Report: Warriors agree to four-year, $70 million extension with Klay Thompson

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Klay Thompson got paid after all. After a summer that saw the Golden State Warriors refuse to trade him for Kevin Love, it was inevitable that he was going to get a max contract either through an extension or restricted free agency next summer. Yahoo’s Marc Spears is reporting that the Warriors aren’t going to let Thompson hit the open market:

Spears also reported that the Sacramento Kings made a last-minute push to trade for Thompson:

The Warriors had no choice but to give Thompson the max. Recent reports had the two sides apart on dollars, but as soon as Golden State made it clear they weren’t trading him for Love, a consensus top-1o player in the NBA, any chance that he wouldn’t get a max deal was gone.

Whether Thompson is worth the money or not (and he probably is), that’s the market for wings who play both sides of the ball. Gordon Hayward got a four-year, $64 million offer sheet from Charlotte this summer, which Utah matched. Kawhi Leonard is holding out for a max deal with the Spurs. And with new head coach Steve Kerr promising a more dynamic offense, Thompson looks to be even more valuable than he has been in the past.

Toronto police: Report of shooting at Raptors championship parade

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Update: Toronto police:

 

 

The Raptors’ championship parade was interrupted by a scary situation.

Toronto Police:

Bruce Arthur of the Toronto Star:

Especially in large crowds like this, chaos and confusion can spread quickly. Hopefully, everyone is OK.

The scene was quite strange, as speeches were interrupted while people in sections of the crowd fled:

The Raptors are continuing their speeches now.

Report: Nets not extending qualifying offer to Rondae Hollis-Jefferson

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The Nets appear to be on the verge of signing Kyrie Irving. They opened double-max cap space to pursue a second star like Kevin Durant, Tobias Harris or Jimmy Butler.

Brooklyn isn’t going to let Rondae Hollis-Jefferson foil that plan.

The Nets could make Hollis-Jefferson a restricted free agent, giving them the right to match any offer he receives. But do so, they must extend a $3,594,369 qualifying offer. That’s essentially a one-year contract offer he could accept at any time. If he did, he’d count against the cap at $3,594,369. Brooklyn doesn’t want to risk that.

Adrian Wojnarowski of ESPN:

The Nets could still re-sign Hollis-Jefferson. This just prevents him from unilaterally accepting the qualifying offer and jamming up cap space.

But this signals Brooklyn is ready to move on. Hollis-Jefferson, who become an unrestricted free agent after spending his first four years with the Nets, might also be ready.

The 24-year-old Hollis-Jefferson has settled in as an undersized power forward. He’s a switchable defender and active offensively. Playing power forward somewhat covers for his lack of shooting and ball-handling ability, but that can still be exploited.

Why timing of Anthony Davis trade matters so much for Lakers

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The Lakers will get Anthony Davis.

That’s clearly the only thing that matters to them.

Not only will they send the Pelicans a massive haul of draft picks and young players, the Lakers could lose significant cap space with the trade’s structure.

Los Angeles and New Orleans can’t complete the reported deal until the league year turns over June 30. Then, the NBA immediately goes into a moratorium in which most transactions aren’t allowed. The moratorium ends July 6. That’s when two main options emerge.

Option 1: Trade July 6

Let’s start with Davis’ trade kicker, a bonus paid to him if traded. Davis’ base salary next season is $27,093,018. His 15% trade bonus could raise his salary $4,063,953 to $31,156,971. Davis could waive all or a portion of the bonus. The Pelicans would pay the bonus, but the Lakers can also include enough cash in the trade to cover the full bonus amount.

The Lakers will send Lonzo Ball, Brandon Ingram and Josh Hart (combined salary: $17,918,965) and the No. 4 pick (which will count about $7 million against the cap) to New Orleans.

Davis’ salary will be between $27,093,018 and $31,156,971 next season, depending on his trade kicker.

Simply, the Lakers’ incoming salary in the trade will be about $2 million-$6 million higher than their outgoing salary in the trade.

That works just fine under the cap rules. The Lakers will have way more than $2 million-$6 million in cap space. As far as salary matching, teams can always trade when they end up under the cap.

So, after this deal, the Lakers would have about $24 million-$28 million in cap space.

But there’s another path that would give the Lakers even more flexibility.

Option 2: Trade July 30

On July 6, if they renounce all their free agents and waive Jemerrio Jones‘ unguaranteed salary, the Lakers project to have about $33 million cap space.

That’s about enough for a max salary for a free agent with fewer than 10 years experience – someone like Kemba Walker, Jimmy Butler, Kawhi Leonard or Kyrie Irving. Or multiple helpful role players.

The Lakers could spend all that money then trade for Davis.

Here’s how they could get Davis after reaching the cap line:

They’d sign the No. 4 pick June 30. (Signing first-round picks is one of the few moves allowed during the moratorium.) He couldn’t be traded for 30 days after being signed. Hence, the July 30 date on this trade. But his actual salary would count toward the trade. Unsigned draft picks count $0 in trades.

In this salary range, the Lakers could acquire 125% of the outgoing salary in the trade plus $100,000. Aggregating Ball, Ingram, Hart and the signed No. 4 pick would allow the Lakers to acquire about $31 million of salary. That covers Davis’ full salary and most, if not all, of his trade bonus.

But why would the Pelicans wait?

That’d mean the No. 4 pick can’t play for them in summer league. There’d also be complications flipping the No. 4 pick to another team.

It’d also tie up a portion their cap space until the trade is completed, as they’re the ones holding the more-expensive Davis through July. Most good free agents will be off the market by July 30.

New Orleans could always reach an unofficial agreement with a free agent then make the deal official after the Lakers trade. But that requires trust, and some free agents might not go for that.

There’s no upside in waiting for the Pelicans. The only question is how much downside.

What’s at stake?

A quick recap:

If the Lakers trade for Davis sooner, they’d project to have $24 million-$28 million in cap space (depending on his trade bonus).

If the Lakers trade for Davis later, they’d project to have about $33 million in cap space.

That extra $5 million-$9 million could go a long way.

What now?

It doesn’t sound as if the Lakers pressed New Orleans to wait until July 30 before accepting the trade.

Adrian Wojnarowski of ESPN:

Tania Ganguli of the Los Angeles Times:

For now, the plan is to execute the trade on July 6, right after the moratorium ends on the start of free agency — and it’s unlikely that will change.

The Lakers could always negotiate with free agents June 30-July 5 then decide. If they want the additional cap space, the Lakers could try to entice the Pelicans with extra draft picks to delay. But that’d make the trade even more costly to Los Angeles.

The alternative might be even more grim – the Lakers not finding worthy players in the first week of free agency. Los Angeles could even view that as a face-saving move to justify the timing of this trade.

But if the Lakers make this trade July 6 then claim they didn’t have good use for an extra $5 million-$9 million in cap space, they’ll only be telling on themselves.

Report: Rockets owner Tilman Fertitta has griped about Chris Paul’s contract in front of rival executives

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In 2017, Chris Paul opted in to facilitate a trade to the capped-out Rockets. By forgoing free agency and a max salary, Paul sacrificed $10,083,055 that season. With Paul and James Harden, the Rockets became a championship contender and pushed the Warriors in the 2018 Western Conference finals.

The bill came due last summer.

Houston re-signed the aging Paul to a four-year max contract worth $159,730,592. That deal always looked like it could age poorly, and Paul – now 34 – is already slowing.

Rockets owner Tilman Fertitta has noticed.

Tim MacMahon of ESPN:

Fertitta has grumbled about Paul’s contract, expressing regret to Rockets staffers and even in front of rival executives, according to league sources.

Fertitta bought the Rockets after they traded for Paul. Though the sale was completed before they re-signed Paul, it seems the contract terms were at least discussed as far back as the opt-in-and-trade.

So, Fertitta didn’t necessarily sign off on this arrangement.

But it was good for Houston! It made the Rockets the biggest threat to the Kevin Durant-supercharged Warriors to that point. Re-signing Paul helped keep Houston in title contention this year. The Rockets were limited in that pursuit by Fertitta’s spending limitations, not by locking Paul into this contract.

Yes, there’s downside to Paul’s deal. Houston is feeling it now. Paul will be difficult, though not impossible, to trade this summer.

But as much as Fertitta talks about winning, he yet again shows why that’s all bluster.