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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.

Watch Trae Young drop 31 at Drew League, lose to Montrezl Harrell who has 46

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The Drew League in Los Angeles is one of the premiere — for my money the best — summer pro-am basketball league in America. There is some serious talent getting run on that court.

But drop in NBA talent and it’s another level.

That’s what happened Saturday in Los Angeles. Atlanta’s Trae Young showed up, went head-to-head with the reigning Drew League MVP Frank “Nitty” Session (who has embarrassed guys like Denzel Valentine in Drew games), and dropped 31.

But Young’s team lost because Clippers’ stud  Montrezl Harrell dropped 46.

You can see the highlights above thanks to BallisLife.

 

Manny Pacquiao says he has thought about buying part of NBA team when he retires

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At age 40, Manny Pacquiao is not retiring. Even if you and some boxing pundits think he should. Tonight (Saturday) he fights Keith Thurman at the MGM Grand Garden Arena in Las Vegas and is expected to pull down about a cool $26 million for his trouble. If you’re getting paid like that, why retire exactly? He has said he wants to fight another five years or so.

After that, he’d like to buy part of an NBA team.

That’s what he told TMZ in a pre-fight interview.

He said he has thought about buying a piece of an NBA team after he retires. Pacquiao, a basketball nut who uses the sport as part of his training, owns an entire semi-pro league — the Maharlika Pilipinas Basketball League — in the Philippines (one of the most basketball-crazy nations on earth). Pacquiao said he thinks his experience with that league would help him as an NBA owner, that some of the skills will translate, which is likely true. Pacquiao said it’s about finding the right opportunity.

Forbes estimates that Pacquiao will have earned, after Saturday’s fight, more than $500 million in his career. Various websites estimate his net worth in the $200 million range. He’s got the money to jump in as a part owner.

In an NBA that loves personalities and characters — and one always trying to gain more traction in Asian markets — don’t be shocked if this happens someday.

Once Pacquiao retires.

C.J.McCollum, Eric Gordon both withdraw from USA Basketball for World Cup

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First Anthony Davis. Then James Harden.

Now add C.J. McCollum and Eric Gordon to the list, as reported by Shams Charania of The Athletic and Chris Haynes of Yahoo Sports.

Don’t be surprised if a couple of new players are added to the USA roster for training camp.

The loss of those four stars strips the Team USA of some international experience. As pointed out by John Schuhmann of NBA.com, now only four members invited to USA camp have played in the World Cup or Olympics: Harrison Barnes, Andre Drummond, Kevin Love, and Kyle Lowry — and Lowry just had thumb surgery and is questionable for the playing in China.

USA Basketball can still roll out this starting five:

Damian Lillard
Bradley Beal
Khris Middleton
Tobias Harris
Andre Drummond

Then off the bench have Kemba Walker, Donovan Mitchell, Kyle Lowry, Jayson Tatum, P.J. Tucker, Kevin Love, Brook Lopez.

That’s still enough talent, coached by Gregg Popovich, to win the World Cup. The USA remains the heavy favorites for a reason.

USA Basketball is scheduled to begin its pre-World Cup camp in Las Vegas Aug. 5, with an intrasquad exhibition game at the T-Mobile Arena on Aug. 9. Then the team heads to Southern California for more training followed by an exhibition against Spain on Aug. 16 at the Honda Center in Anaheim, Calif. Then the team heads overseas for the World Cup, which begins in China on Aug. 31.

James Harden reiterates it was ‘false talk’ he and Chris Paul were at odds

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The Houston Rockets — not in an anonymous way, but in a “we are putting our names on this, quote me” kind of way — have pushed back hard on the narrative that there was tension between Chris Paul and James Harden that led to the Rockets trading CP3 for Russell Westbrook this offseason. Rockets GM Daryl Morey has denied it, team leader P.J. Tucker called it fake news, and Paul himself has pushed back.

Harden has done that again, speaking at his camp on Saturday.

The counter-argument to this: Chris Paul is in Oklahoma City right now.

People will believe what they want to believe, but the Rockets guys have all gone on the record about this. Nothing leaked and anonymous.

From the Rockets’ perspective, they made a trade for Westbrook that is a roster upgrade. Houston has a dynamic duo that can compete with the Los Angeles teams and the other contenders around the league, and whatever questions fans and the media may have about the ultimate fit of Harden and Westbrook the talent level is not in question.

Do the Rockets make that trade if everything is great between Harden and Paul? Probably, if they saw CP3 as in decline and Westbrook as a talent upgrade (which they did). The Rockets can be a cold, business-like organization in terms of their pursuit of a title.

We will see next season if that calculation paid off. Whether or not Harden and CP3 got along.