The Inbounds: How to avoid the luxury tax and influence the playoffs, a Chicago Bulls story

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Welcome to The Inbounds, touching on a big idea of the day. It could be news, it could be history, it could be a tangent, it could be love. OK, it’s probably not love. Enjoy.

There’s something obscenely obvious in the fact that we, the media (but not really because most NBA media think Bird rights have something to do with trash talk about a three-point shot), the basketball twitter intelligentsia, fans,  whoever rail on the Chicago Bulls for doing precisely what we rail on other teams for not doing.

They don’t overspend. They don’t overpay for a non-contender, and they work diligently to get the best deal possible in every negotiation. Those are all good things, right? We acknowledge that the concept of overpaying is inherently bad? You can’t say the Miami Heat overpay for anyone, it’s not just that they win but the production they get from any given player relative to their position and standing is worth the investment made. The Spurs have made a killing off of getting their top guys to buy in to the point they actually take paycuts and then getting value guys on value deals to plug in around them. These values are good. You can argue the opposite, that if your owner is willing to swallow that luxury tax, the money doesn’t matter, at least not to fans, but it’s difficult to say that avoiding overspending is bad.

And yet it’s pretty conclusive that everyone finds the way the Bulls do business… distasteful.

And I’m not talking recently. Not like Jerry Reinsdorf just walked in off the dot-com craze. The man’s been cracking walnuts since Jordan. Let me re-emphasize this. We’re talking about a guy who busted spherical objects regarding the greatest player of all time, in his prime, his All-Defense perfect sidekick and arguably the greatest coach of all time, just to save a few bucks.

This is not some small-market, struggling franchise we’re talking about. Reinsdorf’s not selling his car(s) to pay his mortgage (since, you know, real estate is his bag, that would be especially shocking).  The Bulls have consistently been in the top five for attendance regardless of how good they’ve been, and in the top three for profit according to Forbes for several years. They make money hand over horns. It’s a major-market team with a cool color scheme who happens to be identified with the greatest player of all time. So yeah, they do pretty well. But that hasn’t stopped them from making fiscal responsibility their No. 1 priority at all times.

And we’re seeing it today. From Tom Thibodeau’s contract to whether to match Omer Asik, to all of a sudden, yes, signing Marquis Teague, there’s always something the Bulls are doing to scratch out a few more dollars. What’s up with Teague, you ask? Take it away, Mark Deeks:

Nevertheless, however small the 2012/13 saving will be in the context of overall payroll expenditure, it seems to have been deemed sufficient. As mentioned above, the Bulls are over the luxury tax as of today. They have $71,837,061 committed to only 11 players, not including Nate Robinson, nor Teague. They’ve never been above it before, and they surely don’t intend to be above it this time – it doesn’t take a great deal of foresight to see the Bulls trading Rip Hamilton at the deadline, with enough cash to offset his remaining salary, at a time that Derrick Rose is able to play again, and after Rip has (theoretically) rebuilt his value as a player. This is pretty much guaranteed to happen. And it will be much easier to achieve the less they sign Teague for. The cheaper he comes, the more dead weight salary Chicago can take back for Rip, the easier he’ll be to deal.

via ShamSports.com: NBA News That Doesn’t Really Matter: Marquis Teague is still unsigned, and you’re probably not going to like why.

So to make sure the have room to ditch Rip Hamilton in order to avoid the luxury tax, they’re working down the total amount of Marquis Teague’s rookie contract.

It’s here that we have to address the Boozer issue. The Bulls do in fact employ Carlos Boozer on a pre-2012 max contract. So you can say that they a. committed to a max deal for a free agent in order to contend b. overpaid for a player and continue to do so and c. have not amnestied him to get under the tax, despite two opportunities to do so. But you have to understand, when Boozer was given that contract, it was market value. It wasn’t a great deal, but it also wasn’t a disaster. It will look worse as time goes on because of the new CBA, and there’s no way to spin it was a good deal, but it was also not a bad deal. (It did, however, almost immediately morph into a bad deal. So there’s that.)

And the discussion of amnestying Boozer loses the point a little bit. If you’re trying to avoid the luxury tax, you want to save money, right? Well, even if you amnesty Boozer, and someone takes some portion of his deal on the amnesty waiver (which someone would), the Bulls are still paying for the remainder of that contract, plus the money to bring in players to replace him. Off the league’s books isn’t off Chicago. What’s the point in amnestying Boozer to save money when amnestying him if you wind up spending in total what you’d spend in the luxury tax anyway, paying him off and then replacing him?

(It should be noted the one huge counter to all this, the relative ease to which Derrick Rose was signed to his extension, only re-enforces the point. It’s not that the Bulls don’t spend the money on what they should, it’s that they tend to carry any opportunity to squeeze blood from stone to the furthest possible moment and then go on with it. Rose’s structure was determined by the CBA and there was little to carp on, hence why the deal got done smoothly. They’re still a team with a high payroll, just one that constantly is working to scrape the crust off the top.)

The Bulls are a classic example of what we expect from big-market owners. We expect them to break the bank to build a winner, to use the resources at their disposal to abuse the inherent advantages and develop a contender. The Bulls have instead tried to develop a contender with considerate, you can even say frugal spending, and have done a pretty decent job at it. But they’re judged on a big-market curve and it’s there that they fail.

Which is not to say that I’m advocating in favor of the Chicago Way, here. (They put one of your guys in the hospital, you trade Kyle Korver to the morgue!) The fans and city have provided them with one of the most successful franchises in sports. They’re asking for the team not to waste Derrick Rose’s career, to pay what they need to to contend, to not use circumstance (Rose’s injury, the new CBA, age, health, etc.) to justify spending cuts, which is a classic Bulls move. That’s pretty reasonable. Bulls fans wouldn’t be upset if the team was bad and they cut spending. They’d be happy. Fans want cheap losers to allow for improvements to make expensive winners.

The fact may be that despite all the punitive efforts of the new CBA, the new NBA model may dictate that for big-market franchises to compete at the level to which they have become accustomed to, they’re going to have to time when they want to bite that bullet. And Reinsdorf has repeatedly dangled that carrot. Somewhere, someday down the line, he may pay that luxury tax. But until then, he’s going to keep maneuvering to suck the most money out of late-first-round rookies, swapping out bench units when they become available to reach market value, tip-toeing around paying a top-three coach in the league what he’s worth, and making mountains of cash off the process.

It’s infuriating. It’s genius. It’s frustrating. It’s sustainable. It’s a bad way to run a team. It’s a great way to run a business. And they’ll still manage to succeed enough to put the criticism at bay when the ball is tipped. Thank God for Derrick Rose.

Would Dwyane Wade take a big payday in China? Would Jahlil Okafor?

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Dwayne Wade is making a tough decision: Does he want to go through the physical grind to get his body ready for one more season of NBA basketball in Miami? Or, is it time to retire?

For some of the greats — most recently Kobe Bryant talked openly about this — they still love the game and the camaraderie, but they get to a point they no longer have the same passion for putting in the increasing work on their bodies to get it in NBA-level condition to perform at the level they expect. Wade is struggling with that debate right now.

Or, he could just go to China.

From Sportando:

Dwyane Wade is still a free agent after his season with Cavaliers and Heat. Wade has not decided yet whether to play one more season or retire. But D-Wade is wanted in China. Xinjiang Flying Tigers are ready to offer him a monster deal, as reported by Zhang Duo.

It’s hard to imagine Wade jumping on that, but not impossible. The salary is not going to be the motivator — he has made just shy of $180 million in salary alone in his career, and much more with endorsements — but rather the move would be about building his brand and his new lifetime shoe deal with Li-Ning, a China-based shoe manufacturer. Business-wise, it could be good for Wade to spend a season in China.

Of course, family and other considerations have to be at the forefront of his mind, which is why this still feels unlikely. Just never say never.

One guy who could go there and rehab his reputation is free-agent Jahlil Okafor. Also from Sportando:

Okafor is practicing in Miami but the Heat are unlikely to sign him but in China there are several teams interested in signing the former Duke center, as reported by Zhang Duo.

Okafor has worked out for NBA teams but has no offers (or, at least none he’s taken) and it’s increasingly unlikely he would get a fully guaranteed contract for this season. He, understandably, is clearly still working toward that goal.

In China, Okafor could put up big numbers, show he is healthy and moving well, get a good payday, and be back in the USA in time to get picked up by a team for a playoff run (the Chinese season ends in February or March, depending on how deep a team goes in the playoffs). It’s a big cultural adjustment and not for everyone, but Okafor has to be considering all his options at this point.

Jazz ending sponsorship deal with Papa John’s

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SALT LAKE CITY (AP) — The Utah Jazz are ending their sponsorship agreement with Papa John’s Pizza after the company’s founder and spokesman used a racial slur.

A person with knowledge of the team’s decision confirmed the move Friday and said it was because of the controversy. The person spoke on the condition of anonymity because the organization will not make a formal announcement.

A number of professional and college teams have cut ties to the company over Papa John’s founder John Schnatter’s comment during a company conference call in May. Among them are the Orlando Magic, Seattle Seahawks, New York Yankees, Baltimore Orioles, University of Louisville,  and numerous others.

Schnatter apologized and stepped down as chairman but remains on the company’s board. He’s since said his decision to step down was a “mistake.”

The company says it’s also investigating allegations reported in Forbes that Schnatter oversaw a work culture where women were subject to sexist behavior.

 

Report: Nemanja Bjelica agrees to three-year contract with Kings

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Nemanja Bjelica wanted some stability. That got pulled out from under him when  Tom Thibodeau and the Timberwolves rescinded his qualifying offer. He quickly agreed to a one-year, $4.4 million offer, with Philadelphia, but then came to regret it because he wanted more security than that single season. Bjelica was considering Europe.

Then the Sacramento Kings stepped in. Friday night, the two sides reached a deal.

The Kings have signed both players who backed out of verbal agreements with teams this summer, Bjelica with the Sixers and Yogi Ferrell with the Mavericks.

Bjelica is a floor-spacing big man who should fit in well with the Kings’ frontcourt rotation that includes Marvin Bagley III, Harry Giles, Willie Caulie-Stein, and others. Bjelica provides shooting — he hit 41.5 percent from three last season (where he took nearly half his shots). Bjelica has a solid all-around game that a lot of teams could have used. Including Minnesota and Philly.

Suns acquire Richaun Holmes from 76ers, Darrrell Arthur from Nets

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PHOENIX (AP) — The Phoenix Suns have acquired power forward Richaun Holmes from Philadelphia and forward Darrell Arthur from Brooklyn.

The Suns sent cash considerations to the 76ers on Friday for Holmes, and got Arthur from the Nets for forward Jared Dudley and a protected 2021 second-round pick.

Philadelphia made the Holmes deal to help clear salary cap space to sign 2017 second-round pick Jonah Bolden to a $7 million, four-year contract. Holmes averaged 7.4 points and 4.2 rebounds in four seasons with the 76ers.

The Suns are expected to buy out Arthur’s $7.4 million contract to clear enough salary cap space for Holmes.

Arthur has played nine NBA seasons, the last five with Denver before being dealt to the Nets on July 13. He has appeared in 503 games with Denver and the Memphis Grizzlies, averaging 6.5 points and 3.5 rebounds.

Dudley, an 11-year NBA veteran, spent the last two seasons with the Suns in his second stint with the team.