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.

As expected, Denver’s Wilson Chandler to opt into $12.8 million next season

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Wilson Chandler played a workmanlike role for the Nuggets last season — more than 30 minutes a game (in 74 games), 10 points a night, shot 35.8 percent from three. His efficiency and value slipped from previous seasons but he still played a role for the team.

Not the kind of role that’s going to earn him a big payday as a free agent, so he will opt into the $12.8 million for next season, a story broken by Chris Haynes of ESPN.

Denver Nuggets forward Wilson Chandler will exercise his player option for the 2018-19 season, league sources tell ESPN.

Chandler, 31, is opting into a $12.8 million salary instead of entering free agency this summer. Denver was notified of his decision on Friday.

Chandler’s name has come up in trade discussions in recent years, and no doubt the Nuggets would be happy to move his salary now, too. However, in a tight financial market it’s unlikely that’s happening without Denver throwing in a sweetener, and that’s not likely either. So it will be another season of Chandler in Denver.

Deandre Ayton arrives as symbol that Suns are on the rise

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PHOENIX (AP) — Since the heady days of Steve Nash came to an end, there have been few signs of joy from a dwindling fan base that watched the Phoenix Suns tumble to the bottom of the NBA standings and miss the playoffs for the eighth year in a row.

Then came the announcement that Deandre Ayton would go to the Suns with the first overall pick. A huge cheer went up from the several thousand fans at Talking Stick Resort Arena on Thursday night for the draft party. General manager Ryan McDonough, owner Robert Sarver and coach Igor Kokoskov came out of their meeting room to watch and bask in that rare moment of sheer joy from the fans.

“It was a pretty special moment for our franchise,” McDonough said.

Not only that, but McDonough engineered a last-minute trade for swingman Mikal Bridges of Villanova, the 10th pick. It was a spendy move because Philadelphia demanded and got Miami’s unprotected 2021 first-round pick. But the Suns are weary of stockpiling assets. It’s time to cash in, they figured, and did it with that trade.

“We weighed the pros and cons of trading it heavily and carefully,” McDonough said. “We were only going to put it in play if we had a chance to get a special player and that’s how we feel about McKell.”

All four of the Suns’ picks showed up on a crowded dais in Phoenix on Friday – Ayton, Bridges, French point guard Elie Okobo (chosen 31st) and forward George King of Colorado (the 59th selection).

The 7-foot-1 Ayton towered over the others, in a white unbuttoned collared shirt and a sharp blue suit, but he looked and sounded a bit weary from the whirlwind of being the No. 1 draft pick. His only sleep lately, he said, was a couple of hours on the plane ride from New York on Tuesday.

“I’m just excited to finally get a jersey on and be able to play five-on-five again,” Ayton said.

Ayton had been the frontrunner for the No. 1 pick ever since the draft lottery and any doubts were erased when he went through an individual workout with the Suns, the only team which he did so.

McDonough said that Ayton’s workout “in and of itself was as impressive as I’ve ever seen in my 16 drafts in the NBA.”

Ayton is seen as strictly a center, so how does he fit in the modern style of the NBA, when center plays is diminished and players are essentially interchangeable, is a question. Ayton replied that he’s no ordinary center.

“I don’t like it when people think I’m just a guy down low,” he said. “They haven’t watched me shoot the basketball.”

Ayton and Bridges say they got to know each other well at the college awards ceremony in Los Angeles but never figured they’d be on the same team.

“It’s like I’ve known him my whole life,” Bridges said.

Now comes the hard work, molding a team with Ayton, Devin Booker and Josh Jackson. A billboard of those three already has been erected downtown.

The Suns, so bad for so long, seem on the brink of being relevant.

“We’re very hungry,” Ayton said. “I think the great team chemistry and the work ethic that we have, especially us guys coming in, we’re going to bring it to the next level. We’ve got young lets. We can run all day. … We can really start a winning legacy.”

And Ayton is the reason for the sudden leap in optimism, even though he won’t turn 20 until next month.

“I embrace it a lot,” he said of the expectations placed upon him. “Through my career I’ve always had that on my shoulder, the expectations. I represent a whole nation (Bahamas) I just do that the best that I can and just help this community start over and be the best player I can possibly be. I just want to be the best great player.”

Kokoskov says Ayton possesses “a unique talent for the decades.”

Ayton said he wants “to be the best person on and off the court.”

Now the Suns move on to the next phase. Free agency starts July 1 and McDonough wants some veteran players to add to this very young core. He said the team should have $15 million to $20 million to spend.

“We were aggressive last night with the picks and the trade up to get Mikal,” McDonough said. “We’re going to continue to be aggressive for the next couple of weeks in free agency. We’ve got some money to spend and we’re looking to spend it on the best players we can get.”

Hornets GM Kupchak: Kemba Walker focal point of franchise going forward

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CHARLOTTE, N.C. (AP) — General manager Mitch Kupchak wants point guard Kemba Walker to end his NBA career right where it started — with the Charlotte Hornets.

Kupchak said Friday that Walker is “revered” in the Charlotte community, and that he and owner Michael Jordan look at the two-time All-Star as “the focal point of this franchise going forward.”

The 28-year-old Walker has been the subject of possible NBA trade talks as he prepares to enter the final year of his contract with the Hornets. That speculation has amped up recently because it is a practical impossibility for Charlotte to sign Walker to an extension before he becomes a free agent in July of 2019 since the Hornets are so tight under the salary cap.

“I think everybody is aware of the situation, if you follow basketball a little bit, it is unique that he is on an extension that may make it a challenge going forward to figure out before he becomes a free agent,” Kupchak said.

At $12 million per year, Walker well underpaid when compared to the other top point guards in the league.

But that doesn’t mean Kupchak is giving up hope the team can keep Walker in Charlotte.

“I don’t think it is anybody’s goal to lose him in free agency,” Kupchak said. “But going forward, in the community, in the franchise, this is a player that we hope is with us – not only for the next couple of years, but ends his career here.”

The Hornets don’t have much experience behind Walker at point guard.

They have last year’s first-round draft pick Malik Monk and drafted Devonte Graham from Kansas in the second round on Thursday night.

Graham said he is excited to pick Walker’s brain when it comes to basketball.

“I have never met him, but I remember watching him play when he was at UConn though,” Graham said. “I’m just excited man to learn from someone like that and just be around someone like that who is winner, and knows how to win and compete. I am looking forward to being able to learn from him.”

 

Another report Spurs will not trade Kawhi Leonard within West

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The people around Kawhi Leonard made it clear (through leaks to the media, not by talking to the Spurs at first): Leonard wants out of San Antonio, and he wants to go to Los Angeles. Specifically, the Lakers.

Almost as quickly, the Spurs leaked that they were not going to trade Leonard to the Lakers or any team in the West.

Sam Amick of the USA Today echoed that sentiment in his discussion of LeBron James‘ offseason options on Saturday.

But in the days that followed, the Spurs wasted no time in sending this message all around the NBA: The only Western Conference team he might be playing for is theirs.

Fellow West teams have been told, in essence, to get lost – none moreso than the Lakers, according to ESPN. As it stands, the Spurs are determined to either fix the situation or trade Leonard to an Eastern Conference team.

Leonard has leverage here: He can tell teams he will not re-sign with them and will leave as a free agent. That will scare off most teams who don’t want to put in

Would it scare off Boston or Philadelphia? The rumor is no. Those teams have real interest in Leonard, and both have the assets to get a deal done and make the bet that a year in their cultures, with their coaches and top players, a year contending, and with their fans and city would win Leonard over. Just like Oklahoma City made that bet with Paul George. Also, whoever trades for Leonard will be able to offer a five-year, $188 million contract, while as a free agent the max will be four years, $137 million. For a guy who just missed almost an entire season with an injury, that guarantee can matter.

Boston could go all in on an offer — Jaylen Brown, Marcus Morris, the Kings first-round pick next season (top one protected) and the Clippers first round pick next year (lottery protected). Philadelphia could put together an offer of Markelle Fultz, Robert Covington, and Miami’s unprotected 2021 pick (the first year high schoolers likely re-enter the NBA draft, making it a deep one).

The question is would those team put in all those assets on a bet they would win Leonard over?

The other big looming question, when the offers start to come in will a rational Spurs front office reconsider and look at a trade from the Lakes of Brandon Ingram, Kyle Kuzma, a future first, and the contract of Luol Deng to balance out the numbers. Would they consider it superior because they like Ingram? (That trade may require a third team to take on Deng’s contract, and the Lakers might need to throw in Lonzo Ball or some other sweetener to get a team to take on Deng’s $36 million remaining.)

Expect the Spurs to take their time with this, try to win Leonard back over, then consider all their options. They are in no rush, in fact, they’d love to create a bidding war for Leonard. Any offer from Boston and Philadelphia on the table in July will be on the table in September when training camps open. The Lakers, however, may be in a very different space.

It’s going to be a very interesting next few weeks.