The most overlooked – and maybe most significant – reason Carmelo Anthony won’t waive his no-trade clause this season

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Carmelo Anthony says he’s committed to the Knicks, says he trusts Phil Jackson, says he believes in Kristaps Porzingis.

And that might all be true.

But so is this: Anthony will get a bonus if he’s traded, and that bonus would be larger if he’s traded in 2016-17 or 2017-18 rather than this season. Anthony also has a no-trade clause, giving him final say in if and when he’s dealt.

Those circumstances – perhaps more than anything else – make it likely the star forward will remain with the Knicks this season.

Anthony’s contract contains a 15% trade kicker, which means if traded, he gets a bonus of 15% of the contract’s remaining value (including the season following his early termination option) from the Knicks. That bonus is allocated across the remaining years of his contract before the early termination option proportionate to the percentage of his salary that’s guarantee. Because Anthony’s deal is fully guaranteed, the trade bonus is allocated equally to each season.

But there’s the major catch: Anthony’s compensation – salary plus trade bonus – in the season of the trade can’t exceed his max salary as defined by years of service or 105% his previous salary, whichever is greater.

That’s why trade bonuses for max players have mattered only minimally. There just isn’t much room under the limit for their compensation to increase.

For example, Anthony has $101,606,280 remaining on his contract – 15% of which would be$15,240,942. But if Anthony is traded this year, his trade bonus would be just $2,118,963. That’s his room below the max –105% his previous salary ($23,581,321) minus his actual salary ($22,875,000) – multiplied by the number of years remaining before his early termination option (three).

And the bonus is only so high because Anthony took a smaller raise this season to give the Knicks extra cap space. If he had gotten his full 7.5% raise, as he does in other seasons, he would have already been above his applicable max. So, his trade bonus would have been $0.

But because the salary cap is skyrocketing in coming seasons due to the new national TV contracts, Anthony will be far below his max salary. That leaves room for the trade bonus to matter.

Next year, Anthony’s max projects to near $30 million while his salary will be shy of $25 million. He could accept a trade bonus of twice the difference (twice because he can allocate it over two years). That still won’t get him his full 15%, but it will come much closer than this season.

Remember, we won’t know 2016-17 max salaries until next July. If the cap comes in higher than expected, Anthony could get a higher portion of his potential trade bonus – up to the full 15% of $11,809,692.

If the cap isn’t quite high enough to get him that full amount, he could amend his contract to remove the early termination option just before the trade. That would allow him to allocate the bonus over three years rather than two, which should get him to the full 15%.

By 2017-18, the cap is projected to rise high enough that Anthony would get his full 15% if traded ($8,125,785). Obviously, though, each season Anthony plays reduces the amount of money left on his contract. In fact, the value shrinks even throughout the regular season.

Anthony has an early termination option before the 2018-19 season, so if he wants to leave the Knicks at that point and can still command so much money, he might as well terminate his contract and become a free agent.

Here is the projected trade bonus for Anthony if he’s traded before each season of his contract:

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Anthony’s bonus won’t change at any point this season. Even at the trade deadline, 15% of his contract’s remaining value will far surpass his potential bonus.

His bonus could begin to decline during the 2016-17 season, depending exactly where the cap lands and whether Anthony is willing to remove his early termination option. By 2017-18, it will matter when in the season he’s dealt.

Really, this whole conversation exposes the perverse incentive of trade bonuses. Anthony’s salary with the Knicks is set unless they renegotiate it upward (the only direction allowable, and why would they do that?), he accepts a buyout (why would he do that?) or he gets traded.

Simply, the only realistic way for Anthony to get a raise before 2018 is to get traded. And the way for him to maximize that raise to get traded in 2016-17 or 2017-18.

Of course, an NBA paycheck is not Anthony’s only concern. Playing in New York creates marketing opportunities he wouldn’t get elsewhere. He must also consider his family – his wife, La La, and son, Kiyan. Does he want to move to a new city? He also probably cares about his legacy, and many would look unfavorably on him bailing on the Knicks after forcing a trade from the Nuggets. There’s a lot to consider.

It’s also easy to see why Anthony would want to leave. The Knicks are (surprisingly patiently) rebuilding, and Anthony is on the wrong side of 30. His window could easily close before New York’s opens.

Don’t underestimate how good Anthony is now, though. Barring injury or major regression, teams will want to trade for him next summer. Remember how strongly he was courted just a year ago? The market for him will probably only expand.

LeBron James, Kevin Durant, Dwight Howard, Al Horford, Mike Conley, Hassan Whiteside and Timofey Mozgov could all be free agents next summer. Even add potential restricted free agents like Bradley Beal and Andre Drummond. That’s just nine players. More than nine teams will have max cap room. The ones that strike out on that premier group could very well choose to deal for Anthony rather than splurge on lesser free agents.

Trade bonuses create difficulties in matching salaries, but that’s much easier for teams under the cap. The odds of the Knicks finding a viable trade partner are higher with the cap shooting up. They can probably get a nice package of young players and/or draft picks to enhance rebuilding. That’s especially important, because New York must send the Raptors a first-round pick next year.

This is all hypothetical, though – assessments based on what previous players like Anthony and teams like the Knicks have desired. Anthony and/or the Knicks might buck precedent.

Perhaps, Anthony is totally loyal to the Knicks. But, if he’s not, his trade bonus dictates he should give him the benefit of the doubt this season.

He can reevaluate next summer. He’ll be a year older, and if the Knicks aren’t a year better – and even that might not be enough to get on Anthony’s timeline – he can explore a trade then. And if they have improved, he’ll surely be credited for the turnaround.

It pays to wait.

Literally.

Raptors, Pascal Siakam reportedly agree to four-year, $129.9 million max contract extension

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Pascal Siakam is going to be the face of the Toronto Raptors going forward.

This was expected. Toronto was never going to let its young star slip away; the only questions were when it a contract extension got done and the price.

The answers came Saturday, with the Raptors and Siakam’s agents reaching terms on what will be a four-year, $129.9 million max extension for the reigning Most Improved Player. Adrian Wojnarowski and Zach Lowe of ESPN broke the news.

There are no player or team options, this is a straight four years.

Last season, his third in the league, Siakam made a huge leap. He averaged 16.9 points and 6.9 rebounds a game, shot 36.9 percent from three, took on a larger role as a shot creator, played impressive wing defense, and was a key part of the Raptors winning the first title in franchise history. He is at the heart of their future and a guy the Raptors wanted to keep through whatever rebuilding/retooling process comes in the next few years.

The Raptors could have played it out, and let Siakam go to restricted free agency next summer. However, in what will be a down free agent market, some team would have tried to poach the young wing — a real position of need around the league — with a max offer. The Raptors would have matched, but all that drama might have created bad blood. Maybe the Raptors overpaid a little, but they get to keep their guy and have him happy.

Siakam is the third player to get a max extension to their rookie contract this summer. Both Ben Simmons (Philadelphia) and Jamal Murray (Denver) signed five-year, $170 million max extensions. Siakam decided to take one year fewer, but also hits free agency again a little earlier.

Chinese state media says Adam Silver will face retribution for ‘defaming’ China

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Adam Silver has worked to portray the NBA as a progressive league that favored free speech. However, when push came to shove in a conflict with China over a Tweet from Rockets GM Daryl Morey supporting protesters in Hong Kong, Silver’s first statement seemed to protect the status quo and the cash the world’s largest nation generates for the NBA.

That backfired, and Silver came out with a stronger second statement that backed Morey’s right to free speech. Since then, the league has worked to emphasize that position.

In an interview at a TIME Magazine event this week, Silver added to that sentiment saying China asked for Morey to be fired and the league said no. “We made clear that we were being asked to fire him, by the Chinese government, by the parties we dealt with, government and business. We said there’s no chance that’s happening. There’s no chance we’ll even discipline him.”

The Chinese government denied this, and now Chinese State media is saying there will be retribution for Silver. From the South China Morning Post:

Chinese state media has warned that NBA commissioner Adam Silver will face “retribution” for defaming China in the latest twist to a dispute that began with a basketball team executive tweeting his support for the pro-democracy protests in Hong Kong…

“Silver has spared no effort to portray himself as a fighter for free speech and used freedom of speech as an excuse to cover for Morey, who voiced his support for the violent actors in Hong Kong,” it said. “This has crossed the bottom line of the Chinese people.”

Silver’s handling of the controversy had proved his “double standards”, the broadcaster said, adding that he had “defamed” China on the international stage.

“To please some American politicians, Silver has fabricated lies out of nothing and has sought to paint China as unforgiving,” it said.

Silver didn’t fabricate this. We’re all smart enough to know how this went down: Chinese officials would never outright say “you need to fire Morey” but they could strongly imply it with words and actions. Silver’s phrasing on this — that it was “made clear that we were being asked to fire him” — suggests precisely this scenario. It’s how people with power ask for something unethical or illegal, whether we’re talking mob bosses or politicians, the ask is strongly implied but not direct, allowing denial later.

China wanted its pound of flesh, maybe to fire Morey but at least a public rebuke and fine/suspension. They got none of it. Now they can use Silver’s comment — clearly aimed at the domestic market to bolster the NBA’s image in the US — to cause a little more pain. China has shown it can hit the NBA’s bottom line, it flexed its muscle, but how far does either side really want it to progress?

As we have been saying all along, this issue is not going away anytime soon. It may fade from the spotlight, but the NBA/China relationship is a story that will be a cloud over this entire season.

 

Does the East have a better chance of winning the Finals with crowded, deep West?

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The Golden State Warriors will be hampered without Klay Thompson to start the season. The sharpshooting guard is a crucial part of what the Warriors bring to the table sans Kevin Durant, who is now with the Brooklyn Nets. Even with Kawhi Leonard and Paul George with the Los Angeles Clippers, many have considered the Western Conference to be more open for the taking this season. It’s been thought that this makes it more likely the Eastern Conference can field a second consecutive NBA champion.

Leonard’s decampment from the Toronto Raptors has made way for the Philadelphia 76ers, Boston Celtics, and Milwaukee Bucks to ascend into the Finals to take on the Western Conference’s best. All of these teams have tried to add pieces with this idea of a wide-open NBA table in mind: The Sixers now have Al Horford, the Celtics Kemba Walker, and Milwaukee a cavalcade of veteran talent including Kyle Korver.

And indeed, the more proven championship-caliber teams are out east. Philadelphia, for all its growing pains and issues arising around Joel Embiid‘s conditioning, added the one player in Horford who was able to put a stop to them. Well, save for Leonard, who put in a bouncing jumper to end the Sixers’ season last year.

That again, Philadelphia is missing two key pieces from last year that we don’t know how they will make up for. JJ Redick is now with the New Orleans Pelicans, and his shooting presence will be missed. Redick made 240 threes last year for the Sixers. Landry Shamet was second on the team with 99. Jimmy Butler is now with the Miami Heat, and his dynamism on the wing will be difficult to replace.

The Celtics and the Bucks have similar issues when looking at their championship resumes. Boston has a glut of wings, although it’s not clear how good any of them are outside of Marcus Smart. Jayson Tatum and Jaylen Brown are dueling for future contract extensions. Gordon Hayward didn’t look great last season, and although there is hope he will be his old self this year, we’ll have to wait and actually see it to feel comfortable. That’s before mentioning that Horford is no longer anchoring the paint for the Celtics.

Milwaukee found a hard stop last year when it came to its playoff readiness. The Bucks were not particularly steady in the postseason, and teams were able to plan around Giannis Antetokounmpo and his lack of 3-point shooting. Last season’s MVP has said that his goal is to get better from beyond the arc, and any improvement in 2019-20 would be acceptable. Even despite the team adding Kyle Korver, they will be relying on Wesley Matthews, George Hill, and Pat Connaughton to flesh out the wing. Gone is Malcolm Brogdon to the Indiana Pacers, perhaps their most reliable player in the playoffs.

Put together, all three championship contenders in the Eastern Conference have their issues. But so to do the newly-minted challengers out west. There’s a thought that both of the Clippers and the Los Angeles Lakers — who now have Anthony Davis — will show some weakness to start the year. The Clippers will need to use load management on both Leonard and George, the latter of which is still recovering from double shoulder surgery. And although the Clippers were one of the best teams in terms of depth last season, how adding two new stars changes that dynamic is not yet known.

On the other side of the hallway in Los Angeles stands the Lakers, who outside of Davis, LeBron, and Danny Green don’t have much to show for all the bluster around their title hopes. The Lakers roster is flat-out bad, and despite tons of optimism around media types, I’m just not buying that they are a championship-level squad yet. The Lakers have real injury concerns, and until they make it all the way through to the Western Conference Finals, those will always be top-of-mind.

The second-tier in the west is plucky, but not necessarily ready for overt dominance. The Houston Rockets, Utah Jazz, Denver Nuggets, and Portland Trail Blazers, and San Antonio Spurs will all be in the running for the middle of the pack next year. Do any have championship rosters? Some of these teams are top-heavy, including Houston with James Harden and Russell Westbrook. Others, like the Nuggets and Jazz, will rely on their depth. Harden and Nikola Jokic could be legitimate MVP candidates, and that’s a problem in a league where it’s difficult to make it to the Finals without one.

That puts us in a difficult position in terms of “counting out” the Warriors. Thompson has said that he is going to take his time coming back from his ACL injury, but he should be a part of a Warriors playoff run in the spring of 2020. Without Durant, both Stephen Curry and Draymond Green will be extra motivated to prove themselves as the core pieces to the team that dominated the NBA long before Durant came to the Bay Area.

Health will be another concern for Golden State, particularly with Curry and his ankles. Weight, if you can call it a health concern in context of the NBA, is what most will be raising questions about when it comes to Green. He entered the season last year a bit slower, and burned off 20 pounds at the All-Star break to make a playoff run. They will need the former Defensive Player of the Year to come into the preseason already able to do what he did last year: Disrupt opposing offenses and pressure the defense with his pace-pushing offensive style.

For now, at the precipice of the season, it seems clear that the Eastern Conference is the odds-on favorite to repeat as champions. At least, as a group. This isn’t a Tiger vs. the field situation for the Clippers. They just aren’t that strong, and in this case the safer bet would be on one of the Eastern Conference powerhouses instead of just L.A. It’s possible that the Clippers are will be as dominant as projected. In that case, it would be a bitter irony for the East to be subjected to yet another super team on the West Coast just as one appears to have a chink in its armor.

New teams coming together — particularly super teams — have not always had the best track record. Will the Clippers be LeBron James with the Miami Heat in 2008? Or will they be Durant with the Warriors in 2017? Consistency and familiarity cannot be ruled out as a function of success in the NBA. It would be smart for teams in the East to continue to build on their core as long as the teams out west are starting to form theirs. They may only have a short window with which to strike before the Warriors, Clippers, or some other team takes control of the league.

Kyrie Irving: ‘There’s enough oppression and stuff going on in America’

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Kyrie Irving finally got some preseason run on Friday night. A fracture in his face had limited his time on the court, including playing just one minute in China against the Lakers, but back home in Brooklyn he put on a mask and dropped 19 points in almost 25 minutes of action.

However, the issues from China followed the Nets back to Brooklyn.

Hundreds of supporters of the Hong Kong protesters attended the Nets game, wearing “Stand with Hong Kong” T-shirts and masks.

After the game, Irving was asked about the protesters and the now scarred NBA/China relationship. He mentioned the meeting with Adam Silver and said he understood the protestors but his focus was more domestic, via Nets Daily.

“Listen, I stand for four things: inner peace, freedom, equality and world peace, man. So if that’s being conflicted inside of me, I’m definitely going to have something to say, and I left it in that room,” Irving said of his conversation with Silver [adding the teams agreed after that meeting to play the games]…

“When you think about communities across the world, a lot of people would stand for world peace,” Irving said. “Government gets involved, it impacts different communities in different ways. And the reality is as individuals it’s our job to stand up for what we believe in. Now, I understand Hong Kong and China are dealing with their issues, respectively. But there’s enough oppression and stuff going on in America for me not to be involved in the community issues here as well.

“That’s one of those four pillars that goes in terms of the black community, colored people here in America. We’re fighting for everyday freedoms. So when I think about Hong Kong and China, the people are in an uproar; and for us as Americans to comment on it, African Americans or American Indians to comment on that, you’re connected nonetheless, especially when it impacts freedoms or world peace.

“So for me as an individual I stand up for those four pillars; and when they’re being conflicted I can understand why protestors come to the games.”

That is much better handled than LeBron Jamessomewhat rambling statement that mentioned financial repercussions. Irving supported the rights of the protesters at the game, but he avoided touching the third-rail issue in China (or, at least with Chinese officials) of the protests in Hong Kong themselves. Remember, Irving does have shoes to sell.

We’ll see if there’s any fallout on the issue, but Irving is not as big a brand and target as LeBron.

Some of those lined up to bash the NBA on this issue will use what Irving said to continue doing so (and many would have no matter what Irving said). There are people who didn’t like what LeBron and Irving and Kevin Durant and others had to say when they spoke out on issues such as Black Lives Matter and now they see an opening to make lazy political points. It’s the way of the world.

However, as much as the league wishes it would the NBA/China issue is not going away. It may go dormant for a while — the NBA certainly wants it to as they try to promote the start of the season this week — but it will flare up again, one way or another. Hopefully, the league’s response next time comes with a better understanding of its priorities and what it stands for.