NBA Roundtable

Spurs Ink Ginobili To New Contract

In Free Agency, General NBA on April 7, 2010 at 4:59 pm

Yahoo Sports reports

Manu Ginobili and the San Antonio Spurs are close to reaching agreement on a three-year extension that would keep the guard from entering this summer’s heralded free-agent market, league sources told Yahoo! Sports.

There are still a couple of significant issues to be resolved within the next 24 to 48 hours, but the two sides have established the framework of the extension – which could be a worth a total of up to $40 million over the three years – and think the deal could be completed by the end of the week. Ginobili’s agent, Herb Rudoy, is expected to meet with Spurs officials after the team returns from Phoenix.

Good decision by San Antonio. They would have been unable to replace Ginobili if they let him leave so they needed to sign him to an extension.

Manu Ginobili is currently good value for a $13.3 million per annum deal but it’s impossible to tell how well he’ll age + how well he’ll avoid more injuries over those three years.

It’s a good risk to take given San Antonio’s lack of other options.

Update: Now, it’s official, the Spurs have signed Manu Ginobili to a contract extension — link.

2011 Payroll

San Antonio’s 2011/12 payroll

  • Tim Duncan – $18.84 million
  • Richard Jefferson – $15.2 million
  • Tony Parker – $13.65 million
  • Manu Ginobili ~~ $13.3 million
  • Antonio McDyess – $4.86 million
  • George Hill – $850k
  • DeJuan Blair – $920k

Total: $67.62 million

So, San Antonio is already on the hook for $67.6 for seven players.

They’ll have to pay a minimum of $4.92 million more for six players, under veteran minimum contracts, to reach the league minimum of 13 roster spots. That will take them to $72.54 million.

The luxury tax threshold is likely going to be between $64-65 million so the Spurs are going to be at least $7 million above that.

If San Antonio were to spend their MLE, that would them a further $5.5 million over the luxury tax. And, if San Antonio were to sign some of their other free agents to non-minimum contracts that would further add to their payroll concerns.

Thoughts

  • It will be difficult for San Antonio to spend their MLE without getting McDyess off their books first. Their payroll would be too high after luxury tax expenses are taken into account to add to their salaries without losing some payroll first ($91 million).
  • Spending big in the luxury tax is easier to do once than year after year.  San Antonio showed a strong commitment this past season but the more they are asked to repeat that the more difficult it will become.
  • San Antonio’s best option, financially speaking, may be to trade Richard Jefferson for two-three well paid role players who can cover up their currently unbalanced roster. Then fill out the roster with minimum contracts. A less than ideal approach but if finances become a major issue then it’s likely their best route.
  • As we’ve covered in the past, San Antonio’s best options for improvement this summer are:
    1. Trading Tony Parker for an established talent
    2. Trading Jefferson’s expiring contract + some combination of their young assets (Hill/Blair/Splitter/first round picks) for established talent
    3. Spending their MLE on athletic defensive orientated power forward like Tyrus Thomas.
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