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Posts Tagged ‘Dwyane Wade’

Should the Heat Build Around Goran Dragic and Hassan Whiteside?

February 12th, 2016 No comments
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The foundation of the Miami Heat’s future championship aspirations was supposed to rest largely on the shoulders of point guard Goran Dragic and center Hassan Whiteside.

Dragic was supposed to be a catalyst for the Heat offense, as he was for a Phoenix Suns offense that ranked eighth in the NBA in 2013-14 and seventh through the All-Star break last season before being traded to Miami. He was supposed to allow the Heat to play at pace, having flourished in transition with the Suns. He was supposed to be a force in the pick-and-roll, having been, statistically speaking, the best pick-and-roll ball-handler in the NBA two seasons ago.

Whiteside was supposed to rampage through the NBA with reckless abandon, utilizing his massive 7-foot, 7-inch wingspan to wreak havoc on both ends of the court. His superior shot-blocking, shot-altering and rebounding were supposed to make him the dominant defensive anchor the Heat has long-since coveted. His undeniable potential in the pick-and-roll and developing low-post game were supposed to make him an emerging offensive threat.

Things haven’t necessarily gone as planned.  Read more…

Miami Heat Enter 2015-16 Season As Most Enigmatic Teama in the NBA

October 26th, 2015 No comments
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The Miami Heat may well be the most enigmatic team in the league, as we head into the 2015-16 NBA season.

It is difficult to tell whether Pat Riley is building something special, or relegating his team to the atrocity of mediocrity. The current Heat incarnation is both supremely talented and deeply flawed. It is as promising as it is susceptible to the cruelties of age, injury, poor spacing and poor shooting. It has within it the potential to challenge the Cavaliers for Eastern Conference supremacy and the combustibility to ignite a second straight pre-playoff collapse.

Riley has tossed away multiple first-round draft picks in its effort to chase down LeBron in Cleveland, much like he did to snag him and Chris Bosh five years ago. Only this time around, there is no underlying guarantee that it is going to work.

It is as possible that the Heat has mortgaged its future to build an unremarkable team that will die a slow death as it is that the Heat is in the midst of spectacular turnaround that could vault the team into the realm of the game’s elite. Where within that range the Heat will fare is not yet clear.

Read more…

Miami Heat of the Future Beginning to Take Shape

July 9th, 2015 1 comment
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I have a request. I write posts which I believe are unique, more in depth and more insightful than I can otherwise find elsewhere. I hope you agree. I therefore ask that you please not simply copy my ideas without proper sourcing. It feels rather awful to see my work being exploited. If just you ask, I am more than willing to help out anyone and everyone. 

The NBA announced on Wednesday that the salary cap for the 2015-16 season has increased by 11.0 percent to an all-time high of $70 million. The tax level for the 2015-16 season has increased by 10.3 percent to an all-time high $84.74 million.

These are substantial increases from the league’s previous projections issued just last April – $67.1 million for the salary cap, $81.6 million for the tax level – predicated on the basis of exploding revenues.

What does this mean for the Miami Heat? In terms of flexibility, not a whole lot.

But it does mean huge savings for owner Micky Arison.

The Heat will likely be a taxpayer next season. And that will carry with it severe consequences.

If the Heat exceeds the tax threshold, it would become the NBA’s first team to ever pay the “repeater tax,” which adds an extra $1 for every dollar a team is over the luxury tax threshold, over and above the incremental tax rates that would apply. The repeater tax is triggered when a team has paid the tax in four of the previous five seasons. The Heat has paid the tax in three of the last four years.

For every dollar by which the Heat exceeds the tax level next season, it will need to pay at least $2.50 in taxes. That rate increases to $2.75 per dollar for any incremental amount by which the Heat exceeds the tax by $5 million, increasing further to $3.50 per dollar for any incremental amount by which the Heat exceeds the tax by $10 million, increasing further to $4.25 per dollar for any incremental by which the Heat exceeds the tax by $15 million, and increasing an additional $0.50 for each $5 million increment thereafter.

The Heat entered the summer with two primary, and 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.  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…

Is Kevin Durant at the Root of Dwyane Wade-Miami Heat Divide?

June 2nd, 2015 7 comments
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The sharp divide between Dwyane Wade and the Miami Heat represents a unique challenge for team president Pat Riley.

For the past 12 years, the Wade name has been synonymous with that of the Heat organization. Wade has often been viewed as an extension of it and perhaps its most vital member. He has advocated for it. He has delivered it fans, players, titles and money. He has sacrificed a great deal of personal earnings for the benefit of it.

Riley would love to reward him for everything he has done. But in a world of salary caps and luxury taxes, where championship aspirations are a way of life, doing so becomes a sentiment that is far more easily felt in theory than delivered in practice.

Wade has unquestionably been the biggest star of the Heat’s past. But Riley needs to consider its future. Time marches on. Skill-sets erode. Injuries mount. What is best for Wade may no longer be what is best for the Heat organization, and that’s where things get dicey.

Riley has always dreamed big. In the past decade, he’s acquired Shaquille O’Neal and LeBron James — arguably the NBA’s two greatest post-Michael-Jordan era players — and paired them with Wade to secure the franchise’s five NBA finals appearances and three titles.

It would not be difficult to suspect that he has visions of grandeur once again – this time with his sights set on 2016, when Kevin Durant hits the market in the first summer under a new TV deal that could send the NBA salary cap skyrocketing to $89.0 million.

To facilitate such a vision, Riley would prefer that Wade opt into the final year of his contract for next season at $16.1 million, which would provide the Heat with maximum flexibility for the summer of 2016. But this requires Wade to have a ton of trust, and the leap of faith that Riley will ultimately take care of him.

Wade would prefer the security of one final multi-year contract to close out his Hall of Fame career to the uncertainty of exercising the lone season remaining on his current deal.

The rift has led to speculation that Wade’s future with the Heat could be in doubt.

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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Addressing The Heat’s Need for Floor Spacing

May 20th, 2015 No comments
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Long since departed were the glory days of the Big Three era, the thrill of competing deep into June, the sparkle from all the championship rings, as the 2014-15 Miami Heat staggered to the finish of a brutal season replete with injuries, exhaustion and ineffectiveness.

Despite competing in the dismal day-off-is-a-game-won Eastern Conference, the journey from LeBron’s departure to lottery arrival took just one excruciating season. It was a season paved with crushing injuries. Yet even with the season-ending meniscus tear to Josh McRoberts in November, the season-ending pulmonary embolism of Chris Bosh in February, the nicks and bruises that limited what was left of the battered rotation in the months that followed, and the 30 starting lineups head coach Erik Spoelstra was forced to utilize as a result, the Heat still managed to grossly underachieve along the way to its first pre-playoff exit since 2008.

There were plenty of issues that caused this spectacular underachievement, but perhaps the most enduring was the Heat’s inability to consistently score the basketball. It’s an issue which needs to be addressed this summer. It’s an issue which requires a multi-dimensional approach, to include both personnel and system changes.

The Heat have already secured a promising start to its rebuilding process. They’ve addressed, and rather emphatically, the two positions – point guard and center – which have troubled them most in recent years. The foundation of the Heat’s future championship aspirations rests largely on the shoulders of point guard Goran Dragic and center Hassan Whiteside.  Read more…

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…