Thursday, July 16, 2015

Ainge Makes a Few Low Risk/ High Reward Deals












The Celtics have made a couple trades in the past week or so. Here is a look at why they made them, and what they mean for next season




Last week the Celtics finally rid themselves of Gerald Wallace's god awful contract. Here's a summary of what this trade means for the Celtics and the Warriors.


Here are the details of the trade,
Celtics Receive- David Lee ($15,493,680 remaining 1 year)

Warriors Receive- Gerald Wallace ($10,105,855 remaining 1 year)


It was no secret that the Warriors were looking to trade Lee to free up money to pay Draymond Green that 5 year $82 Million deal he just signed. Being a championship team usually comes with a high payroll. The Warriors are no different , they will be over the luxury tax line next season. This deal was made to cut their luxury tax bill. The Warriors can, and probably will, use the stretch provision to waive Wallace and stretch his cap hit out over 3 seasons. The stretch provision allows a team to waive a player and stretch his remaining salary out over double his remaining years plus another year. For example, Wallace is owed $10,000,000 this year, the stretch provision allows that amount to be paid over 3 years (1 year doubled is 2 years, plus 1 makes 3 years) at $3.3 Million a year. By my calculations this could save the Warriors about $13 Million in tax payments. Golden State had obvious .

The Celtics don't have to worry about paying a tax bill because they are well under tax line, and they currently under the cap as well. Taking that extra $5 Million doesn't hurt them nearly as much. Lee is a better player than Wallace, but he adds to an already crowded front court. He does help the Celtics win games now, but the Celts are rebuilding. Lee will likely leave after this last year on his contract. He isn't a long term piece at the age of 32. So why would the Celtics just take David Lee's contract off the Warriors hands? What the Celtics are hoping, is that Lee can boost his trade value to grab another asset at the trade deadline. A low risk/ high reward move similar to the signing of Evan Turner. Brad Stevens has a way of getting the most out of his players, if Lee improves then he could be worth a draft pick. If you connect the dots that would mean the Celtics could get a draft pick out of Gerald Wallace, and that's what Ainge is hoping he can do. If it doesn't work out and the Cs can't trade Lee, then they're in the same place as they would have been with Wallace. Solid move right? Still, Ainge had leverage over the Warriors in this deal. I would have liked to see him grab a second round pick as well as Lee. Keep an eye out for trade talks involving Lee during this season. Until then enjoy him while hes here, I always thought David Lee would make a great Celtic.

Earlier this week the Celtics acquired Perry Jones from the Thunder. 


Here are the details of the trade,
Celtics Receive- Perry Jones ($5,000,000 remaining 2 years), 2019 second round pick, cash

Thunder Receive- Protected 2018 second round pick, trade exception


This is also a cost cutting move for the Thunder. Like the Warriors, the Thunder will be over the luxury tax line next season and will have to pay a hefty tax bill. After signing Enes Kanter for $70 Million, they were looking to reduce their tax hit in any way possible. While they didn't want to let Jones go, trading him for no cap hit in return saves the Thunder about $5 Million. And the trade exception gives them flexibility to make another deal in the future.

This is another instance of the Celtics preying on a team that is trying to reduce its tax bill. The Cs are willing to help save the Thunder money as long as they get something in return. Ainge loves Perry Jones, he wanted him in the 2011 draft, but he decided to take Fab Melo instead. Jones is 23, and hes shown enough upside for the Celtics to take a gamble on him. Then again, they gave up just about nothing in return, just a future conditional second rounder. Grabbing a guy who was drafted in the first round is great return for that asset. Jones may be seen as a future piece for the Celts, we will have to see how he develops under Stevens.


Both of these moves were textbook low risk/ high reward gambles for the Celtics. Both trade partners were desperately trying to save money on their tax bill. The Celtics are willing to take on a little extra salary, since they are not over the cap and have money to spend. They will take the money off other teams hands if they get something small in return. The Celtics have everything to gain from these trades. If Lee becomes a draft pick, or Perry Jones becomes a rotation player, great. If not they gave up nothing for these guys anyway, and they're back in the same spot. I'd say both of these deals were definitely worth the gamble, now lets just hope they pay off.


All info from Real GM



        




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