Carmelo Anthony trade: Early takeaways of OKC Thunder three team deal
The OKC Thunder address a priority in moving Carmelo Anthony via a three team trade.
The long awaited trade of Carmelo Anthony is complete as the OKC Thunder did what many thought was near impossible. That specifically was avoiding the necessity to buy out Anthony’s $27.9 million contract.
One after another the handful of teams with cap space made moves which rendered them incapable of being a trade destination. In the end the Atlanta Hawks stepped up to the plate facilitating the trade. Also involved in the trade are the Philadelphia 76ers.
Specifics:
Outgoing from OKC Thunder:
- Carmelo Anthony moves to Atlanta Hawks who will immediately buy out his fullcontract.
- 2022 first round (protected 1-14) draft pick to Hawks
Incoming to OKC Thunder:
From Hawks:
From 76ers:
To recap three-team trade between Hawks, Thunder and 76ers: Carmelo Anthony and Justin Anderson to Hawks. Anthony bought out. Mike Muscala to 76ers. Timothé Luwawu-Cabarrot to Thunder.
— Chris Vivlamore (@CVivlamoreAJC) July 19, 2018
Incoming to Atlanta Hawks:
From OKC:
- Carmelo Anthony (Hawks will waive, paying out the full $27.9 million owing this season).
- OKC Thunder 2022 protected 1-14, first round draft pick
Incoming to Philadelphia 76ers:
From Hawks (via OKC):
Tremendous save for OKC: Thunder get massive salary and luxury tax savings -- nearly $100M -- w/o stretching Anthony's $28M. That deal would've left $9M-plus on books next three years, so Schroder $15.5M per year becomes bargain -- and an asset that could stay or be traded again.
— Adrian Wojnarowski (@wojespn) July 19, 2018
Early Takeaways:
The key notable here is the Hawks will pay the entirety of the $27.9 million owed. This is a major coup for Sam Presti. It means the Thunder weren’t forced into waiving Anthony and force them to stretch his contract over three years. The result of which would mean paying $9.3 million per year for an empty asset. As Adrian Wojnarowski points out, escaping the waive and stretch situation with Melo and trading it with Schroder’s 15.5 million contract in essence is like paying $5 million a year for Schroder.
The one possible down side is the OKC Thunder also include a 2022 first round protected draft pick. This hurts because 2022 is the year when it’s expected the NBA will remove the requirement for one year of college, hence it’s expected to be a draft full of talent.
As per Marks tweet (below) the other key aspect of this trade is the massive amount of luxury tax the Thunder will shave.
Oklahoma City was able to accomplish two things by trading Carmelo Anthony to Atlanta, improve the roster while saving $73M this season. The Thunder will now see their projected luxury tax bill drop from $150M to $88.8M, a savings of $62M. In addition,... https://t.co/dcp1nQxadt
— Bobby Marks (@BobbyMarks42) July 19, 2018
Despite adding two players to the roster (arguably upgrades) OKC will also save $73 million. Additionally, OKC shave their luxury tax hit from $150 million to $88.8 million, a $62 million savings in 2018-19. This could be reduced even further dependent on whether OKC make additional moves. Of note, teams final luxury tax is calculated based on where the team resides with player salaries on last day of season.
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Melo ends up collecting his full salary so it’s likely the wine will be free flowing tonight at the Anthony residence. More importantly, he’ll be free to sign with any team he decides and have the ability to do so at a massive cost savings due to collecting his full salary. Early predictions are the Houston Rockets will be his designated team of choice.
As for the two incoming players for the OKC Thunder, check back with the site tomorrow for more in depth views on the players and how they’ll fit the OKC Thunder system. It’s a mixed reaction by the team at Thunderous Intentions specifically in regards to Schroder given his off court troubles and rumors of locker room issues.
Certainly the leadership of Russell Westbrook and Paul George will be key with the addition of not one (Schroder) but two (Nerlens Noel) players with reputations of being difficult.
My initial take is the Thunder have needed a quality backup for Russell Westbrook since the exit of Reggie Jackson. Schroder more than fulfills that role. Adding another playmaker and specifically one who can create his own shot and shots for others is a huge benefit.
Most importantly, big time hat tip to Sam Presti who once more manages to turn what was deemed an impossible situation into a positive.