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Why second-round NBA draft picks might get paid more than first-rounders this year

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Jordan Mickey had high hopes for the 2015 NBA draft, but his agent warned him: If you fall outside the top half or so of the first round, you’re better off going in the second round. Teams picking high in the second round offer a better fit and more flexibility.

Mickey heard the message.

He just didn’t care.

“The recognition, guys want to say they were a first-round pick,” Mickey said. “That’s something I wanted.”

“I just felt that, the way I play, I deserve it.”

Mickey slipped out of the first round to the Celtics at No. 37. Like many players, he still carries a grudge for the teams that passed on him.

“It’ll probably be with me until I’m done playing the game,” Mickey said.

What separates Mickey from other second-rounders: He received one of the biggest perks usually afforded only to first-rounders  – a higher salary – despite going in the second round.

It’s the product a salary cap increasing higher than ever imagined when this Collective Bargaining Agreement was signed, and this summer’s projected $94 million cap will intensify the effect. Expect several 2016 second-round picks to make more than some of their first-round counterparts next season.

The system

First-round picks are bound by a salary scale negotiated by the league and union into the 2011 CBA. The scale is a set amount for each pick, increasing slightly each year. Teams can pay a player between 80% and 120% of his scale amount, and 120% is so common, it’s practically the set number.

Second-round picks are free to negotiate any contract. Teams must use cap space or an exception – e.g., mid-level or minimum-salary – to sign them.

So, with the salary cap skyrocketing, the proportions for first-round picks have become out of whack. In 2011, the first year of the CBA, the No. 1 pick earned 8.86% of the salary cap ($58,044,000). If the salary cap comes in as projected this year ($94 million), the No. 1 pick will earn 6.28% of the salary cap. That same effect is felt throughout the first round.

Meanwhile, second-round picks are free to partake in the newly available TV money.

There’s an unsaid – sometimes, said – tension behind every contract negotiation between teams and second-round picks. To retain a second-rounder’s rights, a team must extend him a required tender. A required tender is a one-year contract offer, and because that’s the only requirement, it’s always for the minimum and fully unguaranteed.

Teams want to sign players to longer contracts with little to no guaranteed money. That way, if the player pans out, he’s cheap and can’t go anywhere. If he doesn’t pan out, he can be waived for minimal cost.

Second-rounders have varying interests. Some want a long-term deal with more money guaranteed or scheduled if not released. Others want to hit free agency sooner, so they can bargain with all 30 teams rather than just the one that drafted him. For most, both desires apply. Receive enough over a long-term contract, and free agency becomes far less important. Face a cheap long-term deal, and the player can always threaten to sign the required tender.

K.J. McDaniels, the No. 32 in the 2014 draft, famously accepted the required tender rather than sign long-term with the 76ers. He then signed a three-year, $6,523,127 deal with the Rockets last summer. Despite getting just the minimum his first year, McDaniels has already made more than half of the players selected in the first round ahead of him. Next season, he’ll pass a few more in earnings. Plus, he’ll either become a free agent a second time before 2014 first-rounders do so once (if Houston declines his 2017-18 team option to make him restricted) or an unrestricted free agent before scaled 2014 first-rounders (if Houston exercises his team option).

McDaniels’ plan carried risk. If he got cut in his first training camp, he could’ve walked away with nothing.

Still, there’s already a school of thought that players are better off going early in the second round rather than late in the first, that the freedom to negotiate a shorter contract trumps the lower initial salary.

Now, second-round picks can probably have their cake and eat it too – a higher initial salary and more freedom.

Precedent runs deeper than Mickey

Mickey became the first second-round pick under this CBA to sign the year he was drafted and earn more his first year than a first-round pick.

Players that were stashed overseas had done it, but their stock changed from the time of the draft – either because they developed or were ready to jump to the NBA. We’re looking at only players to sign the year they were drafted.

Mickey actually made more than four first-round picks last season: No. 27 pick Larry Nance Jr., No. 28 pickR.J. Hunter (Mickey’s own Celtics teammate), No. 29 pickChris McCullough and No. 30 pickKevon Looney.

Put another way, Mickey received 1.67% of the 2015-16 cap. The No. 20 pick Thursday will receive 1.66% of the projected 2016-17 cap.

Based on that precedent, more than third of the first round could make less next season than a second rounder.

There are deeper ways to evaluate a second-rounder’s contract than first-year salary as a percentage of the salary cap. Future salaries, length, guarantees, options and incentives all matter. But for a quick reference, we’ll go by first-year salary as a percentage of the salary cap.

Several second-round picks under this CBA – Mickey, Richaun Holmes, Chandler Parsons, Draymond Green, Joseph Young, Montrezl Harrell, Allen Crabbe, Jerami Grant, Joe Harris, Roy Devyn Marble, Kyle O'Quinn Tyler Honeycutt and Damien Inglis – have signed the year they were drafted and received a first-year salary relatively higher than what at least one first-rounder projects to make this year.

Here’s everyone on the same scale, the highest paid second-rounders colored by year with 2016 first-round picks interspersed in black:

    • 2015: green
    • 2014: blue
    • 2013: silver
    • 2012: yellow
    • 2011: red

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Previous contracts inform future contracts. If numerous second-rounders previously received starting salaries greater than 1.20% of the cap, agents will demand similar amounts this year. Those amounts will just happen to be worth more than first-rounders can receive.

A couple related factors beyond simply a higher cap conspire to boost second-round salary even further this year:

1. Nearly every team will have cap space. Because teams don’t receive an exception for second-round picks, many teams just didn’t have the ability to pay a second-rounder more even if they wanted to. That will rarely be an excuse now.

2. Many players are locked into contracts signed before the new TV money kicked in. That leaves more money for everyone else.

Well, almost everyone else. The rookie scale prevents first-rounders from enjoying the windfall.

Meanwhile, second-rounders will cash in.

The No. 30 pick will make $1,171,560 next season if he signs in the NBA. How many second-round picks can say “Give me $1.2 million (or more), or I’ll sign the required tender” and have the team acquiesce? I’m betting on several. Plenty of teams will have that much money lying around without a place to spend it, maybe even needing to spend it to reach the floor. Securing their own second-rounders seem as good a use as any.

It’s too late to change the system for this year, but either side can opt out of the CBA after next season by giving notice by Dec. 15, 2016. The rookie scale should be revisited in the next agreement.

A simple solution: Tying the rookie scale, like the cap itself, to revenue rather than ascribing a prefixed amount. Owners avoid the hassle of draft confusion, and players get more money to the players that deserve it.

“There’s no question that the contracts, the salary scale for first first-round picks is outdated,” said agent Mark Bartelstein, who represented two first-round picks who made less than Mickey last year (Larry Nance Jr. and R.J. Hunter).

But what about in the meantime?

Prepare for second-round saga in ’16

The 2016 draft is already hectic with several players having wide draft ranges. The second-round issue only adds uncertainty.

Will agents try to steer their players from the first round to the second round?

“If you’re projected to be a low first-rounder, it would be absolute lunacy not to work out with teams in that range, because you can easily fall,” said agent Keith Kreiter, who represented Richaun Holmes, the second-highest-paid second-rounder last year. “If you don’t work out for teams in the lower first and they pass on you, and some teams in the 30s end up passing on you – there’s no guarantee they’ll take you – then you’re in the 40s and 50s and you could be running the risk of straight minimums with very little guaranteed.”

Though there’s more money to be made in the high second round, there might be big downside to falling further. For players on their first NBA contracts, playing it safe makes some sense.

“A first-round deal isn’t so terrible in this world,” Kreiter said.

But there’s still wiggle room to work the system.

“One of the things I could see happening is you have a wonderful workout for a team in the 30s, high 30s, a team says, ‘Would you be willing to shut it down, and we’ll take you?'” Kreiter said. “There are some people that would maybe take that risk, although it’s a huge risk.”

Until Thursday, the question is which players this affects. Then, with everyone selected, it’ll turn into the magnitude of the effect.

How many second-rounders get more favorable contracts than first-rounders? How much more favorable? Will second-round negotiations become more contentious with more at stake?

It could become chaos, and Mickey is the trendsetter.

“It’s always a great thing to be the first at something,” Mickey said. “Hopefully, other players can do it.”

I suspect plenty will.

Report: Clippers’ management remains committed to re-signing Blake Griffin

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Maybe Friday night in Utah, maybe not for a few weeks, but the Clippers season is going to end before they reach the conference finals, and with Blake Griffin sidelined by injury. It’s an all-too-familiar scene. It will be six seasons of the Chris Paul, DeAndre Jordan, Griffin experience in Los Angeles, and they will not have gotten out of the second round (unless you think they can come back on the Jazz from down 3-2, then beat the Warriors).

That has come with a lot of talk about the Clippers breaking up the core. Jordan remains under contract, Paul would be too hard to replace, and that leads to a lot of speculation — inside and outside the league — that Griffin could be on the move this summer, when he becomes a free agent.

That’s not what the Clippers want, reports Adrian Wojnarowski of The Vertical at Yahoo Sports in a video essay.

Management remains committed to signing him to a long-term deal this summer, league sources tell me.

Doc Rivers has said he wants to bring back this core. Multiple times. His argument is that this is a 50+ win team that is one of the better teams in the NBA, why would you take a big step back rather than look for the tweaks that get the team to a title?

Steve Ballmer has the checkbook deep enough to pay both Paul and Griffin max money (although keeping fellow free agent J.J. Redick as well would be difficult). The Clippers will have one of the highest payrolls in the NBA, and is this team worth that? Especially in a conference where the Mount Everest of Golden State is not going anywhere for a few years, not to mention the Spurs and Rockets will remain good, Utah is on the rise, and so are teams like the Wolves. The Clippers will be a good team that needs a lot of breaks to go their way to really contend — how much would Ballmer pay for that?

The Clippers need to do some soul searching this offseason.

Just don’t be shocked if the result of that is them running this team back again.

Playing through sore knee, Jimmy Butler says “I’m good,” will go in Game 6

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At this point in the season, everyone is banged up. It’s just a matter of degree.

But with Rajon Rondo listed as out for Game 6, the Bulls’ need a big game from Jimmy Butler if they are going to extend this series to a Game 7. And he is not near 100 percent.

In Game 4, Butler banged knees with a Celtic and it impacted him during Game 5, as Vincent Goodwill detailed at CSNChicago.com.

But he could only muster two shots and barely seemed to push off on his left foot—his lead foot, and it hampered what the Bulls could do late as he was their prime fourth-quarter performer.

He couldn’t even go straight up on a jumper over the diminutive Isaiah Thomas without pump-faking, throwing off his rhythm. He wouldn’t elaborate on the injury, although he said it happened during the second half of Game 4 on Sunday night when he collided with a Celtics player.

“I’m good. Everyone’s a little nicked up; I’ll be all right,” Butler said in the locker room.

K.C. Johnson of the Chicago Tribune added this detail.

Boston has done a good job of limiting the number of times Isaiah Thomas is exposed on defense, having to cover Wade or Butler. Essentially, the Celtics switch in sort of a matchup zone to keep IT covering a shooter on the wing, even if his man goes up and sets the pick. Zone’s can be exposed (there’s a reason they’re more a change-of-pace rather than a basic set defense in the NBA), but it involves getting into the middle, getting into the paint. Which comes back to driving the ball and pushing off, things that Butler is struggling to do at his usual level.

There are a lot of other factors favoring Boston in Game 6, but if Chicago is going to force a Game 7 Sunday they need Butler to be an All-NBA level player.

Knicks’ Joakim Noah has expected shoulder surgery to repair rotator cuff

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NEW YORK (AP) — Knicks center Joakim Noah has had right shoulder surgery to repair his rotator cuff, a procedure that could sideline him until training camp.

The Knicks say Noah had the surgery Wednesday at the Hospital for Special Surgery in New York, performed by Dr. David Altchek.

The team didn’t give a timetable for Noah’s recovery, but coach Jeff Hornacek said late in the season that if Noah had the operation, the recovery time could be five months.

Noah had an injury-plagued season that ended early when he was suspended 20 games by the NBA for violating the league’s anti-drug policy. There are still 12 games remaining on the penalty that he will have to serve next season when healthy.

Noah had surgery on his other shoulder last season, limiting him to 29 games in his final season in Chicago before signing a four-year, $72 million deal with New York.

PBT Extra: Pacers offseason moves start with Paul George

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Larry Bird, when not delivering All-Star Game bids, should be spending his time lighting candles and praying in churches all over Indianapolis that Paul George makes an All-NBA team.

If PG13 makes the cut, Bird’s job this summer becomes more clear: Offer George the designated player max extension, get him to sign the deal, then get back to building a contender around him.

If George doesn’t make the cut, things get much tougher for Bird. I discuss all of it in this new PBT Extra.