Chuma Okeke drafted #16 by the Orlando Magic

[Xatticus]

Can someone explain his contract situation? We don't know if he has signed and I hear that he may 'redshirt his rookie year'. How would that work? Would he still get paid the full amount of a 1st year contract like normal even though he is not with the team per se as he would be either rehabbing or with the Lakeland team? Would his contract really start the next year? If so why would he agree to it? Can the Magic just say we are not going to sign you until next summer but we will stay pay you as you rehab?

I think there was an agreement between Chuma and Orlando front office that we would draft him first rd and he gets that guaranteed money, but he doesn’t sign his rookie contract this season and signs a g league contract with Lakeland. With his injury he was probably only guaranteed to be an early 2nd Rd pick.

I discounted this possibility when Okeke expressed surprise at being drafted by Orlando.

It's a curious situation as Orlando was required to tender him an offer in line with his draft slot to retain his rights. This means that Okeke's camp has declined to sign the contract up to this point, which would lead me to believe that Orlando offered something less than the 120%. This is generally a formality as the money saved is insignificant and teams are more concerned with welcoming in their draft picks than pinching pennies, but Orlando is right up against the tax. Okeke has until the season starts to accept the tendered contract.

I suppose it is still possible that there was some pre-arranged agreement, but I can't see how that would be beneficial for Okeke unless there was an expectation that he would've slid significantly further had Orlando not selected him. Okeke isn't expected to miss the entire season and pushing back the timer on his path towards free agency could significantly decrease his long-term earning potential.

Orlando still has leverage because of Okeke's status as an early entry player. This means that Orlando will control his rights for the next three years. I expect that he will ultimately sign the contract that has been offered, but the situation gets more interesting as time passes.

[drsd]

Okeke has until the season starts to accept the tendered contract.

If Okeke actively does not sign his contract, Orlando has his rights until one year after what would have been his senior year; that is, three years from now.

When this is all resolved, we fans could really profit from the back story, Example: is Okeke disgruntled over his contract situation? When was Okeke informed he would not rapidly be offered a standard rookie contract?

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[drsd]

Orlando still has leverage because of Okeke's status as an early entry player. This means that Orlando will control his rights for the next three years. I expect that he will ultimately sign the contract that has been offered, but the situation gets more interesting as time passes.

This is only true if i) Okeke is offered a contract and ii) he does not sign it.

If Orlando offers 80% (the lowest they can offer), and he signs, then he is a Magician right now. If the Magic does not tender a contract, he is a FA at opening night.


.;.

[Knightro]

Also for what it's worth, the Magic can offer 80% of the rookie scale year 1 and have that jump to 120% scale in year 2 and beyond.

I'm very curious how this is going to play out. Okeke *should* be healthy by January 1, but I can see the Magic not want to start Chuma's rookie contract clock considering he's not likely to play much this year anyway.

But if he wants to get paid right now, he could obviously tell them to pound sand on going delaying his NBA contract to go to the G-League or anything like that.

[drsd]

Also for what it's worth, the Magic can offer 80% of the rookie scale year 1 and have that jump to 120% scale in year 2 and beyond.

Correct me if I am wrong, but I always thought the 120% would be on the level of year 1 moving forward. Is year-2 a set-in-stone number that is itself modified (to 120%) or is it tied to the year-1 level?

All sports sites have year-1 and year-2 as locked numbers. But I am not sure that is necessarily true.



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[basketballRob]

Even if the Magic didn't formally announce him signing, would it be posted on the NBA's transactions page?

Sent from my SM-G965U using RealGM mobile app

[Knightro]

Also for what it's worth, the Magic can offer 80% of the rookie scale year 1 and have that jump to 120% scale in year 2 and beyond.

Correct me if I am wrong, but I always thought the 120% would be on the level of year 1 moving forward. Is year-2 a set-in-stone number that is itself modified (to 120%) or is it tied to the year-1 level?

All sports sites have year-1 and year-2 as locked numbers. But I am not sure that is necessarily true.

So I thought this as well, but according to Jeff Siegel of Early Bird Rights the Cavaliers just did the 80% year 1, 120% year 2, 3 and 4 move with Kevin Porter Jr.

Read on Twitter

So as I understand it based on that tweet, and I could be wrong, a team can offer whatever of the three percentages of the scale (80%, 100%, 120%) in any year of the deal before its signed.

[Knightro]

Even if the Magic didn't formally announce him signing, would it be posted on the NBA's transactions page?

We will 100% know the moment it becomes official when the Magic sign Okeke.

Whenever that is.

All official transactions are public. He’s simply not signed right now.

[drsd]

So I thought this as well, but according to Jeff Siegel of Early Bird Rights the Cavaliers just did the 80% year 1, 120% year 2, 3 and 4 move with Kevin Porter Jr.

The media clearly has Porter Jr. jumping back to the 120% (which is well north of a 20% bump on an 80% first year).

NBCsports LINK

[drsd]

Even if the Magic didn't formally announce him signing, would it be posted on the NBA's transactions page?

We will 100% know the moment it becomes official when the Magic sign Okeke.

Whenever that is.

All official transactions are public. He’s simply not signed right now.

To add, why would Okeke or the Magic "hide" that he inked his deal?


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[basketballRob]

Even if Okeke is unsigned his salary counts against our cap, according to #50 in Coons salary cap faq.


http://www.cbafaq.com/salarycap.htm#Q47

[drsd]

Even if Okeke is unsigned his salary counts against our cap, according to #50 in Coons salary cap faq.

He counts at a 120% cap-hit for the next three years, as the league would "expect" him to sign at that level. Indeed, signing Okeke to less than 120% this year actually provides the needed cap flexibility to sign a 15th player. The Magic is estimated to be about 650k under the cap. So another 200k allows a Jeffries signing at a league-min level.

EDIT: an interesting thought line. If Okeke signs a G-league deal, I assume this frees up all 120% of his cap-hold, for the year.


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[ezzzp]

The Magic can sign Okeke to 3% less than the normal first year amount to make room for DeQuan Jeffries:

19-20: (117%) $3,042,053
20-21: (120%) $3,277,080
21-22: (120%) $3,433,320
22-23: (120%) $5,266,713
Total: $15,020,166

Okeke would lose $78,027, as the normal 120% rookie contract total is $15,098,193.

Doing that allows the Magic to stay just below the Luxury Tax with 15 players on the roster:



The signing delay could be that the Magic (and Okeke) have agreed to wait to see if Jeffries (or another minimum salary player) makes the team. If Jeffries (or min player) doesn't make the team, then they sign Okeke to the full 120% contract.

[drsd]

The Magic can sign Okeke to 3% less than the normal first year amount to make room for DeQuan Jeffries:

19-20: (117%) $3,042,053
20-21: (120%) $3,277,080
21-22: (120%) $3,433,320
22-23: (120%) $5,266,713
Total: $15,020,166

Okeke would lose $78,027, as the normal 120% rookie contract total is $15,098,193.

Doing that allows the Magic to stay just below the Luxury Tax with 15 players on the roster:



The signing delay could be that the Magic (and Okeke) have agreed to wait to see if Jeffries (or another minimum salary player) makes the team. If Jeffries (or min player) doesn't make the team, then they sign Okeke to the full 120% contract.

Stretching Watson two year's ago is now haunting Orlando. That 333k would make the difference !


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[ezzzp]

Stretching Watson two year's ago is now haunting Orlando. That 333k would make the difference !

I wonder if the salary amounts that are reported are precise official amounts.

I can't imagine the Magic FO didn't calculate the new contracts (Vuc, Ross and Birch) precisely so that they'd have enough room to sign Okeke at regular rookie scale + a minimum $ player and stay below the tax. Its only a few thousand dollars off a multi-million dollar contract they'd have to shift from the first year amount to a later year.

[drsd]

... they'd have enough room to sign Okeke at regular rookie scale ....

We fans assumed this. But what if Management never planned on signing Okeke this year? That changes everything.

Thus: this needs to be taken out of the dark. Management and Okeke need to sit together with the O-Sen and explain why a contract has not been signed. This is becoming farcical. And that is bad.


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[ezzzp]

... they'd have enough room to sign Okeke at regular rookie scale ....

We fans assumed this. But what if Management never planned on signing Okeke this year? That changes everything.

Thus: this needs to be taken out of the dark. Management and Okeke need to sit together with the O-Sen and explain why a contract has not been signed. This is becoming farcical. And that is bad.


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I don’t think they have any obligation to tell the fan base that info right now...it’s still the offseason and there are still free agents out there and transactions being discussed.

To me it looks like something strategic both parties are in agreement with, and they’re waiting on something related with how to maximize the remaining tax space and roster spot(s).

I seriously doubt it’s a contract dispute, a math miscalculation or anything weird like that. Chuma has been working out and rehabbing with Magic all summer. Just recently, both Okeke and Magic posted images of him in Magic uniform on his birthday.

We’ll find out around the end of training camp - if not sooner.

[pepe1991]

... they'd have enough room to sign Okeke at regular rookie scale ....

We fans assumed this. But what if Management never planned on signing Okeke this year? That changes everything.

Thus: this needs to be taken out of the dark. Management and Okeke need to sit together with the O-Sen and explain why a contract has not been signed. This is becoming farcical. And that is bad.


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That's terrible. Guy is only first round pick without contract. if any of us is on his spot, we all would be pissed.
Menagment is holding him away from guaranteed $8 450 000 contract.
Imagine if he gets hurt next year and they simply don't sign him again?

G league contracts are garbage.

[drsd]

That's terrible. Guy is only first round pick without contract. if any of us is on his spot, we all would be pissed.
Menagment is holding him away from guaranteed $8 450 000 contract.
Imagine if he gets hurt next year and they simply don't sign him again?

G league contracts are garbage.

Orlando MUST tender a contract. They loose the rights to the pick if not.

The offer must be: 2080720 in year One and 2184720 for year Two, for a guarantee of USD$4,265,440. (That's 80% for each of the first two years on this year's rookie scale).

What we fans do not know is even if that was put on the table, or something else. This is ridiculous at this point.

If I am Okeke, would I sign a G-league deal so that I could have two years guaranteed at 120% (and on a higher scale to boot), or jut "accept" USD$4,265,440, knowing that there is a real chance of never playing professional ball ever? That's a tough choice.

Where is the good-will discussions for either side at this point? Why isn't O-Sen investigating this and reporting frequently on it?

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[drsd]

We’ll find out around the end of training camp - if not sooner.

Sure. But why isn't the O-Sen running weekly stories on this? And daily editorials?

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