Report: Rockets in contract dispute with No. 25 pick Clint Capela

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It’s been a rough offseason for Houston Rockets general manager Daryl Morey.

His plan to decline Chandler Parsons’ team option veered off track when the Mavericks gave Parsons a whopping offer sheet.

Still, Morey still had 72 hours to salvage his cap space before matching – if he could create room in the first place.

He traded Jeremy Lin to the Lakers, sending out a first-round pick to dump the productive backup point guard. But his prearranged trade of Omer Asik to the Pelicans seems to have hit an unexpected snag (though New Orleans might be positioning itself to fix the issue).

All while Morey is sorting this out, his top free agent target – Chris Bosh – decided to re-sign with the Heat on a max contract.

Still, Houston surely wants cap room to spend on other free agents before the deadline to match on Parsons.

And that’s where Morey has found even more trouble.

I, like many, assumed the Rockets drafted Clint Capela with the No. 25 pick, at least in part, because he wouldn’t join the NBA this year. If Capela signed a letter agreeing to defer signing for a season, the Rockets could immediately clear Capela from the cap. These arrangements are frequently negotiated before the draft so teams like the Rockets know whom they can draft and stash and whom won’t agree.

Currently, Capela counts against the cap at his rookie-scale amount.

The NBA and the players association, as part of the Collective Bargaining Agreement, previously negotiated a payment structure for all first-round picks depending on year and pick. The scale amount for the No. 25 pick signed in 2014 is $991,000. Teams can offer between 80 percent and 120 percent of scale, but with rare exception, players get 120 percent.

By design, there’s little room to negotiate. The NBA doesn’t want rookies holding out for monster contracts, which once happened regularly. The league has effectively made signing first-round picks a seamless process.

But occasionally there are snags.

Chris Haynes of CSN Northwest:

The Houston Rockets and their 2014 NBA first round draft pick Clint Capela are in a contract dispute following the team’s failed attempt to lure Chris Bosh from Miami, league sources informed CSNNW.com.

According to one source, for cap space, the Rockets requested that Capela spend another season in France, believing they would land Bosh in free agency. Capela’s representatives were strongly against that idea and that still stands. Friction amongst the two sides is ongoing, sources say.

There’s a $500,000 buyout to free the 6-11 forward from his French team.

I’m very surprised the Rockets didn’t know Capela’s intent when drafting him. Maybe they thought they did – but there was a clear communication breakdown, which has led to the current impasse.

The Rockets must give Capela a required tender – a standing offer worth at least 80 percent of scale – by Wednesday.

However, Houston’s real deadline is probably Sunday, when Parsons’ offer sheet becomes binding. As soon as the Rockets match, they run out of cap room unless they make other salary-clearing moves.

The Rockets could cover Capela’s full buyout without the spent money counting toward team salary. However, if they don’t want him to sign this year, why would they offer to contribute any money toward his buyout?

Houston could refuse to make Capela a required tender, allowing him to become an unrestricted free agent. Only once – the Bulls with Travis Knight in 1996 – has a team let its first-round pick go rather than offering the scale amount. I can’t believe Morey would squander an asset in that manner, though.

The Rockets could low-ball Capela, offering only 80 percent of scale and refusing to pay any of his buyout. Maybe Capela accepts that, paying his buyout out of his own pocket. If he does, his cap number would be lowered from 100 percent to 80 percent of scale, though Houston wouldn’t get it down to $0 as it would prefer.

If the Rockets toy with Capela in that way, he might not sign this year. And if he does, he could toy right back by delaying an official signature. Either way, he’d remain on the books at his current 100 percent of scale while the Rockets pursue free agents.

Unless the Rockets really need to free an extra $483,664 in cap room (Capela’s scale amount minus a minimum-salary roster charge of $507,336), they will submit the required tender. Then, they can test just how desperate Capela is to join the NBA. Houston could offer 80 percent of scale and none of his buyout this year while promising to pay 120 percent of scale and cover all of his buyout next year.*

*The scale amount, which increases annually, is determined by the year a player signs, not the year he’s drafted.

The difference for Capela would be $2,233,029 over four years if the third-year and fourth-year team options of his contract are exercised ($4,041,792 if signed this year vs. $6,274,822 if signed next year PLUS the amount of his buyout. Since buyouts typically fall or remain constant during the life of a contract, I figure Houston can fit the 2015-16 amount into its $625,000 allotment for international buyouts next season.

Both sides have leverage here, which makes this somewhat-minor dispute all the more compelling.

AP source: Justin Zanik, David Morway join Jazz front office

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SALT LAKE CITY (AP) — A person with knowledge of the situation says the Utah Jazz have reached agreements with Justin Zanik and David Morway to join the front office.

Zanik returns to the Jazz after serving as assistant general manager from 2012-16, the person told The Associated Press on Friday. The person spoke on condition of anonymity because the decisions had not been formally announced.

Zanik, a former agent, had been hired as assistant general manager with the Milwaukee Bucks and was expected to succeed general manager John Hammond one day. Hammond was named GM of Orlando Magic in May and the Bucks eventually hired Jon Horst.

Morway was the Pacers’ GM from 2008-12 and Bucks assistant GM from 2013-15. He spent 13 years in the Indiana front office, starting as vice president of basketball administration.

ESPN first reported the agreements.

Former Gatorade executive auctioning off Michael Jordan memorabilia

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Remember the “Be Like Mike” Gatorade commercials back in the 1990s?

That was the brain child of Bill Schmidt, a now retired VP of Marketing of Gatorade. Over the years he formed a friendship with Michael Jordan, and in the process racked up a treasure trove of Jordan memorabilia — jerseys, game-worn shoes, even game-worn baseball cleats from Jordan’s time in the minors. Almost all of it signed.

Now it’s all being auctioned off, Schmidt told Sole Collector.

“I turn 70 at the end of the year and I’m in good health, knock on wood. If something happens to me, I don’t know what they are going to do with this stuff,” Schmidt told Sole Collector. “Somebody else can enjoy it. It would afford me the opportunity to take care of some other people and other causes as opposed to donating the shoes or whatever. They’ll probably benefit more from the financial side of things.”

Schmidt isn’t keeping the money he gets from the auction, he’s donating it to youth sports groups, a church, and other charities where he lives. And yes, he is keeping a couple of things for himself.

He is doing the auction through Steiner Sports, and you can view it here. It continues for another week. If you’ve got the money pick something up, at least it’s going to a good cause.

 

 

Cavaliers have three choices with Kyrie Irving. And no rush decide on one.

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There were a lot of questions around Kyrie Irving‘s unexpected decision to tell Cleveland he wanted to be traded.

The first was why? He reportedly wants out of LeBron James‘ massive shadow, to “be the man” with another team. It also strikes me as a preemptive move — LeBron could leave next summer and Irving wanted to be in control of his own destiny rather than deal with the “is LeBron leaving roller coaster” for a season.

Next was “why now?” This is harder to find a good explanation for. Back in June, Irving talked about staying with LeBron and finding ways to beat the Warriors, a month later he wants out. It has to be frustrating for the Cavaliers front office, if Irving had told them this back at the start of free agency Cleveland might have been able to land Paul George or Chris Paul.

Finally, the question settled on Cleveland and what will they do?

They have three legitimate options.

1. Do nothing and keep Irving. The Cavaliers do not have to trade him — Irving has two years left on his contract, and the Cavaliers have leverage. Cleveland could take notes from the Lakers after Kobe Bryant’s trade me demand circa 2007 — Los Angeles told him they were looking but not move him, and eventually smoothed things over (and won a couple more rings).

It may be a lot harder for the Cavaliers to do that. How deep is Irving’s dissatisfaction run? Can LeBron and Irving mend fences? Or is the discord in Cleveland too great right now to smooth things over? Usually winning can cure all ills, and the Cavaliers should win plenty again. Then again, star players in the NBA usually get their way so if Irving really wants out…

2. Trade Irving for players to help them chase a title next year. My guess is this is the direction the Cavaliers will go. Why? Because Dan Gilbert looks at his franchise valuation since LeBron’s return and wants to keep him, and if the Cavaliers can get another ring (or at least look like a more serious threat to the Warriors) he’s far more likely to stay.

Because Irving does not possess a no-trade clause, the Cavaliers are not forced to send him where he wants to go (unlike Carmelo Anthony). Irving wants to go to San Antonio, but the Spurs would want to send LaMarcus Aldridge back, a guy who is also older and starting to decline, can be exposed defensively, and it leads to questions about a second ball handler for the Cavaliers. A Carmelo Anthony trade with the Knicks creates the same questions — ‘Melo wants to be a Cavalier, but would he and a young player (Frank Ntilikina or Willy Hernangomez) going to make the Cavaliers better. Or even keep them in front of Boston.

That said, there may be deals with other teams not on Irving’s list that better fit the Cavaliers’ needs. What if Phoenix offers Eric Bledsoe, a young player (Marquese Chriss, Dragan Bender, T.J. Warren) plus a pick? Cleveland gets a good point guard (not as good as Irving overall, but a better defender), a young athletic player, and they can stay near at the top of the East. There will be options like this that come on the table.

3. Trade Irving for young players and picks to jump start a rebuild. This is also known as the “we believe LeBron leaves next summer so let’s just be proactive and get all we can” plan. It should include trading LeBron as well before the deadline and just going into full on rebuild mode.

If the Cavaliers managed this path well — a legitimate question after Dan Gilbert decided he didn’t need one of the league’s best GMs right before the start of free agency — they could stockpile players and picks. It might not be the full Boston stockpile post Garnett/Pierce trade, but it puts the Cavaliers on that road (then it would come down to drafting well and developing players). All of this would require shrewd moves now and patience down the line, but it’s a legitimate course of action.

A fourth option discussed by fans — trade LeBron and rebuild around Kyrie — is unlikely I’ve been told. Start here: LeBron’s importance to the bottom line of the Cavaliers’ franchise value makes him far more important to Dan Gilbert and the organization than Irving. Also, even with what the Cavs get back in trading LeBron it would not make them a contender with Irving as the alpha (he doesn’t defend that well, and he’s not the guy on that team that moves the ball). Plus, Irving may want out still and could leave in 2019 anyway.

Regardless of which option the Cavaliers choose, what matters is not to rush into a decision. If they decide to trade Irving, do not trade out of frustration or anger — it needs to be devoid of emotion. It has to be about getting the best possible return. This summer is obviously a huge turning point for the organization, and they need to make a smart decision.

You know, the kind David Griffin would have made.

John Wall agrees to four-year $170 million contract extension

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John Wall had a designated player super max contract sitting in front of him (figuratively) since July 1, but he wanted to wait and see what the Wizards would do this summer, and talk to his family about a decision that could lock him in Washington for six years.

He saw the Wizards spend — they matched a max offer sheet for Otto Porter. He also looked around the East and decided this is where he wanted to be. He agreed to the extension on Friday, a story broken by David Aldridge of TNT/NBA TV.

This is a four-year, $170 million extension that kicks in after the two-years, $37.1 million left on Wall’s current deal.

Wall has developed into one of the top five point guards in the NBA, averaging 23.1 points per game last season while making his first All-NBA team (the third team, which he thought was a let down). He is a strong defensive point guard and still arguably the fastest guy in the league with the ball in his hands. He and Bradley Beal have formed one of the more formidable backcourts in the NBA.

Wall is now getting paid like an elite point guard, and he is just entering his prime.