.21MM in 2018/19 and has a team option worth just over $4MM for 2019/20. The Rockets will have to make a decision on that option by October 31 of this year. As for Melton, he has yet to sign his first NBA contract, so Houston is technically trading his draft rights to Phoenix. The Suns will have the opportunity to lock him up once the trade is official.

While the in-the-tax Rockets will save some money as a result of the swap, the on-court implications are even more interesting than the financial ones. Anderson’s impressive three-point range allowed Houston to stretch the floor on offense, but his defensive shortcoming made him unplayable in certain matchups — he didn’t see much action in the Western Conference Finals against the Warriors last season, for instance.

In place of Anderson and Melton, the Rockets will be receiving two players with intriguing upside. Knight missed the entire 2017/18 season with an ACL tear, but isn’t far removed from averaging 19.6 PPG and 5.1 APG in 52 games for the Suns in 2015/16. Assuming he’s back to full health, Knight could provide Houston with scoring and play-making off the bench behind Chris Paul and James Harden.

Chriss, meanwhile, has yet to develop into the sort of difference-making big man the Suns hoped for when they drafted him eighth overall in 2016. However, he’s still just 21 years old and has shown flashes of potential during his first two NBA seasons. It’s not clear how he’ll fit into the Rockets’ plans.

The Suns, apparently not ready to bet on Chriss taking significant steps forward, will replace him in the frontcourt with Anderson, a veteran stretch four capable of playing alongside No. 1 pick Deandre Ayton. Phoenix will also add Melton, a 2018 second-round pick who had an impressive Summer League showing for the Rockets, filling the box score with 16.4 PPG, 7.2 RPG, 4.0 APG, and 3.0 SPG in five games in Las Vegas.

The deal will leave the Suns lacking in experience and depth at point guard. Second-rounders Melton and Elie Okobo could see minutes immediately, with Shaquille Harrison and Isaiah Canaan also in the mix.

It will be interesting to see whether Phoenix has another move up its sleeve to fortify that point guard position or if the club simply plans to lean more heavily on Devin Booker as its primary play-maker. In his full report on the trade, Wojnarowski notes that the Suns may envision a larger role for Harrison.

The Rockets will create a modest traded player exception worth about $2.58MM in the deal.

Photo courtesy of USA Today Sports Images.

Suns Have Tried To Trade For Point Guard

With Brandon Knight headed to Houston in a four-player trade, the Suns‘ point guard depth chart looks thinner than ever. According to John Gambadoro of Arizona Sports 98.7 (Twitter link), Phoenix has made an effort to address the position by attempting to trade for a starting point guard, but hasn’t had any luck so far.

Gambadoro names Damian Lillard, Kemba Walker, and Terry Rozier as a few of the point guards the Suns have been targeting, though he doesn’t provide much more details beyond that. Even if the Suns made inquiries on those players, I can’t imagine their conversation with the Trail Blazers for Lillard, for instance, went very far.

The Hornets and Celtics may have been a little more receptive to discussions involving their point guards, who are entering contract years, but it would certainly still take a substantial offer to pry Walker away from Charlotte or to get Rozier out of Boston.

While Gambadoro suggests that the Suns “will have to make a trade,” he notes that the Bucks’ first-round pick owed to Phoenix isn’t particularly valuable as a trade chip, given its protections. The Suns could put some combination of their own first-rounders or young prospects on the table in a trade offer, but it’s not clear how aggressive the team is willing to be in the short term — it’s possible the club will see what it can get out of its current point guards to start the season, perhaps revisiting the trade market closer to the deadline.

With Knight no longer in the mix, the Suns’ point guard group includes Shaquille Harrison and Isaiah Canaan, who are both on non-guaranteed contracts, and rookies De’Anthony Melton and Elie Okobo. Canaan has the most NBA experience of the bunch, but he’s coming off a major leg injury. Melton and Okobo, of course, have yet to make their respective NBA debuts, while Harrison has appeared in just 23 regular season contests.

Ryan Anderson Agreed To Reduce 2019/20 Guarantee

As part of the trade that will send him to the Suns, Ryan Anderson has agreed to reduce the guaranteed portion of his 2019/20 salary, reports ESPN’s Adrian Wojnarowski (via Twitter).

According to Wojnarowski, Anderson has agreed to reduce the guarantee on his $21,264,635 salary for the 2019/20 season to $15.6MM. Woj notes that this is the same amount that Brandon Knight will earn in ’19/20 — Knight, acquired by the Rockets in the trade, has a $15,643,750 cap hit for that season. Anderson’s salary for 2018/19 will remain unchanged.

While the agreement makes the trade a little more appealing for Phoenix, the team could still face a tricky decision next summer. According to Wojnarowski (via Twitter), the Suns will have to decide by July 10, 2019 whether they want to guarantee Anderson’s full $21MM+ salary for the final year of his contract or waive him, eating the guaranteed portion ($15.6MM).

Anderson’s reduced guarantee may also make him a more appealing trade chip for the Suns before that final-year salary becomes fully guaranteed. If Phoenix cuts the veteran forward after this season, the team would have the option of stretching his 2019/20 guarantee across three years.

For more details on the trade between the Rockets and Suns, be sure to check out our full story, along with a few additional notes on the deal.

Rockets/Suns Trade Notes: Grades, Knight, Melton

The Rockets and Suns agreed to an unusual trade late on Thursday night, with Houston poised to send Ryan Anderson and De’Anthony Melton to Phoenix in exchange for Brandon Knight and Marquese Chriss. Both teams are essentially acquiring a potentially useful veteran on an expensive multiyear contract, plus a young prospect with some upside. That kind of straight two-for-two swap without any draft picks or other assets included is pretty rare, particularly between a title contender and a lottery team.

In an Insider-only piece at ESPN.com, Kevin Pelton tries to make sense of the deal for both clubs, and has an easier time doing so for the Rockets, assigning them a grade of B+ for shedding Anderson’s contract and acquiring a pair of intriguing players. Pelton isn’t as bullish on the trade for the Suns, who get a C- grade from the ESPN scribe.

While the Suns may view the deal as an opportunity to acquire a starting power forward and a promising young prospect in exchange for two players who weren’t in their plans, they probably could’ve driven a harder bargain with the in-the-tax Rockets, says Pelton.

Here’s more on the Rockets/Suns trade:

  • If the Rockets were to finalize the trade and waive Knight today, the team could greatly reduce its projected tax bill for 2018/19. However, ESPN’s Zach Lowe (Twitter link) hears that Houston has no plans to waive-and-stretch Knight.
  • Lowe’s other observations on the deal: The Suns paid a high cost to acquire Melton, but people around the NBA are “super-high” on him (Twitter link). The Rockets, who haven’t used their first-round pick for a few years, did well to avoid including their 2019 first-rounder in an Anderson deal, says Lowe (Twitter link). That pick could now be available for another trade at the deadline if necessary.
  • As ESPN’s Bobby Marks notes (via Twitter), it will be interesting to see what kind of contract Melton signs with the Suns, who are now over the cap. Without cap room, they’re limited to a two-year offer. While Phoenix could potentially open up cap space by buying out Darrell Arthur, he’s unlikely to give up much salary without lining up another landing spot, per Marks. Waiving and stretching Arthur today would also work, but adding an annual $2.5MM charge to their cap for two additional years may not be worth gaining the ability to give Melton an extra year or two.
  • In the view of Greg Moore of The Arizona Republic (Twitter link), the Suns made the trade with Igor Kokoskov‘s up-tempo, three-pointer-heavy offense in mind. Kokoskov’s system calls for a stretch four like Anderson, and Melton’s play-making ability figures to be a good fit too.

Rhodes: Suns A Potential Surprise Team

  • Shane Rhodes of Basketball Insiders examines some potential surprise teams for the 2018/19 season, suggesting that the Bulls, Mavericks, Pistons, Clippers, and Suns are candidates to exceed expectations.

Kyle Singler Among This Week’s Stretch Candidates

As we detailed on Friday, NBA teams have until August 31 to waive players and stretch their 2018/19 cap hits over multiple years. If a player is released after August 31, his current cap hit will remain unchanged, and only the subsequent years of his contract can be stretched.

With just a few more days for teams to stretch 2018/19 salaries, Thunder swingman Kyle Singler looks like the top candidate to be waived this week, as ESPN’s Bobby Marks notes (via Twitter).

Three factors are working against Singler and making him a prime release candidate. For one, he fell out of Oklahoma City’s rotation entirely in 2017/18, appearing in just 12 games and playing only 59 total minutes for the season. Secondly, he’s essentially on an expiring contract, since his $5.3MM+ salary for 2019/20 is non-guaranteed. And finally, the Thunder currently have the largest projected tax bill in the NBA, meaning waiving Singler could create substantial immediate savings for the franchise.

Currently, the Thunder have a total team salary of $149.58MM, with a projected tax bill of $93.19MM. If they were to waive Singler, who has a $4,996,000 salary, they could stretch his cap hit across five seasons due to his non-guaranteed second year, reducing this season’s cap charge to just $999,200. That would bring the Thunder’s team salary down to $145.58MM and their projected tax bill to about $73.79MM, creating $23MM+ in total savings.

Outside of Singler, there aren’t many obvious stretch candidates around the NBA. Other projected taxpayers could consider similar moves to save some money, but many of those clubs don’t have players on expiring contracts that they’d want to release. The Wizards, with Jason Smith and his expiring $5.45MM salary, may be one team to watch.

Another motive for a team to stretch a player’s 2018/19 salary would be to open up more cap room. However, there aren’t many clubs that can create meaningful cap space at this point in the offseason, and there’s little incentive to do so anyway, given the lack of players worth spending it on. The Kings (Iman Shumpert or others) and Suns (Darrell Arthur or Tyson Chandler) could open up a chunk of cap room by stretching well-paid veterans, but I’d be surprised if they cut into their projected space for 2019 and/or 2020 by doing so.

Teams Have One More Week To Stretch 2018/19 Salaries

While NBA teams can use the stretch provision all season long, August 31 represents a key deadline related to the rule. Players who are waived by August 31 can have their current-year salaries stretched, immediately reducing their 2018/19 cap charge. If a player is released after August 31, his current cap hit will remain unchanged, and only the subsequent years of his contract will be stretched.

As we detail in our glossary entry on the subject, the stretch provision is a rule ensuring that any player waived with at least $250K in guaranteed salary remaining on his contract will have the payment schedule of that money spread across multiple years. Teams also have the option of spreading his cap charges across the same number of years.

That schedule is determined as follows:

  • If a player is waived between July 1 and August 31, his remaining salary is paid over twice the number of years remaining on his contract, plus one.
  • If a player is waived between September 1 and June 30, his current-year salary is paid on its normal schedule, with any subsequent years spread over twice the number of remaining years, plus one.
    • Note: If a player in the final year of his contract is waived between September 1 and June 30, the stretch provision does not apply.

For instance, as the Knicks mull whether or not to waive Joakim Noah, here are the options they’ll consider:

Year Leave contract as is
Stretch by 8/31/18
Stretch after 8/31/18
2018/19 $18,530,000 $7,565,000 $18,530,000
2019/20 $19,295,000 $7,565,000 $6,431,666
2020/21 $7,565,000 $6,431,667
2021/22 $7,565,000 $6,431,667
2022/23 $7,565,000

In Noah’s case, there’s essentially no incentive for the Knicks to waive and stretch him by August 31. The team – well over the cap for 2018/19 – wouldn’t be able to take advantage of the extra cap flexibility this season. As such, it makes more sense to keep him on the roster for now and to start considering the possibility of his release sometime after September 1.

The same logic that applies to Noah and the Knicks applies to most teams around the NBA. Outside of perhaps Rodney Hood, there just aren’t many free agents left who are worth using cap room on, so teams aren’t clamoring to create additional space for the 2018/19 season. In other words, we shouldn’t expect to see many players on expensive contracts hit waivers in the next week.

There are a couple of potential exceptions worth watching. The Kings, for instance, have about $11MM in cap room and are currently carrying 16 players on guaranteed contracts. If they decide they want to waive a veteran like Iman Shumpert to get down to 15 players for the regular season, it might make some sense to stretch him by August 31. That would reduce his $11MM+ cap charge to just $3.67MM for 2018/19, opening up another $7MM+ in cap space for Sacramento.

Again though, unless the Kings have a use in mind for that cap room, they’ll likely be reluctant to add extra salary to their cap for two subsequent seasons by stretching Shumpert’s 2018/19 salary. The same can be said of the Suns, who are currently hovering just below the $101.869MM salary cap in terms of total guaranteed salary.

Phoenix is reportedly expected to buy out Darrell Arthur, and if the team does so within the next week, it could trim his $7.46MM cap hit to about $2.49MM, opening up additional cap room. Like the Kings, the Suns would have to have a clear purpose in mind for that space in order to justify adding extra money to their books for two future seasons.