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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.

Joel Embiid out week with left knee soreness, no structural damage found

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What the Philadelphia 76ers need is time on the court to get all their new players used to each other, their rotations set, and just to find a way to get the most talented starting five in the East to gel before the playoffs start. They have 24 games to make it happen.

This does not help that cause.

The Sixers announced Joel Embiid will miss at least a week to get treatment on a sore left knee, the team announced. Paul Hudrick of NBC Sports Philadelphia has the details.

Obviously, what matters most is Embiid being healthy in the postseason, so rest now is better than the alternative.

But this is still not ideal. Especially as the Sixers try to make up a game and climb past the Pacers to ensure home court in the first round of the playoffs.

Through four games (73 total minutes) the new starting lineup of Ben Simmons, J.J. Redick, Jimmy Butler, Tobias Harris, and Embiid has been a force — a 116.5 offensive rating and a 91.9 defensive rating. Small sample size theater is at play here, things have not always looked completely smooth to the eye test (see the loss to Boston), and both Butler and Embiid have chaffed against coach Brett Brown’s system at points this season, but a +24.6 net rating through four games is an auspicious sign.

They just need more time to come together, and this injury cuts into that. At least a little.

The more significant concern starts when the bench comes into play. In the playoffs, Brown will likely want to keep two of his big four on the court with the subs (probably an eight-man rotation, nine tops). That’s where the real interesting stuff comes in the next few weeks: Which players would be willing to get their rest a little earlier in the first half to get more opportunities (read: shots) with the ball in their hands with the second unit? Butler? Harris? Which four work best together when it gets down to pairs?

Finding all of that out is now on hold temporarily.

Not just numbers, David Griffin says being GM means handling “noise” around team

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Analytics are a part of the job.

Just often not the most important part.

Part of what has fueled the rise in popularity of the NBA in recent years has been player movement around the league — and how much fans love to talk about the possibilities. Fans love to play GM. Those fans are increasingly savvy and understand analytics better, they know how to go to the NBA stat page and look up detailed data, and they know how to work ESPN’s trade machine. It leads to more “who says no?” trade Tweets than overpriced coffee shops in Seattle.

Ask any current or former general manager/team president — for example, former Suns and Cavaliers GM David Griffin — about the job and they almost cut off the question to say there is so much more to it than a spreadsheet. For example, keeping players happy and helping them understand/deal with social media is now part of the gig. Even in the evaluation of players, there is the eye test and other intel gathered about them, all of which matters as much or more than just the data.

“It’s got to be a marriage of all of them, you know analytics are never the answer in and of themselves,” Griffin told NBC Sports. “But there is infinitely more data available to us thanks not only to SAP but Second Spectrum… they have given us far more robust data sets to make decisions from. I think because of that people think the answers are in the numbers, but the reality is the numbers only answer the better questions you ask it to solve. I think people lose sight of that. The numbers are a part of the process, they are not the answers in and of themselves.”

That’s the idea behind “GM School,” a new competition show coming to NBA TV (it premieres Wednesday night at 8 ET, with repeat broadcasts throughout the week). The show takes four contestants who are data-driven, die-hard basketball fans and pits them against each other in a series of challenges to show they have what it takes to be in a front office. The contestants don’t just have to pick players to draft (out of an anonymous pool), they need to articulate why they fit with the team philosophy. They have to do a press conference.

“I thought they did an excellent job,” Griffin said of the contestants. “Being at NBA TV before this and getting to see things in a totally different light, I had a different appreciation for this process than I would have otherwise. I thought they did a fantastic job — SAP and the partners affiliated with this — of putting together four really diverse contestants who all had strengths of their own, each was unique from the other, so it was a cool process.”

Like the real GM job, this is about more than the numbers.

“It’s not just taking into account everyone thinks they understand analytics — I hope we speak to the analytics crowd — but it’s about the totality, we hope, of what the job requires,” Griffin said.

There are things that a show like this could just not do justice to with a test.

For example, how to set up an organization that can handle the volume of noise that swirls around a good team. Griffin had to deal with that first hand as the GM of the Cavaliers during LeBron James’ second tour of duty with the franchise.

“One of the things that’s critical to running an organization that’s going to be all about winning — and the only thing that will mark success is winning a championship — is that you’re naturally going to be subjected to more noise around the process,” Griffin said. There’s going to be more tension in the system — and that can be a positive thing if you make it out. You have to become really adept at dealing with adversity and turning adversity into a positive, galvanizing force.

“I think you’ve seen Golden State do that this year with the blowup between Draymond [Green] and KD [Kevin Durant]. They’ve come out of that a stronger, better version of themselves, and that’s what you have to do as an elite franchise. All adversity becomes opportunity for you.”

It’s one thing for a Warriors’ team that is now veteran and savvy to embrace adversity — and tune out the social media noise it creates around the team — and it’s something else entirely for an up-and-coming team with players who have not been there before.

“I think that for teams that are going from being lottery bound year after year to being truly elite there are several steps in that process that are very difficult and painful. And people don’t always welcome adversity…” Griffin said. “You’re not going to get to a championship caliber team from a team of young kids who were in the lottery overnight.”

Some players get thrown off seeing the media used to deliver messages about them and their trade availability — as happened a lot with the Lakers/Anthony Davis saga around the trade deadline, for example. The Lakers, as an organization, has seen more than its fair share of drama over the years and understands how to handle it, but the young core players on the team were going through this part of the business for the first time.

Griffin said the key is being proactive — talking to players to help them understand it before everything overwhelms them.

“[The Lakers] were dealing with more media and more scrutiny than most teams ever do because they are one of the flagship franchises in our league,” Griffin said. “Magic Johnson grew up in that spotlight. I doubt anything happened that they weren’t prepared for. But what happens is LeBron’s presence by itself brings that kind of spotlight. It takes some time to learn how to deal with it.

“Again, if you don’t get in front of it from a leadership standpoint, if you let it just happen, the proliferation of sports media and social media, it just creates so much around your players that, to some degree, if you’re not telling them how to decipher it, they can’t help but to take it poorly. You need to do a really deft job as a leader of getting people to ignore those things. I think Kevin Durant called it a ‘toxic’ environment around a LeBron James team. I don’t think he meant that relative to LeBron and his actions. I think he meant it just relative to the sheer volume of noise around a team. That takes getting used to.”

Handling social media and its fallout is now part of a GM’s job. Like it or not.

“All of these players are on social media, they are subject to noise from more angles and at a greater volume than any players ever have been,” Griffin said. “And because of that, I think it makes it really important that you run the kind of organization that you love each other enough that you tell each other what you need to hear. You have to have conversations. You have to be in front of those messages with Lonzo Ball ahead of time. You have to talk to Brandon Ingram and Kyle Kuzma ahead of time. So that when those things happen, they understand it’s just a natural outcropping of being on a team of that magnitude. That it happens because you matter as a franchise.”

Whenever a GM job comes open in the NBA now, Griffin’s name is one of the first to come up. Most recently that was with the Pelicans (although the buzz All-Star Weekend is that things never really got too serious between the sides). Griffin is open to returning to the NBA, but he’s in a position to be picky about the gig he takes now.

“I think the blessing of doing what I’m doing relative to NBA TV is selectivity,” Griffin said. “It’s helped me be radically better at analyzing things than maybe I wouldn’t have been as good at. As I look at it now, the thing that would attract me to an opportunity is just the opportunity to be in lockstep with ownership. To have ownership, the coach, and the front office all on the same page moving forward and sharing a vision…

“You have to raise a family, and if you’re not going to come at it with that approach it’s probably not a situation that would speak to me.”

Barack Obama joined by Stephen Curry to tell minority boys ‘you matter’

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OAKLAND, Calif. (AP) — Former President Barack Obama and Golden State Warriors superstar Stephen Curry told minority boys on Tuesday that they matter and urged them to make the world a better place.

Obama was in Oakland, California, to mark the fifth anniversary of an initiative he started after the 2012 shooting death of 17-year-old Trayvon Martin. The death of the African-American teen sparked protests over racial profiling.

Obama and Curry had a good natured banter between them, which included the former president teasing the former MVP about his ankles.

Obama launched My Brother’s Keeper as a call to communities to close opportunity gaps for minority boys, especially African American, Latino, and Native American boys.

He and Curry talked about what it means to be a man and the struggles they had as teens.

The My Brother’s Keeper Alliance is part of the Obama Foundation.

Rumor: Warriors “have internally mused” about run at Giannis Antetokounmpo in 2021

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The Golden State Warriors have a plethora of superstars, so many in fact that the league has taken an extended break from believing they can win a championship, at least until Kevin Durant heads outside the Bay Area.

Durant could be headed for the New York Knicks or some other such location this summer when he is a free agent. No doubt Golden State will want to retain Durant’s services, but in the event that they are unable to do so, they need to look elsewhere to improve their team.

The Athletic’s Marcus Thompson wrote recently that Golden State could go after Milwaukee Bucks superstar Giannis Antetokounmpo when he becomes available for free agency in the summer of 2021. This was just fun supposition on Thompson’s part, but it was followed up on Tuesday by some important rumoring by Marc Stein of the New York Times in his weekly newsletter:

Yet it’s likewise undeniably true that Steph and Giannis are buddies who are both represented by the same agency (Octagon) and share a mutual admiration that has resulted in Curry and Antetokounmpo selecting each other first overall with the No. 1 overall picks as captains in the first two All-Star drafts.

I can promise you, furthermore, that the Warriors have internally mused about a run at Giannis — however futile it may prove to be — in the event they can’t convince Kevin Durant to re-sign this summer. Trying to sign the most attractive free agent available is on the first page of the Golden State owner Joe Lacob’s playbook.

Look, it seems obvious to say that any team will want to take a run at Antetokounmpo if they are able. Saying that “X team is interested in [GOOD] player” isn’t groundbreaking.

But the Warriors?

We are a long way off from this getting anywhere near actually happening, but if Golden State were able to pull in another generational talent (and likely future MVP) it might set the collective NBA sphere on fire.

Antetokounmpo is only being talked about in this way because of the fact that he plays in Milwaukee, a market where stars don’t typically stay for long. But Antetokounmpo seems to enjoy Wisconsin, and the Bucks are currently the best team in the East.

Relax, Bucks fans. Your man is safe for now.