Dwight Howard

Magic GM Defends Dwight Howard Trade

We've already posted some of the reactions to the Dwight Howard trade from earlier today as well as last night once deal looked like it was official.  The overwhelming consensus is that the trade is a coup for the Lakers, very helpful to the Nuggets and 76ers, and an absolute disaster for the Magic.  So far, it looks like our readers agree, as only a small percentage of you think that the Magic got the best end of the deal.

Orlando general manager Rob Hennigan, presumably under fire from all angles today, spoke with the press today and offered his defense of the move, as told by Tim Bontemps of the New York Post. Hennigan worked with two very successful organizations in the Spurs and Thunder, which was part of the reason he was brought in to run the show in Orlando.  Most of the quotes are expected, but here are some interesting tidbits:

"Our goals remained consistent throughout.  We wanted to put ourselves in a position to create some long-term sustainability over time, and doing that with a mixture of young players, young veterans, draft players and some other assets to use to build going forward."

To the second-guessers and the laundry lists of rumored offers that seem like better packages for Howard than the one the Magic came away with, Hennigan said:

"At the end of the day you look at what's available in theory and what's available in reality.  Sometimes those two things aren't always the same.  We felt with all of the options we did explore, this was the best one for us."

One of those packages was the one offereed by the Rockets, in which Houston was rumored to be willing to deal draft picks and/or young players as well as eat some of Orlando's bad contracts.  According to John Denton of OrlandoMagic.com (via Twitter), Hennigan essentially admitted that the offer sheets to Jeremy Lin and Omer Asik "limited some of the avenues" to a completed deal that would have sent Howard to Houston.

Again from Denton, Hennigan offered a rather ominous quote when asked why the Magic weren't angling to receive Andrew Bynum in the deal:

"One thing we always do is our research.  We're very comfortable with the research we've done."

Hawks Notes: Roster Moves, Dwight Howard

Michael Cunningham and Jeff Schultz of the Atlanta Journal Constitution each have new articles up today, detailing the Hawks' past, present, or future plans. There are plenty of interesting tidbits in each piece, so let's round up a few of the highlights….

  • Hawks GM Danny Ferry would like to add another wing to the roster, if possible, as he tells Cunningham: "I would say probably a wing that can compete defensively at a high level would be a good thing to be able to add at some point."
  • Ferry, however, cautions that any free agent signing may have to accept a non-guaranteed contract to allow the Hawks to maintain roster flexibility. "Being locked into 15 [guaranteed contracts] is generally not ideal," Ferry said.
  • As of September 11th, the Hawks are allowed to trade Devin Harris and the players involved in the Joe Johnson haul in deals that aggregate their salaries. Cunningham says he wouldn't be surprised to see Ferry make another trade to "reconfigure Atlanta's unbalanced roster."
  • Ferry kicked the tires on a major trade possibility, engaging the Magic in trade talks involving Dwight Howard, according to Schultz. But the GM says Orlando was apprehensive about dealing Howard to a division rival.

Four Teams Finalize Dwight Howard Blockbuster

1:34pm: Ken Berger of CBS Sports has tweeted a number of the details on the traded draft picks in the deal. We've updated the list below to reflect the protection on those picks.

12:19pm: The Magic, Lakers, Nuggets, and 76ers have completed their trade call with the league office, making Dwight Howard a Los Angeles Laker, according to Adrian Wojnarowski of Yahoo! Sports (via Twitter). The Magic officially announced the transaction in a press release this afternoon.

The details of the massive four-team swap can be found in our post from yesterday that tracked updates as they came in. But here's a quick recap of how the deal looks from each team's perspective based on what's been reported so far, with players' 2012/13 salaries in parentheses. If anything changes when the teams make their official announcements, we'll update this post to reflect that.

Orlando Magic
Acquire: Arron Afflalo ($7,750,000), Al Harrington ($6,687,400), Josh McRoberts ($3,135,000), Maurice Harkless ($1,731,960), Nikola Vucevic ($1,719,480), Christian Eyenga ($1,174,080), protected 2014 first-round pick from Nuggets1, protected 2015 first-round pick from Sixers2, protected 2017 first-round pick from Lakers3, Warriors' 2013 second-round pick from Nuggets, conditional 2015 second-round pick from Lakers4
Trade: Dwight Howard ($19,536,360), Jason Richardson ($5,799,625), Chris Duhon ($3,250,000), Earl Clark ($1,240,000)

The Magic also create a trade exception worth about $17.8MM in the deal, as outlined here.

Denver Nuggets
Acquire: Andre Iguodala ($14,968,250)
Trade: Arron Afflalo ($7,750,000), Al Harrington ($6,687,400), protected 2014 first-round pick from Nuggets1, Warriors' 2013 second-round pick

Philadelphia 76ers
Acquire: Andrew Bynum ($16,889,000), Jason Richardson ($5,799,625)
Trade: Andre Iguodala ($14,968,250), Maurice Harkless ($1,731,960), Nikola Vucevic ($1,719,480), protected 2015 first-round pick2

Los Angeles Lakers
Acquire: Dwight Howard ($19,536,360), Chris Duhon ($3,250,000), Earl Clark ($1,240,000)
Trade: Andrew Bynum ($16,889,000), Josh McRoberts ($3,135,000), Christian Eyenga ($1,174,080), protected 2017 first-round pick3, conditional 2015 second-round pick4

1 The lesser of the Nuggets' and Knicks' first-rounders.
2 Top-14 protected in 2015, 2016, top-11 in 2017, top-8 in 2018; if the pick still hasn't been conveyed after four years, the Magic will receive 2018 and 2019 second-rounders instead of a first-rounder. The pick cannot be conveyed until the Sixers meet their draft pick obligations to the Heat, which could delay the Magic from getting a first-round pick until 2017.
3 Top-5 protected in 2017 and 2018, unprotected in 2019. The pick cannot be conveyed until the Lakers meet their draft pick obligations to the Suns, which would prevent the Magic from getting a first-round pick if the Lakers fail to make the playoffs the next three years. If that takes place, the Magic will receive 2017 and 2018 second-rounders instead.
4 Top-40 protected; if the pick isn't conveyed in 2015, the Magic will not receive it.

Bulls Stayed Involved In Howard Trade Talks

While it appears the Magic are dotting the I's and crossing the T's on a blockbuster deal that will send Dwight Howard to the Lakers, there was no shortage of other potential destinations for the star center. According to Nick Friedell of ESPNChicago.com, the Bulls were one darkhorse suitor that stayed active in trade discussions with the Magic up until the end.

Chicago engaged former Magic GM Otis Smith in talks involving Howard, and continued to have dialogue with new GM Rob Hennigan after Orlando made its front office changes, says Friedell. Derrick Rose was, of course, off-limits in trade talks, so any Bulls package would likely have involved some combination of Joakim Noah, Luol Deng, Taj Gibson, Nikola Mirotic, draft picks, and perhaps even Omer Asik, before he signed with the Rockets.

Based on the trade the Magic have agreed to, Chicago's offer, which would have included at least one expensive, long-term deal in Noah or Deng, may not have appealed to the Magic. It's also unclear whether the Bulls would have pulled the trigger on any deal without assurances that Howard would sign long-term, but it sounds as if they were at least thinking about it.

Howard To Lakers, Bynum To 76ers In 4-Team Deal

11:18am: SI.com's Sam Amick tweets that McRoberts will be heading to Orlando in the deal, rather than to Denver. Wherever McRoberts ends up, it seems the Lakers will be shipping him out to make the salary figures work.

10:55am: Coon corrects himself (via Twitter), suggesting that Bynum's and Eyenga's salaries aren't quite enough to absorb Howard's and Duhon's. Here's how it looks from the Lakers' perspective, by my calculations:

  • The team's $1,422,207 traded player exception acquired via Walton can absorb Clark's $1.24MM option.
  • Bynum's $16,889,000 salary and Eyenga's $1,174,080 total $18,063,080. The Lakers can take back 125% (plus $100K) of that amount: $22,678,850.
  • Howard's and Duhon's salaries ($19,536,360 and $3,250,000, respectively) total $22,786,360, just barely too much for the Lakers to absorb. So in order to take on both players, Los Angeles will have to either include another player (perhaps McRoberts or Ebanks) or figure out another way to organize the deal. Assuming, of course, that all the public salary figures for these players are accurate.

We should hear shortly how the Lakers ultimately work things out, since the conference call with the league to finalize the trade is expected to begin momentarily, tweets Ken Berger.

10:26am: Cap expert Larry Coon clarifies (via Twitter) that the trade exception the Lakers acquired when they dealt Luke Walton to the Cavaliers is big enough to absorb Clark's salary, so Los Angeles wouldn't necessarily have to send out any more players in addition to Bynum and Eyenga.

10:08am: The pick heading to the Magic from the Sixers will be lottery-protected for the first two years, top-11 protected in year three, and top-eight protected in year four, tweets Ken Berger of CBSSports.com. Since the Sixers have already dealt their 2013 first-rounder (lottery protected) to Miami, presumably the one going to Orlando would be for 2015, as Sam Amick of SI.com notes. If the Magic don't get a first-rounder from Philadelphia after four years, they'd get two second-round picks instead, tweets Berger.

9:32am: According to Steve Kyler of HoopsWorld, Josh McRoberts may be headed to Denver in the four-way deal. This makes sense, since by my calculations, the Lakers would be unable to take back Howard, Duhon, and Clark without sending out another player in addition to Bynum and Eyenga.

8:49am: The first-rounder heading from the Lakers to Orlando will be the team's 2017 pick, while the first-rounder from Denver will be the lower of the club's two 2014 first-rounders, tweets TNT's David Aldridge. It's still not clear which first-round pick will be coming from the Sixers, but it figures to be 2015's, since their lottery-protected 2013 first-rounder is ticketed for Miami.

8:26am: Duhon is definitely involved in the four-way deal, as he tells Joshua Robbins of the Orlando Sentinel (Twitter link).

FRIDAY, 7:33am: According to Spears, one of the second-rounders heading to the Magic in the trade will be the Warriors' 2013 second-round pick, from the Nuggets (Twitter link). Orlando will receive one more second-rounder, to bring their total haul to five future draft picks, tweets Kennedy.

Additionally, multiple reports indicate that the conference call with the league to confirm the blockbuster deal will happen no later than about noon eastern today.

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More Reactions To The 4-Way Howard Blockbuster

On a day when Team USA's semifinal game against Argentina was expected to dominate the headlines, the Olympics have taken a back seat to an epic four-way trade that will see three 2012 All-Stars changing hands. In a deal that's expected to be officially agreed upon later today, the Lakers will acquire Dwight Howard, the Sixers will land Andrew Bynum, and the Nuggets will get Andre Iguodala, while the Magic acquire a package of players and picks. We already examined some of the reactions to the agreement last night, but the links continue to pour in, so let's round up a few more….

  • According to Wojnarowski, the Rockets' offer for Howard included recent first-rounders, future lottery and unprotected first-round picks, and the opportunity to move bad contracts and gain cap space (Twitter links). I've maintained for a while that Houston's looked like Orlando's most logical trade partner, and none of the details about the Rockets' offer make me think otherwise.
  • In response to John Hollinger's tweet linked below, Brian Schmitz stresses, via Twitter, that the Howard deal ran through Hennigan first, before progressing to Martins and the DeVos family.

Earlier updates:

  • ESPN.com's John Hollinger tweets that it was likely Magic CEO Alex Martins, rather than GM Rob Hennigan, that ran the Howard deal.
  • In an Insider piece for ESPN.com, Hollinger says he likes the four-way trade for three teams, but really can't understand it from the Magic's perspective.
  • Sam Amick of SI.com argues that it's unfair to criticize the Magic for the deal yet, since there's a major "wait-and-see" aspect to their haul.
  • With everyone wondering whether the Magic could have acquired more from the Nets a month ago, Adrian Wojnarowski of Yahoo! Sports tweets Brooklyn's final offer for Howard: Brook Lopez, Kris Humphries (on a one-year, $9.6MM guarantee), MarShon Brooks, and four unprotected first-round picks for Howard, Jason Richardson, Chris Duhon, and Earl Clark.
  • Bynum had been open to re-signing with the Lakers, but was also very receptive to signing with a team where he could earn more touches, according to Sam Amico of FOX Sports Ohio. Acquiring Bynum and his Bird Rights makes the Sixers the overwhelming favorites to retain him long-term, as I suggested earlier this week.
  • The Howard trade is the latest bitter pill for the Mavericks' front office to swallow, writes Jeff Caplan of ESPNDallas.com.
  • National NBA fans may consider the Dwightmare to be over, but Brian Schmitz of the Orlando Sentinel says Howard's departure could haunt Magic fans for years.

Fallout From Dwight Howard/Andrew Bynum Trade

The news of the night is the news of the year in the NBA: An agreement has been reached on a trade that sends Dwight Howard to the Lakers. Andrew Bynum is also involved, as he heads to the Sixers. Of course, both players are eligible to become unrestricted free agents next summer, so the rumor mill is unlikely to stop for either of them anytime soon. Nonetheless, it still represents a blockbuster and a major turning point for several teams in 2012/13 and beyond. Here's what writers around the league are saying: 

  • If the Lakers can't re-sign Howard next summer, the Mavs "will be there waiting for him," a source tells Marc Stein of ESPN.com. Howard has expressed fondness for the Mavs in the past. In the same report, Kobe Bryant is described as being "ecstatic" about the deal. 
  • Brian Kamenetzky of ESPNLosAngeles.com says Howard represents an upgrade over Bynum because of his defense, his athleticism, and his ability to fit better with Steve Nash
  • A few league executives believe there has to be something more in the deal for the Magic, tweets Vincent Goodwill of the Detroit News. Jarrod Rudolph of RealGM.com wonders why the Magic waited so long to make a deal when the offers never improved (Sulia link). Ira Winderman of the South Florida Sun-Sentinel isn't sure any notable free agents would be interested in signing with the depleted Magic next summer (Sulia link).
  • Bob Cooney of the Philadelphia Daily News says the Sixers now have the dominant big man team president Rod Thorn and coach Doug Collins have coveted. Cooney took to Twitter to say the trade is a coup for the Sixers, who get at least one season from Bynum and cap space if he leaves.
  • Benjamin Hochman of the Denver Post says the Nuggets will lose some offense, but Andre Iguodala will allow them to make major strides on defense, where they've struggled in recent seasons.
  • Tim Bontemps and Fred Kerber of the New York Post look at the deal from the perspective of the Nets, who were once considered frontrunners for Howard. Stefan Bondy of the New York Daily News says, via Twitter, that the deal demonstrates that the Magic were never too high on Brook Lopez.
  • The Cavs were asked to give up a lot more for Bynum when they were a part of trade talks, says Sam Amico of Fox Sports Ohio (Sulia link).

Magic Close To Four-Team Howard Blockbuster

9:12pm: Stein says there are still unreported names in the deal, but the Magic are getting Arron Afflalo, Al Harrington, Nikola Vucevic, Maurice Harkless and a future first-round pick from each of the other three teams in the deal. The Sixers will get Andrew Bynum and Jason Richardson. The Nuggets will get Andre Iguodala, and the Lakers will land Dwight Howard. Pau Gasol is not in the deal, Stein hears (All Twitter links). 

8:59pm: A conference call has been scheduled for Friday morning with the league office to process the deal, Marc Stein of ESPN.com reports (Twitter link).

7:34pm: Berger says the most likely scenario involves the Magic getting neither Andrew Bynum nor Pau Gasol, adding credence to earlier reports that Gasol won't be a part of the deal (Twitter link).

7:29pm: Various Twitter reports indicate differing levels of confidence that the deal will get done. Chris Broussard of ESPN.com says the deal will happen "barring any last minute snag." ESPN.com colleague Ric Bucher believes the Magic and Lakers are pushing hard to complete the trade, but adds there are still many question marks. Josh Robbins of the Orlando Sentinel says the talks are serious, but cautions there are a lot of moving parts. Ken Berger of CBSSports.com reports "guarded optimism" about the deal.

7:11pm: The deal has "huge legs," a source tells Dei Lynam of CSNPhilly.com, and the teams have made progress toward its completion today, Lynam tweets

6:55pm: A source close to Gasol says he's not in the trade, Ric Bucher of ESPN.com tweets

6:39pm: Chris Broussard of ESPN.com hears the deal is "very close" and could take place as early as Friday morning. Broussard says that Ramona Shelburne of ESPNLosAngeles also hears Gasol may not be a part of the trade. Jarrod Rudolph of RealGM.com tweets that there is greater confidence a Howard deal will get done than in the past. The Sixers are willing to take on Bynum even without assurances he'll re-sign next summer, according to the ESPN report.

6:23pm: Eric Pincus of HoopsWorld, in an updated version of an earlier story, says one of the variants of the deal doesn't include Gasol, and it's unclear whether it includes Al Harrington. Devin Ebanks, on a sign-and-trade, and Josh McRoberts may also be a part of the deal.

5:52pm: A source close to the talks tells HoopsWorld's Alex Kennedy that reports so far have the teams right, but the deal would likely include different players if it gets done, as the Magic, Lakers, Nuggets and Sixers discuss multiple scenarios. No deal is imminent or near completion, the source says (Twitter links). 

5:41pm: Sixers center Nikola Vucevic would also go to the Magic as part of the deal, tweets Marc J. Spears of Yahoo! Sports. 

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Pincus On Howard, Bynum, Gasol, Green, Clippers

Sources tell Eric Pincus of HoopsWorld that the Lakers would be "far more comfortable" building around Dwight Howard rather than Andrew Bynum. If today's rumored four-team trade comes to fruition, the Lakers would get their wish. Pincus has a few more items of note in his latest piece, and we'll hit the highlights here:

  • If the Rockets can't land Howard or Bynum, they might have interest in acquiring Pau Gasol if he's dealt to the Magic, Pincus says. Gasol would net the Magic fewer assets than if they dealt Howard to the Rockets, but Pincus believes it would still be a solid haul.
  • The Lakers have their $3.09MM taxpayer's mini mid-level exception available, but are reluctant to tie it up with a trade for Howard still in play.
  • Pincus has the details on Willie Green's deal with the Clippers, who acquired the veteran shooting guard in a sign-and-trade last month. It's a three-year deal for $4.2MM, but only the first season, at $1.375MM, is fully guaranteed. He also looks at the multiple trade exceptions held by the Clippers, which gave the team a choice when they acquired Green. The team opted to use part of a $2.76MM exception left over from dealing Al-Farouq Aminu in the Chris Paul trade. 

Contract Scenarios For Howard, Paul, Bynum

A quick perusal of Hoops Rumors' list of 2013/14 free agents reveals three unrestricted free agents that figure to land maximum-salary contracts: Dwight Howard, Chris Paul, and Andrew Bynum. Just because those three guys are hitting free agency at the same time though doesn't mean they're all eligible for identical salaries when signing their next deals.

There are essentially three ways these players could sign their next max-salary contracts:

  • They could sign extensions with their current teams, which would mean adding just three extra years to their current contracts. 
  • They could become free agents and re-sign with the team that holds their Bird Rights, for up to five years with 7.5% annual raises.
  • They could become free agents and sign with a new team, for up to four years and 4.5% annual raises.

It's no secret that the second scenario maximizes the amount of guaranteed money a player can earn on his next contract — this detail of the CBA allows teams a better shot to retain their own star free agents. If the player wants to leave badly enough, he can sign elsewhere, but he'd be giving up millions in guaranteed money to do it.

So how much exactly would each player make in each of these three scenarios? Let's run through and break them down….

Three-year extension:

3yearextension

While the maximum extension a veteran can sign is actually for four years, that includes the current season, so only three years are new. Additionally, while players can typically earn 107.5% of their previous salary in the first year of an extension, all three of these guys are already making more than the maximum, so the can't exceed the 105% they'd earn in the first year of a free agent contract. These extensions include 7.5% annual raises, but even Howard's $66MM pales in comparison to what he could earn as a free agent.

Five-year free agent contract:

5yearFA

Howard, Paul, and Bynum would all be eligible for contracts in excess of $100MM if they wait until next summer and re-sign with the clubs with whom they finish the 2012/13 season. This is why the team that holds the player's Bird Rights at season's end will be considered the odds-on favorite to re-sign him, a scenario we saw play out earlier this summer, when Deron Williams re-upped with the Nets for five years and $98MM+. These max contracts start at 105% of the players' 2012/13 salaries and include 7.5% annual raises.

Four-year free agent contract:

4yearFA

Players can, of course, re-sign for four years or less with their end-of-year teams and receive raises up to 7.5%, but this scenario assumes they're signing with a new club, limiting their annual raises to 4.5%. As the charts show, the drop-off in guaranteed money from a max five-year deal is precarious, from about $26MM for Bynum to over $30MM for Howard. Assuming these guys are still performing at an elite level in 2017, they'll make up a good chunk of that salary in the 2017/18 year of their next contracts, but it's hard to guarantee elite production and good health that far in advance.

As I outlined when I examined Bynum's case for a contract extension, it's possible he could benefit from taking a shorter-term extension now, maximizing his career earnings later. Some of the arguments in that piece apply to Paul and Howard to a lesser degree as well. But an agent of a star player in his prime will rarely recommend that his client accept anything less than a maximum guarantee. In each of these three players' cases, the likeliest scenario remains a five-year free agent contract next summer, which is why these next few months will be crucial. The teams that end up with these three stars at season's end will be the overwhelming favorites to retain them long-term.