Plenty of agents spent this summer trying to explain to their clients that the summer of 2017 was not the summer of 2016 (one I know of even was thanking media members in Las Vegas who wrote about how tight the free agent market had gotten so he could show his clients). Players saw the ridiculous contracts of 2016 — Timofey Mozgov got four-years, $64 million; Bismack Biyombo got four years, almost $70 million; and that’s just the tip of the iceberg, players deep into rosters were overpaid — and thought this summer it would be their turn.
Except it wasn’t. In 2016 the salary cap spiked from $70 million to $94 million and that meant 27 teams entered free agency under the cap (and the teams over it spent big to re-sign their own), and $5 billion in contracts were handed out. This summer, 14 teams were under the $99 million cap and about $3 billion was handed out — and once the stars such as James Harden got paid big, the market dried up and players got less than expected. Four-time All-Star and elite defender Paul Millsap would have been a clear max a year ago, he could “only” get three years (at age 31) at $4 million less than his max. Kentavious Caldwell-Pope would have been a lock max in 2016, he signed a one-year deal with the Lakers for $18 million this summer. And further down the list guys like Rajon Rondo are signing team-friendly deals.
And next summer is going to be a far tighter market. As Tim MacMahon and Bobby Marks of ESPN point out, the free agent class of 2018 is going to pay for the excess of 2016.
The early projections for 2018-19: nine teams with cap space, and potentially 10 teams paying luxury tax.
“The real story is the nuclear winter for free agents coming next year,” one team executive with authority to make personnel decisions told ESPN. “Teams planned the last two summers for the cap to be much higher. The fact that it went way down from the projections crushed teams.”
Another general manager put it this way to ESPN:
“What I see all the time is players not understanding why, ‘This player got this, but I get that?’ They want it to make sense and it just doesn’t make sense. I think you’ll see a lot of agents get fired.
“The top guys will always feed first and then the year of the cap spike, there was a lot left for everybody else to feed. Next year, the top players will still get theirs, and then there will be not much left.”
NBA teams are not going to negotiate deals off the mistakes of 2016, they see that as the outlier to be ignored.
The Summer of 2018 is loaded with top free agents who are going to get max contract offers from their own teams and those with enough cap space to try and poach them — LeBron James, Kevin Durant (he will re-sign with Warriors), Russell Westbrook, Paul George, Chris Paul, DeMarcus Cousins, plus restricted guys who could see max deals such as Joel Embiid and Nikola Jokic. There’s even a second tier of guys who will be maxed out or close to it — Andrew Wiggins (extension eligible right now), DeAndre Jordan, Isaiah Thomas, and others.
But that next tier down? How much will teams pay for Robert Covington? Aaron Gordon? Clint Capela? Kentavious Caldwell-Pope? Danny Green? And for guys counting on the one-year deals they signed this summer to boost their stock — we can use Derrick Rose as an example — even if they play well they may not see the money they expect.
The league and owners had wanted to smooth in the salary cap spike of 2016, raising it fair amount over three or five years to avoid the spending spree, but the players’ union rejected that idea. For the free agents in the summer of 2016 that worked out well. For the ones in the 2018… not so much.