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Posts Tagged ‘Dwyane Wade’

Miami Heat of the Future Beginning to Take Shape

July 3rd, 2015 3 comments
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The Heat entered the summer with two, in many ways conflicting, objectives: Field a competitive yet cost effective team for the 2015-16 season, and maximize cap space for a 2016-17 season during which the salary cap is expected to explode higher on the strength of a new national TV rights deal.

The measure of success in those objectives was to be predicated on the Heat’s dealings with three men: Luol Deng, Goran Dragic, and Dwyane Wade.

Deng gave the Heat exactly what it wanted. He accepted his $10.2 million player option. He will be the team’s starting small forward for the 2015-16 season. He will be a wonderful mentor for first round draft pick, and possible eventual replacement, Justise Winslow. And, most importantly, his contract will expire before the summer of 2016.

Dragic gave the Heat more than expected. The Heat paid a steep price to get him, headlined by two future first round draft picks, which tells you everything you need to know about how willing they were going to be to pay him his money. He was eligible for an up to five-year deal, with a total payout in the range of $110 million. The Heat snagged him at a substantial discount. He took just $90 million over the five.

Wade was always going to be the biggest wild card. The star shooting guard hinted in April that he intended to exercise his $16.1 million player option, a heavily-preferred scenario for the Heat organization. The Heat desperately wanted the flexibility that the lone-remaining year on his contract would have provided for the summer of 2016. But the 33-year-old reversed course amid an understandable desire for long-term security, heading off a tense feud between competing philosophical positions. On one hand, loyalty and family. On the other, business and finance. What was best for Wade was not necessarily what was best for the Heat, and that’s where things got tricky.

Wade’s desire for one last lucrative long-term contract was easily justifiable: He has guided the Heat to five NBA finals and three titles, he played a critical role in luring LeBron James and Chris Bosh to Miami, he has comported himself with class over the course of a brilliant twelve-year career, and he has sacrificed substantial salary in order to give the Heat flexibility over the past five years.

In theory, the Heat were more than happy to give him the money he sought. But in a world with salary caps and luxury taxes and impossible on-court performance standards, paying him what he sought presented significant challenges in practice.  Read more…

Dwyane Wade and Luol Deng Player Option Decisions Loom

June 28th, 2015 3 comments
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Update (7/1/15): Luol Deng has exercised his player option. Dwyane Wade declined his option but his return is all but assured. The larger question is to what type of contract the Heat will sign him.

Ken Berger at CBS reported yesterday that the 2015-16 salary cap could jump as much as $2 million higher than the league’s latest projection of $67.1 million, which was made some time ago. Such an increase could have a meaningful impact on the Heat’s plans for Wade.

If the 2015-16 salary cap increases from $67.1 million to as much as $69.1 million, the tax threshold would increase from $81.6 million to as much as $83.8 million.  

How much would a $2.2 million increase in the tax threshold help the Heat? If it were to offer Wade a one-year contract at the $22 million max, its payroll would reach into the neighborhood of $100 million. With an $100 million payroll, the tax obligation would fall from $58 million to $49 million. That’s a savings of $9.4 million! 

Layer in a potential trade of Josh McRoberts, Chris Andersen or Mario Chalmers and Heat’s total payroll obligations, including repeater tax obligations, could fall to $12X million. 

And since the luxury tax is calculated as of the last day of the regular season, any potential trades don’t need to happen now (though the clarity would certainly be reassuring). Trading, say, the $1.6 million in salary obligations remaining on the $5.0 million expiring contract of Andersen at the trade deadline — for which the Heat could offer up to $3.4 million in cash and/or a possible 2018, 2020 or 2021 second round draft pick — would save a whopping $18.4 million in taxes for a team with an $100 million payroll (plus the $1.6 million in salary savings, less any cash sent). However, the Heat would need to find a trade partner with enough cap room (or a large enough trade exception) to take on Andersen’s $5.0 million cap hit without sending anything back in return, and that gets harder to find as more time passes.

Winding up with total payroll obligations of $12X million is a hefty some of money, to be sure – a would-be all-time record in total payroll obligations for the Heat – but this is not your typical spending problem. It would be just a one-time issue. The Heat will become very affordable next year, all but assured not to cross the tax threshold. Which would guarantee it does not pay “repeater tax” rates again until at least the 2019-20 season (pending rule changes). Also bear this in mind: the new TV deal, which starts in 2016-17, will itself instantly increase owner PROFITS by an average of $18 million per year, and rising annually. So, would Arison be willing to endure the cost of giving Wade the max for one year?

What would offering Wade a one-year contract at the $22 million max mean for the Heat? The Heat could enter the summer of 2016 with Dragic (PG), Winslow (SG/SF) and Bosh (PF) under contract, and up to $42 million of cap space to spend on Whiteside (C) and another player (assuming a McRoberts trade and an $89.1 million salary cap). Of that $42 million, Whiteside’s max would be $21 million but, at this point, one could reasonably suspect he would command far less. Which leaves enough room for…

That has to be math that the Heat organization itself is doing, right? Would they offer Wade one-year at the max? Would Wade accept?

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The wait is almost over.

NBA free agency officially begins at 12:01 am on July 1. But for the Miami Heat, the uncertainty starts to be clarified 23 hours and 58 minutes before that.

Heat guard Dwyane Wade and forward Luol Deng have until 11:59 pm on June 29 to decide whether to exercise the player options – for $16.1 million and $10.2 million, respectively – on their contracts. If the deadline passes and the Heat has not heard back, both players by default will have chosen to join guard Goran Dragic in opting out and becoming unrestricted free agents.

If Wade and Deng both opt out, the Heat would start the summer with as much as $19 million of room below the projected $67.1 million salary cap. But, realistically, it won’t have any cap room at all.

That’s because the Heat is expected to quickly resolve the free agency status of Dragic.

Dragic has indicated that he enjoys Miami, and will remain with the Heat if his financial goals are met. The Heat paid a steep price to get him, headlined by two future first round draft picks, which tells you everything you need to know about how willing they will be to pay him his money. Dragic will be eligible to receive a five-year deal, with a total payout of as much as $108 million. If he gets it, his contract would start at $18.9 million, and rise to $20.2 million for the 2016-17 season.

For a player entering his age 29 season, however, it could prove to be an overpay, even with the cap due to rise dramatically next year. A smaller deal that pays out the max in the first year, declines by the max in the second year, before again maxing out for the final three years would be a nice concession by Dragic, in that it would give the Heat more flexibility for the summer of 2016 but still pay out a lofty $97 million. That may still seem like a hefty sum, but it would represent a 10 percent discount from a max contract, and a whopping 30 percent discount from a potential max contract a player of his tenure could sign the following summer. If he acquiesces, his contract would still start at $18.9 million, but his 2016-17 salary would fall to $17.4 million.

If the Heat re-signs Dragic, it would still be capped out even if Wade and Deng decline their options. Utilizing cap space, therefore, is not a realistic option for the Heat this summer.  Read more…

Dwyane Wade’s Contract Negotiations with Miami Heat Stall

May 29th, 2015 9 comments
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What was thought to be a relatively straightforward summer for the Miami Heat has hit a snag over contract talks with Dwyane Wade.

Wade must decide by June 29 whether to opt out of the final year of a contract that would pay him $16.1 million next season.

The star shooting guard hinted last month that he intended to exercise his option, a heavily-preferred scenario for the Heat organization. However, the 33-year-old is now considering the possibility of opting out in order to secure one last lucrative long-term deal, and is reportedly willing to test the open market and leave the Heat, if necessary, in order to get it.

There is believed to be a sizable gap between what Wade is demanding and what the Heat is offering. That impasse has led to speculation that Wade’s long-term future with the Heat is in doubt.

Despite the uncertainty, it seems highly unlikely that the Heat would part ways with the biggest star in its history. Neither Wade nor the Heat would want such an outcome (nor would any other team in the NBA which Wade would consider likely be willing to pay him what he seeks anyway). Such tensions are merely a tactic employed by either party to gain leverage during the very early stages of what figures to be a challenging multi-month negotiation. But there are real concerns that underlie such posturing.

Wade’s desire for one last big contract from the Heat can easily be justified: He has guided the Heat to five NBA finals and three titles, he played a critical role in luring LeBron James and Chris Bosh to Miami, he has comported himself with class over the course of a brilliant twelve-year career, and he has sacrificed substantial salary in order to give the Heat flexibility over the past five years.

Last summer, in order to give the Heat flexibility to augment its roster, Wade opted out of the final two years of a contract that would have paid him $41.8 million. He instead accepted a rather shocking two-year, $31.1 million deal, which included a player option for next season.

As a result, over the first five years of what might have otherwise been the full six-year maximum contract we were all eager to give him to stay in the summer of 2010, Wade has now sacrificed a total of $18 million for the betterment of his team. If he were to exercise his option, that sacrifice would increase to $27 million.

It only seems natural, then, that Wade would want a show of appreciation in return.

Wade reportedly wants to opt out this summer, with the hope that the Heat would give him a three-year deal that would extend past his 36th birthday. The Heat would love to give it to him in theory, but paying him what he’s seeking would present significant challenges in practice.  Read more…

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Miami Heat’s Great Hope Is … Josh McRoberts and Danny Granger?

July 8th, 2014 No comments
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The Big Three era Miami Heat were always the ideal test case for a new collective bargaining agreement designed primarily as a cash grab for owners, but also with a secondary goal of engineering greater competitive balance around the league.

The new CBA went about achieving its secondary goal in large part by implementing a far more punitive luxury tax(1). Spend a lot on players, and you’re going to face a crippling “incremental” tax penalty that gets more severe as you add payroll. Keep spending year after year and eventually you’ll tack onto it the dreaded “repeater” tax.

It’s working. Just five NBA teams paid the tax this past year; that’s tied for the fewest ever in a tax-triggered season. Competitive balance is more prevalent today than at any point in recent history. Team salaries around the league have leveled out dramatically. The spending habits on the high end are down significantly, with particular emphasis for those in smaller markets which can’t support the weight of such enormous tax bills.

No one team has felt the burden of the new tax structure more than the Miami Heat. Some would say that was always the plan – a plan brought about by the demands of envious fellow owners in the wake of the Big Three formation. The Heat have had to make several painful and wildly unpopular cost-cutting (e.g., waiving Mike Miller via the amnesty provision) and cost-controlling (e.g., not utilizing the mid-level exception this past season) moves since the lockout, as a direct consequence to the harsh realities of the new CBA.

It wasn’t all that difficult to forecast. People have been predicting the inevitable demise of the Heat, as presently constructed, for three solid years. Whether owner Micky Arison could afford to keep his team together was never in question; he’s a six-billion-dollar man. But the limitations of his market – the Heat’s designated market area is good for just 17th overall, among the league’s 30 teams; smaller than, for example, that of the Minnesota Timberwolves – have made it virtually impossible to maintain some semblance of profitability while spending deep into the tax (at least in the near-term).  Read more…

Miami Heat Create NBA-Record $55 Million in Potential Cap Space

June 29th, 2014 5 comments
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Many years from now, Saturday, June 28, 2014, could be remembered as a critical day in Miami Heat history. It marks the day when guard Dwyane Wade and forwards Chris Bosh and Udonis Haslem declared their intentions to join LeBron James and Chris Andersen in opting out of their contracts. It could ultimately mark the day in which the destruction of the Big Three era was initiated in earnest, or the day in which the remodeling of Pat Riley’s two-time championship-winning creation received a major boost.

Agent Henry Thomas, who represents all three players, has reportedly informed Heat president Pat Riley of their choices. Wade will exercise his Early Termination Option for the remaining two years and $41.8 million on his contract, Bosh will do the same for the two years and $42.7 million remaining on his contract, and Haslem will not exercise his player option for the lone season remaining on his $4.6 million contract.

Technically, there is no mechanism to notify the league that an option or ETO will not be exercised. Since the contracts of Wade and Bosh contain ETOs for this summer, they are required to inform the league of their intentions. Since Haslem’s contract contains a player option, he need do nothing but wait.

These actions, particularly in the wake of James, Wade and Bosh meeting last week on Miami Beach, make it rather clear that the Heat’s stars, as well as its supporting players, have decided to work together to provide the Heat the salary-cap flexibility with which to add additional components to a roster that earlier this month lost in the NBA Finals to the San Antonio Spurs, cutting spectacularly short the Heat’s bid for basketball immortality – four straight NBA Finals appearances and three straight NBA titles, a feat which has only been accomplished once in league history.

Without the opt-out decisions, the Heat would have gone into the offseason far in excess of what is projected to be a $63.2 million salary cap for the 2014-15 season, and without much ability to materially improve. Instead, the moves enable the Heat to create as much as an all-time NBA-record $55 million in cap space with which to reconfigure the roster(1).  Read more…

Would the Big Three Take Less to Help the Miami Heat?

June 21st, 2014 5 comments
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Update (6/28): I wrote the following article several weeks ago, and posted it exactly one week ago. Since that time, several things have changed (e.g., the Heat traded up in the draft to select Shabazz Napier, several Heat players opted out of their contracts, the Heat have been rumored to be seeking a trade partner for Norris Cole, etc.), which slightly alter the figures presented in this post. This table provides an updated depiction of the hypothetical situation described below.

The day LeBron James, Dwyane Wade and Chris Bosh agreed to join together with the Miami Heat in the summer of 2010, they laid out a plan. They would each play four years together, then re-evaluate. They each signed nine-figure, six-year deals containing opt out rights prior to the final two. They were expecting titles. We all were.

Through the first three of those years, all was as projected to be. Three straight NBA Finals appearances, two straight titles. But that was before this past year turned into a disaster, before they got throttled by the San Antonio Spurs.

James, Wade and Bosh are all on vacation now, a sort of rejuvenation for a trio who have played more basketball over a four year stretch than any other in league history. They will each take some time to consider their futures, to consider whether or not they wish to terminate their contracts.

The wait is unnerving. It is a reminder that the Heat and James, in particular, have a very uncertain future together, that his potential free agency, which could arrive in just days, looms over this city with as much significance as did Wade’s four years ago. It’s caused us to lose our equilibrium. It’s caused us to lose our perspective. We need to “get a grip” on reality. The Miami Heat, as presently constructed, can still be a championship-caliber team.

Sure, the team has it flaws. Lots of them. And they need to be addressed. But we, as fans, are hoping for much more than that. Cutting corners in the repair of a leaky dam will eventually cause it to burst. Like it did in 2006-07. Which caused 2007-08. Nothing short of a complete overhaul, then, will appease us.

A tear down and restructure requires sacrifice. It requires James, Wade and Bosh to each opt out of his contract and take less. Much less. It’s the only way. But is it possible?  Read more…

Dwyane Wade’s Looming Free Agency Decision

June 18th, 2014 15 comments
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With the 2013-14 NBA season now at its tragic end, it seems as though the biggest topic of conversation is whether LeBron James is going to opt out of his contract with the Miami Heat, two years prior to its expiration, and explore his options as a free agent. As pundits weigh in and teams’ salary cap experts scramble to figure out how they might be able to get their hands on the greatest player of this basketball generation, Dwyane Wade’s potential free agency looms quietly in the background.

Wade just completed the fourth of a six-year $108 million contract he signed in the summer of 2010. He, like James, structured his contract to give himself the ability to opt out after both the fourth and fifth seasons. The first of those opt out decisions needs to be made by June 30.

We as fans can’t possibly overstate the importance of Wade to the Heat franchise, both on and off the court, but we also can’t ignore his advancing age or the health restrictions that cause him to miss so many games and render him ineffective in so many others. And so, we tell ourselves that the Heat brass needs to try to persuade him — for all of his undeniable status as a Heat legend, as well as the chief co-linchpin alongside Pat Riley who brought the Big Three together — to opt out and instead take a Tim Duncan-style pay cut for the good of Miami’s flexibility.

We tell ourselves that Wade should take a discount because he simply isn’t worth the $42 million he has coming to him over the next two years. We tell ourselves that Wade should take a discount because he is making tens of millions of dollars in endorsement money. We rationalize our convictions any which way we can. We ignore the reality: Wade is owed this money.  Read more…

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The Anatomy of a Spectacular Miami Heat Failure

June 15th, 2014 4 comments
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The Miami Heat’s bid for basketball immortality – four straight NBA Finals appearances and three straight NBA titles, a feat which has only been accomplished once in league history – has fallen spectacularly short. In the wake of this colossal failure, we’re all left wondering how it all went so wrong so quickly – how our team ended up looking so old, so slow, so flawed, so unable to adapt, so unable to defend.

Is it an organizational philosophy that failed us?

“I don’t think you win championships with young, athletic players that don’t have experience. I think we’ve learned over the years that building with young players is very frustrating.”

That was Pat Riley in June 2011, describing his aversion to developing youthful talent.

It is a philosophy that he has expressed many different times in many different ways over the years. It is a philosophy that has permeated his every decision in preparation for and during the Big Three era. It is a philosophy upon which the Stepien-like decisions to surrender a whopping six future first round draft picks in a period of less than five months from February to July 2010 were predicated. It is a philosophy upon which the decision to constantly fill the roster with post-dated bench-warming veterans was predicated.

It was a philosophy which, initially, didn’t bother us. We were all so captivated by the moment. Riley had a plan. He executed upon it with deadly precision. He got the big things so right that it didn’t matter how he handled the little things. In Riley we trusted.

The winning that followed only validated that ideology.

But, quietly, things weren’t as wonderful as they appeared. In the wake of the signings of Dwyane Wade, LeBron James and Chris Bosh in the summer of the 2010, the front office lost sight of its need to build for the future. Everything was always only about the moment.

Some of us couldn’t help but wonder. If your mission is to win as many titles as possible while the Big Three are still in their primes, then wouldn’t you like to have some upside around? Some players who will be getting better with time? Some players who can keep the energy level high when the stars need to rest?

Riley has always had a clear affinity for the seasoned veteran versus the inexperienced rookie. He’d rather have the sure thing than the potential next big thing. But as much as these veterans are low risks to make stupid, rookie-type decisions, none will break free off the dribble in crunch time or make that key defensive stop and then sprint up the floor for a breakaway jam – they’re zero risks to become more athletic, to develop new parts of their games, or to be usable as trade bait should the need arise.  Read more…

Dwyane Wade Completes Historic NBA Shooting Season

April 16th, 2014 No comments
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Before the playoffs begin, before championship aspirations are fought for, before future planning is deliberated, let’s take a moment to acknowledge something truly remarkable that has quietly transpired in the midst of a largely torturous regular season. Dwyane Wade has completed a historic shooting year.

For a second consecutive season that started with questions about whether his skills were in serious decline, Wade has transcended the doubters, and the injuries, to accomplish the spectacular.

He shot 54.5% from the field in 2013-14.

How good is that?

Well… It represents the best shooting season for any shooting guard in the past 31 years. It represents the second best shooting season for any shooting guard who averaged double-digit points of all time. It represents the third best shooting season for any starting shooting guard of all time. And it represents the fourth best shooting season for any shooting guard of all time.

That bears repeating: Dwyane Wade just produced the best shooting season for any shooting guard in the past 31 years, and the fourth best in NBA history!  Read more…

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Through Severe Knee Injuries, Dwyane Wade Continues to Endure

November 17th, 2013 No comments
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Despite his passion for the game, Dwyane Wade was not much more than an average basketball player as a youngster. Initially, he made a bigger impression on the football coaches at H.L. Richards High School in Oak Lawn, on the South Side of Chicago, than he did on basketball coach Jack Fitzgerald’s squad.

A gritty cornerback and wide receiver, Wade showed promise on the gridiron, but he couldn’t kick his obsession for basketball. He idolized former Chicago Bulls star Michael Jordan. So he spent his second season with the Bulldogs on the sophomore basketball team.

Determined to earn time on the varsity squad, Wade worked out rigorously before his junior year in the summer of 1998, improving his ball-handling skills and his outside shot. Wade’s body cooperated, too, as he shot up four inches to six-feet, two-inches tall.

Always a tenacious rebounder, Wade now had the size and skills to excel in all phases of the game. Recognizing an emerging star, Fitzgerald made the junior his go-to guy. Wade did it all for the Bulldogs. If Richards needed to break the press, Fitzgerald put the ball in Wade’s hands. If the team needed a hoop in close, Wade got the ball in the post. For the year, he averaged 20.7 points and 7.6 rebounds, and opened eyes all around Chicagoland.

He responded to the extra attention with an even more marvelous senior season. Wade went for a double-double almost every game that year, averaging 27.0 points and 11.0 rebounds while leading his team to a 24-5 record and a berth in the round of 32 (the title game of the Eisenhower Sectional) of the 256-team 1999-00 Illinois High School Association (IHSA) Class AA State Championship (though without the acclaim of former Heat player Patrick Beverley, who made it all the way to the final four with his Marshall high school team in 2005-06, or Derrick Rose, who won it all with his Simeon high school team in both 2005-06 and 2006-07). Wade set school records for points (676) and steals (106) in a season that year.

The college scholarship offers didn’t come pouring in, though.

Wade dreamed of playing for Michigan, inspired by the Fab Five. But some of the schools looking at Wade, Michigan included, stopped looking when his first ACT score was low. Fearing he wouldn’t be able to cut it academically, most backed off.

“My first set of scores wasn’t bad,” Wade said. “They were disastrous. They sucked.”

Due to his academic problems, Wade was recruited by only four college basketball programs for the incoming class of 2000 –  DePaul, Illinois State, Bradley and Marquette. Each remained interested in Wade even though he struggled to get his ACT up to the qualifying standard. In three tries, he never did.

The Golden Eagles nonetheless accepted Dwyane as a partial qualifier, meaning he could practice with the basketball team as a freshman but not suit up for games due to a lack of compliance with the NCAA’s Proposition 48.

Academically ineligible for play during his freshman year at Marquette, Wade sought tutoring to improve his writing skills in order to regain eligibility. When he became eligible to play the following year (2001–02), he led the Golden Eagles in points (17.8), rebounds (6.6), assists (3.4), steals (2.5) and blocks (1.1), and guided the team to a 26-7 record and its first NCAA tournament berth since 1997.

Wade had displayed not only perseverance but also toughness, playing the latter half of the season through injury. After the season, in March 2002, Wade underwent arthroscopic surgery on his left knee to deal with a small tear in his lateral meniscus. The torn portion of the meniscus was removed, and Wade was back on the court training for his junior year within weeks.  Read more…

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