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.

Report: Chris Paul increasingly expected to start season with Thunder

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Last week, the Thunder had an expensive point guard who’s into his 30s and didn’t fit a team shifting into rebuilding without Paul George.

Same story now.

Oklahoma City traded Russell Westbrook for Chris Paul to acquire draft picks and shed long-term salary. Getting Paul as a player was of minimal concern. That’s why the Thunder worked with him to flip him. But a team like the Heat wanted draft picks just for taking the three years and $124,076,442 remaining on Paul’s contract.

So, Oklahoma City might hold onto Paul, after all.

Adrian Wojnarowski of ESPN:

The 34-year-old Paul is past his prime. But he’s still good. It’d be interesting to see him once again as his team’s best player after he spent so much time stuck in the corner watching James Harden.

Paul, Danilo Gallinari and Steven Adams could form the core of a solid team this season. Paul can run an offense, and Adams (pick-and-roll) and Gallinari (pick-and-pop) offer nice complementary skills. If Andre Roberson is healthy or if a young player like Shai Gilgeous-Alexander, Nerlens Noel, Terrence Ferguson or Hamidou Diallo takes the next step, Oklahoma City could make real noise.

The Thunder’s biggest challenge: They play in the loaded Western Conference. That makes it far more difficult to make the playoffs. But in terms of team quality, Oklahoma City could be in the thick of competitiveness.

If Paul and Gallinari stay healthy. That can’t be assumed, though Adams can do some dirty work to keep those two clean.

The Thunder have tremendous draft capital – so much of which is tied to the fates of the Clippers, Rockets, Heat and Nuggets. Oklahoma City could tank and improve its draft position further and sooner. But owning so many picks from other teams allows the Thunder to try to win now while simultaneously rebuilding. They don’t necessarily have to waste seasons in the basement just to build themselves back up.

It will probably be easier to trade Paul on Dec. 15. That’s when most free agents who signed this summer become eligible to be traded. Right now, too many teams have untradable players, making it difficult to match Paul’s high salary. Generally, the more of Paul’s contract the Thunder pay out, the easier it’ll be to trade him.

But if Paul declines sharply or gets hurt, his value could diminish even further. There’s risk in waiting, though an injured Paul might allow Oklahoma City to tank anyway.

The Thunder must also cut a few million of salary before the final day of the regular season to avoid the luxury tax. That’s a priority.

So, Oklahoma City will make some move – Paul or otherwise.

But it appears likely we’ll see Paul play for the Thunder. It’ll be a return to Oklahoma City after he played home games there with the New Orleans/Oklahoma City Hornets following Hurricane Katrina.

This isn’t the reunion Paul or the Thunder appeared to desire when the Westbrook trade was agreed upon. I still think it could be pretty cool.

Ben Simmons reverses course, withdraws from Australia’s Word Cup squad

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MELBOURNE, Australia (AP) — Ben Simmons‘ new contract extension with the Philadelphia 76ers came with bad news for Australian basketball fans: The Melbourne-born NBA All-star won’t play for the Boomers at the World Cup.

Hours after Simmons and the 76ers agreed to a $170 million, five-year contract extension on Tuesday, Simmons said he preferred to spend time with his new teammates in September instead of travelling to China for the Aug. 31-Sept. 15 World Cup.

“I wanted to let everyone know that after consulting with my representation, I’ve made the difficult decision to forego playing in the World Cup in China,” Simmons said in a statement.

“Ultimately, we decided it was best that I use the time in September to return to Philadelphia to acquaint myself with my new teammates and prepare for the upcoming NBA season.”

Simmons had been selected for Australia’s World Cup squad and had earlier indicated he planned to play the tournament in China.

He now plans to play only for the Boomers in two exhibition games against the United States in Melbourne on Aug. 22 and 24 at a stadium that is expected to be sold out – 50,000 fans – for each game. He also said the Olympics next year in Tokyo remain on his schedule.

“I will still be heading back home to Australia to host my camps as well as train and play with the Boomers in the upcoming exhibition games,” Simmons said. “I’m really excited about the talent we have on the Boomers squad, especially moving closer to 2020 where I will be honored and humbled to represent my country on the world’s biggest sporting stage at the Olympics in Tokyo.”

Simmons was the No. 1 overall draft pick in 2016. He made his NBA debut in the 2017-18 season and was the Rookie of the Year. He was an All-Star for the first time last season. He has averaged 16.4 points, 8.5 rebounds and 7.9 assists in his two seasons.

Australia’s World Cup lineup is set to feature San Antonio’s Patty Mills, Joe Ingles of Utah Jazz, Phoenix center Aron Baynes, Cleveland’s Matthew Dellavedova, former No. 1 draft pick Andrew Bogut, Detroit center-forward Thon Maker and Simmons’ 76ers teammate Jonah Bolden.

 

Just a reminder, after draft and free agency Wizards have still not named official GM

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When Wizards owner Ted Leonsis finally ended Ernie Grunfeld’s run as team GM back in April — to the joy of Wizards fans everywhere — it was expected they would have a new head of basketball operations in place by the draft.

Nope.

So by the start of free agency, to guide the Wizards through this tumultuous summer?

Nope.

Tommy Sheppard has been doing the job on an interim basis, and as Jeff Zillgit of the USA Today points out a lot of league talk in Las Vegas was about why Leonsis just hasn’t given Shepard the job.

Team executive after executive had the same question when the Washington Wizards’ unresolved top front-office job opening came up. “Why not just give Tommy the job?”

Tommy is Tommy Sheppard, the Wizards’ longtime exec, who has been running basketball operations since owner Ted Leonsis decided not to bring Ernie Grunfeld back. Sheppard ran the draft, free agency and the Wizards’ Summer League team, but he doesn’t have the full-time job.

A couple of more prominent names were linked to the Wizards job at points. There were reportedly talks with Tim Conley, who built Denver into a real threat, but he decided to stay in the Rockies. There were rumors of Masai Ujiri, but he has chosen to stay in Toronto after winning a title.

At this point, after Sheppard has built the team for this coming season, is Leonsis really going to bring in someone else?

The Wizards have decisions to make. This is a young roster not ready to be a threat in the East, but with Bradley Beal and the injured John Wall (likely out for the season after tearing his Achilles), they also are capped out. So far they have turned away calls from other teams about a Beal trade (nobody is calling about a Wall trade with his max contract extension just kicking in).

Come July 26 the Wizards can offer Beal a three-year, $111 million extension, both sides are talking and the offer is expected to be made. That’s when the big decision comes — if Beal doesn’t sign that offer the Wizards have to look at trading him. Beal has spoken numerous times in the past about wanting to stay with the Wizards, but there was plenty of informed league speculation at Summer League that he is frustrated with the franchise and may not sign the extension, essentially forcing his way out. It’s something to watch in the coming weeks.

It probably would be nice to have a locked-in head of basketball operations by then, but who knows what Leonsis will do.

Cameron Payne reportedly agrees to partially-guaranteed contract with Toronto

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Cameron Payne was the starting point guard at one point early in the season in Chicago (until Kris Dunn returned), it didn’t last long, and by the middle of the season he was waived. The Cavaliers picked him up in a limited role at the end of the season.

Payne played for Dallas at Summer League and needed to impress there to have a shot a roster spot for next season. He did, averaging 20 points per game on 51 percent shooting, and he had one 32-point game.

The Toronto Raptors will bring Payne and let him compete to be the third point guard, reports Shams Charania of The Athletic.

The Raptors have Kyle Lowry and Fred VanVleet at the point, there are not a lot of minutes to be had there. However, both men are in the final year of their contracts. Plus, he brings some pregame dancing that every team needs.

The Raptors now have 16 potential NBA contracts coming into training camp, which means there will be cuts. The fact Payne has a decent guarantee his first year means he’s going to get a real look.

Payne, the No. 14 pick of the Thunder back in 2015, has struggled to find a fit in the NBA. While his skill set should fit the modern game, he doesn’t quite shoot or distribute well enough to earn a coach’s trust. He will try to change that with Nick Nurse.