Lance Stephenson is the Pacers’ fork in the road

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If the Pacers re-sign Lance Stephenson, they’ll have $5,305,000 to sign a free agent.

If the Pacers don’t re-sign Lance Stephenson… they’ll have $5,305,000 to sign a free agent.

Indiana will be over the cap even if Stephenson walks, meaning there’s minimal advantage to letting him leave – unless losing Stephenson is an advantage itself, which maybe.

Stephenson spent the Eastern Conference Finals trying to tweak LeBron James and Dwyane Wade and Erik Spoelstra. Instead, he just ended up bothering his president and coach.

It reached the point the Pacers’ top player, Paul George, doesn’t sound certain he even wants Stephenson back. And Stephenson had already gotten on the bad side of a couple other teammates.

So what should Indiana do?

The Pacers can’t trade Stephenson before free agency begins, and then it can only be in a sign-and-trade. That would require Stephenson wanting to join a team that lacks the cap room to sign him outright, that team wanting Stephenson, that team negotiating a trade with Indiana and Indiana accepting. A sign-and-trade could be great – potentially the answer to all the Pacers’ problems – but there so many hurdles to that transaction, they can’t make a plan counting on it.

Without a first-round pick, Indiana has few means to better its roster otherwise.

The simple answer is just to re-sign Stephenson and hope for the best.

But another, though more complicated, option exists.

It involves creating cap room.

Stephenson has a hidden value, but the Pacers aren’t positioned to take advantage of it.

All free agents continue to count against the cap until signed or renounced. How much a free agent counts against the cap is based on the terms of his previous contract, but he always counts at a number higher than his previously salary. So, usually, that free agent amount is cumbersome to the team.

However, when a player was drastically underpaid before becoming a free agent, his cap hold can become a tool. That’s the case with Stephenson, who was still playing on the contract he signed four years ago as a second-round pick. Stephenson will count just $1,909,500 against the cap this summer until signed.

Let’s say Stephenson’s starting salary in his next contract is $9 million. That means Indiana can leverage an extra $7,090,500 in flexibility (the difference between his actual starting salary and cap hold).

But that $7,090,500 only matters if it contributes to already-existing cap space. E.g., a team at the cap line has no more ability to sign a free agent than a team $7,090,500 over the cap line. Both can use just the mid-level exception – exactly where the Pacers tand now.

So, how can they get below the cap?

Using the latest salary-cap projections and salary data from ShamSports.com, here’s an example of a two-trade plan that would net Indiana its desired cap room:

Trade 1: Roy Hibbert to the Trail Blazers for Robin Lopez, Joel Freeland and Will Barton

Portland nearly signed Hibbert two years ago and only didn’t because it was clear the Pacers would match. The Trail Blazers clearly like him. Hibbert had a rough finish to the season, but he’s still an All-Star an All-Star and one of the NBA’s best defensive players.

Lopez fit well into Portland’s system, and he’s a solid starting center. But the Trail Blazers struggled defensively for most of the season, and in Hibbert, they’d get a chance at an upgrade without surrendering much in the trade. All they’d have to do is pay Hibbert’s salary, but they were already willing to do that once, and he’s progressed extremely well overall since 2012.

Trade 2 (and 3*): George Hill, Ian Mahinmi and Chris Copeland to the Warriors for Marreese Speights, Festus Ezeli, Nemanja Nedovic and Ognjen Kuzmic

In Steve Blake and Jordan Crawford, Golden State has searched for a backup point guard who would allow Stephen Curry to play off the ball. Hill is a high-end version of that player – and probably better than whomever the Warriors could sign with the mid-level exception. (Depending on how they feel about the luxury tax, they could still use the mid-level exception too).

Though he won’t push David Lee to the bench, Copeland is the stretch four Kerr desires. And Mahinmi is a ready-to-go backup center.

Golden State would add salary in the deal, but the talent upgrade should outweigh that penalty.

Perhaps most importantly, these bigger contracts might even make a trade for Kevin Love easier to maneuver. Mahinmi, Copeland and/or even Hill could make salaries match with Minnesota.

 *Technically, these would need to be structured as two separate transactions – Hill into the Richard Jefferson trade exception as its own deal. But that’s only a formality.

The Pacers would then waive Luis Scola ($940,946 guaranteed), Donald Sloan and Barton and renounce all their free agents besides Stephenson.

That would leave Indiana $12,695,605 in cap room ($13,876,155 if Paul George doesn’t make an All-NBA team) to pursue Kyle Lowry or Eric Bledsoe, a restricted free agent.

After signing a free agent with that near-max-level cap room, the Pacers could then go over the cap to re-sign Stephenson and use the room mid-level exception ($2,732,000) to fill out the roster.

What’s preferable, Indiana’s current starting lineup or this?

  • Kyle Lowry or Eric Bledsoe
  • Lance Stephenson
  • Paul George
  • David West
  • Robin Lopez

Of course, there’s no guarantee the Pacers could sign Lowry or Bledsoe. The best fallback point guards would be Mario Chalmers or Patty Mills – steep dropoffs who would mean Indiana takes a step back.

But at least the Pacers, without Hibbert (two years and $30,412,969 remaining on his contract) and Hill (three years and $24 million), would be leaner going forward. David West (two years and $24.6 million) could be jettisoned for space in other versions of this plan. Either way, coming offseasons would present new opportunities to upgrade.

Sticking with the status quo wouldn’t be so bad, and it seems that’s what the Pacers will do.

But if Larry Bird decides this roster needs an overhaul, Stephenson’s ridiculously low cap hold gives him the perfect excuse to do it.

How a single computer folder and dogged HR official exposed former Kings executive’s $13.4M embezzlement scheme

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Just how close did Jeff David come to getting away with embezzling $13.4 million from the Kings while working for them? He already secured a new job with the Heat and was in the process of moving from Sacramento to Miami.

Kevin Arnovitz of ESPN:

On this Monday, walking through the Davids’ new front door is a dizzying procession of cable guys, utility workers and movers. Amid all of this, Jeff receives a phone call from a former co-worker with the Kings. Her name is Stacy Wegzyn, and she works in HR. Jeff last remembers sitting in her office in Sacramento just months earlier, being told that the Kings were going to eliminate his position. After a few pleasantries, she gets down to business. She tells Jeff she’s been going through his old files, and in doing so she found one labeled “TurboTax” that references an entity called Sacramento Sports Partners.

“I was just curious what that is and if those are documents that should go to somebody else,” Wegzyn says.

It’s a seemingly innocuous inquiry from an HR lifer. But it’s one that will dictate the rest of Jeff David’s life. If he knows that — or senses it — he doesn’t let on.

“No, no, no,” Jeff responds. “That was a … man, this is taking me back. Maybe 2015?”

Wegzyn presses on. She asks Jeff whether the documents contain anything that anyone with the Kings needs to see. Jeff assures her they can trash them because the entity isn’t around anymore. A few minutes after he hangs up, his mother-in-law, Nancy, is standing at the front door when an FBI investigator appears, asking to speak to Jeff.

If you like the NBA or true crime – let alone both – I HIGHLY recommend reading Arnovitz’s full piece. It’s riveting!

Warriors Kevon Looney cleared for on-court basketball work, will return soon

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At least someone on the Warriors is getting healthy.

Big man Kevon Looney, who played opening night and has since been sidelined with a sore hamstring and neuropathy (what the team described as “nerve-related symptoms”), has been cleared to return to on-court basketball activities, the team announced Tuesday. From the official press release:

He will participate in select practice sessions with the Santa Cruz Warriors this week and will re-join the Golden State Warriors over the weekend. We will continue to monitor his progress and will provide another update on his status on Sunday.

Looney has already been officially assigned to Santa Cruz.

This is good news for the Warriors, who have been starting Willie Cauley-Stein but desperately need more shot blocking and depth up front.

Anyone getting healthy is good news for a Warriors team that is 2-12 and has the worst net rating in the NBA (-10.4).

Carmelo Anthony to start first game for Portland, apparently thinks he’s wearing number infinity

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Carmelo Anthony will wear No. 00 with the Trail Blazers.

Why?

Apparently because 00 kind of looks like ∞.

Anthony:

Somewhere, Kyrie Irving is nodding in support.

In terms of numbers that make sense…

Marc J. Spears of ESPN:

That’s a sizable role for a 35-year-old in his first game in more than a year. But Portland needs scoring with Damian Lillard sidelined, and – at last check (though, again, a while ago), Anthony was accustomed to big minutes.

Besides, we all want ample opportunity to see Anthony back on the court after his lengthy absence.

David Fizdale: Knicks owner Jim Dolan gives me ‘vote of confidence’ at every game

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Knicks coach David Fizdale is on thin ice.

New York is 4-10. Knicks president Steve Mills is reportedly laying the groundwork to fire Fizdale. Mills and general manager Scott Perry addressed the media after a recent game and sounded as if they were at least partially blaming Fizdale.

But does Fizdale have a key supporter at the very top of the organization?

Fizdale, via Ian Begley of SNY:

“Every game, every game. Jim Dolan comes in and gives me a vote of confidence, a pat on my back and really has just been incredibly encouraging over the last year and a half or whatever it’s been,” Fizdale said. “All we talk about is just sticking to the process of making these guys better and building for a future of sustainable winning.”

A common synonym for “vote of confidence:” “dreaded vote of confidence.” Just how bad are near-nightly votes of confidence?

This will convince nobody that Fizdale’s job is safe. Someone will likely take the fall if the Knicks’ struggles continue. It might be Fizdale. It might be Mills. But Mills – who preceded and succeeded Phil Jackson in running the front office – knows his way around Madison Square Garden. And even if Mills gets demoted or fired, a new lead executive would likely want his own coach.