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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.

Draymond Green thought Warriors might trade him after fight with Steve Kerr

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Draymond Green is the backbone of the Golden State Warriors, not just because he was the 2016-17 NBA Defensive Player of the Year. Green sort of does it all, including passing, scoring, rebounding, and myriad other scrap work that doesn’t show up on regular box scores.

But there was some doubt in Green’s mind in 2016 that he would stay with the team. Green was involved in an argument during a game against the Oklahoma City Thunder, and after things settled down the Warriors big man was concerned the team might trade him.

The thought of doing so is sort of ridiculous, but apparently that was something that flashed into Green’s mind given the tenseness of the situation between he and Kerr.

Via Bleacher Report:

But Green’s mood was still foul, and he left the arena that day believing his days as a Warrior were numbered. He feared the relationship had been fractured, that the Warriors would choose Kerr over him. That he’d be traded.

“One hundred percent,” Green tells B/R. “Especially with the success that he was having as a coach. Like, you just don’t get rid of that.”

The thing that makes Golden State great isn’t just the players, or the system, or Kerr. It’s the human resources management aspect of their organization that allows them to compete on the court in the way they do.

It’s not crazy to think that a player could be shipped out of town thanks to a disagreement with a coach, although the leverage players have these days likely has put a stop to that realistically happening. But that Kerr, Green, and management were able to get things back under control that season was to the benefit of everyone involved.

Rockets wear jersey patch to honor Santa Fe High School vs. Warriors

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The Houston Rockets have been supportive of the Texas community after a gunman killed 10 people and injured 10 others at Santa Fe High School in Santa Fe, Texas.

Rockets point guard Chris Paul called NBA basketball “minor” compared to what those in Santa Fe are having to endure, and on Thursday the team took things a step further and donned special jerseys for their playoff matchup against the Golden State Warriors.

As Houston prepared to take on the reigning champs in Game 5 back in Texas, the team tweeted out a photo of the jerseys — complete with a special patch on the left shoulder — to honor the victims of the shooting.

Via Twitter:

The NBA has a lot of advocates for social and political change, not just individually but organizationally. How the Rockets responded is good to see in the face of yet another school shooting.

Andre Iguodala out for Warriors again in Game 5; Klay Thompson available

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The Warriors missed Andre Iguodala in Game 4 against Houston. They don’t have a Death/Hamptons 5 lineup without him. Without his depth, the Warriors had to lean more on players such as Kevon Looney (who started), Nick Young, and others who are can be a liability at the high level of play in this series. Not having Iguodala to keep minutes down, play fierce defense, move the ball on offense, and be a stabilizing force was one of the issues that led to the Warriors fourth-quarter issues in Game 4.

Now they are without him for Game 5, too.

Having Klay Thompson on the court is huge for Golden State, although it will be worth monitoring to see how he moves.

The Warriors have gotten sucked into the switching/isolation game the Rockets want to play, if they are going to take Game 5 on the road they need to get back to “the beautiful game” they want to play. That would have been easier with Iguodala.

Two years after NBA retirement, Amar’e Stoudemire talking comeback

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NBA teams seemed to have moved on from Amar’e Stoudemire. After an impressive NBA career — five-time All-NBA, Rookie of the Year, six-time All-Star — he wasn’t physically the explosive player that dazzled with the Suns. Teams were interested in getting younger and more athletic, and Stoudemire was doing neither. He retired from the NBA and played for a season in Israel where he won a league title. This summer he’s signed up to play with the Big3.

After that he’,d like another crack at the NBA. When asked about an NBA comeback, here’s what Stoudemire told CBS Sports’ Bill Reiter on ‘Reiter’s Block’:

“I am. I am. I’m definitely planning on (coming back). I’ve been training like you wouldn’t believe, my body feels great. I had an amazing year last year playing overseas and so I’m gonna definitely continue to work my way back to top shape and see if there’s a team that needs my talents.”

I’m not sure there’s going to be much demand. Maybe a team does an old friend a favor and brings him in for some workouts. However, his knees and body struggled with the physical grind of the NBA the final few seasons of his career, and it’s unlikely with age that got better. No doubt he’s worked on his conditioning and strength, but Father Time always wins the race and it already felt like this chase was over.

That said, good on Stoudemire for not giving up on the dream. His agent should be making calls, maybe he can become the second player to make the Big3 to NBA leap.