MythBusters – New Orleans Pelicans Have More Flexibility Than You Think


The team has no picks and is full of high-end contracts, and they are about to give AD a 300-400 percent increase in salary in two years, so we won’t even have him on a great contract anymore. We fricked. I believe that is how the argument goes, though I am paraphrasing a bit. You have heard this before right? From the Pelicans message board poster or Twitter’er (is that right?) that reveals in doom and gloom scenarios. Or maybe from the national pundit who only takes time to talk about the Pels when they want to bash on something.

Here’s the thing, though – those guys don’t know what they are talking about.

Now, is everything ideal? Of course not. There are kernels of truth in what they say, and you can easily look back on past moves and say, “Man, if we only did this or that, we would be in better position.” Very true. There isn’t a franchise in the NBA who doesn’t wish they had a few do-overs. But the past is the past. Looking forward, let’s take a genuine look at where the Pelicans are and what is possible moving forward.

Cap Situation for Summer of 2015

Players with Guaranteed Deals for Next Season: Ryno, AD, Jrue, Tyreke, Gordon (count for $51.8 million)

Major Cap Holds: Omer Asik ($12.5 million)

Team Options: Russ Smith (845K), Jeff Withey ($1.15 million)

Other Things to Note:

– Remember, for every empty roster spot, you have a cap hold of about 500K that counts against your cap.

– 2015-16 cap is projected to be $66.5 million.

So, if you do the quick math, you see that our Big Six basically puts us at the cap, if you include Asik’s cap hold. That leads you to believe that this summer will simply be about re-signing Asik and then using the MLE to get a wing player. But, c’mon, how often does Dell do the conventional thing?

The key, as always, is Eric Gordon. There are three simple ways the Pelicans can become a player in the market this summer, all involving Gordon.

1.) Gordon opts out (likelihood: 1 percent)

  • If he did opt out, it wouldn’t be for financial purposes. It would be to get away or control his own destiny, rather than have the Pelicans determine where he plays for the next season. Very, very unlikely. But Gordon has never been truly free since entering the league. This appeals to some guys more than we can imagine. His agent would kill him, but could I see him opting out in 1 out of 100 universes? Sure.

2.) The Pelicans stretch Eric Gordon (likelihood: 20 percent)

  • I have covered this AT LENGTH, in two parts (one and two). Long story short, we can take the 15.5 million owed to Gordon next season and stretch it over three years while also subtracting a part of whatever he signs for with his next team. Basically, this would take his cap hit down from 15.5 million to somewhere between 4.5 and 5.5 million. But it would also put dead money on the books for the following two years. Not ideal, but not terrible if it helps you get the right guy next summer.

3.) The Pelicans use a future 1st round pick to trade Gordon (likelihood: 50 percent)

  • This past summer, the Rockets sent an average player (Jeremy Lin) who was owed $15 million for one season to the Lakers and gave the Lakers a future first-round pick for taking him. A lot of teams will be saving up for big splashes in 2016, so they wouldn’t mind Gordon as a place holder on their books if it got them a first rounder. Once we give our pick to Houston, we can trade a future 1st and get this done.

If #1 or #3 happen, then you are looking at a team that can compete to get any free agent they want, especially if they can get Asik locked in at a price below his 12.5 million dollar cap hold (very possible). If #2 happens, the Pelicans can start a free agent off at between 9 and 12 million per year, depending on what it takes to bring Asik back.

Of course, if none of the three happen, then yes, the most likely scenario is that the team gets a relatively minor piece and sets its sights on 2016, but lets not dismiss the possibility that one of the other guys is moved or not retained in order to get a piece that fits better. Ryan Anderson can be moved easily, and while some say that Tyreke is on a bad deal, that simply is not true. By the time 2016 hits, he will be the 100th-120th highest paid player in the league, and whether you love Tyreke or hate him, there is no doubt that he is a top 100 player. And, of course, the team could choose to let Asik go.

The point is that this team is absolutely locked in to two guys – Jrue Holiday and Anthony Davis, and those two count for a little over $18 million next season. Theoretically, they could clear the deck if they wanted to just by giving up a future first, or perhaps not even that if they attached Anderson to Gordon. Now, do I think they will do that? Of course not. But Dell, or whomever the GM might be, has tons of flexibility. You know who doesn’t have flexibility? The Brooklyn Nets. Tell that doom and gloom poster to go have fun on their message boards.

Cap Situation for the Summer of 2016

Players With Guaranteed Contracts: Jrue Holiday and Tyreke Evans ($22 million)

Team Options: Anthony Davis ($9.1 million, but see more below), Russ Smith (980K)

Major Cap Holds: Ryan Anderson ($12 million)

Other Things To Note:

– If Asik is re-signed, you can likely add 10-12 million dollars into the guaranteed contracts slot. And if we added an MLE guy in 2015, add another 6 million.

– Anthony Davis will likely not count for $9.1 million. I spent a few thousand words on this, but long story short, expect him to count for between 24 and 28 million dollars in 2016.

– Projected cap will likely be anywhere between 85 and 95 million dollars.

So, let’s go down the middle here. Let’s assume the cap is $90 million and Davis starts at $26 million with Asik getting paid $11 million. Add that to Jrue and Tyreke, and now you are at $59 million. You have a MLE guy on the books for $6 million too, but he played well enough where you can dump him for nothing if you want. Either way, you have 25-30 million in cap room. You can go for a big fish like Durant or re-sign Ryno, keep your MLE guy (let’s imagine Demarre Carroll or Gerald Green) and still have $15 million in cap room to fill out the rest of the roster. A roster better than the current one, by the way.

Conclusion

Look, I am not trying to act like everything is rosy. I would love a time machine to go back and change some things, but there is plenty of flexibility moving forward. This roster is by no means set for the foreseeable future. Now, with that said, I caution people to be careful what they wish for as the trade deadline approaches. This fan base desperately wants the playoffs. Would you do an Eric Gordon for Joe Johnson swap for a better chance at the playoffs this season? Before saying yes, go back to the 2015 summer possibilities and basically cross that section off. Still want to do it?

The smart play for Dell this February might just be to stand still, but I know people don’t want to hear that. Package Rivers and Salmons for a guy like Gerald Henderson? Heck yeah! Oh, but wait, that takes a lot of 2015 options off the table as well. And again, for what? To hope that a major injury occurs to a Western Conference team so that maybe we can sneak into the playoffs and likely lose in the first round? And that’s IF a guy like Henderson even improves us.

Truth be told, the thing I am most afraid of is that Dell fears for his job security and makes a move like the one above, killing some flexibility. This season should not be about playoffs or bust, no matter how badly we want it. Davis is 21 years old!! Instead, the goal should be to try to improve without killing future flexibility. If Dell can find another Cunningham or trade an expiring for an expiring who plays better – fine, go for it. But Dell has a LOT of flexibility as of right now. Despite what that poster tells you.

 


16 responses to “MythBusters – New Orleans Pelicans Have More Flexibility Than You Think”

  1. “Tons” of flexibility this summer is hyperbole. 2 of your 3 options for Gordon include sacrificing more long term assets just to get him out of New Orleans. Theoretically, they can move everyone. The ability to get return is key.
    Maybe they move Anderson. But I’m not sure they’re ready to play the defense to survive his loss on offense. I don’t see anyone giving up much for Evans right now, even with a decreasing contract. T
    The roster is, likely, set through next year. That’s not terrible. They are young and talented, but razor thin. Add a rotation wing with the MLE, see internal progression, and they could be sniffing mid tier playoff status in the West with this group.

  2. I was kind of crazily onboard with trying to jump into a trade with the Nets but it depended on what we got back. I might trade Gordon and parts for JJ and Plumlee but they’re not trading Plumlee.
    After thinking more about it the last couple of weeks and reading this, I would like to stay patient and hope that Dell has been given some sort of vote of confidence from ownership so that he doesn’t mortgage the future while fearing for his job. That would be terrible and could completely backfire on how this team should be built around AD.
    Stay mostly patient, let Gordon come off the books after next season… and welcome Durants to NO.. Which I’m sure that AD and Durant have already started talking about (I would crap myself)!

  3. thouse I agree that “return is key” but there are different kinds of returns. 
    Example- Lets say you dump Tyreke for nothing and sign Wes Matthews to a similar contract, haven’t you effectively traded Tyreke for Matthews? 
    With that being the case, I don’t think actually getting return in the trade is necessarily important if you know you can lock up another guy with that money. That was my overall point.

  4. mvpmb10 His next few moves will be more important than his last few. He has less room for error moving forward than he did in the past, but if he can hit a few doubles and maybe one triple or homer, this is a championship caliber team. 
    Just can’t strike out (ex. Another Gordon contract with subsequent production)

  5. Yea…how he handles the end of this Eric Gordon era…is what im anxious about.
    I feel he’s really going to make his mark with that move.
    Also like you said. …hopefully he gets the backing he deserves.
    Big fan of His.
    The Knock on him is this Eric Gordon contract for me….but its finally almost over

  6. My hope for next offseason is to sign Asik to a 3 year deal at around $11M/year and get a good “3 and D” SF for the MLE on a 3 year deal.  (If we need the cap space for a known move, we trade Gordon and our 1st pick or possibly stretch Gordon. I would be fine with retaining Gordon; he in an expiring next season.)  We also need to upgrade the bench.  I am hoping we resign Cunningham, and OK with signing Rivers, Babbitt, Ajinca, and Jimmer to a cheap contracts.  Salmons’ spot goes to the new SF and we still have one more roster spot (two if we move Gordon) to add a quality wing or backcourt player.  
    My belief is management knows the name of the game is to build a team around a very young Anthony Davis. So they will be patient and not make any desperate moves.  
    In Dell I Trust.

  7. I agree with everything but that 11 mil for Asik.
    Im not ready to go that High …like him….but Not for 11mil
    He didn’t do enough for that yet….step it up Asik….and then maybe.
    And I know 7 footers get paid…but I would Go DeAndre Jordan b4 Asik for that price…he is also a free agent…Roy Hibb.
    I didnt check the list of available centers yet…
    But Asik hasn’t played as good As I thought he would…key word…YET

  8. I think all moves should be the benefit A.D. You MUST build around a top five player in the league. No way would I move Evans , that’s insane. Evans is the only player on the roster, other then A.D. whohastriple double talent, even though it’s difficult to get 10 blocks in a game.Points &rebounds aren’t hard for A.D. 10 blocks is like a guard getting 20 assist in game, it just doesn’t happen many times in a season. The scouting report says  denied Evans  from driving to the hoop and force him to shoot from the perimeter .  Yet he continuously and successfully goes to the basket , that’s what I call talent.

  9. 504ever I feel like that solidifies the roster, but I don’t know if it makes it transcendent if that makes sense. 
    I think that in the next two years, they will have to swing for a triple or a homer with some move to really become a contender

  10. thouse I have been missing for sometime, but in honor of Michael coming back I feel I have to comment. I agree with your point. MM is talking in terms of what’s possible which is fair, but not what’s necessarily likely. Sure we can gain flexibility, but at what cost? And if we have to move all these pieces to get flexibility why would an established quality veteran want to come here?
    The parts in place we have right now needs to come together or I don’t see our current GM being our future GM. Of course that would mean gaining flexibility would be even more important for a new regime.

  11. Flexibility is key…let’s say Durant wanted to play with AD..we would be able get him here by just moving one or two guys. ..

  12. Michael McNamara 504ever
    But with what currency do you use to swing for the fences?  Pelican player(s)?  Cap space $s and playing next to AD as a lure for someone in free agency?  And maybe the transcendent player is already on the roster.
    I don’t disagree with the idea of a big move, but first are the steps I outlined above. Then Dell reevaluates.  (He may give those moves a year to evaluate, which means Gordon’s contract expires around the same time as that evaluation.)
    Gordon is the key to bigger future moves, and his cost/value is in a range that has parameters: moving Gordon for the next 6 months will cost a 1st, moving Gordon 1+ year from now as an expiring will bring in assets.  So Dell will only move Gordon near term as the first step in a bigger deal, otherwise the opportunity cost (what you could have gotten for Gordon if you waited until he was an expiring, or his contract actually expires) are too great to pass up.
    And let’s not forget Dell is the master at finding 2nd teamers for nothing.  Finding another Anthony Morrow type player this summer would do a lot for this team, too.
    Finally, there is something to be said for roster stability for a year, after all of this roster turnover.  Let all of the prior big moves get digested before the next one.

Leave a Reply

Your email address will not be published.