A Super Early Look at Potential Salary Dump Moves That Could Involve the Sixers
Written by Garrett Catalana – @GarrettCatalana
During his tenure as 76ers GM, Sam Hinkie hasn’t used his cap space to invest in premium free agents or acquire expensive but good NBA talent. His rosters have largely been made up of players on rookie scale contracts or “Hinkie Specials.” Instead, Hinkie has utilized all the extra cap space to acquire future draft picks and other assets by taking on unwanted salaries. The returns on this extra cap space have ranged from rather large (Nik Stauskas trade with the Kings) to minimal (Travis Outlaw trade with the Knicks). With the team still being $2 million under the salary cap floor and still $11 million away from the salary cap max, other NBA teams view them as a dumping ground for their unwanted salaries. By analyzing the salary cap sheets of the other 29 teams in the NBA, I have found eight candidates that could be traded to the Sixers as a salary dump for financial reasons and get the Sixers above the salary cap floor as well as getting Hinkie an extra asset or two.
(1) Chris Andersen: Miami Heat ($5,000,000)
– Having just traded guard Mario Chalmers to the Memphis Grizzlies in a salary dump move this past week, Birdman is on notice. The Miami Heat are in a rare situation as they qualify for the repeater tax, meaning their team finished the season above the luxury tax threshold in three of the last four seasons. Even after trading Chalmers, the Heat are still $5.52 million over the luxury tax threshold, meaning they would have to pay luxury tax for every dollar they are above the threshold, except that tax number is even greater since they qualify for the repeater tax. For Miami to not have to pay in the luxury tax this season, they still need to shed $5.52 million in salary. Trading Birdman’s $5 million salary would essentially get them to that point. If the season ended today, the Heat would pay $24.79 million in repeater luxury tax. As of 11/13/15, Andersen has only played in two games this season for a total of 13 minutes. The Sixers have the available salary cap to absorb Birdman’s contract without sending any players back in return to Miami (which would ideal for the Heat). If the Heat move Andersen, do not take back any salary, and do not make any further moves this season, they would be just $529,303 above the luxury tax, giving them a luxury tax bill of just $1.32 million (a difference of $23.47 million). In terms of picking up any type of return, the Heat can offer little to nothing. They pretty much don’t own any of their picks for the next five drafts. They owe a second round pick every year from 2016 to 2021 and they owe first-round picks to Philly and Phoenix. It will be interesting to see what Miami would give up in order to take Birdman off the books.
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(2) Anderson Varejao: Cleveland Cavaliers ($9,638,554)
– It was a major mistake by the Cavaliers to resign oft-injured big man Anderson Varejao to a four-year contract extension following the 2013-2014 season (but whatever LeBron says goes I guess), signing for $39.70 million. Varejao only played in 26 games last season before getting injured and has averaged just 7.8 minutes a game in 8 games this year. With the need to resign Timofey Mozogv after this season and already have resigned Kevin Love and Tristan Thompson to long-term deals, there is no purpose for Varejao on the Cavs for his current salary. The good part about his contract for the 76ers if they traded for him is that the final two years of his contract are non-guaranteed. Meaning the Sixers could release him following the season and not have to pay the remaining $20.36 million on his contract. Cleveland would have the incentive to trade him to create a cap exemption to go along with their Brendan Haywood trade exemption ($10.5) that they could use in order to trade for another wing player (Joe Johnson?). The Cavs are currently $25.38 million (!!!) above the luxury tax threshold, meaning that owner Dan Gilbert will have to dish out $65.35 million (!!!!!) in luxury tax bills at the end of the season. Subtract Varejao’s salary and the Cavs are $15.74 million above the luxury tax, paying a tax bill of $31.14 million (a difference of $34.21 million). The Cavaliers can offer a 2021 second round pick but that’s about it. They owe a first round pick with protections for the next three years to the Suns and they have traded away each second-round pick from now to 2020.
(3) Steve Blake: Detroit Pistons ($2,170,465)
– The Detroit Pistons are still $8 million away from reaching the luxury tax threshold (but above the cap maximum), but dumping off Blake’s salary off to another team may be beneficial. Blake is off to a very poor start this season, getting major minutes due to injuries to Brandon Jennings and Jodie Meeks. Blake is shooting just 27% from the field, a true shooting percentage of 35%, and a turnover percentage of 26%. Blake’s services may no be needed soon enough and perhaps coach Stan Van Gundy may want to get a better look at Spencer Dinwiddie. In this case, the Sixers may just get a second rounder six years from now as any sort of return for taking Blake and his $2 million salary.
(4) Brandon Rush: Golden State Warriors ($1,270,964)
– The Warriors returned all but three players of their championship roster including little-used wing player, Brandon Rush. Rush has played just 34 minutes so far this season and only played in 33 games a season ago. He doesn’t serve much of a purpose with Leandro Barbosa, Shaun Livingston, James Michael McAdoo, and Kevin Looney (eventually) getting reserve minutes in front of him. If the Warriors want to cut down on their luxury tax at all (currently $10.75 above the threshold), they can trade Rush to save some money (in this case, cutting $2.79 million in tax, resulting in a $15.33 million tax bill). Similarly to a Steve Blake trade, the Sixers would receive a minimal return from the Warriors in exchange for the veteran guard.
(5) Jason Thompson: Golden State Warriors ($6,908,685)
– The South Jersey native is back for a reunion tour! Basically the same reasoning as Rush, just switch the names with Andrew Bogut, Mo Speights, and Festus Ezeli. Thompson has actually played fewer minutes than Rush (31) and doesn’t seem like a great fit in Golden State. Shedding his salary saves Golden State $12.36 million in luxury tax, cutting the bill to $5.76 million. Thompson has another year remaining on his contract ($7,010,378) but only about $2 million of it is guaranteed for next season. Because of the tax savings for Golden State, he may be able to fetch a greater return.
(6) Steve Novak: Oklahoma City Thunder ($3,750,001)
– Novak is known as a knock down shooter but can’t do much else in the NBA. He is the final year of his contract and OKC is currently $12.42 million above the luxury tax threshold. Novak has played one minute this season and if Anthony Morrow can’t get that many minutes, how can Novak? OKC would cut $8.37 million in tax bills, going from $22.29 million currently owed to $13.92 million if Novak was moved. Like the previous few players, this is just a transaction to move an unused player to save money in the luxury tax for a contender. Sixers would once again get little return.
(7) KJ McDaniels: Houston Rockets ($3,189,794)
– KJ and the Sixers won’t die! He has yet to ever really get off the bench for the Rockets (has played just 6 minutes this year), as well as just being sent down to the D-League, and you know you’re in the doghouse if Marcus Thornton (28) and Jason Terry (38) are getting major minutes over you. The Rockets are in a unique position as they are over the luxury tax threshold, albeit by not much ($2.44 million). If the Rockets trade KJ and his $3.19 million contract, they will no longer have to pay the luxury tax and they will be under the threshold (don’t have to pay $3.66 million in tax bills). This time around, the Sixers may have to give up anything of value but I think it is worth it. There is like a 1% chance of this happening but I won’t let the KJ Return to Philly dream die!
(8) Sergey Karasev: Brooklyn Nets ($1,599,840)
– The 19th pick of the 2013 NBA Draft, Karasev has really struggled to find an NBA niche. In the past week, he had his fourth year player option declined by the Nets making his unrestricted free agent at the end of this season (same case as Thomas Robinson last season). After this season he won’t be able to sign for a 20106-2017 salary greater than what his 4th year rookie salary would be. He shot only 30% from three last season and has played a grand total of 6 minutes this season but he is still a former first round pick with some upside playing on a team that declined his option and is going downhill fast. For the first time since they moved to Brooklyn, the Nets are out of the luxury tax but are dangerously close to reaching it again ($1.61 million). Trading Karasev and his $1.59 million contract would give them a little bit more breathing room (would be $3.21 in cap room). The Nets wouldn’t give anything up of value to trade Karasev but it would just another wing flyer for Sam Hinkie to test out before he hits free agency.
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