Update (July 28, 2015): Josh Richardson reportedly agreed to a three-year, $2.4 million minimum salary contract with the Miami Heat on Tuesday. Richardson will make a fully guaranteed $525,093 this season. The second year, worth $874,636, will reportedly be partially guaranteed. The third year, worth $1,014,746, will reportedly be subject to a team option.
The team option would provide the Heat the additional flexibility described below but, given the partial guarantee on the second year, the overall structure of the contract as presently constructed might not be optimal. If the second year is partially guaranteed and the third is subject to a team option, the third year must have the same guarantee percentage and schedule as the second year. By removing the team option, the guarantee percentage and schedule for each of the last two years can differ. Therefore, look for Richardson and the Heat to consider this and possibly change the structure before executing the contract.
The Miami Heat has very much liked what it has seen thus far from Josh Richardson during summer league.
The Heat selected Richardson with the 40th overall pick in 2015 NBA draft, but the versatility and defensive prowess he displayed during summer league in many ways reflects the first-round grade placed upon him by general manager Pat Riley. Richardson was 24th overall on the team’s draft board.
So why has Riley yet to approach Richardson about a contract?
Well… The roster is still in flux. And as long as that holds true, there is no pressing need for Riley to do so… yet.
When a player is selected in the second round of the draft, he remains the exclusive property of the team that selected him until at least the September 5th immediately following the draft.
At that point, the team needs to make a decision.
In order for the team to retain draft rights to the player, it must submit to him a “Required Tender” by September 5th. The tender is an offer of a contract that affords the player until at least the immediately following October 15 to accept, has a term of one season, calls for at least the minimum salary applicable to the player, and can be fully non-guaranteed.
If the team does not issue a tender by September 5, the drafting team loses its exclusive rights to the player, and the player becomes an unrestricted free agent the following day.
The Heat really likes Richardson, and will not let that happen.
Once (or before) the tender is issued, the player has three primary options: (i) forgo the tender and instead negotiate with the team for a different contract, (ii) forgo the tender and instead seek employment outside the NBA, or (iii) accept the tender and play under its terms for the season to come. Read more…