Chuma Okeke drafted #16 by the Orlando Magic

[ezzzp]

Sheez just realized he's not even on 2K.

Luckily the Magic drafted for "best player available" not for "player who will be available on 2K this season."

The Magic have Okeke's NBA rights. He can not sign with any other NBA team while the Magic have those rights.

To get those rights, the Magic had until July 15th to offer him a "required tender" (a contract offer signed by the team). If the Magic hadn't, then Okeke would have immediately become a free agent and the Magic would be prohibited from signing him anytime in the future (except after he has already played for another NBA team). In other words, the Magic obviously gave him a "required tender" as he's been rehabbing at Amway...why would they allow that if they are never legally allowed to sign him.

• For those speculating that Okeke is refusing to sign:

1) Per the CBA, that "required tender" must have guaranteed compensation protection (be it for lack of skill or injury) for at least two seasons. Article VII C ii (page 267)

2) Okeke was an "Early Draft Entry" player. Early Entry players are bound by their drafting teams until one year after the first NBA Draft they could have entered as non-Early Entry players. In other words, the Magic have Okeke's draft rights for this year (19-20 season) and next year's draft (20-21 season). LINK

That would mean that Okeke (rehabbing an ACL injury) would be rejecting $4.3 to $6.4 million in guaranteed $...AND he is knowingly postponing his NBA career until the 2022-23 season, which is the first season he can sign with another NBA team other than the Magic.

• For those speculating that Okeke and the Magic have an agreement to delay signing until next season:

1) Immediately upon the Magic selecting Okeke in the draft, a 120% Rookie Scale cap hold was applied to the Magic's team salary.

2) That cap hold can only be postponed if the Magic and Okeke both agree in writing not to sign a contract through June 30, 2020.

3) Rookie scale contracts can not have signing bonuses or performance incentives.

While this would benefit the Magic, I find it very hard to believe that he takes this risk "for the team," especially while rehabbing an ACL injury.

By postponing his signing to next season, Okeke could make $225k more in his first year salary. BUT he would put at risk $4.3 to $6.4 million in guaranteed money to do so. Even if he signs a G-League contract for the 19-20 season, that dollar amount pales in comparison to the amount of money he'd be putting at risk.

• The Okeke scenario that I feel is possibly playing out:

The delay in his signing is related to the Magic's luxury tax space and how the 15th roster spot plays out in training camp.

With Okeke's cap hold, if the Magic add a 15th player AND want to stay under the luxury tax, they would need to slightly adjust the 1st year salary of Okeke's actual contract.

For example, if DeQuan Jeffries (min salary player) makes the team (15th roster spot), then the Magic make Okeke's 1st year salary at 117% scale with year's 2-4 at normal 120%. If Jeffries doesn't make the team, leaving the 15th roster spot empty, then the Magic just structure Okeke's contract at the normal 120% for all 4 years.

Essentially, Okeke takes $78,027 less in 1st year salary, and that's only IF the Magic fill the 15th spot in training camp.

That to me sounds more realistic than Okeke risking all $4.3-$6.4 million, just to make an extra $350K. In addition, this scenario leaves the door open for him to play in the NBA this 2019-20 season...after all, his ACL recovery timeline estimates a return window of mid December - mid February.

*Okeke has until the first day of the regular season to sign the "required tender."

[NatiboyB]

Thank you for the VERY Detailed explanation for why he isn't on 2K

Sheez just realized he's not even on 2K.

Luckily the Magic drafted for "best player available" not for "player who will be available on 2K this season."

The Magic have Okeke's NBA rights. He can not sign with any other NBA team while the Magic have those rights.

To get those rights, the Magic had until July 15th to offer him a "required tender" (a contract offer signed by the team). If the Magic hadn't, then Okeke would have immediately become a free agent and the Magic would be prohibited from signing him anytime in the future (except after he has already played for another NBA team). In other words, the Magic obviously gave him a "required tender" as he's been rehabbing at Amway...why would they allow that if they are never legally allowed to sign him.

• For those speculating that Okeke is refusing to sign:

1) Per the CBA, that "required tender" must have guaranteed compensation protection (be it for lack of skill or injury) for at least two seasons. Article VII C ii (page 267)

2) Okeke was an "Early Draft Entry" player. Early Entry players are bound by their drafting teams until one year after the first NBA Draft they could have entered as non-Early Entry players. In other words, the Magic have Okeke's draft rights for this year (19-20 season) and next year's draft (20-21 season). LINK

That would mean that Okeke (rehabbing an ACL injury) would be rejecting $4.3 to $6.4 million in guaranteed $...AND he is knowingly postponing his NBA career until the 2022-23 season, which is the first season he can sign with another NBA team other than the Magic.

• For those speculating that Okeke and the Magic have an agreement to delay signing until next season:

1) Immediately upon the Magic selecting Okeke in the draft, a 120% Rookie Scale cap hold was applied to the Magic's team salary.

2) That cap hold can only be postponed if the Magic and Okeke both agree in writing not to sign a contract through June 30, 2020.

3) Rookie scale contracts can not have signing bonuses or performance incentives.

While this would benefit the Magic, I find it very hard to believe that he takes this risk "for the team," especially while rehabbing an ACL injury.

By postponing his signing to next season, Okeke could make $225k more in his first year salary. BUT he would put at risk $4.3 to $6.4 million in guaranteed money to do so. Even if he signs a G-League contract for the 19-20 season, that dollar amount pales in comparison to the amount of money he'd be putting at risk.

• The Okeke scenario that I feel is possibly playing out:

The delay in his signing is related to the Magic's luxury tax space and how the 15th roster spot plays out in training camp.

With Okeke's cap hold, if the Magic add a 15th player AND want to stay under the luxury tax, they would need to slightly adjust the 1st year salary of Okeke's actual contract.

For example, if DeQuan Jeffries (min salary player) makes the team (15th roster spot), then the Magic make Okeke's 1st year salary at 117% scale with year's 2-4 at normal 120%. If Jeffries doesn't make the team, leaving the 15th roster spot empty, then the Magic just structure Okeke's contract at the normal 120% for all 4 years.

Essentially, Okeke takes $78,027 less in 1st year salary, and that's only IF the Magic fill the 15th spot in training camp.

That to me sounds more realistic than Okeke risking all $4.3-$6.4 million, just to make an extra $350K. In addition, this scenario leaves the door open for him to play in the NBA this 2019-20 season...after all, his ACL recovery timeline estimates a return window of mid December - mid February.

*Okeke has until the first day of the regular season to sign the "required tender."

[Famous]

Sheez just realized he's not even on 2K.

Have you seen or played nba2k20? He clearly is in the game and always was going to be in the game.

[NatiboyB]

Sheez just realized he's not even on 2K.

Have you seen or played nba2k20? He clearly is in the game and always was going to be in the game.

Dude don't play with me I clearly said it because he is not on the game. He obviously is missing from the game.

[NatiboyB]

[Knightro]

Read on Twitter

[Knightro]

The way Shams worded his tweet makes it sound like the Magic are still signing him/paying him for this season which wouldn't make a lot of sense.

I'd imagine he misspoke. Otherwise if they're signing him, then there's no need to publicly announce he's redshirting, they could just starting playing him like normal once he was ready in Feb or whatever.

[Howard Mass]

The way Shams worded his tweet makes it sound like the Magic are still signing him/paying him for this season which wouldn't make a lot of sense.

I'd imagine he misspoke. Otherwise if they're signing him, then there's no need to publicly announce he's redshirting, they could just starting playing him like normal once he was ready in Feb or whatever.

This helps The Magic with an extra roster spot and essentially Okeke under contract for 5 years instead of 4 as I expect those options years to be picked up.

Okeke will get some more money but it is win-win since Okeke can probably get a loan for the year.

[drsd]

• For those speculating that Okeke is refusing to sign

With a tendered contract, Orlando owns Okeke's rights for the next three years (one year after his Senior year).

There is more to this story.


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[Optimus_Steel]

The way Shams worded his tweet makes it sound like the Magic are still signing him/paying him for this season which wouldn't make a lot of sense.

I'd imagine he misspoke. Otherwise if they're signing him, then there's no need to publicly announce he's redshirting, they could just starting playing him like normal once he was ready in Feb or whatever.

This helps The Magic with an extra roster spot and essentially Okeke under contract for 5 years instead of 4 as I expect those options years to be picked up.

Okeke will get some more money but it is win-win since Okeke can probably get a loan for the year.

I'm assuming Shams means the Magic will sign him to a Lakeland contract? Is there a limit as to how much a Lakeland player can can make? Can the Magic essentially pay him the wage of a rookie 1st year contract in Lakeland?

[Knightro]

With a tendered contract, Orlando owns Okeke's rights for the next three years (one year after his Senior year).

There is more to this story.

I don't think it's nearly as sinister as you seem to think it is.

Okeke and his agent didn't have to agree to this of course. The fact that they did makes me think there has been a mutual understanding between the Magic and Okeke's people for a very long time, probably going back before the draft.

Considering Okeke stood to lose out on 10-15M by dropping into the 2nd round, it stands to reason that his agent was dangling a draft and stash situation to many teams before the draft.

[ezzzp]

• For those speculating that Okeke is refusing to sign

With a tendered contract, Orlando owns Okeke's rights for the next three years (one year after his Senior year).

There is more to this story.


..

Not really. What does Okeke gain from holding out?

The reason for him to hold out would be that the Magic's required tender had 1st year at lowest possible 80% of rookie scale.

In holding out, Okeke would be putting at minimum $4,265,440 in guaranteed money at risk. Since the Magic own his rights, then he'd be postponing his NBA career for a considerable time until their rights lapsed. I don't see a player rehabbing an ACL injury holding out because of the difference between 80% vs 120% 1st year salary.

The Magic likewise doesn't gain anything if he's holding out, as his cap hold would be on their cap space...that cap hold is at 120% of rookie scale. The only ways that cap hold can be removed are:

1. Okeke signs with non-NBA team (Europe, G-League etc).

2. The Magic and Okeke both agree to postpone the cap hold and the signing of "required tender" until June 30, 2020. That must be a signed document submitted to the NBA and it can only be for one season. On July 1, 2020 that cap hold instantly goes back on the Magic cap space.

3. Okeke signs the "required tender" and that cap hold becomes his rookie scale contract (guaranteed for the first two years - second two years are team options).

The Magic can't withdraw their "required tender" without Okeke signing off on it. Article X, section F:

A Team may at any time withdraw a Required Tender it has made to a player, provided that the player agrees in writing to the withdrawal. In the event that a Required Tender is withdrawn, the player shall thereupon become a Rookie Free Agent.

It was really in both parties' interest to come to favorable terms right from the start. For Okeke to be on board, the "required tender" would be a full 120% of "applicable" rookie scale salary. For the Magic, Okeke would agree in writing to postpone signing the "required tender" until after June 30, 2020.

Read on Twitter

[tiderulz]

With a tendered contract, Orlando owns Okeke's rights for the next three years (one year after his Senior year).

There is more to this story.

I don't think it's nearly as sinister as you seem to think it is.

Okeke and his agent didn't have to agree to this of course. The fact that they did makes me think there has been a mutual understanding between the Magic and Okeke's people for a very long time, probably going back before the draft.

Considering Okeke stood to lose out on 10-15M by dropping into the 2nd round, it stands to reason that his agent was dangling a draft and stash situation to many teams before the draft.

think thats a bit over-exxagerated. his rookie deal at #16 is $6.5mil his first 3 years and about $4mil his 4th year. that's $10.5mil over 4 years, only about $4mil guaranteed (only first 2 years are guaranteed.)

as for 2nd round deals, (#33)Carsen Edwards signed 4 yr, $6.4mil guaranteed, (#34) Bruno 3 yr $4.7 guaranteed, (#36) Cody Martin 3 yr $4.4mil guaranteed, (#42) Admiral Schofield 3 yr $4.3 mil.

So no, he didnt stand to lose $10-15 million by dropping into the 2nd round. And he would get his next contract 1 year earlier.

[Knightro]

think thats a bit over-exxagerated. his rookie deal at #16 is $6.5mil his first 3 years and about $4mil his 4th year. that's $10.5mil over 4 years, only about $4mil guaranteed (only first 2 years are guaranteed.)

as for 2nd round deals, (#33)Carsen Edwards signed 4 yr, $6.4mil guaranteed, (#34) Bruno 3 yr $4.7 guaranteed, (#36) Cody Martin 3 yr $4.4mil guaranteed, (#42) Admiral Schofield 3 yr $4.3 mil.

So no, he didnt stand to lose $10-15 million by dropping into the 2nd round. And he would get his next contract 1 year earlier.

Your numbers are a bit off. I assume you're looking at this: https://basketball.realgm.com/nba/info/rookie_scale/2020 or another site with the same numbers. But those numbers are 100% of the rookie scale. When Okeke signs in 2020, he's almost assuredly to be signing for 120% of the rookie scale like 99.9% of other rookies and not 100%. At 120% of the rookie scale, he will be getting...

20-21: 3,317,160
21-22: 3,483,120
22-23: 3,649,080 (team option)
23-24: 5,597,688 (team option)
Qualifying Offer: 7,864,751
Total over 4 years: 16,047,048
Total with QO: 23,911,799

So 6.8M over the first two years guaranteed for Okeke. If he *completely* flames out, he's still making over 2M more being picked at 16 than he would have been guaranteed as a 2nd rounder.

Now assuming Okeke doesn't flame out, he will make 16M dollars in his first four years in the league. That's right at 10M more than the four second rounders that you listed will make over the same time period.

If he's good enough to get a 5th season in the league, that's going to be at least another 7.8M. So if he makes it to year 5, he's pretty much locked in for at *least* 24M total and it will likely be more if he's good enough to earn a 2nd guaranteed contract.

Carsen Edwards got 3 years, 4.5M guaranteed with a maximum value of 6.4M
Bruno Fernando got 3 years, 4.7M guaranteed with a 2.2M QO for year 4.
Cody Martin got 2 years, 2.7M guaranteed with a fully non-guaranteed 3rd year and a QO on the 4th year
Admiral Schofield got 2 years, 2.5M guaranteed with a fully guaranteed 3rd year and a QO on the 4th year

So it's certainly fair to say that being drafted in the 2nd round instead of 16th would have cost Okeke 10M over the first four years and possibly/likely even more in year 5.

[tiderulz]

think thats a bit over-exxagerated. his rookie deal at #16 is $6.5mil his first 3 years and about $4mil his 4th year. that's $10.5mil over 4 years, only about $4mil guaranteed (only first 2 years are guaranteed.)

as for 2nd round deals, (#33)Carsen Edwards signed 4 yr, $6.4mil guaranteed, (#34) Bruno 3 yr $4.7 guaranteed, (#36) Cody Martin 3 yr $4.4mil guaranteed, (#42) Admiral Schofield 3 yr $4.3 mil.

So no, he didnt stand to lose $10-15 million by dropping into the 2nd round. And he would get his next contract 1 year earlier.

Your numbers are a bit off. When Okeke signs in 2020, he's almost assuredly to be signing for 120% of the rookie scale and not 100%. At 120% of the rookie scale, he will be getting...

20-21: 3,317,160
21-22: 3,483,120
22-23: 3,649,080 (team option)
23-24: 5,597,688 (team option)
Qualifying Offer: 7,864,751
Total over 4 years: 16,047,048
Total with QO: 23,911,799

So 6.8M over the first two years guaranteed for Okeke. If he *completely* flames out, he's still making over 2M more being picked at 16 than he would have made as a 2nd rounder.

Now assuming Okeke doesn't flame out, he will make 16M dollars in his first four years in the league. That's right at 10M more than the four second rounders that you listed will make over the same time period.

If Okeke's good enough to get a 5th season in the league, that's going to be at least another 7.8M. So if he makes it to year 5, he's locked in for at *least* 24M and it will likely be more if he's good enough to earn a 2nd guaranteed contract.

Carsen Edwards got 3 years, 4.5M guaranteed with a maximum value of 6.4M
Bruno Fernando got 3 years, 4.7M guaranteed with a 2.2M QO for year 4.
Cody Martin got 2 years, 2.7M guaranteed with a fully non-guaranteed 3rd year and a QO on the 4th year
Admiral Schofield got 2 years, 2.5M guaranteed with a fully guaranteed 3rd year and a QO on the 4th year

So it's certainly fair to say that being drafted in the 2nd round instead of 16th would have cost Okeke 10M over the first four years and possibly/likely even more in year 5.

so if he was good enough to get 5 years, project that for 2nd round picks. He makes $4mil on 3 years. Parsons for example made $14mil his 4th year, $15mil his 5th year. in the example you laid out, he would not be missing out on over $10mil over the first 4-5 years. so he could miss some guaranteed money, but not overall as you seem to lay out.

[Knightro]

so if he was good enough to get 5 years, project that for 2nd round picks. He makes $4mil on 3 years. Parsons for example made $14mil his 4th year, $15mil his 5th year. in the example you laid out, he would not be missing out on over $10mil over the first 4-5 years. so he could miss some guaranteed money, but not overall as you seem to lay out.

The problem is you're offering up a VERY low percentage of players.

From 2010-2016, the last seven NBA drafts there have been 210 second round picks drafted.

Only 10 of those 210 players (Whiteside, Parsons, Bogdanović, Satoransky, Green, Middleton, Crabbe, Jokic, Clarkson, Brogdon) signed a contract starting at 10M per year coming off their original second round contract.

So less than 5% of 2nd round picks are good enough to get a huge second contract directly off their first contract. I didn't include 17, 18 or 19 because those classes of second rounders haven't signed new deals yet.

Compare that to guys drafted in the top 20 like Okeke was and the number of players who get a second contract skyrockets.

[pepe1991]

Mitchell Robinson signed 4 years contract worth $6,57M as second round pick. His annual salary for year one was higher than salary of 6 players drafted in first round.
Same was with Spellman , who was drafted at 30# but had salary of 26th overall pick.

In general dropping to second round ,knowing only two rookie years are guaranteed isn't really that big of a deal if you are good player. If you are not than woof, nothing will help you.

[Knightro]

Mitchell Robinson signed 4 years contract worth $6,57M as second round pick. His annual salary for year one was higher than salary of 6 players drafted in first round.
Same was with Spellman , who was drafted at 30# but had salary of 26th overall pick.

In general dropping to second round ,knowing only two rookie years are guaranteed isn't really that big of a deal if you are good player. If you are not than woof, nothing will help you.

I agree that financially there’s not much difference between being one of the last five picks of first round and the first 5-10 picks of the second round. And if you end up being very good there’s even less difference.

But in this case Okeke went 16th, so as long as he’s not a complete bust the financial gap is quite a bit more significant.

[Def Swami]

Kind of figured the Magic would redshirt him for the season when they drafted him. There's no way they were going to throw a rookie coming off an ACL tear into the heat of mid-season professional basketball where a team is competing for a playoff spot.

It really seems like the Magic made a deal with Okeke and his agent to draft him a lot higher than most mocks were projecting him for the trade of delaying his guaranteed money. I still believe they got cute with the draft pick. I generally fall in line with it's usually better to draft the best player available. But, I question whether he was the BPA. And he doesn't fulfill a need, especially after signing Aminu. Even when he's finally healthy, I'm not sure how or if he even fits in.

[drsd]

It was really in both parties' interest to come to favorable terms right from the start. For Okeke to be on board, the "required tender" would be a full 120% of "applicable" rookie scale salary. For the Magic, Okeke would agree in writing to postpone signing the "required tender" until after June 30, 2020.

The way this all makes sense is if the contract that says there is no contract has a guarantee for 120% for next year.

What if Okeke does not heal? Where is his financial guarantee instead of simply signing the current tender?


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