Something is brewing.
With training camp just weeks away, the Sacramento Kings are quietly clearing cap room. After pushing the team’s salary up against the luxury tax, general manager Pete D’Alessandro has used minor, under-the-radar deals to shave major money off the books.
In the past, Sacramento has been linked to both Rajon Rondo and Josh Smith, but the hot stove has cooled on both of those deals. D’Alessandro is aggressive and has proven willing to gamble on a player with high upside, regardless of the baggage he may bring. There is no telling whom the Kings may target, but it is appears that wheels are once again in motion.
It is complex, but here is a look at where the Kings currently stand in relation to the salary cap and luxury tax, if all things go as planned.
The Deals
- Aug. 6 – Sacramento Kings deal Quincy Acy and Travis Outlaw to the Knicks for Wayne Ellington and Jeremy Tyler.
- Sept. 1 – Sacramento Kings reportedly trade Jason Terry to the Rockets, along with two second-round draft picks, in exchange for Alonzo Gee and either Scotty Hopson or Josh Powell.
- Sept. 3 – Sacramento Kings waive Wayne Ellington.
- Sept. 6 – Sacramento Kings waive Jeremy Tyler.
The deal for Terry has not been announced by the team, but according to published reports, the deal is all but complete.
The Savings
- According to reports, the Sacramento Kings used the NBA’s stretch provision when waiving Ellington. This allowed the team to spread his remaining salary of $2.77 million over three seasons, saving the team roughly $1.85 million in salary cap room for the 2014-15 season.
- By waiving Tyler before Sept. 15, the Kings saved the entirety of his $948K salary this season.
- Terry was set to make $5.85 million this season. By dealing him for two players without guaranteed contracts, the Sacramento Kings will save the entirety of Terry’s contract.
Projecting the Cap Situation
Before these moves, the Sacramento Kings’ total salary for the 2014-15 season stood at $75.85 million. That is without the additions of Omri Casspi and Eric Moreland or training-camp invitees Sim Bhullar, Deonte Burton and David Wear.
It’s a little complicated, but the deal for Ellington and Tyler yielded a savings of nearly $3 million and if the Terry deal comes to fruition, the team will clear another $5.85 million.
Once signed, Casspi is on the books for $915K, although we do not know if his deal is 100 percent guaranteed. We also don’t have exact numbers yet for Moreland, Bhullar, Burton or Wear, but the league minimum for a rookie is $507K. It is unlikely that any of the four have a completely guaranteed contract.
If all goes as planned, the Kings have 15 players under contract for an estimated $70 million, leaving them nearly $7 million over the salary cap, but $7 million under the dreaded luxury tax figure of $77 million. They can save slightly more by releasing one of their non-guaranteed players.
Outside of veteran minimum contracts, the Kings have the bi-annual exception valued at $2.077 million and they are armed with a handful of trade exemptions, the largest being from the trades of Isaiah Thomas ($3.619 million) and Marcus Thornton ($2.425 million).
Sacramento still has assets to use as trade bait and Rudy Gay ($19.3 million), Derrick Williams ($6.33 million) and Reggie Evans ($1.77 million) are all playing on expiring contracts.
Conclusion
A month ago, the Kings looked like a non-playoff team on the brink of paying the luxury tax. They are likely to miss the playoffs for a ninth straight season, but at least their cap situation has improved greatly.
D’Alessandro is the most aggressive GM in the league right now. He has reshapen the entire Kings roster in a little over a year, with only DeMarcus Cousins and Jason Thompson remaining from the 2012-13 roster that went 28-54 under Geoff Petrie and the previous regime.
The deals that we have seen in the past from D’Alessandro were designed to collect assets, but the last few are different. He is looking to clear room and put the team in a better position for the 2014-15 season.
Maybe the moves are purely financial, but it’s hard to believe that D’Alessandro would give up expiring contracts now, instead of holding onto them and gauging their value closer to the February deadline.
Either way, the Kings are in solid financial position for this season and primed for a huge offseason when they drop to roughly $23 million under the cap and $37 million under the luxury tax.
Last season was a whirlwind of trades and player moves for the Sacramento Kings. Coach Michael Malone would love to play the season with a core group of players that he can mold through camp and deep into the schedule. D’Alessandro has less than three weeks to deliver that roster and has been extremely active.
Add The Sports Daily to your Google News Feed!
