Chicago Bulls creating offseason trade options with latest signings (updated)

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Update: I miscalculated. The Bulls are safe from the luxury tax — at least unless Joakim Noah and Taj Gibson each get $500,00 bonuses.

Because Andrew Bynum signed with the Pacers, Chicago can set off a portion of his salary ($105,564 in this case) — an amount I didn’t account for. That leaves them $791,165 beneath the tax line — more than the $750,000 in leeway discussed below.

Noah ($500,000 for All-NBA first team) and Gibson ($500,00 for All-Defensive first team) could still send the Bulls into the tax. However, even if the Bulls hadn’t signed Ronnie Brewer, Lou Amundson, Mike James and Greg Smith, they still would have had more than $750,00 but less than $1 million in leeway.

So, Chicago can absorb a $500,00 Noah bonus for All-NBA first team and a $250,00 Gibson bonus for All-Defensive second team and avoid the tax. But if Noah and Gibson each get $500,000 bonuses, Chicago will pay the tax.

It’s the same situation regardless of whether the Bulls made their latest run of signings.

In sum, these signings won’t make the Bulls more likely to pay the luxury tax, but they’ll cost Chicago a few extra real dollars. In return, the Bulls get more trade flexibility — a definite win for them.

Original post: The Chicago Bulls, like every team, would like to avoid the luxury tax.

Not only are luxury-tax penalties already costlier than ever, repeater penalties loom. If a team might be willing to pay the tax only while contending, it’s especially prudent not to pay the tax when out of contention.

That’s what makes the Bulls’ situation so fascinating.

With all due respect to the marvelous job Tom Thibodeau, Joakim Noah and crew have done this season, Chicago is an extreme longshot to win the 2014 championship. But once Derrick Rose gets healthy, Nikola Mirotic signs, the Bulls use both their 2014 first-round picks (one from Charlotte) and exhaust their pending cap space… Chicago could get really good – and really expensive – in a hurry.

Yet, the Bulls have flirted with the luxury-tax line this season while still remaining pretty competitive. It’s a tight line to walk – wanting to keep salary low without completely blowing up the team (a dichotomy the Luol Deng trade accomplished).

Chicago caught a big break in that quest when they waived Erik Murphy and the Jazz claimed him, removing his salary from the Bulls’ books. That positioned Chicago to add up to three players and leave $750,000 in leeway under the luxury-tax line for performance incentives potentially due to Joakim Noah ($500,00 for All-NBA first team) and/or Taj Gibson ($500,00 for All-Defensive first team or $250,000 for All-Defensive second team).

The Bulls opted to go another way, though.

Chicago signed Ronnie Brewer, Lou Amundson and Mike James to minimum-salary multi-year contracts, according to Larry Coon. Amundson’s’ agent, Mike Bartelstein, confirmed his client’s contract was for two years. James’ agent, Bernie Lee, did the same for his client.

The multiple years matter, because the NBA pays a portion of the minimum salaries for veterans with at least three years experience and the league’s portion of the payments are not taxed – but only for one-year, 10-day and rest-of-season contracts. By signing those three to multi-year deals, Chicago assumed all payments and the increased tax burden that comes with them.

On the positive side, the Bulls signed Greg Smith – who surprisingly cleared waivers – without having to worry losing their $750,000 leeway, because they’d already lost it.

Smith – like Brewer, Amundson and James – could prove useful in trades after the season. Smith is a talented young big man, and the other three have unguaranteed contracts, according to Coon. That allows their salaries to help a trade match, and then they could be released them without penalty.

All in all, the Bulls are now $685,601 below the luxury-tax line – meaning they can absorb only one of the bonuses potentially due to Noah and/or Gibson without paying the tax.

If the bonuses due to Noah and Gibson fall short of $750,000, the Bulls win. They’ll avoid the luxury tax and will have added potentially useful trade assets.

But if Noah and Gibson both hit their incentives, the Bulls will pay the tax, though they’ll still have tradable assets in Smith, Brewer, Amundson and James.

It’s a calculated risk that I think will work. I project Noah to make the All-NBA first team, but I don’t have Taj Gibson making an All-Defensive team.

However, the downside – paying the tax – is high enough that I don’t believe the multi-year deals were worth it. Had the Bulls waited until Saturday to sign Brewer, Amundson and James, Chicago would have kept its $750,000 luxury-tax leeway and still signed Smith, anyway.

Chicago is choosing to play with tax fire to better position itself for a trade later, perhaps a revealing strategy about the franchise’s long-term plans.

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.

 

Celtics’ Smart ‘ecstatic’ to have summer in limbo over

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BOSTON (AP) — There was a moment during the past month in which Marcus Smart wasn’t sure where he’d be playing basketball this upcoming season.

A day after signing a four-year deal to remain in the only NBA jersey he’s ever played in, Smart said he’s focused on doing what he can to help the Celtics win their 18th championship.

“I’m ecstatic. This is a blessing,” Smart said Friday.

After being in limbo since the start of free agency, Smart cemented his pact with the Celtics on Thursday. A person with knowledge of the agreement told The Associated Press that Smart will be paid $52 million over the next four years. The person spoke to the AP on condition of anonymity because the team did not disclose the terms of the contract.

Boston brings back a 6-foot-4 defensive cornerstone who has developed a reputation for toughness and doing the little things that help the Celtics win. Smart is also the longest-tenured player on the roster.

The confidence that general manager Danny Ainge is showing in his abilities is not lost on Smart, who acknowledged he knew he was entering a tough free agent market this summer.

“To be honest, I didn’t know where I was gonna end up. I was just enjoying this whole process,” he said. “It is a business, so things aren’t perfect. That’s why it’s called negotiations. You guys come together and you finally agree on something. We both agreed. Boston loves me and I love Boston. Boston wants me here and I want to be here. I am here. So we made it work.”

Barring any late changes, Smart’s return also means Boston will be bringing back the core of the team that won 55 games and reached the Eastern Conference finals while battling numerous injuries and being without both Kyrie Irving and Gordon Hayward the entire postseason.

Smart was a huge part of the run, stepping in to a starter’s role after returning from thumb surgery late in the first round of the playoffs. He averaged 9.8 points, 5.3 assists and 3.7 rebounds per game as Boston pushed LeBron James‘ Cleveland Cavaliers to seven games in the conference finals.

Now, James is in the West with the Lakers, and given the emergence of youngsters Jaylen Brown and Jayson Tatum, Smart said he doesn’t see any reason why the Celtics shouldn’t be a favorite to come out of the East.

“We demonstrated the talent and ability we had to do that last year with a few missing pieces. With those missing pieces back in action, I think it really makes it hard for teams,” Smart said. “I think we have a real shot.”

The signing also will allow Smart to shift his attention back to his mother, 63-year-old Camellia Smart, who continues to undergo treatment for the bone marrow cancer she was diagnosed with in April.

“When you kind of go through adversity and something like this hits you and your family, it kind of puts everything in perspective and everything else kind of becomes a blur to you and really not that important,” he said.

He has been with her in Texas since the season ended and said she’s stable and doing well.

“She’s hanging in there,” Smart said. “This is a hard time. But at the same time, it’s an exciting time for my family. So, with the signing, it kind of brings a little joy to a situation and lightens up the situation that was a little darkened for me. … As of right now, she’s doing great.”

As far as basketball is concerned, he’ll continue trying to improve.

“I’m just gonna be working on all aspects of my game. The uniqueness about me is I don’t do one thing perfectly or great. I do a little bit of everything. That’s what makes me so unique. I’m just trying to master a little bit of everything. … If I could just get better a little bit each year, then I did my job.”

 

Raptors president Ujiri apologizes to departed DeRozan

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TORONTO (AP) — Raptors president Masai Ujiri apologized Friday for a “miscommunication” with four-time All-Star and franchise icon DeMar DeRozan, but Toronto’s traded All-Star guard didn’t seem quite ready to make amends.

Speaking for the first time since sending DeRozan to San Antonio for Kawhi Leonard, Ujiri began by saying sorry to DeRozan. The career Raptor had expressed anger and frustration in an Instagram post after learning of the deal, indicating he’d been told he would not be traded.

Shortly after Ujiri apologized Friday, DeRozan added a new post to his Instagram feed: a facepalm emoji, a symbol of frustration and exasperation.

Reflecting on a conversation he’d had with DeRozan at Summer League earlier this month, Ujiri said he “should have handled it better” when discussing future plans.

“Maybe my mistake was talking about what we expected going forward from him,” Ujiri said. “I think that’s where the gap was, because in my job I always have to assume that I’m going forward with the team that I have. If there was a miscommunication there, I do apologize to DeMar.”

Still, after three straight disappointing playoff exits, Ujiri felt something needed to change with the Raptors. He acknowledged struggling with the “human side” of the trade, but decided Leonard was too good a prize to pass up.

Now, Ujiri says, the Raptors “are stepping on territory that we never have.”

“I think if we look at ourselves honestly, everybody knows that we had to do something different, even if it wasn’t this,” Ujiri said. “We had to figure out something different. I take responsibility for that.

“We’ve been doing this how many years?” Ujiri said. “You can’t continue doing the same thing over and over again. And when you get a chance to get a top five player, which doesn’t come very often, I think you have to jump on it. We’ve given a chance to this team, we’ve tried to build it as much as we can but, at this point, this opportunity came in front of us and we had to jump on it.”

DeRozan led the Raptors in scoring in each of the last five years, and was key to Toronto winning a franchise-record 59 games and securing the No. 1 seed in the Eastern Conference last season.

“There’s no measurement for what DeMar DeRozan has done for this organization,” Ujiri said, pledging that the departed guard will be acknowledged “in the biggest way that we can possibly do it” for his nine seasons with the Raptors.

Even with DeRozan, Toronto lost three straight postseason series against LeBron James and the Cleveland Cavaliers, including consecutive second-round sweeps. The Raptors have never reached the NBA Finals.

Leonard, the 2014 NBA Finals MVP, has twice finished in the top three in MVP voting and is a two-time winner of the league’s Defensive Player of the Year award. Ujiri called his new acquisition “a no-nonsense basketball player that plays on both sides of the floor and produces.”

Still, there are reasons for concern. A seven-year veteran, Leonard missed all but nine games last season because of a leg injury. He can become a free agent next summer, and has stated his desire to play for the Los Angeles Lakers.

As long as Leonard is with the Raptors, however, Ujiri will work to show him what Toronto has to offer.

“I think there’s a lot to sell here,” Ujiri said. “Our team, our culture, our city, our ownership. We have everything here except a championship, in my humble opinion. I don’t think we lack anything in this city.”

Leonard has yet to pass a physical, Ujiri said, adding one is expected to happen “in the next couple of days.”

Ujiri, who returned from a trip to Africa earlier Friday, has not met Leonard in person since the trade, but said they have spoken on the phone. Ujiri disputed rumors that Leonard has no interest in playing north of the border.

“He didn’t express a lack of interest about playing in Canada to me,” Ujiri said.

DeRozan and Leonard are expected to be on the court together next week when USA Basketball convenes a national team training camp in Las Vegas. That team is coached by San Antonio’s Gregg Popovich.