Miami Heat Meet With Derek Fisher

July 10th, 2010 1 comment
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Heat President Pat Riley and team owner Micky Arison met Saturday with Los Angeles Lakers championship point guard Derek Fisher for three hours at the Mandarin Oriental hotel in downtown Miami. The Heat reportedly told Fisher they envision him as their starting point guard and will hold off on offers to other players while he made his decision.

Dwayne Wade, LeBron James and Chris Bosh have also all reached out to Fisher to help persuade him to leave the two-time defending champion Lakers, his team for the past three seasons.

But while the Heat are doing their best to court Fisher, there is a strong expectation that he will wind up back with the Lakers after this well-publicized dalliance, which likely will wind up as nothing more than a bid to drive up his value.

The Lakers’ current hard line with Fisher has them asking him to take a pay cut from the $5 million he earned last season, in the wake of the team recently signing Los Angeles Clippers free-agent point guard Steve Blake. The Lakers’ initial offer to Fisher was for one year, at $2.5 million.

While the Lakers continue to express optimism that a deal with Fisher will get done, interest from the Heat could force the Lakers to increase that offer. The Heat can potentially offer more.

The Heat currently has a team salary of $50.0 million – with Wade, James, Bosh and Chalmers under contract for a combined $44.1 million, a $1.1 million qualifying offer to Joel Anthony outstanding, a $1.5 million cap charge associated with James Jones’ buyout, and $3.3 million in roster charges – leaving $8.0 million of room below the $58.044 million salary cap. Approximately $5 million of that has already been committed Mike Miller, which (after subtracting one roster charge) leaves the Heat with about $3.5 million of available cap space. While the Heat is hoping to retain Udonis Haslem as well, it may not require cap space to do so. The Heat are therefore in position to offer Fisher a contract with a starting salary as high as $3.5 million.  Read more…

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Getting Creative With Udonis Haslem

July 10th, 2010 No comments
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You may know that on Wednesday, the league announced the salary cap for the 2010-11 NBA season was set at $58.044 million.

What you may not know is that the Miami Heat entered the summer with a team salary of $89.7 million.

That’s because, according to league rules, all of a team’s free agents continue to count against the salary cap, at predetermined levels called “free agent amounts.”

Free agent amounts are designed to address a salary cap loophole whereby a team utilizes all of its cap space to sign outside free agents and then circles back to its own free agents utilizing their Bird rights, which allow teams to exceed the cap to re-sign their own players.

The rules use a player’s current status (type of free agent, whether coming off a rookie contract, and previous salary) as a rough guideline to predict the amount the player is likely to receive in his next contract, and sets that amount aside in the form of a cap hold. The cap holds for players on minimum salary contracts are equal to the minimum salary for the upcoming season, but for all other players are between 120% and 300% of their previous salary (though they can never be greater than a player’s maximum salary).

Free agents continue to be included in team salary until one of the following three things happens:

  • The player signs a new contract with the same team. When this happens, the team salary reflects the player’s new salary rather than his cap hold.
  • The player signs with a different team. As soon as this happens, the player becomes his new team’s problem, and his salary no longer counts against his old team.
  • The team renounces the player. A renounced player no longer counts toward team salary, so teams use renouncement to gain additional cap room. But it comes at a cost. By renouncing a player, a team gives up its right to use the Bird exception to re-sign that player. Teams are still permitted to re-sign renounced players, but only with cap room or an exception other than Bird rights.

To create the cap space necessary to acquire the contracts of LeBron James and Chris Bosh, each with a starting salary at $14.5 million, the Heat had to reduce its team salary from $89.7 million all the way down to at least $29.0 million below the $58.044 million cap. Anticipating that need, the Heat on Wednesday renounced most every free agent on the roster.  Read more…

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Heat’s Forgone Draft Picks Could Prove Costly

July 10th, 2010 6 comments
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Pat Riley turned 65 in March, the age of retirement for many but apparently the age of reinvention for him. Just when he seemed to be on the verge of fading into professional irrelevance, he executed an unprecedented triple play: LeBron James, Dwyane Wade, Chris Bosh. All playing together. All here in South Florida for the Miami Heat.

Lost in the exultation of today, however, is an unpopular potential storyline: The Heat may well be destroying its tomorrow. It is doing it by massively undervaluing the import of the NBA draft. And it could have dire consequences in the years to come.

Riley makes no equivocation about his disdain for building through the draft: “I’ve said in the past, and I believe this, that the way I always want to build a team is through free agency and trades. Probably some of the best players we’ve gotten here were free agents and trades. Also, through the draft. But the only way you build through the draft is to lose and get three, four, five years of top 10 lottery picks. Since (losing to get those picks) has never been a philosophy of mine – we’ve only had three lottery picks in 15 years – I always use (draft picks) as an adjunct to help free agency and trades. As chips I would use maybe to acquire players through trade.”

His actions over the past several months validate that philosophy.  Read more…

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It’s Official!!!

July 10th, 2010 15 comments
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With 13,000 Miami Heat fans anxiously waiting in AmericanAirlines Arena to welcome its newest trio of superstars, Dwyane Wade, LeBron James and Chris Bosh were upstairs finalizing their contracts. Minutes later, they emerged from a cloud of smoke, along with some unexpected news: They all took discounts large enough to accommodate the potential signings of both Mike Miller and Udonis Haslem in the days ahead.

James and Bosh signed matching six-year contracts, which start at $14.5 million and pay out a total of $109.8 million. Wade took an even bigger discount to stay in Miami, signing a six year deal which starts at $14.2 million and pays out a total of $107.6 million. They could have received $125.5 million apiece if they had demanded the maximum value allowed under the NBA’s collective bargaining agreement.

Each was eligible for a maximum starting salary for next season of $16.6 million, 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, league rules give 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. Heat president Pat Riley therefore 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.  Read more…

Clearing Up Some Sign-and-Trade Confusion

July 9th, 2010 3 comments
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The following was reported today in the South Florida Sun Sentinel:

Should the Heat be able to pull off the maneuver, it would give Heat President Pat Riley unlimited resources to re-sign remaining current Heat free agents such as Udonis Haslem, Dorell Wright and Quentin Richardson — whichever are not included in such a sign-and-trade — without having to make those agreements work within the confines of the NBA’s “soft” salary cap.

In addition, such a maneuver would allow the Heat to retain its mid-level salary-cap exception for 2010-11, which it then could utilize to complete its planned signing of Washington Wizards free-agent swingman Mike Miller.

For the benefit of any dual readers who would certainly be confused and prematurely excited, allow me to clarify exactly why this scenario is impossible.

Read more…

No Rest For the Weary!

July 9th, 2010 10 comments
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LeBron James is joining Dwyane Wade and Chris Bosh on the suddenly star-heavy Miami Heat roster. The trio dramatically alters the league’s power structure, with the Heat instantly vaulted into what figures to be the Eastern Conference’s perennial powerhouse for the next half decade, ahead of such teams as the Boston Celtics, Chicago Bulls and Orlando Magic.

But it’s difficult to project the team’s superiority as of now, partly because it’s not yet officially a team. The league requires all NBA teams to carry between thirteen and fifteen players on its roster during the regular season.

How do you build out a roster around three players who are arguably the league’s best at their positions?

The commitment of Wade, James and Bosh was a strong first step. It was so strong that each committed to the Heat without knowing exactly what he committed to. There were no assurances that any would receive their maximum allowable starting salary of $16.6 million for 2010-11. In fact, they won’t.

In an era where we complain that athletes never want to win and only care about money, three of the top players in the game have agreed to take less money to play together and to dominate the league for the foreseeable future, even at the risk of diminishing their own individual greatness. Ultimately, they cared more about winning and friendship than money and legacy. Remarkable. Read more…

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Heat Comes to Terms With Free Agent Swingman Mike Miller

July 9th, 2010 13 comments
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The Miami Heat has taken another major step forward in its attempt to build out its championship-caliber roster, agreeing in principle to a five-year contract worth an estimated $30 million with Washington Wizards free agent swingman Mike Miller.

Miller is considered a vital part of Miami’s offseason plan, which of course 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 Florida Gator into passing up higher-paying deals for a chance to sign with Miami.

Miller, 30, is one of only two NBA players (Steve Nash) who shot better than 50% from the field, 40% from beyond the three-point line and 80% from the free throw line, while averaging at least 30 minutes of playing time, this past season. He made 48% of his 3-pointers last season for Washington, second-best in the NBA behind Kyle Korver.

Miller has quietly developed into one of the most versatile and efficient offensive players in the game today. He is a multi-faceted offense threat: he can shoot, he can drive, he can pass and he can rebound. He often plays more than one position during the course of a game, including a point-forward type role in some stretches.

Miller, perhaps the game’s ultimate floor-spacing wing player, figures to get big minutes alongside Dwyane Wade, LeBron James, Chris Bosh and an as-yet undetermined fifth player. The logical candidates for the fifth spot would be either center Joel Anthony or center Zydrunas Ilguaskas. But if the Heat elect for a small-ball approach, more exciting alternatives could avail themselves, whereby Bosh slides over to center, James to power forward, with Miller at his natural small forward position, Wade at his natural shooting guard position and a yet to be determined point guard. That could produce some of the greatest offensive basketball this game has ever seen.

Wade and James need little else beyond just the floor space with which to maneuver. Miller and Bosh could provide them just that. Simply by camping out along the perimeter, these players present their defenders with the following dilemma: should they sag into the paint and prevent Wade or James’ penetration and risk a kickout, or should they stick to their men and leave the driving player unattended?

That’s a tricky proposition made nearly impossible by the fact that James and Wade are perhaps the two best finishers at the rim in the game, and Miller and Bosh are two of the best perimeter jump shooters in the league.

Miller now becomes the fourth Heat player who has taken fewer total dollars in exchange for the prospect of winning multiple NBA titles. He was reportedly seeking a full five-year contract valued above the mid-level exception. The mid-level exception itself starts out at $5.8 million, and pays out $33 million over five years. The 6’8″ ten-year veteran was being courted by several teams, including the Los Angeles Clippers and New York Knicks, each of which stood to offer him substantially more money.

A five-year, $30 million offer to Miller implies a starting salary of roughly $5 million. That, in turn, would imply that James, Wade and Bosh have agreed to split as much as $47 million in first year salary amongst themselves, an average of $15.6 million per player. That’s about $1 million less than the $16.6 million maximum salary to which each was entitled.

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Heat send Michael Beasley to Timberwolves

July 9th, 2010 No comments
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Update (July 12, 2010): The compensation received for Michael Beasley has been changed to a pair of second round draft picks from the Minnesota Timberwolves in 2011 and 2014. 

The cloud of mystery that has surrounded the stay of Michael Beasley in South Florida for the past two seasons has been lifted.

In the wake of Thursday’s addition of Cleveland Cavaliers free-agent forward LeBron James, and amid the need to clear additional cap space, the Miami Heat late Thursday night traded Beasley, the No. 2 overall pick in the 2008 NBA Draft, to the Minnesota Timberwolves, who can simply absorb Beasley into empty salary-cap space.

The Heat will almost surely turn around and utilize the $4.96 million in gained cap space on Washington Wizards free-agent swingman Mike Miller, who has a standing five-year, $30 million offer on the table from the Heat which figures to start at roughly $5 million.

The Heat had to virtually give away the No. 2 overall pick from the 2008 draft to rid themselves of his expiring contract. To complete the trade, Minnesota must only part with a 2011 second-round pick. The teams have also agreed to a swap of unspecified future first-round picks.

Miami was previously working on a four-team trade that would have turned the Heat’s acquisition of Chris Bosh into a sign-and-trade with the Toronto Raptors while also sending Beasley to the Charlotte Bobcats. The Houston Rockets were also involved in that deal, which called for the Rockets to ship swingman Jared Jeffries to Charlotte and take back Bobcats center Tyson Chandler.

The Raptors, though, held firm on their determination to participate in a Bosh sign-and-trade only if they have to take back draft picks, while also creating a large trade exception through Bosh’s departure. The four-way proposal, which was introduced Wednesday, would have required Toronto to take back at least $3.1 million in contracts from Houston, which the Raptors were unwilling to do.  Read more…

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First Draft of Dan Gilbert’s Open Letter to Cavaliers Fans

July 9th, 2010 No comments
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Dan Gilbert Draft_Page 1Dan Gilbert Draft_Page 2Dan_Gilbert_Draft_Page 3

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Vindication!

July 8th, 2010 7 comments
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Pat Riley turned 65 years old in March, the retirement age for most but apparently the age of reinvention for him.

Just when Riley seemed to be on the verge of fading into professional irrelevance, buried under the weight of a pile of mistakes and a bitter fan base, he executed an unprecedented triple play, as he calls it, positioning himself for a climactic final act of a six-decade career that resembles the finale of an Alfred Hitchcock thriller.

As the model of his own standard, Riley has long been a target for satire with his slicked-back hair, Armani dress code and a motivational intensity that could exhaust a robot army. But NBA people who dismissed him as a pretty-boy ex-player and Magic Johnson’s house man in the 1980s and wrote him off as a Miami burnout case not all that long ago must now concede that he is an unparalleled multi-generational titan of the world’s greatest game.

This is vindication.

Riley’s unrivaled summer of 2010 truly started with the summer of 2004.

There was no elaborate plan for the Heat to woo LeBron James and Chris Bosh back then. Instead, that’s when Riley got Shaquille O’Neal to sign a $100 million, five-year contract. With that one move, costly as it was, the Heat had become instantaneous NBA royalty. The very next season, only an ill-timed strained Dwyane Wade rib muscle denied the Heat its ultimate goal. But a championship followed the season after. Riley believed another dynasty was on the way.

Then, thud.

The team quickly got old. Fat. Unmotivated. Undisciplined. Ultimately embarrassed in a first round playoff shutout.

Things had to change. Desperately.

In an effort to pull out from under the abyss, Riley made a series of questionable decisions which crippled the organization. Unable to salvage its former glory, the Heat unceremoniously traded O’Neal in February 2008, they were quickly the NBA’s worst team, and Riley soon after realized that the bloated contracts the Heat had been accumulating would keep his team from having any real money to spend until the summer of 2010.

The intervening years were a monumental struggle. Riley stood idly by as a once-proud roster was slowly and effectively depleted of its talent. He seemingly couldn’t adapt. Couldn’t adjust. He was getting old. His philosophies outdated. His rants tired. His trades awful. His draft selections even worse. He seemingly had no idea what he was doing.

Wade was unhappy. Fans were angry.

But there was method in his madness. Every deal he struck was made with summer 2010 in mind, not wanting to take on any contract that would eat into the team’s valuable cap space for that fateful summer. It was a strategy that infuriated Heat fans who refused to waste prime years of their Hall of Fame shooting guard’s career.

It was a strategy that Riley himself struggled with at times. In the summer of 2007, he nearly killed the dream when he offered contracts to Milwaukee point guards Mo Williams and Charlie Bell; the Bucks thankfully retained both. In the summer of 2008, he signed James Jones to a contract that could have killed the dream. In the summer of 2009, he offered Lamar Odom a contract that would have killed the dream.

But here we stand.

After three long years of preaching patience in the face of uneasy failure, Riley has become the face behind the most brilliant plan in NBA history — a dream scenario even he never thought possible.

Dwyane Wade, LeBron James and Chris Bosh will each be wearing a Miami Heat uniform in October, a trio of All-Stars and Olympic teammates that rivals anything from Magic, Kareem and Worthy of the “Showtime” Lakers to the Bird, McHale and Parish of the original “Big Three” era Celtics to M.J., Pippin and Dennis Rodman of the best-ever Bulls.

Whether the earth-rattling move was the result of a longtime scheme hatched by James and Wade, the product of a masterful strategy implemented by Riley, or the synergistic power of the Creative Artists Agency, which represents the Heat’s principal characters in the story, is at this stage irrelevant.

Riley cleared the money. He created the structure. He developed the culture of family.

He leveraged his own experience. Talk of titles wasn’t just idle talk with him. He lived it. He had the rings to prove it. Seven of them, in fact, as a player and coach.

And that’s what Riley sold James and Bosh on. Come to Miami, he said. Win championships. Make history.

In James’ case, Riley brought his proof. A bag of championship rings.

Rings and family. That’s what he talked to James about for the better part of three hours, sitting at opposite ends of a conference room table that held nothing but seven championship rings on top of it.

When that meeting ended, he and Arison walked out of the room, confident that James was coming to Miami.

A week later, the deal was done.

“Blood, sweat and tears, all that as a family. And that’s what I’ve always been a part of my whole life,” James said. “That’s always, since I was a kid, what I always seeked. And when I heard that from Pat and from Micky, it was, that was kind of like the icing on the cake for me.”

James paused. “And the rings were pretty cool. I need a few of those.”

Riley played with Wilt Chamberlain and Jerry West. He coached Magic Johnson and Kareem Abdul-Jabbar. He coached Wade and Shaq. Now, as an executive, he’s brought in LeBron James and Chris Bosh. He leveraged his championship legacy and Hall of Fame ties to deliver what could be the most talented trio in league history.

Wade. Bosh. And, in a stunner, a two-time league MVP in James. All together on one team, his team, basketball’s best in 2006, basketball’s worst in 2008, and now basketball’s most feared for years to come.

Love him or hate him, few can argue that in a league filled with movers and shakers, Riley moves the needle like no other. He’s done it for decades.

Act VI – decade six – is just beginning. It could be his best of all.

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