Carmelo Anthony watch: A royal answer to a taxing problem
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Every dollar counts:
If I”m Presti the initial offer is Carmelo and Johnson straight up. If Vlade isn’t moved by this offer than toss in the 2020 second round pick.
Depending on how much Presti wants to keep his draft picks that may be the limit he’s willing to offer. Or, if he also believes Diallo or another youngster could rise up, then offer Melo and TFerg with the back end of the deal including (at most) the 2020 second round pick.
Calculating Luxury Tax:
The Collective Bargaining Agreement uses the following chart to showcase how to calculate taxes. Note the far right column for repeat offenders.
Using the above chart combined with the current committed salary figures provided by Spotrac of $158,999,424 the Thunder are $35,299,424 over the threshold of $123,700,000. This equates to a luxury payment of $145,621,400 or a salary of $304,620,824 if the Thunder make no moves.
Not only outlandish, but simply not feasible for a small market.
The trade and stretch options:
Here’s how each situation equates with stretching Carmelo Anthony or each of the trade options including stretching Randolph or retaining him on the squad.
The Argument:
This is where the debate takes off. Obviously adding Randolph and stretching him makes the most sense. Yet, again, the team will be stuck paying for an empty asset for the next three seasons.
Consider the alternative to keeping Randolph on the team. First of all the Thunder get a producing contributor on the court for the year. And, more importantly they aren’t stuck having to pay for two additional years. If I factor in either moving Johnson as well or Ferguson then the Thunder pay almost the same as if they stretch Anthony and once again, they aren’t stuck having to make additional payments in years two or three like they would be if they stretch either Anthony or Randolph.
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The other takeaway to mention, is teams final salaries aren’t calculated until the final day of the season. This means by retaining Randolph they can still move him at year end either to a team looking to add an expiring contract or a team needing a veteran contributor.
Bottom Line:
Ultimately, the options of teams who have cap space have dwindled to the Kings. It may be inevitable that Presti ends up with no choice except to waive and stretch Anthony. Yet, the Kings are not only a viable option, they do need to spend above the minimum.
For the OKC Thunder brain trust this is an avenue that absolutely should be pursued. Presti knows entering any discussions that the Kings are covetous of draft picks. Placing a value on the 2022 first round pick would dictate his negotiations.
Although I’ve demonstrated how the Thunder could garner copious benefits, my choice would be to push for the Anthony, Johnson Option B, retain Randolph on the team and arrive at season end knowing no long term payments for an empty asset are required.
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Entering this season the cap situation has never been ideal, but this trade option is simply too compelling for Sam Presti not to make his best pitch for.