Atlanta Hawks v Chicago Bulls

Chicago Bulls creating offseason trade options with latest signings (updated)

4 Comments

Update: I miscalculated. The Bulls are safe from the luxury tax — at least unless Joakim Noah and Taj Gibson each get $500,00 bonuses.

Because Andrew Bynum signed with the Pacers, Chicago can set off a portion of his salary ($105,564 in this case) — an amount I didn’t account for. That leaves them $791,165 beneath the tax line — more than the $750,000 in leeway discussed below.

Noah ($500,000 for All-NBA first team) and Gibson ($500,00 for All-Defensive first team) could still send the Bulls into the tax. However, even if the Bulls hadn’t signed Ronnie Brewer, Lou Amundson, Mike James and Greg Smith, they still would have had more than $750,00 but less than $1 million in leeway.

So, Chicago can absorb a $500,00 Noah bonus for All-NBA first team and a $250,00 Gibson bonus for All-Defensive second team and avoid the tax. But if Noah and Gibson each get $500,000 bonuses, Chicago will pay the tax.

It’s the same situation regardless of whether the Bulls made their latest run of signings.

In sum, these signings won’t make the Bulls more likely to pay the luxury tax, but they’ll cost Chicago a few extra real dollars. In return, the Bulls get more trade flexibility — a definite win for them.

Original post: The Chicago Bulls, like every team, would like to avoid the luxury tax.

Not only are luxury-tax penalties already costlier than ever, repeater penalties loom. If a team might be willing to pay the tax only while contending, it’s especially prudent not to pay the tax when out of contention.

That’s what makes the Bulls’ situation so fascinating.

With all due respect to the marvelous job Tom Thibodeau, Joakim Noah and crew have done this season, Chicago is an extreme longshot to win the 2014 championship. But once Derrick Rose gets healthy, Nikola Mirotic signs, the Bulls use both their 2014 first-round picks (one from Charlotte) and exhaust their pending cap space… Chicago could get really good – and really expensive – in a hurry.

Yet, the Bulls have flirted with the luxury-tax line this season while still remaining pretty competitive. It’s a tight line to walk – wanting to keep salary low without completely blowing up the team (a dichotomy the Luol Deng trade accomplished).

Chicago caught a big break in that quest when they waived Erik Murphy and the Jazz claimed him, removing his salary from the Bulls’ books. That positioned Chicago to add up to three players and leave $750,000 in leeway under the luxury-tax line for performance incentives potentially due to Joakim Noah ($500,00 for All-NBA first team) and/or Taj Gibson ($500,00 for All-Defensive first team or $250,000 for All-Defensive second team).

The Bulls opted to go another way, though.

Chicago signed Ronnie Brewer, Lou Amundson and Mike James to minimum-salary multi-year contracts, according to Larry Coon. Amundson’s’ agent, Mike Bartelstein, confirmed his client’s contract was for two years. James’ agent, Bernie Lee, did the same for his client.

The multiple years matter, because the NBA pays a portion of the minimum salaries for veterans with at least three years experience and the league’s portion of the payments are not taxed – but only for one-year, 10-day and rest-of-season contracts. By signing those three to multi-year deals, Chicago assumed all payments and the increased tax burden that comes with them.

On the positive side, the Bulls signed Greg Smith – who surprisingly cleared waivers – without having to worry losing their $750,000 leeway, because they’d already lost it.

Smith – like Brewer, Amundson and James – could prove useful in trades after the season. Smith is a talented young big man, and the other three have unguaranteed contracts, according to Coon. That allows their salaries to help a trade match, and then they could be released them without penalty.

All in all, the Bulls are now $685,601 below the luxury-tax line – meaning they can absorb only one of the bonuses potentially due to Noah and/or Gibson without paying the tax.

If the bonuses due to Noah and Gibson fall short of $750,000, the Bulls win. They’ll avoid the luxury tax and will have added potentially useful trade assets.

But if Noah and Gibson both hit their incentives, the Bulls will pay the tax, though they’ll still have tradable assets in Smith, Brewer, Amundson and James.

It’s a calculated risk that I think will work. I project Noah to make the All-NBA first team, but I don’t have Taj Gibson making an All-Defensive team.

However, the downside – paying the tax – is high enough that I don’t believe the multi-year deals were worth it. Had the Bulls waited until Saturday to sign Brewer, Amundson and James, Chicago would have kept its $750,000 luxury-tax leeway and still signed Smith, anyway.

Chicago is choosing to play with tax fire to better position itself for a trade later, perhaps a revealing strategy about the franchise’s long-term plans.

NBA local television ratings up, led by spike in Warriors viewship

PHILADELPHIA, PA - JANUARY 30: Klay Thompson #11, Draymond Green #23, Harrison Barnes #40, Shaun Livingston #34 and Stephen Curry #30 high five one another in the game against the Philadelphia 76ers on January 30, 2016 at the Wells Fargo Center in Philadelphia, Pennsylvania. 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 Mitchell Leff/Getty Images)
Getty Images
Leave a comment

Everyone wants to watch Stephen Curry and the Golden State Warriors.

Local television ratings for Warriors games on Comcast Sportsnet Bay Area have spiked 120 percent since last season, according to data compiled by the Sports Business Journal. An estimated 209,000 people tune in to CSN Bay Area for the games (plus the numbers of subscribers streaming Warriors’ games through CSNBayArea.com also has spiked this season).

It’s all part of an overall upward trend in ratings for the league, although about half the league’s markets have seen ratings fall.

Overall, as the NBA enters its All-Star break this weekend, the league’s local telecasts are up 6 percent year over year, according to Nielsen. Eleven teams have seen gains in their local ratings this season, while 15 have dropped. Denver Nuggets games on Altitude are flat with last year….

Golden State’s average rating is high enough to rank third in the NBA, an impressive achievement for a big-market team. Three of the top four teams as measured by ratings play in small markets: Cleveland, San Antonio and Oklahoma City. Additionally, with a league-best 209,000 households on average watching Warriors games locally this season, Golden State is far outpacing the New York Knicks for their games on MSG (160,000 households) and the Cleveland Cavaliers for their games on FS Ohio (141,000).

Interestingly, ratings for the Lakers are down 16 percent year-over-year, despite this being Kobe Bryant‘s final season, according to the report. That impacts the Lakers in that their massive cable television deal with Time Warner does have ratings ties — the Lakers could get a little less out of this deal than anticipated. Still, the average Lakers’ broadcast draws 92,000 viewers, fifth largest in the league.

LeBron has Cavaliers ratings up 36 percent over a year ago. The three biggest drops in ratings percentage wise are Atlanta (33 percent), New Orleans (33 percent), and Washington (34 percent). The average Pelicans game draws 7,000 viewers, according to the report.

That discrepancy in local television viewership — and the money that affords teams in local television deals — you can be sure is something the owners will fight about more in the upcoming Collective Bargaining Agreement discussions. There already is some sharing of that revenue, but as the gap grows you can expect a push from smaller markets to grow that sharing model (the only time rich owners suddenly want socialism in their lives). Expect the players’ union to bring it up as well when the owners cry poverty.

 

Love returns to Cavaliers’ lineup after missing 1 game

Cleveland Cavaliers' Kevin Love, right, drives past Phoenix Suns’ P.J. Tucker during the second half of an NBA basketball game Wednesday, Jan. 27, 2016, in Cleveland. The Cavaliers won 115-93. (AP Photo/Tony Dejak)
Associated Press
Leave a comment

CLEVELAND (AP) — Cleveland Cavaliers forward Kevin Love will return to the lineup Monday after missing a game because of a bruised left thigh.

Cleveland hosts Sacramento on Monday night.

Love sat out for the first time this season on Saturday in a win over New Orleans. He was injured in the third quarter of Friday’s loss to Boston and didn’t return.

He is averaging 15.9 points and 10.5 rebounds.

Love participated in Monday’s shootaround. He is nearing a pair of career milestones, needing three points to reach 9,000 and three field goals to hit 3,000.

Report: Luke Walton not leaving Warriors before their season ends

CLEVELAND, OH - JANUARY 18: Interim Head coach Luke Walton of the Golden State Warriors during the first half against the Cleveland Cavaliers at Quicken Loans Arena on January 18, 2016 in Cleveland, Ohio. 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. Mandatory copyright notice. (Photo by Jason Miller/Getty Images)
Getty Images
1 Comment

Luke Walton is going to have his pick of coaching jobs this summer. The Knicks are reportedly interested, as are the Phoenix Suns. The Lakers allegedly would fire Byron Scott mid-season to get Walton. This doesn’t even get into current or expected openings such as Brooklyn, Sacramento, and Houston. Walton will have options.

But he’s not doing anything until the Warrior’s season ends, reports Marc Stein of ESPN.

This shouldn’t be a surprise, and it is the right thing to do for Walton — shows of loyalty to your current employer and players should raise his stock in the eyes of those trying to hire him.

We may ultimately see with Walton what we saw with Alvin Gentry a year ago; he took the job with New Orleans while the Warriors were still on their championship run, but continued to coach the team through the Finals.

It’s fair to ask if Walton is being over-hyped. He did a fantastic job with the Warriors to start this season, but that was an already built team playing the same system with mostly the same players as the season before. He just had to not fall off the horse, it was going to run plenty fast. Coaching up the kinds of troubled teams we see on that list above is a different challenge entirely. Walton may be up for it, he’s certainly earned the chance, but it’s fair to ask if he’s ready for that step.

PBT Podcast: Derek Fisher fired, plus your trade questions from Twitter

Derek Fisher
Associated Press
1 Comment

Derek Fisher is out as coach of the New York Knicks.

In this latest podcast, NBC Sports’ Kurt Helin and Dan Feldman discuss the odd timing of that move — we expect another shoe to drop as to why. It’s not that Fisher was a great coach, but replacing him with Kurt Rambis mid-season is not an upgrade. And Luke Walton isn’t available until this summer.

After struggling to figure out what the Knicks are thinking, Helin and Feldman answer questions off Twitter from readers/listeners on the coming trade deadline including discussions of Blake Griffin, Jeff Teague, the Pistons, the Jazz, the Knicks, and more.

As always, you can listen to the podcast below, or listen and subscribe via iTunesdownload it directly here, or you can check out our new PBT Podcast homepage, which has the most recent episodes available. If you have the Stitcher app, you can listen there as well.