Golden State Warriors

Latest On The Carmelo Anthony Trade

Carmelo Anthony recently added the Thunder to the list of teams he would waive his no-trade clause to join, but Oklahoma City GM Sam Presti and New York GM Scott Perry had been discussing a deal for weeks, reports Adrian Wojnarowski of ESPN.

Talks intensified over the last 24 hours before the agreement was reached earlier today. Anthony had reportedly insisted for most of the summer that he would only go to Houston, but he expanded that list this week to include the Thunder and Cavaliers.

The deal will be formally completed Monday, and Oklahoma City expects to have Anthony on hand when training camp begins Tuesday.

More has emerged since the trade was announced:

  • Sources tell ESPN’s Ian Begley that Anthony believed yesterday there was a good chance he was headed to Cleveland (Twitter link). Anthony has a tight relationship with LeBron James, and the Cavaliers could use another scorer while Isaiah Thomas is sidelined with a hip injury.
  • The addition of Anthony could put the Thunder in the running to sign Dwyane Wade once he reaches a buyout with the Bulls, tweets Chris Mannix of the Vertical. Wade probably wouldn’t start in Oklahoma City and the team can’t offer much money, but he may be willing to accept a sixth man role to take another shot at a ring beside Anthony, Russell Westbrook and Paul George.
  • Presti should be lauded for rebuilding the Thunder without surrendering a first-round pick, tweets Michael Lee of The Vertical. OKC send Victor Oladipo and Domantas Sabonis to Indiana in exchange for George, then shipped Enes Kanter, Doug McDermott and a 2018 second-rounder to the Knicks to get Anthony. The Thunder already owe their 2018 first-round pick to Minnesota (lottery protected) and another first-rounder to Orlando two years later.
  • Oklahoma City had a secret weapon, Lee adds, in vice president and assistant GM Troy Weaver, who helped recruit Anthony when he was an assistant coach at Syracuse (Twitter link).
  • The trade establishes the Thunder as the greatest threat to the Warriors’ dominance in the West, writes Dieter Kurtenbach of The San Jose Mercury News. He sees Anthony stepping into a much better role as a complementary stretch four in Oklahoma City, rather than a primary scorer in New York. OKC added free agent Patrick Patterson this summer and re-signed defensive ace Andre Roberson and may now have the pieces to challenge Golden State in a seven-game series.
  • ESPN’s Kevin Pelton graded the deal, giving the Thunder an A and the Knicks a D. Kanter and McDermott were both defensive liabilities, Pelton states, and the new alignment gives Oklahoma City a small-ball lineup that matches up much better with the Warriors. The Knicks didn’t take on any long-term contracts, but they also didn’t fill any pressing needs unless McDermott develops into a reliable wing scorer. Pelton expects New York to explore the trade market for Kanter before the February deadline.
  • Oklahoma City used two key pieces from the Bulls to pull off today’s deal, and Chicago doesn’t have much in return, writes Scott Krinch of CSNChicago. McDermott and the 2018 second-rounder that was shipped to the Knicks both came to OKC in a February trade that sent Cameron Payne, Joffrey Lauvergne and Anthony Morrow to the Bulls. Lauvergne and Morrow left as free agents over the offseason, and Payne will miss three to four months after foot surgery.
  • Kanter posted a message on Twitter, thanking the fans and management in Oklahoma City and saying, “Please beat the Warriors for me.”

Rockets Notes: Capela, Tax, Anderson, Gupta

While Rockets president of basketball operations Daryl Morey doesn’t want to be making roster decisions with one specific rival in mind, he acknowledges in a Q&A with Jonathan Feigen of The Houston Chronicle that it’s impossible not to consider the Warriors at this point when making signings and trades.

“We know we’re going to face them,” Morey said of the Dubs. “We obviously have to get through some extremely tough teams, the Spurs, Oklahoma City, Memphis, you name it. To get there. But if you know you are going to be facing a team if you’re having the season you want, and we want to be all the way to the championship, I think it does make sense to focus on that team.”

Morey pointed to the signings of Luc Mbah a Moute and P.J. Tucker as moves that were made with the Warriors in mind. Both veteran forwards are strong defenders who would probably match up with the likes of Kevin Durant and Klay Thompson in a playoff series against Golden State.

Here’s more on the Rockets:

  • Asked by Feigen about the possibility of an extension for Clint Capela, Morey pointed out that contract extensions are getting trickier to pull off around the NBA, since the salary cap isn’t increasingly quite as quickly as initially anticipated, and long-term commitments are starting to add up for many teams across the league.
  • In Houston’s case, new deals for Capela, Chris Paul, and Trevor Ariza next summer would create luxury-tax issues for the club. While Morey didn’t comment specifically about new owner Tilman Fertitta‘s willingness to pay the tax, he told Feigen that Fertitta is “all about winning” and will do what it takes to win. Morey also noted that he has met with the Rockets’ incoming owner a couple times already.
  • Morey tells Feigen that he spoke to Ryan Anderson this week about the Knicks-related trade rumors that have been swirling around Anderson all offseason. “Players get frustrated,” Morey said. “It’s rare for a GM to get frustrated because we have to deal with it all the time, but this one has been frustrating because it’s lingering and not much is accurate out there.”
  • The Rockets announced today that Sachin Gupta has rejoined the team as a special advisor (link via Mark Berman of FOX 26 Houston). Gupta was Morey’s first hire back in 2006, but left Houston to become a consultant for the Sixers during Sam Hinkie’s stint in Philadelphia.

Jordan Bell Will Look To Emulate Draymond Green

  • Look no further than Draymond Green for an archetype that Jordan Bell can aspire to match. Green has been mentoring the Warriors‘ second-round pick to fill a similar niche, Mark Medina of The Mercury News writes. “I could see myself playing similar to him and helping my team out if he gets into foul trouble or gets a technical,” Bell said. “I can come in. Hopefully with me watching him in practice, I can start to emulate what he does.

NBA Modifies Closeout, Continuation Rules

The NBA has decided to re-evaluate how it handles two particular fouling situations, Brian Mahoney of the Associated Press writes, and two players will see their names live on in notoriety as a result.

In what can colloquially be referred to as the Zaza Pachulia rule, officials will be granted authority to look at replays and make a judgment call as to whether or not a defender recklessly positioned his foot in an unnatural way after defending a shot. If necessary, the official can assign a flagrant or technical foul accordingly.

Pachulia’s name is the first to come to mind considering the impact that one particular moment this past spring had on the Western Conference semifinal. That series saw Kawhi Leonard fall to a sprained ankle after landing on a conspicuously positioned Pachulia foot after a closeout.

The second fouling situation that will be viewed differently in 2017/18 pertains to continuation. Officials, Mahoney writes, will now ensure that shooters are in their upward shooting motion when determining if a foul out on the perimeter is worthy of free throws.

Cited in the report as a common perpetrator of milking continuation calls is Rockets guard James Harden. By limiting the number of perimeter foul calls that lead to free throws, the league will disincentivize players from forcing unnatural shots after absorbing content.

Warriors Sign Alex Hamilton

The Warriors have filled out their roster for training camp by signing free agent guard Alex Hamilton to a contract, the team announced today in a press release. The move increases Golden State’s roster count to 20 players.

Hamilton, who turns 24 next month, played his college ball at Louisiana Tech, averaging 19.9 PPG and 6.2 APG in his senior year in 2015/16. Although his performance earned him Conference USA Player of the Year honors, Hamilton went undrafted last year.

After a short stint with a Polish team, Hamilton was selected in the G League draft and spent the 2016/17 season with the Santa Cruz Warriors, Golden State’s affiliate. He averaged 11.4 PPG and 4.5 APG in his first year at Santa Cruz, and is a good bet to head back to the G League following the preseason this year.

Although the Warriors have 20 players under contract, only one of the club’s two-way contract spots has been filled, so Hamilton may be a candidate for the other slot.

NBA Teams That Can’t Offer More Than The Minimum

At this point in the NBA offseason, most free agents who remain on the open market will have to settle for minimum salary contracts, if they receive an NBA offer at all.

There are some exceptions, particularly on the restricted free agent market, where Mason Plumlee just signed a three-year, $41MM deal with the Nuggets. Within the last week or two though, we’ve seen top remaining unrestricted free agents like Shabazz Muhammad, Tony Allen, and Andrew Bogut settle for minimum salary contracts.

That’s good news for several teams who have used all their available cap room and/or exceptions and can only offer minimum salary contracts for the rest of the 2017/18 league year. They won’t necessarily be at a disadvantage when it comes to signing free agents if those players aren’t being offered more than the minimum by teams with the means to do so.

In some cases though, an inability to offer more than the minimum can handicap a team. Dante Cunningham‘s free agent decision this week reflects this — according to multiple reports, the deal Cunningham agreed to with the Pelicans is actually worth $2.3MM, which is more than his minimum salary of $2.1MM. While we haven’t seen the official terms of Cunningham’s new contract yet, it’s possible that the $200K difference was one reason Cunningham chose New Orleans over a suitor like the Timberwolves, who could only offer the minimum.

Teams with the flexibility to offer more than the minimum could also benefit later in the NBA season. For instance, if Dwyane Wade negotiates a buyout with the Bulls and considers which team to join as a free agent, the fact that the Heat have retained their $4.328MM room exception could be a factor — it would allow Miami to make a stronger offer than the Cavs could.

With that in mind, here’s a breakdown of the teams that currently don’t have the ability to offer more than the minimum salary, which is $815,615 for a first-year player:

  • Boston Celtics
  • Detroit Pistons
  • Golden State Warriors
  • Houston Rockets: $350 of mid-level exception available
  • Los Angeles Clippers: $774,770 of mid-level exception available
  • Memphis Grizzlies: $1,440,385 of mid-level exception available, but will use at least $815,615 to sign Ivan Rabb.
  • Minnesota Timberwolves
  • New York Knicks
  • Oklahoma City Thunder

Meanwhile, the following teams have less than $3.29MM (the value of the bi-annual exception) to offer to free agents:

  • Cleveland Cavaliers: $2,549,143 of taxpayer mid-level exception available
  • Utah Jazz: $1,128,000 of room exception available
  • Washington Wizards: $1,902,000 of taxpayer mid-level exception available

Of course, just because a team has an exception available, that doesn’t mean the club will be eager to use it. Teams like the Bucks or Pelicans, for instance, still have various MLE and BAE exception money available, but their proximity to the luxury tax threshold will make them reluctant to offer more than the minimum salary to anyone the rest of the way.

For a full breakdown of how teams have used their mid-level, room, and bi-annual exceptions for the 2017/18 league year, be sure to check out our MLE tracker and BAE tracker.

Andre Iguodala Nearly Signed With Rockets In Free Agency

An eventful series of free agent meetings in July had Andre Iguodala on the verge of signing with the Rockets before the Warriors swooped in and met his demands at the last minute, Chris Haynes writes in a fascinating piece for ESPN.com.

Back on July 1, we heard that Iguodala was expected to circle back to Golden State after getting an offer he liked from Houston, but Haynes goes into far more detail in describing the process that got Iguodala to that point. Here are a few highlights from the ESPN report:

  • As free agency opened, the Warriors increased their initial offer for Iguodala to $42MM over three years, with a partial guarantee in year three, according to Haynes. However, the swingman wasn’t satisfied with Golden State’s pitch and opted to take meetings with several suitors rather than accepting the Dubs’ offer.
  • The Lakers were the first team to speak with Iguodala, but as was the case throughout free agency, L.A. only offered one year, aiming to preserve 2018 cap room. The Lakers’ one-year offer was worth $20MM, per Haynes.
  • Iguodala met with the Spurs next, and San Antonio offered a fully guaranteed four-year deal. The Spurs only had their mid-level exception to offer, meaning they couldn’t offer more than about $36MM, but Iguodala – who likes being involved in the tech world – was intrigued by the team’s proximity to Austin.
  • The Kings met with Iguodala next and, armed with about $43MM in cap room, essentially asked him to name his price — within reason. If Iguodala named a price that Sacramento was willing to match, the Kings wanted a commitment on the spot, according to Haynes. Not wanting to commit right away, the 33-year-old held off on specifics, but recognized that Sacramento likely had the means to offer him the most money.
  • The Rockets were the next team to make a pitch to Iguodala, and one source within his camp called it “the best recruiting presentation of all time,” per Haynes. Houston was limited to its mid-level exception, but president of basketball operations Daryl Morey began proposing “lucrative sign-and-trade scenarios like a mad scientist” in an effort to meet Iguodala’s demands. Following the meeting with the Rockets, Iguodala cancelled his remaining meetings, including sit-downs with the Sixers, Clippers, Timberwolves, and Jazz, and there was “a strong sentiment that he was Houston-bound.”
  • Iguodala decided to meet one last time with the Warriors, though he expected to use the meeting as an opportunity to say goodbye, sources tell Haynes. Golden State offered a fully guaranteed three-year, $45MM deal, but Iguodala wasn’t budging from his asking price of $16MM per year, and intended to sign with the Rockets if Golden State didn’t meet that demand.
  • Shortly after Iguodala’s meeting with the Warriors ended, GM Bob Myers went to team owner Joe Lacob to ask for a little more money, and received approval to offer $48MM over three years, which was enough to bring Iguodala back into the fold.

NBA’s Board Of Governors To Examine Revenue Sharing System

ESPN’s Zach Lowe and Brian Windhorst have published an expansive and well-researched report on NBA teams’ finances, providing details on the league’s revenue sharing system, the impact from national and local television deals, and how a lack of net income for NBA franchises could push the league toward considering relocation or expansion.

The report is wide-ranging and detailed, so we’re going to tackle it by dividing it up into several sections, but it’s certainly worth reading in full to get a better picture of whether things stand in the NBA. Let’s dive in…

Which teams are losing money?

  • Nine teams reportedly lost money last season, even after revenue sharing. Those clubs were the Hawks, Nets, Pistons, Grizzlies, Magic, Wizards, Bucks, Cavaliers, and Spurs. The latter two teams – Cleveland and San Antonio – initially came out ahead, but paid into the league’s revenue sharing program, pushing them into the red.
  • Meanwhile, the Hornets, Kings, Pacers, Pelicans, Suns, Timberwolves, and Trail Blazers also would have lost money based on net income if not for revenue sharing, according to Lowe and Windhorst.
  • As a league, the NBA is still doing very well — the overall net income for the 30 teams combined was $530MM, per ESPN. That number also only takes into account basketball income, and doesn’t include income generated via non-basketball events for teams that own their arenas.
  • The players’ union and its economists have long been skeptical of NBA teams’ bookkeeping, alleging that clubs are using techniques to make themselves appear less profitable than they actually are, Windhorst and Lowe note. The union has the power to conduct its own audit of several teams per season, and it has begun to take advantage of that power — according to ESPN, the union audited five teams last season, and the new CBA will allow up to 10 teams to be audited going forward.

How does the gap between large and small market teams impact income?

  • Even after paying $49MM in revenue sharing, the Lakers finished the 2016/17 with a $115MM profit in terms of net income, per ESPN. That was the highest profit in the NBA, ahead of the second-place Warriors, and could be attributed in large part to the $149MM the Lakers received from their huge local media rights deals.
  • On the other end of the spectrum, the Grizzlies earned a league-low $9.4MM in local media rights, which significantly affected their bottom line — even after receiving $32MM in revenue sharing, Memphis lost money for the season. The Grizzlies will start a new TV deal this year that should help boost their revenue, but it still won’t come anywhere close to matching deals like the Lakers‘.
  • The biggest local TV deals help drive up the NBA’s salary cap, with teams like the Lakers and Knicks earning in excess of $100MM from their media agreements. According to the ESPN report, the Knicks made $10MM more on their TV deal than the six lowest-earning teams combined.
  • As one owner explained to ESPN, “National revenues drive up the cap, but local revenues are needed to keep up with player salaries. If a team can’t generate enough local revenues, they lose money.”
  • Playoff revenue from a big-market team like the Warriors also helps push up the salary cap. Sources tell Lowe and Windhorst that Golden State made about $44.3MM in net income from just nine home playoff games last season, more than doubling the playoff revenue of the next-best team (the Cavaliers at about $20MM).

How is revenue sharing affecting teams’ earnings?

  • Ten teams paid into the NBA’s revenue sharing system in 2016/17, with 15 teams receiving that money. The Sixers, Raptors, Nets, Heat, and Mavericks neither paid nor received any revenue sharing money. Four teams – the Warriors, Lakers, Bulls, and Knicks – accounted for $144MM of the total $201MM paid in revenue sharing.
  • While there’s general agreement throughout the NBA that revenue sharing is working as intended, some teams have “bristled about the current scale of monetary redistribution,” according to ESPN. “The need for revenue sharing was supposed to be for special circumstances, not permanent subsidies,” one large-market team owner said.
  • The Grizzlies, Hornets, Pacers, Bucks, and Jazz have each received at least $15MM apiece in each of the last four years via revenue sharing.
  • However, not all small-market teams receive revenue-sharing money — if a team outperforms its expectations based on market size, it forfeits its right to that money. For instance, the Thunder and Spurs have each paid into revenue sharing for the last six years.

Why might league-wide income issues lead to relocation or expansion?

  • At least one team owner has raised the idea of expansion, since an expansion fee for a new franchise could exceed $1 billion and it wouldn’t be subject to splitting 50/50 with players. A $1 billion expansion fee split 30 ways would work out to $33MM+ per team.
  • Meanwhile, larger-market teams who aren’t thrilled about their revenue-sharing fees have suggested that small-market clubs losing money every year should consider relocating to bigger markets, sources tell ESPN.
  • As Lowe and Windhorst observe, the Pistons – who lost more money than any other team last season – are undergoing a relocation of sorts, moving from the suburbs to downtown Detroit, in the hopes that the move will help boost revenue.

What are the next steps? Are changes coming?

  • The gap between the most and least profitable NBA teams is expected to be addressed at the NBA’s Board of Governors meeting next week, per Lowe and Windhorst. Team owners have scheduled a half-day review of the league’s revenue sharing system.
  • Obviously, large- and small-market teams view the issue differently. While some large-market teams have complained about the revenue sharing system, they’re outnumbered, with smaller-market teams pushing those more successful clubs to share more of their profits, according to ESPN.
  • Trail Blazers owner Paul Allen is one of the loudest voices pushing for more “robust” revenue sharing, sources tell ESPN. Some team owners have argued that the system should ensure all teams make a profit, while one even suggested every team should be guaranteed a $20MM profit. There will be “pushback” on those ideas, Lowe and Windhorst note. “This is a club where everyone knows the rules when they buy in,” one owner said.
  • On the other end of the spectrum, some teams have floated the idea of limiting the amount of revenue sharing money a team can receive if it has been taking payments for several consecutive years.
  • Any change to the revenue sharing system that is formally proposed at the NBA’s Board of Governors meeting would require a simple majority (16 votes to 14) to pass.

15 Two-Way Contract Slots Remain Open

With NBA training camps just a couple weeks away, most teams are putting the finishing touches on their respective rosters. In addition to having secured at least a dozen players on guaranteed contracts and perhaps a handful of camp invitees, each NBA club has also signed at least one player to a two-way contract.

As we explain in depth in our FAQ, two-way contracts – a new concept under the league’s latest Collective Bargaining Agreement – allow NBA teams to carry two extra players in addition to the 15 on their regular season roster. These players spend most of their time with the club’s G League affiliate, but are eligible to join the NBA roster for up to 45 days per season, and remain under team control — they can’t be poached by rival franchises.

Teams have been signing players to two-way contracts since July, so we’re starting to get a better idea of what players on those deals will look like — some are late second-round draft picks; some are undrafted rookies; others are G League or international veterans, or former NBA players looking to work their way back into the league.

Every NBA club has signed at least one player to a two-way deal, but only half of those 30 clubs have filled both spots, meaning that there are still 15 two-way openings around the league. With the help of our two-way tracker, here’s a breakdown of the teams that still have an open two-way slot:

  • Atlanta Hawks
  • Cleveland Cavaliers
  • Dallas Mavericks
  • Golden State Warriors
  • Houston Rockets
  • Los Angeles Clippers
  • Los Angeles Lakers
  • Miami Heat
  • Milwaukee Bucks
  • Minnesota Timberwolves
  • New York Knicks
  • Oklahoma City Thunder
  • Orlando Magic
  • Philadelphia 76ers
  • Portland Trail Blazers

While the Suns and Jazz technically could be included on this list, they’ve reportedly reached agreements – with Alec Peters and Nate Wolters, respectively – to fill their second two-way slots, so unless those deals unexpectedly fall through, they won’t have any openings.

Although some of these two-way openings figure to be filled in advance of training camp, many of the clubs listed above have signed camp invitees to Exhibit 10 contracts, which can later be converted into two-way deals. So rather than signing someone new and waiving a camp invitee, a handful of teams may simply convert an Exhibit 10 contract to a two-way contract before the regular season begins.

Warriors Notes: Jersey Sponsor, Curry, Durant

The Warriors are the latest NBA team to reach an agreement with a sponsor for jersey advertisements, and the terms of that deal are eye-popping. As Darren Rovell of ESPN details, the Warriors’ jersey three-year sponsorship agreement with Japanese tech company Rakuten is worth $20MM annually, which nearly doubles the second-most valuable deal signed so far — the Cavaliers’ agreement with Goodyear is said to be worth about $12MM per year.

“We actually had multiple finalists,” Warriors chief marketing officer Chip Bowers said, per Rovell. “This was not the biggest deal that we were offered. … We saw an opportunity, given the visibility we were receiving. So we felt in order to grow our global vision, we had to be aligned with a global brand.”

The Warriors can’t put that $60MM commitment from Rakuten – which owns cash-back site Ebates, messaging app Viber, and e-book brand Kobo – directly toward team salary. However, as Mark Medina of The Bay Area News Group writes, a deal of that magnitude can indirectly help the franchise build its roster.

Here’s more from out of the Bay Area:

  • After Kevin Durant said on Bill Simmons’ podcast last month that “nobody wants to play in Under Armours,” Stephen Curry – Under Armour’s top endorser – had a conversation with his teammate to clear the air. “This is nothing that is going to put a wrench in the locker room,” Curry told Scott Fowler of The Charlotte Observer.
  • Having just signed a new five-year deal with the Warriors, Curry will be under contract through age 34, and he says that he hopes to play for a few more years beyond that. As Fowler details in the Observer piece linked above, Curry’s goal is to at least match the 16 years that his father Dell Curry spent in the NBA. So far, the eight-year veteran is halfway to that point — the 2024/25 season would be his 16th.
  • Within his latest mailbag, Anthony Slater of The Athletic addresses that “brand battle” between Curry and Durant, while also discussing Andre Iguodala‘s Hall-of-Fame chances, the Warriors’ biggest weakness, and much more.
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