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

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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.

PBT Extra: Three things to watch with Boston in wake of Hayward injury

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Gordon Hayward is going to have surgery on his ankle and leg, which should not be a surprise to anyone who saw the gruesome injury to his leg just 5:15 into his Celtics career. There is no timetable for his return yet, maybe he makes it back for the playoffs, but the Celtics are not going to rush him and he may well miss the entire season.

What next for Boston?

In this PBT Extra I cover the three things to watch for from Boston, which in the short term could mean the Kyrie Irving show. Longer term, not much changes.

Gordon Hayward addresses Celtics and fans from hospital bed (video)

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Gordon Hayward broke his leg early in his Celtics debut – a devastating injury. He’s preparing for surgery tonight, per Jeff Goodman of ESPN:

First – after a perfect introduction from Marcus Smart – Hayward addressed the Boston crowd from his hospital bed before tonight’s game against the Bucks.

Hayward:

What’s up everybody? Just wanted to say thank you to everyone who has sent me your thoughts and prayers. I’m going to be alright. It’s hurting me that I can’t be there for the home opener. I want nothing more just to be with my teammates and walk out onto that floor tonight. But I’ll be supporting you guys from here and wishing you the best of luck. Kill it tonight. Thanks, guys.

At least this nice moment (and an outpouring of support) came out of such a gruesome injury.

And if Smart keeps setting up his teammates so well, maybe the Celtics’ offense will keep humming.

76ers coach Brett Brown: Joel Embiid’s minute restriction could quickly rise

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Joel Embiid‘s minute limit of below 20 bummed out everyone (especially Embiid).

But good news could be on the way.

Keith Pompey of The Inquirer:

The 76ers look like a borderline playoff team, Embiid’s health the biggest variable. There’s a direct correlation between his ability to stay on the court and Philadelphia’s postseason chances.

Plus, he’s just so darn fun to watch. The more he plays, the bigger victory it is for every viewer not rooting for the 76ers’ opponent that night.

Report: Bucks have offered second-round pick as enticement for Rashad Vaughn trade

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John Henson was on the trade block. Greg Monroe seems permanently affixed there.

Another player the Bucks apparently want to deal? Rashad Vaughn, who was the No. 17 pick in 2015.

Adrian Wojnarowski of ESPN:

Milwaukee has been working to trade several players to clear salary-cap space, including guard Rashad Vaughn and center John Henson, league sources said. The Bucks have been willing to attach a second-round pick in offers for Vaughn, league sources said.

It’s unclear whether the Bucks are still as motivated to move Vaughn. They slid under the luxury-tax line by stretching Spencer Hawes. One-time target Richard Jefferson already signed with the Nuggets. A roster vacancy and cap savings might not matter as much anymore to Milwaukee.

But Vaughn has struggled in two NBA seasons. The Bucks might be better off trying to develop someone else, even a D-League player, over the 21-year-old Vaugh.

Vaughn is due $1,889,040 this season. He faces a $2,901,565 team option for next season, which his team must decide on by Oct. 31. It seems unlikely that will be exercised.

This is what happens when you draft players for the wrong reason.