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.

Grizzlies’ Josh Jackson to enter diversion program, have resisting arrest charges dropped

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On the court, Josh Jackson‘s status had fallen so far that the No. 4 pick of just two years ago was traded to Memphis in a salary dump for Phoenix (so it could sign Ricky Rubio and re-sign Kelly Oubre).

Off the court, Jackson appears to have dealt with his arrest at a Miami music festival this summer by reaching a plea deal that will keep him out of the courtroom. TMZ broke the story.

Pelicans forward Brandon Ingram says he’s “pretty close” to resuming normal workouts

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METAIRIE, La. (AP) — Pelicans forward Brandon Ingram says he’s “pretty close” to resuming normal workouts as he continues to recover from surgery to address a blood clot in his right arm.

Ingram says he has not resumed shooting, but has worked on his shooting form while also conducting ball-handling and passing drills, as well as lower-body workouts.

Ingram did not give a specific timeline for his return to full basketball activities with the Pelicans, the team to which the Lakers traded him this offseason as part of a multi-player and multi-draft pick deal for six-time All-Star Anthony Davis.

Ingram spoke about his health on Tuesday during formal introductions at Pelicans headquarters for him and three other new players: guard Lonzo Ball, swing player Josh Hart, and center Derrick Favors.

Ball and Hart also were part of the Davis trade. Favors was traded by Utah to New Orleans.

Ingram was averaging 18.3 points and 5.1 rebounds last season before he was diagnosed with deep venous thrombosis in early March.

Lawyer sentenced to 5 years for fraud, scamming Charles Barkley among others

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BIRMINGHAM, Ala. (AP) — A lawyer convicted of swindling NBA star Charles Barkley and using the name of former Secretary of State Condoleezza Rice to bolster an investment scam was sentenced to five years in prison Tuesday.

U.S. District Judge Karon O. Bowdre also ordered Donald Watkins to pay about $14 million in restitution.

Prosecutors had sought a prison sentence of 17+ years for Watkins and 6+ years for his son, Donald Watkins Jr. Both were convicted on fraud and conspiracy charges earlier this year. The two men stole more than $15 million from investors and a bank, prosecutors said.

Bowdre said she took the elder man’s age, 70, into consideration in imposing a lighter sentence, but the term was stiffer than the home confinement requested by Watkins. She then began a sentencing hearing for the son.

During the pair’s trial earlier this year, witnesses including Barkley testified about losing money in an investment scheme run by the elder Watkins.

Barkley, who grew up near Birmingham and now works as a television analyst, described himself as a friend of the elder Watkins, who has split time living in both Alabama and Atlanta.

Barkley lost more than $6 million in investments and loans, prosecutors said, and so did other professional athletes including former NFL players Takeo Spikes and Bryan Thomas and former NBA star Damon Stoudamire.

Stoudamire’s wife, Natasha Taylor-Stoudamire, spoke at the sentencing and said she couldn’t comprehend what Watkins had done.

“I can’t even comprehend how Donald Watkins Sr. and Jr. can take money from me or the rest the victims that were trying to have generational wealth for our children’s children,” she said, according to al.com .

Rice, a native of Birmingham, testified that Watkins wrongly used her name in promoting an energy business at the heart of the case. Prosecutors said Watkins included Rice’s name in an email to investors although she had declined to get involved.

Watkins once served as a city council member in Montgomery and helped successfully defend HealthSouth Corp. founder Richard Scrushy in a massive fraud that nearly bankrupted the company, now known as Encompass Health. He also has worked on civil rights cases.

More than 15 years ago, Watkins drew media attention when he attempted to purchase a major league baseball team. More recently he said he was attempting to purchase the NFL’s St. Louis Rams before the team moved to Los Angeles.

Although he portrayed himself as wealthy, prosecutors said Watkins had a net worth of only a few thousand dollars.

Writing in a blog post before the sentencing, Watkins Sr. said he would continue to appeal his conviction and claimed he was innocent.

“Jurors try to do the right thing, more often than not. However, my 46-years of active participation in the American judicial system has shown me (and the world) that well-meaning jurors often convict innocent defendants,” Watkins wrote.

Dion Waiters shows off slimmed down physique on Instagram

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Suddenly the annual “he lost/gained 15 points and is in the best shape of his life” portion of the NBA summer is upon us.

The Miami Heat are known around the league for having one of the best conditioning programs, guys who go there almost universally get in better shape. Dion Waiters last season seemed to be the exception to the rule. Waiters wasn’t 50-year-old-suburban-dad-with-a-beer-gut out of shape, but coming off an injury where he didn’t get to train like he wanted, Waiters didn’t look like a guy in NBA shape either. Critics lit Waiters up on social media.

Waiters posted his response — he’s been hitting the gym.

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Last year when I came off 1 of the most depressing & frustrating times of my life. Coming off injury & not feeling like myself nor looking like myself I was in a dark place mentally & physically , Because the game I love so much was taken away due to season ending surgery. Now a days with this social media ran world they laughed at me made jokes etc not knowing what I was battling or going through everyday. So instead of me joining the circus I told myself you from (Philly) you’ve been through worst shit in your life than this. So I promise myself I would work my ass off & get back to where I was before the injury. I’m not done yet but I kno somebody in the world prolli needed to hear this. Stay positive block out the outside noise & grind. #Philly🧀 #stayTune

A post shared by 🔥🔥🔥🔥 (@waiters3) on

Good for Waiters.

Let the flood of NBA workout videos and shots of guys with their new physiques begin.

Philly fans will be hoping to see one from Joel Embiid.