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The Inbounds: How to avoid the luxury tax and influence the playoffs, a Chicago Bulls story

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Welcome to The Inbounds, touching on a big idea of the day. It could be news, it could be history, it could be a tangent, it could be love. OK, it’s probably not love. Enjoy.

There’s something obscenely obvious in the fact that we, the media (but not really because most NBA media think Bird rights have something to do with trash talk about a three-point shot), the basketball twitter intelligentsia, fans,  whoever rail on the Chicago Bulls for doing precisely what we rail on other teams for not doing.

They don’t overspend. They don’t overpay for a non-contender, and they work diligently to get the best deal possible in every negotiation. Those are all good things, right? We acknowledge that the concept of overpaying is inherently bad? You can’t say the Miami Heat overpay for anyone, it’s not just that they win but the production they get from any given player relative to their position and standing is worth the investment made. The Spurs have made a killing off of getting their top guys to buy in to the point they actually take paycuts and then getting value guys on value deals to plug in around them. These values are good. You can argue the opposite, that if your owner is willing to swallow that luxury tax, the money doesn’t matter, at least not to fans, but it’s difficult to say that avoiding overspending is bad.

And yet it’s pretty conclusive that everyone finds the way the Bulls do business… distasteful.

And I’m not talking recently. Not like Jerry Reinsdorf just walked in off the dot-com craze. The man’s been cracking walnuts since Jordan. Let me re-emphasize this. We’re talking about a guy who busted spherical objects regarding the greatest player of all time, in his prime, his All-Defense perfect sidekick and arguably the greatest coach of all time, just to save a few bucks.

This is not some small-market, struggling franchise we’re talking about. Reinsdorf’s not selling his car(s) to pay his mortgage (since, you know, real estate is his bag, that would be especially shocking).  The Bulls have consistently been in the top five for attendance regardless of how good they’ve been, and in the top three for profit according to Forbes for several years. They make money hand over horns. It’s a major-market team with a cool color scheme who happens to be identified with the greatest player of all time. So yeah, they do pretty well. But that hasn’t stopped them from making fiscal responsibility their No. 1 priority at all times.

And we’re seeing it today. From Tom Thibodeau’s contract to whether to match Omer Asik, to all of a sudden, yes, signing Marquis Teague, there’s always something the Bulls are doing to scratch out a few more dollars. What’s up with Teague, you ask? Take it away, Mark Deeks:

Nevertheless, however small the 2012/13 saving will be in the context of overall payroll expenditure, it seems to have been deemed sufficient. As mentioned above, the Bulls are over the luxury tax as of today. They have $71,837,061 committed to only 11 players, not including Nate Robinson, nor Teague. They’ve never been above it before, and they surely don’t intend to be above it this time – it doesn’t take a great deal of foresight to see the Bulls trading Rip Hamilton at the deadline, with enough cash to offset his remaining salary, at a time that Derrick Rose is able to play again, and after Rip has (theoretically) rebuilt his value as a player. This is pretty much guaranteed to happen. And it will be much easier to achieve the less they sign Teague for. The cheaper he comes, the more dead weight salary Chicago can take back for Rip, the easier he’ll be to deal.

via ShamSports.com: NBA News That Doesn’t Really Matter: Marquis Teague is still unsigned, and you’re probably not going to like why.

So to make sure the have room to ditch Rip Hamilton in order to avoid the luxury tax, they’re working down the total amount of Marquis Teague’s rookie contract.

It’s here that we have to address the Boozer issue. The Bulls do in fact employ Carlos Boozer on a pre-2012 max contract. So you can say that they a. committed to a max deal for a free agent in order to contend b. overpaid for a player and continue to do so and c. have not amnestied him to get under the tax, despite two opportunities to do so. But you have to understand, when Boozer was given that contract, it was market value. It wasn’t a great deal, but it also wasn’t a disaster. It will look worse as time goes on because of the new CBA, and there’s no way to spin it was a good deal, but it was also not a bad deal. (It did, however, almost immediately morph into a bad deal. So there’s that.)

And the discussion of amnestying Boozer loses the point a little bit. If you’re trying to avoid the luxury tax, you want to save money, right? Well, even if you amnesty Boozer, and someone takes some portion of his deal on the amnesty waiver (which someone would), the Bulls are still paying for the remainder of that contract, plus the money to bring in players to replace him. Off the league’s books isn’t off Chicago. What’s the point in amnestying Boozer to save money when amnestying him if you wind up spending in total what you’d spend in the luxury tax anyway, paying him off and then replacing him?

(It should be noted the one huge counter to all this, the relative ease to which Derrick Rose was signed to his extension, only re-enforces the point. It’s not that the Bulls don’t spend the money on what they should, it’s that they tend to carry any opportunity to squeeze blood from stone to the furthest possible moment and then go on with it. Rose’s structure was determined by the CBA and there was little to carp on, hence why the deal got done smoothly. They’re still a team with a high payroll, just one that constantly is working to scrape the crust off the top.)

The Bulls are a classic example of what we expect from big-market owners. We expect them to break the bank to build a winner, to use the resources at their disposal to abuse the inherent advantages and develop a contender. The Bulls have instead tried to develop a contender with considerate, you can even say frugal spending, and have done a pretty decent job at it. But they’re judged on a big-market curve and it’s there that they fail.

Which is not to say that I’m advocating in favor of the Chicago Way, here. (They put one of your guys in the hospital, you trade Kyle Korver to the morgue!) The fans and city have provided them with one of the most successful franchises in sports. They’re asking for the team not to waste Derrick Rose’s career, to pay what they need to to contend, to not use circumstance (Rose’s injury, the new CBA, age, health, etc.) to justify spending cuts, which is a classic Bulls move. That’s pretty reasonable. Bulls fans wouldn’t be upset if the team was bad and they cut spending. They’d be happy. Fans want cheap losers to allow for improvements to make expensive winners.

The fact may be that despite all the punitive efforts of the new CBA, the new NBA model may dictate that for big-market franchises to compete at the level to which they have become accustomed to, they’re going to have to time when they want to bite that bullet. And Reinsdorf has repeatedly dangled that carrot. Somewhere, someday down the line, he may pay that luxury tax. But until then, he’s going to keep maneuvering to suck the most money out of late-first-round rookies, swapping out bench units when they become available to reach market value, tip-toeing around paying a top-three coach in the league what he’s worth, and making mountains of cash off the process.

It’s infuriating. It’s genius. It’s frustrating. It’s sustainable. It’s a bad way to run a team. It’s a great way to run a business. And they’ll still manage to succeed enough to put the criticism at bay when the ball is tipped. Thank God for Derrick Rose.

Report: Magic offered first-round pick, Nikola Vucevic to Heat for Goran Dragic

ORLANDO, FL - OCTOBER 26: Goran Dragic #7 of the Miami Heat goes to the basket against Elfrid Payton #4 of the Orlando Magic on opening night on October 26, 2016 at Amway Center in Orlando, Florida. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Manuela Davies/Getty Images)
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We already knew the Magic were interested in Heat point guard Goran Dragic.

Orlando has an excess of power forwards and centers (or players who should be at those positions) – Serge Ibaka, Bismack Biyombo, Nikola Vucevic, Aaron Gordon, Jeff Green – and have been better with an offense-first D.J. Augustin starting and Elfrid Payton coming off the bench. Dealing a big man for Dragic would be logical.

This isn’t that.

Marc Stein of ESPN:

Orlando, according to league sources, recently tried to engage Miami on a Goran Dragic deal in which the Magic were said to be offering center Nikola Vucevic and a future first-round pick.

Dragic is on the wrong side of 30 and due more than $54 million over the next three years. The Magic are 18-28, 4.5 games and four teams out of playoff position.

Why would they want a player like Dragic?

Orlando should focus on building for future seasons, which means not swapping first-round picks for veterans. There will probably be better avenues for a point guard upgrade offseason. If not, the Magic can always get a solid point guard for one of its bigs and a first-rounder. There should be no rush to pursue a deal like that now, because a late playoff push is impractical.

Perhaps, the protections on the pick are strong enough to make this deal palatable for Orlando. But this just reeks of general manager Rob Hennigan mortgaging the future to show progress now, even if that’s foolish for the organization.

Miller family transfers ownership of Jazz to trust that will keep team in Utah

SALT LAKE CITY, UT - NOVEMBER 4: General view of the former EnergySolutions Arena which has been renamed Vivint Smart Home Arena, where the Portland Trail Blazers will play the Utah Jazz on November 4, 2015 in Salt Lake City, Utah. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Gene Sweeney Jr/Getty Images)
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Since Larry Miller died back in 2009, there have been some around the league that thought the Jazz might eventually be sold out of the family, most likely to an owner looking to move them out of Utah. The Miller family has denied that vehemently, and there has been not even a step that direction, but it’s easier to kill Freddy Krueger than an NBA rumor.

Monday, the Miller family killed that rumor for good, taking an unprecedented step that will keep the Jazz in Utah for a long, long, time.

Gail Miller has transferred ownership of the Utah Jazz and Vivint Smart Home Arena into a Legacy Trust that will keep the Jazz in Utah for what she said would be “generations.”

“As a family, we have always considered the Utah Jazz a community asset and it has been our privilege to serve as stewards of this team for more than 30 years,” Miller said. “There have been many opportunities to sell and move the franchise, but from the day Larry and I purchased the Jazz our goal was to keep the team in Utah. The Legacy Trust will help to ensure this commitment is kept for generations to come.”

The Miller family will continue to manage the trust (along with a board of directors) as well as the Jazz the organization. However, the Miller family will not profit from the running of the team as it had before. That eliminates the profit motive for selling the Jazz.

“As a family and company, we have always been committed to doing things the right way and working to achieve our mission of enriching lives and giving back,” said Miller. “This trust and our new corporate structure will continue this important legacy in perpetuity and represents our commitment and deep love for the State of Utah.”

Jody Genessy, Jazz writer for the Deseret News, added these notes from the press conference for the announcement.

This is a huge win for the fans in Utah. It’s also a win for the NBA — billionaires buying up teams with the promise/idea of moving them is not good optics for the league. Adam Silver has favored stability (he was one of the key reasons the Kings are still in Sacramento), and this is a step in that direction.

Report: Nuggets actively trying to trade Jusuf Nurkic

DENVER, CO - DECEMBER 17:  Kyle O'Quinn #9 of the New York Knicks guards Jusuf Nurkic #23 of the Denver Nuggets at the Pepsi Center on December 17, 2016 in Denver, Colorado. NOTE TO USER: User expressly acknowledges and agrees that , by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Matthew Stockman/Getty Images)
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Jusuf Nurkic and Nikola Jokic have been healthy and productive for the Nuggets in the last two seasons.

Just not at the same time.

So, Denver wanted to test its bigs together this season, to see whether they could form a long-term pairing. The Nuggets experimented, and the results are in: Nurkic and Jokic can’t play together.

Here are Denver’s offensive/defensive/net ratings with:

  • Just Jokic: 115.7/109.9/+5.9
  • Just Nurkic: 99.2/107.9/-8.7
  • Both: 93.2/109.3/-16.1

So, the Nuggets are making the logical choice to build around Jokic.

Marc Stein of ESPN:

A player who is sure to move between now and the trade deadline?

Denver’s Jusuf Nurkic.

Sources say that the Nuggets, having acknowledged that Nikola Jokic and Nurkic didn’t click as a pairing, are actively working to find Nurkic a new home that would give him the chance he deserves to be a front-line center.

Nurkic can help a lot of teams. Just not the Nuggets.

Only 22, he’s an intimidating interior presence. He scores well in the paint, and he provides tough defense. He has lowered his high foul rate. If reducing turnovers is the next step in refining his game, that’d be welcome.

It shouldn’t be difficult to find a team that values Nurkic more than Denver does. It’s just a matter of determining which team values him most.

Kenneth Faried can handle the role in certain matchups, but if they trade Nurkic, the Nuggets will need someone to play center when Jokic sits. Still, that’s a small complication in a plan that makes sense overall.

Despite being anchored by 108 minutes of Jokic and Nurkic sharing the court, Denver is in playoff position at 18-25. Simply removing Nurkic from the starting lineup has produced a 9-8 stretch. The Nuggets have moved on with Jokic as a franchise cornerstone. It’s time to get Nurkic to a place he can thrive.

Report: Phil Jackson told Carmelo Anthony he disagreed with Charley Rosen’s criticism

New York Knicks president Phil Jackson watches from the stands during the second half of the Knicks' NBA basketball game against the New Orleans Pelicans at Madison Square Garden in New York, Monday, Jan. 9, 2017.  The Pelicans won 110-96. (AP Photo/Kathy Willens)
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Carmelo Anthony told Knicks president Phil Jackson he wanted to stay in New York.

But what does Jackson want?

That’s the big unknown. Phil Jackson mouthpiece Charley Rosen wrote Carmelo Anthony outlived his usefulness in New York. Anthony took that as a comment from Jackson himself.

Adrian Wojnarowski of Yahoo Sports:

In the meeting, Jackson told Anthony he did not subscribe to the criticisms in the article and the story did not speak for him, sources said.

Al Iannazzone of Newsday:

A league source with knowledge of the team’s thinking said before the Tuesday meeting that the Knicks want Anthony to stay “as long as it’s mutual.”

Anthony holds the final say due to his no-trade clause, but he also said he’d consider waiving it if the Knicks want to rebuild. So, Jackson’s opinion matters.

Most likely, the uneasy partnership continues. Anthony remains with the Knicks, because he likes the overall package – living and playing in New York – enough to handle the downsides. The Knicks keep losing, because they’ve committed too much to a declining Anthony and have failed to add quality pieces around him.

It could make sense to rebuild around Kristaps Porzingis, though that would likely mean moving Anthony, Joakim Noah and Courtney Lee. It seems nobody wants to go to that much trouble with Anthony preferring to stay.