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Why second-round NBA draft picks might get paid more than first-rounders this year

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Jordan Mickey had high hopes for the 2015 NBA draft, but his agent warned him: If you fall outside the top half or so of the first round, you’re better off going in the second round. Teams picking high in the second round offer a better fit and more flexibility.

Mickey heard the message.

He just didn’t care.

“The recognition, guys want to say they were a first-round pick,” Mickey said. “That’s something I wanted.”

“I just felt that, the way I play, I deserve it.”

Mickey slipped out of the first round to the Celtics at No. 37. Like many players, he still carries a grudge for the teams that passed on him.

“It’ll probably be with me until I’m done playing the game,” Mickey said.

What separates Mickey from other second-rounders: He received one of the biggest perks usually afforded only to first-rounders  – a higher salary – despite going in the second round.

It’s the product a salary cap increasing higher than ever imagined when this Collective Bargaining Agreement was signed, and this summer’s projected $94 million cap will intensify the effect. Expect several 2016 second-round picks to make more than some of their first-round counterparts next season.

The system

First-round picks are bound by a salary scale negotiated by the league and union into the 2011 CBA. The scale is a set amount for each pick, increasing slightly each year. Teams can pay a player between 80% and 120% of his scale amount, and 120% is so common, it’s practically the set number.

Second-round picks are free to negotiate any contract. Teams must use cap space or an exception – e.g., mid-level or minimum-salary – to sign them.

So, with the salary cap skyrocketing, the proportions for first-round picks have become out of whack. In 2011, the first year of the CBA, the No. 1 pick earned 8.86% of the salary cap ($58,044,000). If the salary cap comes in as projected this year ($94 million), the No. 1 pick will earn 6.28% of the salary cap. That same effect is felt throughout the first round.

Meanwhile, second-round picks are free to partake in the newly available TV money.

There’s an unsaid – sometimes, said – tension behind every contract negotiation between teams and second-round picks. To retain a second-rounder’s rights, a team must extend him a required tender. A required tender is a one-year contract offer, and because that’s the only requirement, it’s always for the minimum and fully unguaranteed.

Teams want to sign players to longer contracts with little to no guaranteed money. That way, if the player pans out, he’s cheap and can’t go anywhere. If he doesn’t pan out, he can be waived for minimal cost.

Second-rounders have varying interests. Some want a long-term deal with more money guaranteed or scheduled if not released. Others want to hit free agency sooner, so they can bargain with all 30 teams rather than just the one that drafted him. For most, both desires apply. Receive enough over a long-term contract, and free agency becomes far less important. Face a cheap long-term deal, and the player can always threaten to sign the required tender.

K.J. McDaniels, the No. 32 in the 2014 draft, famously accepted the required tender rather than sign long-term with the 76ers. He then signed a three-year, $6,523,127 deal with the Rockets last summer. Despite getting just the minimum his first year, McDaniels has already made more than half of the players selected in the first round ahead of him. Next season, he’ll pass a few more in earnings. Plus, he’ll either become a free agent a second time before 2014 first-rounders do so once (if Houston declines his 2017-18 team option to make him restricted) or an unrestricted free agent before scaled 2014 first-rounders (if Houston exercises his team option).

McDaniels’ plan carried risk. If he got cut in his first training camp, he could’ve walked away with nothing.

Still, there’s already a school of thought that players are better off going early in the second round rather than late in the first, that the freedom to negotiate a shorter contract trumps the lower initial salary.

Now, second-round picks can probably have their cake and eat it too – a higher initial salary and more freedom.

Precedent runs deeper than Mickey

Mickey became the first second-round pick under this CBA to sign the year he was drafted and earn more his first year than a first-round pick.

Players that were stashed overseas had done it, but their stock changed from the time of the draft – either because they developed or were ready to jump to the NBA. We’re looking at only players to sign the year they were drafted.

Mickey actually made more than four first-round picks last season: No. 27 pick Larry Nance Jr., No. 28 pickR.J. Hunter (Mickey’s own Celtics teammate), No. 29 pickChris McCullough and No. 30 pickKevon Looney.

Put another way, Mickey received 1.67% of the 2015-16 cap. The No. 20 pick Thursday will receive 1.66% of the projected 2016-17 cap.

Based on that precedent, more than third of the first round could make less next season than a second rounder.

There are deeper ways to evaluate a second-rounder’s contract than first-year salary as a percentage of the salary cap. Future salaries, length, guarantees, options and incentives all matter. But for a quick reference, we’ll go by first-year salary as a percentage of the salary cap.

Several second-round picks under this CBA – Mickey, Richaun Holmes, Chandler Parsons, Draymond Green, Joseph Young, Montrezl Harrell, Allen Crabbe, Jerami Grant, Joe Harris, Roy Devyn Marble, Kyle O'Quinn Tyler Honeycutt and Damien Inglis – have signed the year they were drafted and received a first-year salary relatively higher than what at least one first-rounder projects to make this year.

Here’s everyone on the same scale, the highest paid second-rounders colored by year with 2016 first-round picks interspersed in black:

    • 2015: green
    • 2014: blue
    • 2013: silver
    • 2012: yellow
    • 2011: red

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Previous contracts inform future contracts. If numerous second-rounders previously received starting salaries greater than 1.20% of the cap, agents will demand similar amounts this year. Those amounts will just happen to be worth more than first-rounders can receive.

A couple related factors beyond simply a higher cap conspire to boost second-round salary even further this year:

1. Nearly every team will have cap space. Because teams don’t receive an exception for second-round picks, many teams just didn’t have the ability to pay a second-rounder more even if they wanted to. That will rarely be an excuse now.

2. Many players are locked into contracts signed before the new TV money kicked in. That leaves more money for everyone else.

Well, almost everyone else. The rookie scale prevents first-rounders from enjoying the windfall.

Meanwhile, second-rounders will cash in.

The No. 30 pick will make $1,171,560 next season if he signs in the NBA. How many second-round picks can say “Give me $1.2 million (or more), or I’ll sign the required tender” and have the team acquiesce? I’m betting on several. Plenty of teams will have that much money lying around without a place to spend it, maybe even needing to spend it to reach the floor. Securing their own second-rounders seem as good a use as any.

It’s too late to change the system for this year, but either side can opt out of the CBA after next season by giving notice by Dec. 15, 2016. The rookie scale should be revisited in the next agreement.

A simple solution: Tying the rookie scale, like the cap itself, to revenue rather than ascribing a prefixed amount. Owners avoid the hassle of draft confusion, and players get more money to the players that deserve it.

“There’s no question that the contracts, the salary scale for first first-round picks is outdated,” said agent Mark Bartelstein, who represented two first-round picks who made less than Mickey last year (Larry Nance Jr. and R.J. Hunter).

But what about in the meantime?

Prepare for second-round saga in ’16

The 2016 draft is already hectic with several players having wide draft ranges. The second-round issue only adds uncertainty.

Will agents try to steer their players from the first round to the second round?

“If you’re projected to be a low first-rounder, it would be absolute lunacy not to work out with teams in that range, because you can easily fall,” said agent Keith Kreiter, who represented Richaun Holmes, the second-highest-paid second-rounder last year. “If you don’t work out for teams in the lower first and they pass on you, and some teams in the 30s end up passing on you – there’s no guarantee they’ll take you – then you’re in the 40s and 50s and you could be running the risk of straight minimums with very little guaranteed.”

Though there’s more money to be made in the high second round, there might be big downside to falling further. For players on their first NBA contracts, playing it safe makes some sense.

“A first-round deal isn’t so terrible in this world,” Kreiter said.

But there’s still wiggle room to work the system.

“One of the things I could see happening is you have a wonderful workout for a team in the 30s, high 30s, a team says, ‘Would you be willing to shut it down, and we’ll take you?'” Kreiter said. “There are some people that would maybe take that risk, although it’s a huge risk.”

Until Thursday, the question is which players this affects. Then, with everyone selected, it’ll turn into the magnitude of the effect.

How many second-rounders get more favorable contracts than first-rounders? How much more favorable? Will second-round negotiations become more contentious with more at stake?

It could become chaos, and Mickey is the trendsetter.

“It’s always a great thing to be the first at something,” Mickey said. “Hopefully, other players can do it.”

I suspect plenty will.

Adam Silver backs Knicks center Enes Kanter’s decision to skip London trip

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LONDON (AP) — NBA Commissioner Adam Silver says the safety and security of players will always be paramount for the league after New York Knicks center Enes Kanter did not travel to London for his team’s game against the Washington Wizards.

Kanter said he feared he could be attacked or killed over his opposition to Turkey President Recep Tayyip Erdogan if he were to travel to London. Istanbul-based newspaper Daily Sabah reported that an arrest warrant was issued for Kanter by Turkish prosecutors on Wednesday.

Silver, speaking ahead of Thursday’s game, says “it was never a suggestion from the league that (Kanter) was not welcome on this trip.”

“There are significant issues that he is dealing with, and I recognize that for the NBA, by virtue of the fact that we’re a global business, we have to pay a lot of attention to those issues as well,” Silver says.

Kanter, who has frequently criticized Erdogan, had his Turkish passport revoked in 2017.

Wizards beat Knicks with game-winning goaltending call in London Game

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The good people of England could use a break from the dumpster fire that is Brexit, so the NBA came to town to entertain with their very best… their biggest stars… the teams that were willing to go, the Knicks and the Wizards.

But the Londoners got to see one unusual ending.

The Knicks were up 100-99 thanks to a Noah Vonleh hook shot, but the Wizards had three seconds to try to get off a game winner. Scott Brooks designed an interesting play, with Bradley Beal starting in the backcourt and sprinting into the frontcourt, and when the defense moved to him as the likely shooter he passed to Thomas Bryant rolling down the lane, he put up the finger roll and…

That was a goaltend by Allonzo Trier to my eyes — the ball is just starting its downward trajectory, and it may have been over the cylinder (in an NBA arena there would have been an above-basket camera with a better angle on if it was over the rim, but that did not seem to be available in London).

The Wizards — who owner Ted Leonsis said will never tank, so forget about them trading away assets at the deadline — have won 3-of-4 and are 6-4 since John Wall was sidelined with his foot injury, with a +3 net rating in those games. Washington is now just two games out of the playoffs in the East and GM Ernie Grunfeld does not believe in tanking, so expect them to make a push.

Which is why wins like this matter.

PBT Extra: DeMarcus Cousins’ return will be big boost for Warriors. Maybe.

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The Golden State Warriors — the two-time defending NBA champs, the team on top of the Western Conference with the best offense in the NBA — are about to get a whole lot better.

Maybe.

Nobody really knows.

What we know is DeMarcus Cousins is scheduled to make his return to the court on Friday night against the Clippers in Los Angeles. Cousins missed the end of last season and all of this season recovering from a ruptured Achilles.

I get into all of it in this PBT Extra.

As NBC’s Tom Haberstroh pointed out, the history of big men bouncing back from this injury does not bode well for Cousins. On the other side, Cousins was so skilled, if the Warriors can get 75 percent of the old Cousins it will be an upgrade over Kevon Looney and give Golden State a guy who can exploit mismatches.

On paper, the Warriors should get better with Cousins in the lineup. But nobody really knows.

Spurs president-coach Gregg Popovich says he doesn’t know whether he’ll retire after season

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Spurs president-coach Gregg Popovich said in 2015 he made a commitment to newly signed LaMarcus Aldridge, presumably to coach through the five-year contract he signed in 2014.

That contract will expire after this season.

Then what?

Popovich, via Marc Stein of The New York Times:

“I don’t know the answer,” Popovich said when asked about his plans for next season in an interview Wednesday

Maybe Popovich is legitimately undecided about his future. Maybe he has a firm plan and was just being dismissive because he didn’t want to discuss it publicly. There’s obviously a massive difference between the two, but it’s difficult to parse from only his quote.

Popovich will coach Team USA in the 2019 FIBA World Cup and 2020 Olympics. That responsibility means a lot to the Air Force veteran. Some have even speculated he’ll retire from the NBA after this season to prepare for his USA Basketball duties.

In the meantime, Popovich remains one of the NBA’s top coaches. He has helped San Antonio turn around its season, building a strong offense around mid-range shooters DeMar DeRozan and Aldridge and getting everyone on enough of the same page defensively to be reasonable on that end. The Spurs aren’t a great team, but they’re good in ways that have Popovich’s fingerprints all over them.

Popovich could continue to succeed in the NBA for the foreseeable future. The question is – with Tim Duncan, Tony Parker and Manu Ginobili gone and Popovich nearing age 70 – how much longer he wants to do it.