76ers Bulls Basketball

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

5 Comments

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.

Joel Embiid to start in Sixers first preseason game

Leave a comment

Here’s a little bit of good news for beleaguered Sixers fans:

Joel Embiid will start the Sixers first preseason game next Tuesday. Embiid was the No. 3 pick and a very highly rated prospect coming out of Kansas, but foot injuries sidelined him the entirety of his first two seasons. Now he’s healthy and going to get a start next Tuesday, according to coach Brett Brown.

This will be a process. It will be two steps up and one step back all season for Embiid, but at least he’s healthy enough to take those steps now.

Now the focus shifts to when Ben Simmons will be able to take his first steps.

Another report Donatas Motiejunas, Rockets nowhere near deal as deadline approaches

LOS ANGELES, CA - DECEMBER 17:  Donatas Motiejunas #20 of the Houston Rockets is fouled as he shoots by Julius Randle #30 of the Los Angeles Lakers during the first half at Staples Center on December 17, 2015 in Los Angeles, California.  NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and condition of the Getty Images License Agreement.  (Photo by Harry How/Getty Images)
Leave a comment

Donatas Motiejunas and his agent had given the Rockets a Saturday deadline to make a contract extension offer they liked.

But the sides aren’t even talking in a serious way.

That was reported early on Friday, and now comes another report — this was from Calvin Watkins of ESPN — that the two sides are nowhere close to a deal.

With the deadline to sign a qualifying offer approaching, restricted free-agent power forward Donatas Motiejunas and the Houston Rockets have exchanged contract proposals but remain far apart on an agreement, multiple sources told ESPN.

Motiejunas is seeking a larger financial deal from the Rockets, but the two sides haven’t had serious contract discussions in a month, the sources said.

Motiejuas, a restricted free agent, has a $4.4 million qualifying offer on the table that expires Sunday. He likely will sign it — if so he will have the ability to veto trades during the season then would be a free agent next summer.  Motiejuas could let the deal expire then sign a new one-year deal with the Rockets, but he would make less money.

Last season the Rockets agreed to trade Motiejunas to the Pistons. However, Pistons voided the deal after he failed his physical. Motiejunas hammered Detroit for how it went down. That left Motiejunas a restricted free agent this summer, but he didn’t land any offers from other squads (many thought the Rockets would just match).

That gets us to where we are today, where Motiejunas appears headed to signing the qualifying offer, then testing the market next summer as an unrestricted free agent.

Sacramento Kings prepare to open state-of-the-art downtown arena

This photo taken Tuesday, Sept. 27, 2016, is the new Golden 1 Center in Sacramento, Calif. The 17,500-seat arena, the new home of the NBA's Sacramento Kings basketball team features among other things, the NBA's first 4k ultra HD video board that stretches 84 feet above the court with more than 38 million pixels. The Kings' first game in the arena will be a preseason match against Maccabi Haifa, of Israel, Oct. 10. (AP Photo/Rich Pedroncelli)
Associated Press
Leave a comment

SACRAMENTO, Calif. (AP) — After years of searching for a new home, the Sacramento Kings are set to open a new venue that raises the bar of what an arena can be.

Along with some of the modern accouterments that have become commonplace like smartphone apps that allow fans to order food or watch replays from their seats, giant screens to watch the game and high-speed connections that let fans post photos almost instantaneously, the Golden 1 Center also has many first-of-its-kind features.

There are the airplane hangar doors that can open to turn the venue into an indoor-outdoor arena and the “smart turnstiles” that will allow fans to enter at more than triple the usual speed. But perhaps most important to Kings owner Vivek Ranadive are the environmental features that make it the first indoor venue to receive LEED Platinum certification – the highest level of recognition for environmentally conscious buildings.

The 17,500-seat arena will be the first professional sports venue powered completely by solar energy, will save about 1 million gallons of water a year compared to a typical venue of its size, was built with recycled material from the mall that stood at the site before construction began and will get 90 percent of its food and beverages from within 150 miles.

“We felt we had to set a new bar,” Ranadive said. “We have to be cognizant of the kind of planet we want to leave our kids and next generations. This had to be the greenest arena ever built. … I fully expect that arenas in the future will be even better, be even more sustainable. Hopefully what we have here is an example of how to build a great arena and still be responsible to the environment.”

Ranadive bought the team in 2013 for $534 million, saving the franchise from a planned move to Seattle. The next task was getting the new downtown arena built.

Ranadive wanted an “iconic” venue that would anchor a revitalized downtown and he believes the nearly $600 million facility that opens this weekend has achieved that goal.

The arena is part of a $1 billion development project that includes 1.5 million square feet of mixed-use property that will have a hotel, restaurants, retail shops, offices and condos. About $500 million in outside investment is also expected in the area.

“This arena is the 21st century cathedral,” Ranadive said. “It’s the communal fireplace where people used to gather in old times. For us, it’s always been about more than basketball.”

Befitting a team owned by a tech mogul who made his billions in Silicon Valley, the arena was built with enough technology to “future proof” it. It has enough bandwidth for a small city, allowing fans to post 250,000 Instagram photos per second and 500,000 Snapchats per second, according to chief technology officer Ryan Montoya.

It has the NBA’s first 4K ultra HD videoboard – providing a picture four times clearer than HD – that stretches 84 feet long. The in-stadium app will give fans the best driving instructions based on traffic and parking spots. It will allow them to order food or merchandise to their seat, watch live-streamed video on their phone and even place non-monetary bets on the outcomes of plays that can earn fans points that can be redeemed for prizes.

There will even be facial recognition software that will allow players to enter secure areas and could one day be expanded to fans if they opt in to that option, making a more “frictionless” experience.

“Our arena is more about code than it is concrete,” team President Chris Granger said. “The idea is to create a platform that allows us to grow and expand and change the fan experience as the technology adapts.”

Overseeing all of the technology is a mission control room that will feature law enforcement and emergency medical services personnel, building operations officials, social media and guest services workers and others who will monitor all aspects of the arena on game days.

Perhaps the most unique feature will be the hangar doors, which can open to allow the delta breeze to cool the building and provide the option for concerts – or eventually even basketball games – with an indoor-outdoor feel.

The Kings have had talks with the NBA about what conditions would need to be met before they could play a game with the open doors but the team believes it will be able to control the temperature, humidity and wind well enough to make the conditions on the court comparable to a fully indoor arena.

The team plans to hold its open practice with the doors open and could do the same for an exhibition game against a non-NBA team. The Kings also could open the doors for college or high school games in order to gather enough data to show the league.

“They know we want a home-court advantage and they know that we want to enjoy the indoor-outdoor arena,” Ranadive said. “I fully expect we’ll figure out a way to get that home-court advantage.”

Chris Bosh on Heat’s young talent: ‘It’s their time’

CHARLOTTE, NC - APRIL 23:  Chris Bosh #1 of the Miami Heat talks to teammates Justise Winslow #20 and Udonis Haslem #40 against the Charlotte Hornets during game three of the Eastern Conference Quarterfinals of the 2016 NBA Playoffs at Time Warner Cable Arena on April 23, 2016 in Charlotte, North Carolina.  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 Streeter Lecka/Getty Images)
Getty Images
1 Comment

Justise Winslow eventually wants his own team.

That day may be here.

LeBron James is with the Cavaliers. Dwyane Wade is with the Bulls. And now Chris Bosh – the last of the Heat’s big three still in Miami, embroiled in a dispute with the team over his health that likely has him moving on from Miami (and he’s not thrilled about it).

That said, Bosh sounds ready to defer to a younger generation led by Winslow and Hassan Whiteside.

In introducing his latest video, Bosh wrote this on his personal website:

I remember just a few years ago when the Big 3 were together and we were having a ball playing the game we love with some of the most professional, talented guys the NBA has ever seen.

I remember the fans of Miami coming out to see the show every night. The love, the compassion and the energy we felt was second to none. I want to thank the city of Miami from the bottom of my heart because things may change but the good times will last forever in my memories. Thank you!

Things are different now and Miami has incredible young talent with a tremendous upside. These are not only talented ball players but great people and friends. I enjoyed playing with those guys and doing my best to mentor them by being an upstanding role model and veteran player. It’s their time to go through the ups and downs of the game with this great city.

Bosh is not accepting that his career is over.

However, he sounds like a guy who likes the Heat’s young stars.