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Raja Bell signs $10 million deal with the Jazz

July 15th, 2010 3 comments
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Raja Bell has agreed to a three-year deal with the Utah Jazz worth nearly $10 million.

Bell, who will turn 34 in September, played in only six games last season with the Bobcats and Warriors before undergoing surgery for a torn ligament in his left wrist. But he is a career 41.1% three-point shooter still capable of solid on-ball defense.

It was anticipated that he would play a big part on the Heat’s second unit next season.

Bell’s departure is certainly a loss. The Heat could use a floor-spacing shooter at the two guard spot, particularly someone also capable of playing strong perimeter defense. He is certainly aging and his athleticism is declining, but he nevertheless remains solid at what he does best. He figured to play significant minutes for the Heat as a potential as the only true reserve shooting guard on the roster behind Dwyane Wade.

The decision to join the Jazz is quite confounding in some respects.

Bell presumably wanted to play for a good team. With his track record, good teams certainly wanted him. That much is evident from the list of clubs after him, a list which reportedly included the Bulls, Heat, Lakers, Spurs, Trail Blazers and Jazz. If you’re 34 years old and looking to win your first championship before you hang it up, you can’t do much better than either the two-time defending champion Lakers or the future perennial favorite Heat. The Jazz doesn’t seem to offer the ten-year veteran an opportunity to win. Read more…

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Dwyane Wade the Victim of Salary Cap Maximization Issues By His Agent and Team

July 15th, 2010 No comments
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Miami Heat general manager Pat Riley and salary cap expert Andy Elisburg have been widely praised not only for their ability to recruit LeBron James, Chris Bosh and Mike Miller to join Dwyane Wade and Udonis Haslem in South Florida but also for their ability to structure their contracts to fit within the confines of a $58.044 million salary cap.

Wade, however, has reason to be less than thrilled.

Wade, James and Bosh were all eligible to receive maximum contracts with a starting salary of $16,568,908. However, in order to accommodate the contracts of Miller and Haslem, each took less. The first year salaries in the contracts of James and Bosh have been finalized at $14,500,000, while the first year salary for Wade has been finalized at $14,200,000.

Wade’s $300,000 shortfall will wind up costing him $2,272,500 over the life of his deal.

Wade took less than his Big Three cohorts in order to accommodate Haslem. But part or even all of that sacrifice was unnecessary. The Heat had the ability to create the necessary room to allow Wade’s contract to match that of James and Bosh, with room to spare, through the utilization of some creative maneuvering.

Understanding how this would have been possible necessitates an understanding of certain league rules.  Read more…

A Story of Sacrifice for the Miami Heat

July 15th, 2010 No comments
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The contracts are all signed. The final numbers are all in.

We now know exactly how much each member of the Big Three sacrificed, why exactly they sacrificed, and where exactly the savings went.

Each member of the Big Three was eligible for a maximum salary of $16.6 million in the first year of any new contract signed, whether it was with their prior teams or with anyone else. But while the starting salary was to be the same no matter where they signed, the NBA’s Collective Bargaining Agreement gives the home team a financial advantage when it comes to re-signing its own players. The home team is eligible to offer his player one more year (six instead of five) and bigger annual raises (10.5% of the first year salary instead of 8%).

Sign-and-trade transactions capitalize on this concept, in that they allow the to-be-traded player to be technically signed by his home team, and then be immediately traded to his new team. Pat Riley structured sign-and-trade transactions with both the Raptors (for Bosh) and Cavaliers (for James). No maneuvering for Wade was necessary because the Heat is already his home team.

The Heat’s trade partners were willing to accommodate the Heat, but only at a very steep cost. To the Raptors, the Heat sent its 2011 first round pick and returned the first round pick previously acquired from the Jermaine O’Neal trade in February 2009. To the Cavaliers, the Heat sent its 2013 and 2015 first round picks, gave Cleveland the option to swap first round picks in 2012, as well as a pair of second round picks. In total, the Heat surrendered four first round picks and two second round picks over the next five years to make the sign-and-trades happen.

The sign-and-trade approach increased the total potential value of the contracts of each of Bosh and James. Without the sign-and-trade approach, each would have been eligible for a five-year contract, starting at $16.6 million with annual raises of up to 8% of the starting salary, totaling $96.1 million. With the sign-and-trade approach, each player, and Wade, became eligible for a six-year contract, starting at $16.6 million with annual raises of up to 10.5% of the starting salary, totaling $125.5 million.

Each player then gave back a portion of that increase to accommodate the contracts of Miller, Haslem and other such things. The Big Three took discounts in order to accommodate the following:  Read more…

Miami Heat Completes Mike Miller Signing

July 15th, 2010 4 comments
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The Miami Heat has taken another major step forward in its attempt to build out its championship-caliber roster, by securing the services of Washington Wizards free agent swingman Mike Miller.

The 6-foot-8 three-point-shooting specialist agreed in principle nearly a week earlier to a five-year deal worth $29 million, but actually signed his contract today.

Miller is considered a vital part of Miami’s offseason plan, which started with the re-signing of Dwyane Wade and the additions of LeBron James — Miller’s close friend — and Chris Bosh. James said he wanted Miller to play with him, even talking the former University of Florida Gator into passing up higher-paying deals for a chance to sign with Miami.

Miller had been heavily pursued, reportedly receiving a five-year contracts from the Los Angeles Clippers and New York Knicks, each worth approximately $50 million, as well as interest from the Chicago Bulls and Cleveland Cavaliers.  But Miller’s future has hinged on LeBron’s, and he graciously took what appears to be a $20 million discount to make it happen.

James, Wade and Bosh did the rest, reducing their starting salaries by $3.5 million to accommodate Miller’s contract, which will start at exactly $5 million. They split the discount evenly, with each player reducing his starting salary by around $1.2 million, which equates to a $9 million sacrifice per player over the course of their six year deals.  Read more…

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Reviewing the Miami Heat’s Forgone First Round Draft Picks

July 14th, 2010 No comments
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The Heat have traded away multiple first round draft picks in the sign-and-trade transactions that enabled them to acquire LeBron James and Chris Bosh. The years in which those picks will be conveyed are rather straightforward in practical terms. However, literally speaking, there are various rules and protections in place that make it impossible to determine with certainty.

The trading of N.B.A. draft picks is restricted by a series of intricate rules that have been put in place in order to protect teams that are trading away the picks from themselves. History suggests that teams need these protections so as not to unwittingly destroy their own franchises.

No one N.B.A. personality is more historically-renown and nationally infamous for his incompetency than Ted Stepien, former owner and de fact general manager of the Cleveland Cavaliers. In 1980, Stepien parlayed his minority stake in the Cavs into full control of the franchise. After purchasing the club, Stepien thought he could quickly assemble a competitive team, but he proved to be a horrendous judge of basketball talent. He spent ludicrously lavish sums of money on marginal players and made a series of controversial and, to outsiders, ludicrously one-sided player trades.

His first big move happened two months before his purchase of the team went through: He flipped backup guard Butch Lee and a 1982 first-round pick to the Los Angeles Lakers in exchange for backup forward Don Ford and a 1980 first-round pick (needless to say, not a great pick considering the Lakers were competing for titles). Two years later, Los Angeles picked future Hall-of-Famer James Worthy first overall with Cleveland’s pick.  Read more…

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The Result of Winning Over Money, Friendship Over Fame

July 13th, 2010 18 comments
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One has to wonder if the enormous salaries the NBA offers has caused players to forget the reasons why they play the game. Or that it is a game. The concept of playing because it was a childhood dream, or the dream of hitting the game-winning shot as time expires to take home the NBA title seems largely gone.

The game has changed. It has changed from being played on the court to being played in the owner’s office. Players seem to care only about one thing: money.

What Pat Riley is doing in South Florida is unprecedented. Sure, there have been isolated cases where the magnanimous nature of an individual athlete enables him to sacrifice dollars for the benefit of his team. But never has such an attitude fostered a culture that has permeated throughout an entire organization.

What has resulted should be a model for everyone to follow – on generosity, on the desire for team success, and, most importantly, on the value of friendship.

Free agency obviously depends on a number of factors. One, clearly, is money. For some, priorities two, three, four and five are also money. That will not be the case for any of the next fifteen players to wear a Miami Heat jersey. Read more…

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A fresh look at the roster…

July 13th, 2010 8 comments
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The Miami Heat’s roster is beginning to round into shape.

Head coach Pat Riley has secured commitments from, or is in advanced discussions with, the following 9 players:

PG: Mario Chalmers
SG: Dwyane Wade
SF: LeBron James, Mike Miller, James Jones
PF: Chris Bosh, Udonis Haslem, Juwan Howard
C: Zydrunas Ilgauskas

The Heat is at a point where it has more veteran applicants than remaining roster spots. Of interest to the Heat, or rumored to be so, include the following 19 players:

PG: Carlos Arroyo, Jason Williams, Keyon Dooling and Patrick Beverley
SG: Raja Bell, Eddie House, Jerry Stackhouse and Kenny Hasbrouck
SF: Matt Barnes, Tracy McGrady, Rasual Butler and Da’Sean Butler
PF: Shavlik Randolph and Jarvis Varnado
C: Joel Anthony, Jamaal Magloire, Brad Miller, Kwame Brown and Dexter Pittman

A roster can consist of no more than 15 players during the regular season.

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Big Z joins the party

July 13th, 2010 No comments
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Zydrunas Ilgauskas will join fellow Cavalier teammate and close personal friend, LeBron James, on the Miami Heat next season.

He will accept a two-year contract at the veteran minimum salary. The first season will pay him $1,352,181. The second will be a player option at $1,399,507.

The Cavs offered Ilgauskas a guaranteed contract, but he elected to go to Miami, where his wife Jennifer has family. He was a beloved member of the Cavaliers franchise for the past 14 years.

Ilgauskas, who will officially execute his Heat contract after Mike Miller, is a nice complement to the Heat’s star-studded lineup. Big Z is a solid mid-range shooter, stretching out to between 15 feet and 20 feet. He is also an effective offensive rebounder, often using strong hands around the basket to tip in missed shots. He figures to round out a starting rotation that also features Dwyane Wade, Mike Miller, LeBron James and Chris Bosh, though the rotations figure to be something of a fluid concept.

However, Ilgauskua, 35, is an aging center whose defensive capabilities are oftentimes not on par with the expectations of a Riley-run organization. He often struggles against more athletic opponents, particularly in pick-and-roll situations.

The more athletic but less coordinated and “big” big man, Joel Anthony, figures to spell the 7’3″ center for large portions of the game, including key stretches during close ball games. But he is by no means a definitive answer. Joel has certainly come a long way over the past two seasons, but he is still not somebody you would trust to catch a basketball, let alone take in and place it in the basket. And while his shot-blocking prowess is absurdly good (third in the league last season in blocks per 48 minutes, at 3.96), his rebounding prowess is not (9.0 per 48 minutes, good for 71st in the league).

The Heat still hasn’t found itself an ideal starting center. Given the limitations at the position, the Heat might be better served shifting Chris Bosh to center, James to power forward, and Miller to small forward. With Chalmers and Wade in the backcourt, the starting rotation would become an offensive juggernaut built around ideal floor spacing.

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Miami’s future draft selections

July 13th, 2010 6 comments
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The Michael Beasley transaction was completed yesterday with a bit of an unexpected turn. Instead of a swap right of future first round positions, Miami will acquire Minnesota’s 2011 and 2014 second-round picks.

The rest of the off-season figures to be low key from a draft pick trading standpoint.

Here’s an overview of the Miami Heat’s future draft pick scenario:

2011: No first round picks; one second round pick (Minnesota)
: One first round pick (swap right to Cleveland); one second round pick (Memphis; top-55 protected)
: No first round pick; one second round pick
: One first round pick; two second round picks (Minnesota)
: No first round pick; one second round pick

Here is a detailed review of the pick flow:

Read more…

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Udonis Haslem Re-Signs with Miami Heat

July 12th, 2010 11 comments
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Udonis Haslem is staying with the Miami Heat.

Haslem signed a five-year, $20 million contract on Monday, roughly $13 million less than he could have received if he accepted more lucrative offers elsewhere.

Haslem had been heavily pursued in recent days. The Denver Nuggets and Dallas Mavericks each reportedly offered him a five-year, $33 million mid-level exception contract over the weekend, and the New Jersey Nets offered three years and $20 million last week. He also received interest from the Utah Jazz, New York Knicks and Atlanta Hawks. But every team that showed interest in him did so with pessimism that he could be lured away from Miami.

A week ago, Haslem expected he would sign elsewhere, but then the combination of a $58.044 million salary cap ($2 million more than expected) and the decisions by Dwyane Wade, LeBron James and Chris Bosh to take less money made it possible for him to stay where he wanted.

The salary cap maneuvering which allowed for the possibility was orchestrated by Wade, when he approached Bosh and James to suggest they all take less money, specifically to re-sign Haslem.

The three had already agreed to reduce their starting salaries by $3.5 million to accommodate the contract of Mike Miller. They split the discount evenly, with each player reducing his starting salary by around $1.2 million, which equated to a $9 million sacrifice per player over the course of their six year deals.

Wade requested that they reduce their starting salaries by another $3.0 million to accommodate the contract of Haslem. James and Bosh obliged, with Wade taking a disproportionate share of that discount. Wade reduced his starting salary a further $1.2 million ($9 million over six years) to accommodate Haslem, while James and Bosh reduced their salaries a further $900K ($7 million over six years).

The sacrifices of Wade, James and Bosh enabled the Heat to create an extra $3.5 million of cap room, which the Heat then offered to Haslem as a full five-year contract with maximum allowable raises, totaling $20 million. Haslem then finished it off by agreeing to the deal with Miami that will pay him $13 million, or nearly 40%, less than he could have earned elsewhere.

“I would be changing my DNA if I left just for money,” he said.  Read more…

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