NBA Roundtable

2010 Cap: Memphis

In Free Agency, General NBA, Trade Talk on June 24, 2010 at 2:03 am

Memphis Grizzlies Salaries

Contracts above $5 million

  • Zach Randolph – $17.67 million

Zach Randolph is in the final year of his contract and the Grizzlies are in talks with him over an extension.

Rest Of Team’s Salaries

  • Mike Conley – $4.91 million
  • Hasheem Thabeet – $4.79 million
  • OJ Mayo – $4.46 million
  • Marc Gasol – $3.57 million
  • Hamed Haddadi – $1.6 million
  • Darrell Arthur – $1.12 million
  • DeMarre Carroll – $1.09 million
  • Sam Young – $890k

Mike Conley, Hasheem Thabeeet, OJ Mayo, Darrell Arthur and DeMarre Carroll are on their rookie scale contracts. Mike Conley is an expiring contract and will be looking for a contract extension at a comparable pay grade next summer. Thabeet and Carroll will be entering their second year in the league while Mayo and Arthur will be beginning their third season of their contracts.

Sam Young is a second round pick who is entering the second year of his three year contract. Hamed Haddadi is an expiring contract who is unlikely to be retained.

Meanwhile, Marc Gasol is also an expiring deal but he is due for a major pay rise ($8-10 million per annum).

Those contracts amount to a sub-total of $22.43 million.

Other Costs

  • Draft Picks — The Grizzlies hold the #12, #25 and #28 picks in the first round. Those picks come with cap holds of $1.68 million, $925k and $860k respectively. A total of $3.465 million.
  • Buyout — Marko Jaric is on the books for $6.76 million.
  • Open Roster Spots — The Grizzlies will have thirteen players on the books if they keep their three draft choices. No additional cap charges for open roster slots.

That gives us a sub-total $10.23 million and an overall total of $50.33 million.

The Cap

David Stern recently announced

NBA commissioner David Stern said on Friday that the league is projecting the cap to come in at about $56.1 million. The actual number won’t be determined until early July, before teams can begin officially signing players.

Though that figure would still be lower than this season’s $57.7 million cap, it’s far better than estimates from last summer, when the league sent a memo to teams warning them of a potential sharp drop to between $50.4 million to $53.6 million.

2010 Cap Space

So, the Grizzlies are beneath the cap by $5.77 million roughly the equivalent of the MLE.

Restricted Free Agents

The Grizzlies also have two important restricted free agents

  • Rudy Gay – a cap hold of $9.84 million
  • Ronnie Brewer – a cap hold of $8.16 million

Even if Memphis rescinded the rights to these two players they wouldn’t have any more cap space than the MLE so there is no point in doing that.

Summer Options

Memphis’ first choice is re-signing their two key free agents

  • Rudy Gay — $11 to $13.5 million starting salary
  • Ronnie Brewer — $4 to $6 million starting salary

Those two salaries would add another $15 million to $20 million in wages to the Grizzlies payroll. That would give us a new total of $65 to $70 million.

Hmm, that was a surprising result, if the Grizzlies received an MLE offer for Ronnier Brewer and a max contract offer for Rudy Gay, the Grizzlies would have luxury tax concerns. Very much a real possibility.

Unusual blend of almost cap space + no-cap issues + possibly luxury tax concerns

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