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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: Bucks signing Xavier Henry

LOS ANGELES, CA - NOVEMBER 16:  Xavier Henry #7 of the Los Angeles Lakers shoots against the Golden State Warriors at Staples Center on November 16, 2014 in Los Angeles, California.  The Warriors won 136-115.   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 Stephen Dunn/Getty Images)
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The Bucks hope Xavier Henry is just another thing Byron Scott is wrong about.

Shams Charania of Yahoo Sports:

Henry – the No. 12 pick in the 2010 draft – never found his footing in the NBA with the Memphis Grizzlies, New Orleans Hornets or Los Angeles Lakers. He made some strides with the Lakers in 2013-14, but he tore his Achilles early the following season. That compounded the knee injuries that made Scott doubt Henry could meet the expectations placed on him coming out of Kansas.

Milwaukee now has 15 players, the regular-season roster limit. If Henry’s deal is unguaranteed, he’s obviously not a lock to stick. But the Bucks could use another wing. I’m guessing they’ll add more players to compete with Henry for that final spot.

Report: Lakers signing Travis Wear

NEW YORK, NY - MARCH 19: Travis Wear #6 of the New York Knicks dives for the ball against the Minnesota Timberwolves  during their game at Madison Square Garden on March 19, 2015 in New York City.    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 Al Bello/Getty Images)
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Phil Jackson said he warned the Lakers they’d regret passing on Kristaps Porzingis with the No. 2 pick.

The Lakers are getting another swing at stretch big Jackson liked – though this time with far lower stakes.

Adrian Wojnarowski of Yahoo Sports:

Travis Wear spent 2014-15 with the Knicks and last season in Spain.

He’ll compete with recently signed Zach Auguste for a regular-season-roster opening that doesn’t exist – until the Lakers ditch Nick Young. I wouldn’t be surprised if the Lakers add more players to the mix.

Both Wear and Auguste are eligible to have their D-League rights assigned to the Lakers’ affiliate if they’re waived before the season.

The 6-foot-10 Wear went undrafted out of UCLA in 2014. He has the makings of a stretch four, but he must become more comfortable beyond the arc rather than just in the mid-range.

NBA rookies love Kris Dunn, Ben Simmons – not so much

NEW YORK, NY - JUNE 23:  Kris Dunn walks on stage after being drafted fifth overall by the Minnesota Timberwolves in the first round of the 2016 NBA Draft at the Barclays Center on June 23, 2016 in the Brooklyn borough of New York City. 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 Mike Stobe/Getty Images)
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Rookie of the Year, best playmaker, best defender and funniest. Kris Dunn even received a vote for best shooter despite his jumper holding him back in pre-draft evaluations.

Dunn – the Timberwolves’ No. 5 pick – cleaned up in the NBA’s annual rookie survey.

But when it came to the most important question, Brandon Ingram – the Lakers’ No. 2 pick – claimed the top spot:

Which rookie will have the best career?

1. Brandon Ingram, L.A. Lakers — 26.7%

2. Kris Dunn, Minnesota — 16.7%

3. Buddy Hield, New Orleans — 13.3%

T-4. Dragan Bender, Phoenix — 6.7%

Jaylen Brown, Boston — 6.7%

Jamal Murray, Denver — 6.7%

Ben Simmons, Philadelphia — 6.7%

Others receiving votes: Dejounte Murray, San Antonio; Dario Saric, Philadelphia; Pascal Siakam, Toronto; Tyler Ulis, Phoenix; Denzel Valentine, Chicago

That’s a pretty poor showing for Ben Simmons, whom the 76ers drafted No. 1. Maybe it’s because Simmons didn’t make the NCAA tournament at LSU.

But that lack of exposure only barely dissuades me. I still think Simmons will have the best career and win Rookie of the Year. The 76ers will likely feature him in a major role this season while Dunn is stuck behind Ricky Rubio (for now, at least).

But that didn’t dissuade their fist-year peers:

Who will be the 2016-17 Kia Rookie of the Year?

1. Kris Dunn, Minnesota — 29.0%

2. Brandon Ingram, L.A. Lakers — 25.8%

3. Ben Simmons, Philadelphia — 19.4%

Other notable questions (click through to NBA.com full results) and my picks:

Which rookie was the biggest steal at where he was selected in the Draft?

1. Dejounte Murray (29), San Antonio — 16.1%

2. Tyler Ulis (34), Phoenix — 12.9%

My pick: Timothé Luwawu-Cabarrot (24), Philadelphia

Which rookie is the most athletic?

1. Jaylen Brown, Boston — 38.7%

2. Brice Johnson, L.A. Clippers — 16.1%

My pick: Brown

Which rookie is the best shooter?

1. Buddy Hield, New Orleans — 65.7%

2. Jamal Murray, Denver — 20.0%

My pick: Hield

Which rookie is the best defender?

1. Kris Dunn, Minnesota — 23.5%

2. Gary Payton II, Houston — 20.6%

3. Malcolm Brogdon, Milwaukee — 17.6%

My pick: Payton

Which rookie is the best playmaker?

1. Kris Dunn, Minnesota — 29.4%

2. Ben Simmons, Philadelphia — 26.5%

3. Tyler Ulis, Phoenix — 20.6%

My pick: Dunn in a vacuum with the caveat that Simmons’ playmaking – not far behind Dunn’s – will be more valuable at power forward than Dunn’s will be at point guard

Jose Calderon retires from Spanish national team

RIO DE JANEIRO, BRAZIL - AUGUST 11:  Jose Calderon #8 of Spain moves the ball against Nigeria during the Men's Basketball - Preliminary Round Group B Nigeria vs Spain on Day 6 of the Rio 2016 Olympic Games at Carioca Arena 1 on August 11, 2016 in Rio de Janeiro, Brazil.  (Photo by Tom Pennington/Getty Images)
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Jose Calderon has won three Olympic medals – silver in 2008 and 2012 and bronze this year.

Just three men’s basketball players have won more:

  • Carmelo Anthony (three golds and a bronze for Team USA)
  • Gennady Volnov (a gold,* two silvers and a bronze for the Soviet Union)
  • Sergey Belov (a gold* and three bronzes for the Soviet Union)

Calderon, who turns 35 next month, won’t catch them.

O. Cauchi of Sportando:

Veteran point guard Jose Calderon has officially announced his retirement from Spanish NT.

Calderon barely played in Rio. Spain is stacked at point guard with Sergio Rodriguez, Ricky Rubio and Sergio Llull.

The Lakers aren’t as deep at the position with D'Angelo Russell and Marcelo Huertas. Calderon might have a bigger impact in Los Angeles – especially if he’s not saving himself for Eurobasket 2017.