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Posts Tagged ‘Andrew Bynum’

Miami Heat at the NBA Trade Deadline

January 21st, 2014 No comments

The Feb. 20 N.B.A. trade deadline is now officially less than a month away.

The Miami Heat started their dealings early this season, shipping Joel Anthony to the Boston Celtics along with a million dollars and two draft picks (one second-rounder and another that was originally Philadelphia’s and will likely become a pair of second-rounders). In return, the Heat got a player from Golden State, but this deal wasn’t about Toney Douglas as much as it was about the benjamins.

Anthony, who lost his role to Chris Andersen last season and had been a reclusive presence on the court ever since, ultimately became a casualty of the Heat’s cash crunch and managing partner Micky Arison’s desire to creep closer to the luxury-tax line. He didn’t get there, not with this deal, but it did save him around $20 million, and it did eliminate one of the obstacles to reshaping the roster after this season, when LeBron James, Dwyane Wade and Chris Bosh can all opt out of their existing contracts.

Now, it’s conceivable that only Norris Cole ($2.0 million) and Udonis Haslem ($4.6 million option) will be under contract on July 1, as Arison, Pat Riley and the Heat try to retain James, Wade and Bosh, and perhaps Mario Chalmers, Ray Allen, Michael Beasley and even Greg Oden.

That’s the long-term vision.

The short-term? The trade did nothing to advance the cause. The Heat, championship material as they are currently constructed, nonetheless have various needs that have yet to be addressed.  Read more…

Miami Heat Trade Joel Anthony in Three-Team Deal

January 15th, 2014 No comments

The Miami Heat have traded center Joel Anthony to the Boston Celtics, as part of a three-team deal, in exchange for guard Toney Douglas from the Golden State Warriors.

The Heat also sent the Celtics $1 million in cash and a pair of draft picks to complete the deal: A 2016 second-round pick and a lottery protected first-round pick originally acquired from the Philadelphia 76ers that will become a pair of second-rounders in 2015 and 2016 if the Sixers fail to make the playoffs this season and next.

The trade isn’t about Joel Anthony and isn’t about Toney Douglas.

It’s also not about Greg Oden, who appears to be on the verge of moving into the Heat’s rotation, or about Andrew Bynum, and how money freed up from today’s trade might make such a signing more financially palatable.

The trade is, more than anything else, a continuing recognition that the harshest elements of the new Collective Bargaining Agreement will take its toll on how the Heat do business.

This past summer, it was the amnesty release of Mike Miller. Then it was declining to utilize the mid-level exception. Now it’s moving Anthony’s untenable contract off the books, a move, when accounting for his 2014-15 salary will save the Heat at least $20 million.  Read more…

Should the Miami Heat Take Interest in Andrew Bynum?

January 7th, 2014 No comments

In a move that has the Chicago Bulls thinking about the future but could have major implications for the Miami Heat in the present, the Bulls executed a significant trade with the Cleveland Cavaliers Tuesday morning. They sent forward Luol Deng to the Cavs in exchange for center Andrew Bynum, three future draft picks and huge payroll savings.

The Bulls get a first round draft pick owed to the Cavs by the Sacramento Kings, which is top-12 protected in 2014, top-10 protected from 2015 through 2017, and, if not conveyed, converts to a 2017 second round pick if it is in the top 55 and nothing if not. They also get second round picks in 2015 and 2016, acquired by the Cavs from the Portland Trail Blazers. Finally, the Bulls will be able to swap positions with the Cavs in the first round of the 2015 draft as long as the Cavs’ pick is outside the top 14.

In addition to the draft picks, the Bulls will recognize huge payroll savings because Bynum’s current $12.25 million salary is only $6 million guaranteed. The trade will cut about $7.8 million off their cap and get them out of the tax. Chicago will save about $6.8 million in salary payouts and $12.3 million in taxes, as well as qualify for a tax distribution (paid to teams below the tax from half of the tax proceeds of teams above the tax) currently estimated at $3.2 million. That’s more than $22 million in instantaneous savings(1).

In order to recognize the savings, the Bulls will terminate Bynum’s contract shortly. He’ll then be placed on waivers at 5:00 pm, where he’ll remain for the following 48 hours, during which time other teams may assume his contract. No team in the league has the necessary cap space (or a large enough trade exception) to claim him. At 5:00 pm on Thursday, Bynum will become an unrestricted free agent.

Rumor has it that he wants to join the Los Angeles Clippers or the Heat.

Should the Heat be interested? Absolutely!  Read more…

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Million-Dollar Roger Mason Jr. Decision Due by Jan. 7

December 27th, 2013 No comments

The date in which all N.B.A. contracts become fully guaranteed for the rest of the season, Jan. 10, is looming. That leaves the Heat with a decision to make on the non-guaranteed contract of Roger Mason Jr.

Mason Jr. plays a somewhat valuable role for the Heat as a versatile three-point shooting specialist who serves as the team’s third string option at both the point and shooting guard positions. But he (along with Michael Beasley, who has undoubtedly earned his keep), is also the only player who has a less than fully guaranteed contract.

Mason Jr. is a 10-year N.B.A. veteran. He is playing under a one-year contract. He is earning $1,399,507, the minimum salary for a player with his tenure.

When a player has been in the N.B.A. for three or more seasons and is playing under a one-year contract at the minimum salary, the league reimburses the team for part of his salary – any amount above the minimum salary level for a two-year veteran. As a result, the Heat is only responsible for $884,293 of his salary, equal to the minimum salary for a two-year veteran. The league will reimburse the Heat for the rest at the end of the season. Therefore, if Mason Jr. plays out his contract, he really only costs the Heat the smaller amount, and only the smaller amount is included in team salary for cap and tax purposes. They do this so teams won’t shy away from signing older veterans simply because they are more expensive than younger veterans.

As for the mechanics of how the reimbursement works, the Heat is responsible for Mason Jr.’s full prorated salary of $8,232.39 per day (equal to his $1,399,507 salary divided by the 170 days in the regular season), until the total reaches $884,293. At that point, the league reimburses the Heat for the rest. With the regular season having started on Oct. 29, he will earn that much by Feb. 13, 2014. His services from that point on essentially become free of charge.

However, if the Heat want to capitalize on his non-guarantee, they will have to waive him by no later than 5 p.m. on Jan. 7. That’s because all non-guaranteed contracts across the N.B.A. will become fully guaranteed on Jan. 10, so a player needs be gone by no later than Jan. 9 to avoid the guarantee and it takes 48 hours for a waived player to actually clear waivers. Players continue to get paid while they are on waivers.

By that time, Mason Jr. will have already earned $600,965 on his contract. Therefore, if the Heat were to waive him on Jan. 7, they’d be saving a total of $283,328. When including the tax, given the Heat’s current tax position, that amount rises to $991,649.

The Heat is already spending $110,077,842 on player payroll obligations this season, an amount at which the team presumably isn’t anywhere near profitable, so, to some extent, every dollar counts – particularly a million of them.

However, there is some degree of financial justification not to waive him in order to capitalize on his partial guarantee.  Read more…