Atlanta Hawks v Chicago Bulls

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


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.

Kings pick up option on G Ben McLemore

Ben McLemore, Rodney Hood
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SACRAMENTO, Calif. (AP) The Sacramento have picked up the 2016-17 option on guard Ben McLemore‘s contract.

General manager Vlade Divac announced the move Saturday.

McLemore was Sacramento’s first-round pick in 2013. He averaged 12.1 points, 2.9 rebounds and 1.7 assists last season.

Paul George reiterates “I don’t know if I’m cut out for a four spot”

Paul George

In the Pacers first exhibition game of the season Saturday against the Pelicans, Paul George started at the power forward spot and looked healthy — that should be the big takeaway. He also showed off his offensive game in the first quarter, eventually finishing the night with 18 points on 7-of-15 shooting. He forced some shots in the second half and had some defensive challenges, but it was a solid outing for a first preseason game.

George did not see it that way, and that will end up being the big takeaway.

He complained about playing power forward during training camp and given the chance after this one game he did it again, as reported by Candace Buckner of the Indy Star.

“I don’t know if I’m cut out for a four spot,” George said after the Pacers’ 110-105 loss to the New Orleans Pelicans, a game in which he started matched up against 6-foot-11 All-Star Anthony Davis.

“I don’t know if this is my position. We’ll sit and watch tape and I’m sure I’ll talk with coach (Frank Vogel). I’ll talk with Larry (Bird) as well to get both their inputs on how the first game went but…I’m still not comfortable with it regardless of the situation. It’s still something I have to adjust to or maybe not. Or maybe it’s something we can go away from.”

George sees himself as a wing, where he has played his entire career. He doesn’t like defending traditional fours, as a scorer he doesn’t like expending all that energy defending pick-and-rolls and banging with bigger bodies. He’s been clear about that.

He still needs to be open to the idea. How much time George gets at the four on any given night should depend on the matchup — and Anthony Davis is about as rough a matchup as he is going to see. Davis scored 18 points in 15 minutes, and the Pelicans controlled the paint against the small-ball Pacers. George had a hard time defending Davis — welcome to a rather large club, PG. That said, George scored 12 points in the first quarter mostly with Davis on him, he pulled the big out in space and got what he wanted.

Back to the matchups point, George will struggle defensively against the best fours in the game (most of whom are in the West). But what about the nights in the East when George would be matched up on Thaddeus Young from Brooklyn, Jared Sullinger (or David Lee, or whoever) from Boston, or Aaron Gordon with the Magic, or Carmelo Anthony with the Knicks when they play small? There are a lot of lineups the Pacers will see where George at the four makes sense.

The Pacers are transitioning from a plodding and defensive-minded squad to a more up-tempo style, and that’s going to take time— a lot more than one preseason game. However, if George is throwing cold water on the plan after this one effort, it might take a lot longer and be a lot bumpier to make that transition than we pictured.