State of the Cap: Oklahoma City Thunder

[Balkman32]

2010/11 Oklahoma City Thunder Payroll: $40.3 million
2010/11 NBA Salary Cap: $56.1 million
Roughly: $15.8 million under cap

Kevin DurantVariables:

Etan Thomas - Unrestricted Free Agent
Earl Watson - Unrestricted Free Agent
Kevin Ollie - Unrestricted Free Agent
Nenad Krstic - Player Option for $5.8 million
Mustafa Shakur - Qualifying Offer for $1.0 million

Draft Picks - 21st pick, 26th pick, 32nd pick, and 51st pick

The Good: Right now, the Thunder are considered “THE” up-and-coming team of the future. With Kevin Durant, they should be. He is quickly proving that he is good enough to be the best player on a championship contending team. Their improvement from 2009 to 2010 reflects his development from a good young player to a superstar. The team also has a budding young star at the point guard position with Russell Westbrook who the team has under contract for another 3 seasons at just 5 million per. This team has just 40 million in payroll and no glaring salaries. The team also features two excellent complimetary pieces with Jeff Green and James Harden, who are also in their rookie contracts. OKC also has youngsters Serge Ibaka and Eric Maynor under contract for the next 4 years and both appear to be quickly developing into solid contributors at the NBA level. With their core players still extremely young, they were able to put a scare into the Lakers in the first round of the playoffs. They could be primed to make another jump next season into true contender territory.

The Bad: When your worst contracts are Nick Collison at 6.7 million and Nenad Krstic at 5.8 million, there isn't a whole lot to be upset about. 5 points and 5 rebounds is not nearly enough for a player making nearly 7 million, granted Collison is a toughnosed polayer and quality clubhouse influence. Their starting center, Krstic has not been what the team had hoped when they signed him as a free agent out of Europe coming off a leg injury. The team’s front court is really mediocre, as the Lakers exposed late in their series. Jeff Green is a nice piece, but not built to anchor a front line. Nenad Krstic and Nick Collison are the only real burdens on their salary cap and both are in need of upgrades as they are borderline rotation players. The good news is that both are entering the final years of their contracts.

The other spurious variable in the mix as to whether Oklahoma City decides to make a major move is finances. Part of the reason the Thunder organization has been so patient in building with young players is that Clay Bennett and his investors paid $45 million to the City of Seattle to move the franchise. Not only that, but they paid $350 million for a Seattle franchise now appraised by Forbes to be worth $310 million in part because of the smaller market. The organization has a superstar, great enthusiastic fans, a relatively new arena, and a low payroll. They also appear to have some financial worries because the owners incurred great cost to bring the team where they are and now want to recoup some of those losses. It is not something any front office figure would go public with, but the alleged $400 million losses the NBA is claiming is not due to fan interest or gate receipts. It is from owners who bought in over the past ten years doing so in an inflated market. Bennett not only bought the team at a high price, but he went from Seattle to Oklahoma City with his purchase. This is not an issue that should be ignored. A stagnated economy where capital assets are depreciating in value, $45 million to leave Seattle, and playing in a smaller market might have some meaning in the franchise’s big picture.

The team could stay the course and balance the bank book while the roster is still on the rookie scale. Few people would criticize that decision, but no superstar has been able to win a title without a quality, experienced supporting cast.

The Future: This team has a bright future with lots of cap space, and a roster filled with young, developing talent. The team's finances, however, may keep it from being able to make the necessary moves to capitalize on their tremendous young nucleus. The team must decide how aggressive it wants to be about contending for titles before their young stars reach their second contracts, and their core demands more money. If they can bring in some experienced veterens with contracts that run up in time for them to extend their superstars, everything should work out. As of July 1, they will only have three players on their roster who will not be in their rookie deals, and only Thabo Sefolosha will be signed beyond 2010-11. Such a dynamic gives them a surplus of young players who would be attractive to rebuilding teams if they choose to deal quantity for quality.

Grade: A