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

5 Comments

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: Luke Walton sued for sexual assault

Getty Images
4 Comments

Luke Walton is being sued by a female reporter claiming sexual assault from a hotel room incident that dates back to before he was hired as the Lakers’ head coach (he was recently let go from that position and is currently the coach of the Sacramento Kings).

Kelli Tennant was writing a book and wanted Walton to write the forward, according to a lawsuit obtained by TMZ. The two had a business relationship and she agreed to meet him in a Santa Monica hotel to discuss him writing the forward to the book, according to the report. We’ll let TMZ take it from there:

In the suit, Tennant says when she arrived at Walton’s hotel, he convinced her to come up to his room so they could discuss the book. She claims when they got up to his room, Walton suddenly pinned her to the bed, placing his hips and legs over her body.

In the docs, Tennant claims Walton then began forcing kisses on her neck, face and chest. She claims she screamed for him to stop and tried to free herself, but he held her down, groped her breasts and groin, and rubbed his erection on her leg.

She says he eventually relented and let her get up from the bed, but as she was walking towards the door to leave he grabbed her from behind and again forced his body up against hers.

The lawsuit goes on to say Walton and her would interact after that, because of her job, and he would give her exaggerated hugs, kisses, and would make lewd comments to her.

Walton took over coaching the Lakers for the 2016-17 season. The alleged assault took place while Walton was still an assistant coach with the Warriors, however, some of the comments/actions that made her uncomfortable came later while Walton was with the Lakers.

Walton has yet to comment on the lawsuit.

The Sacramento Kings have made a statement:

“We are aware of the report and are gathering additional information. We have no further comment at this time.”

The Warriors issued this statement:

“We became aware of the alleged incident and story this evening and are in the process of seeking more information. We’ll have no further comment at this time.”

The Lakers issued this statement:

“This alleged incident took place before Luke Walton was the Head Coach of the Los Angeles Lakers. At no time before or during his employment here was this allegation reported to the Lakers. If it had been, we would have immediately commenced an investigation and notified the NBA. Since Luke Walton is now under contract to another team, we will have no further comment.”

NBA fines Brooklyn part-owner Joe Tsai for Tweet backing his GM challenging referees

Getty Images
3 Comments

I just hope he can afford this.

Brooklyn Nets GM Sean Marks was suspended and fined by the league for breaking a taboo and going into the officials’ locker room after the Nets’ Game 4 loss at home to challenge the referees. Marks — along with pretty much every Nets’ fan — was livid about how Philadelphia’s Joel Embiid has been officiated in the series.

Brooklyn minority owner (for now) and alternate governor Joe Tsai Tweeted this about Marks.

The NBA has fined Tsai $35,000 for “making public statements detrimental to the NBA.”

Tsai is the second-largest shareholder of online shopping powerhouse Alibaba and is worth an estimated $10.2 billion. He owns 49 percent of the Nets.

Virginia’s Kyle Guy staying in NBA draft, not returning to Virginia

Getty Images
Leave a comment

Virginia is going to lose three starters from its national championship team. De'Andre Hunter is a likely top-7 pick that a lot of teams think can be a good “3&D” NBA player. Ty Jerome is a bubble first-round pick expected to stay in the draft. Mamadi Diakite also has his name in the mix.

Now it’s official, Kyle Guy says he is keeping his name in the mix.

Guy had 24 points in the title game against Texas Tech and was named the NCAA tournament’s Most Outstanding Player for leading the Cavaliers to a title.

What he brings is shooting — he hit 42.6 percent from three this past season. He moves well off the ball and can catch-and-shoot, skills that NBA teams want. However, while he was a playmaker in college his handles and passing need work to be NBA ready, according to scouts. There also are concerns about his athleticism at the next level, and with that how well he can defend.

Guy is likely a second-round pick if taken at all, but he’s all in and going to take his shot while at the hight of his college career.

Hawks’ Lloyd Pierce replaces Pacers’ Nate McMillan as Team USA assistant coach

Harry How/Getty Images
Leave a comment

Spurs coach Gregg Popovich is taking over Team USA, and he has assistant coaches for the 2019 World Cup and 2020 Olympics:

  • Warriors coach Steve Kerr
  • Pacers coach Nate McMillan
  • Villanova coach Jay Wright
  • Hawks coach Lloyd Pierce

USA Basketball release:

Atlanta Hawks head coach Lloyd Pierce was named to the USA Basketball Men’s National Team coaching staff today. Pierce replaces Indiana Pacers head coach Nate [McMillan] who withdrew because of scheduling conflicts.

This is a pretty big honor for Pierce, who just completed his first season as an NBA head coach. He guided Atlanta to only a 29-53 record.

But the young Hawks, especially Trae Young, improved throughout the season. Atlanta pushed the pace, hoisted 3s and defended aggressively (though not well). An identity is forming.

Though it’s far too early to say much about Pierce’s head-coaching acumen, he acquitted himself well in his first year.

Working with Team USA could even help Pierce ingratiate himself with stars. This could eventually pay off for the Hawks in free agency.