Okafor Question

[payitforward]

Yep. But someone tells me I'll give you 14 million now or 30 over 3 years. Even 25 over 3 years.

I'll take option 2 please. No brainer for a guy 30+ years old without much career left.

???

1. Time value of money.
2. Insurance -- you really think he isn't covered if injury ends/shortens his career?

He doesn't have an option, so it's moot. But if he did, he'd be nuts to turn it down.

[nate33]

He has a Early Termination Option according to both ShamSports and Storytellers. An ETO is essentially the same thing as a Player Option.

[AFM]

Why would he want to play for a different team when he can play for the Wiz?

[payitforward]

He has a Early Termination Option according to both ShamSports and Storytellers. An ETO is essentially the same thing as a Player Option.

Thanks, Nate.

I find it hard to imagine someone killing his own $14m+ payday because he thinks he can do better.

[Ruzious]

Why would he want to play for a different team when he can play for the Wiz?

Sarcasm so obvious that green font is not required.

Maybe I'm crazy (reply not required), but I think if he thinks Nene will be healthy, we actually would like playing here, because they have learned to complement each other pretty well. Otoh, if Nene comes up lame next season, probably the thought of playing most of the time with Seraphin... more than bothersome.

The level of dependence this franchise has on Nene's health is very unhealthy, but I think we have to live with it.

[dobrojim]

Seems to me that there is a reasonable chance that Nene could start
the season healthy. There's no Olympics for him to trash himself in.

If he just takes a couple months off, seems like there is a fair chance
for him to play in 65-70 games next year.

[nate33]

Seems to me that there is a reasonable chance that Nene could start
the season healthy. There's no Olympics for him to trash himself in.

If he just takes a couple months off, seems like there is a fair chance
for him to play in 65-70 games next year.

I'd really like to see Nene lose a bit of weight in preparation to play PF full time (particularly if we draft a center).

[fishercob]

Important post from BulletsForever on Okafor

Many have interpreted Okafor's words to mean that he will play out the final year of his contract, which will pay him $14.5 million next season. Indeed, this is the most likely scenario.

However, one other possibility would be for Okafor to sign a multi-year contract extension this summer that will have him start at a salary significantly below $14.5 million. The Spurs did this with Richard Jefferson in 2010, signing him to a four-year, $39 million deal rather than having him make $15 million in the final year of his contract.

What's the upside to signing an extension now? Besides keeping Okafor, who has played well since a slow start, this could open up some cap room next summer. If Okafor didn't opt out, the Wizards would have about $57 million in committed salary, putting them right near last year's $58 million cap number. (The value of the salary cap could rise this summer, but it probably won't in any significant way). However, if Okafor opted out and signed a three-year extension that would place his first-year salary at, say, $7 million, the Wizards' total team salary would be closer to $50 million.

That additional cap space could prove to be significant when it comes to keeping Martell Webster. Based on my understanding of the CBA, the Wizards do not have Webster's Bird Rights this year, on account of him signing just a one-year contract last summer. (I will double-check this when I get a chance). If Webster's price tag exceeds the mid-level exception for any reason, the additional cap space saved from negotiating an extension with Okafor would give the Wizards the ability to match anyone who throws out a big offer.

The creation of cap space could also be useful if Webster's price tag doesn't rise. Depending on where the cap level comes in, the Wizards could have enough room to keep Webster and sign another veteran to shore up their bench. Perhaps a third guard, like Atlanta's Devin Harris, Golden State's Jarrett Jack or someone else, could be secured with the additional room....

Question for my cap geeks: Let's say Okafor opted out and re-signed for a deal that a theoretical number that left us $2M in cap space. If we then wanted to re-sign Webster for $4M/yr, could that space be split between our cap space and the MLE (and could we subsequently use the "leftover" MLE on a Devin Harris type?).

If so, I would be very interested in re-signing Okafor to a declining contract, even if we end up giving him a bit more than "market value" this year. Given where Okafor is on his career arc and the youth of our backcourt, any financial flexibility we can create in the next 2-3 would seem to be pretty important.

[tontoz]

How did that work out for the Spurs? Seems like that was one of the few big mistakes they have made.

I don't see Okafor taking a 50% paycut next year.

[verbal8]

How did that work out for the Spurs? Seems like that was one of the few big mistakes they have made.

I don't see Okafor taking a 50% paycut next year.

I did wonder if a "Richard Jefferson deal" was a possibility. However the only way I think it works is with a 4 year deal(including next year). If he is worth 21 million/3 years a replacing declining deal would get down to 7.75. I think it is better to take the hit this year and extend him if necessary.

[DCZards]

I also don't see Okafor taking a 50% pay cut. But I wouldn't rule out him capitalizing on the solid year that he's had and opting out if he and his agent think he can get a 3-4 year contract worth $8-$10 mil a year from another team, especially a playoff team.

Big men like Emeka sometimes play at a decent level well into their 30s and, from all accounts, Emeka takes great pride in keeping himself in great shape. There are probably several good NBA teams that would see a smart, hard-nosed defender and rebounder like Okafor as a real asset.

Just don't expect Emeka to contribute much on offensive, although he has played well offensively--and made his free throws--in some close games.

[Nivek]

Question for my cap geeks: Let's say Okafor opted out and re-signed for a deal that a theoretical number that left us $2M in cap space. If we then wanted to re-sign Webster for $4M/yr, could that space be split between our cap space and the MLE (and could we subsequently use the "leftover" MLE on a Devin Harris type?).

No. If a team is close enough to the salary cap that the MLE would put them over, there's an automatic hold placed on the cap in the amount of the MLE. The only way the team could use the hypothetical cap space would be to renounce the MLE. Teams cannot combine the MLE with cap space. Which makes sense when you think about it because the MLE is an exception to the salary cap.

[Nivek]

I also don't see Okafor taking a 50% pay cut. But I wouldn't rule out him capitalizing on the solid year that he's had and opting out if he and his agent think he can get a 3-4 year contract worth $8-$10 mil a year from another team, especially a playoff team.

Big men like Emeka sometimes play at a decent level well into their 30s and, from all accounts, Emeka takes great pride in keeping himself in great shape. There are probably several good NBA teams that would see a smart, hard-nosed defender and rebounder like Okafor as a real asset.

Just don't expect Emeka to contribute much on offensive, although he has played well offensively--and made his free throws--in some close games.

Here's a fairly likely scenario for Okafor -- he plays out the $14.5 million he's owed for next season and then signs a 3-year MLE deal. If he did that, he'd net ~$31 million over the next 4 years.

The Wizards could do that if he opts out by re-signing him to a 4-year deal starting at about $6.966 million. The net for Okafor would be the same and it would give the Wizards an additional $7.6 million in cap flexibility this offseason.

Of course, that begs the question of whether or not the Wizards should sign a 31-year old for another 4 years. I'd want to look at the issue in greater detail, but my kneejerk reaction would be to balk.

[verbal8]

Question for my cap geeks: Let's say Okafor opted out and re-signed for a deal that a theoretical number that left us $2M in cap space. If we then wanted to re-sign Webster for $4M/yr, could that space be split between our cap space and the MLE (and could we subsequently use the "leftover" MLE on a Devin Harris type?).

No. If a team is close enough to the salary cap that the MLE would put them over, there's an automatic hold placed on the cap in the amount of the MLE. The only way the team could use the hypothetical cap space would be to renounce the MLE. Teams cannot combine the MLE with cap space. Which makes sense when you think about it because the MLE is an exception to the salary cap.

Isn't there a smaller(1/2 maybe) MLE that teams can use once they use up cap space?

IIRC from previous discussions, cap space really only matters if it exceeds the MLE.

[fishercob]

How did that work out for the Spurs? Seems like that was one of the few big mistakes they have made.

I don't see Okafor taking a 50% paycut next year.

That extension was under the old CBA. I don't Okafor would get 4/$40M like RJ did. I also don't think he'd take 3/$21M. FWIW, I don't think the blog post suggests that either. I think they're intimating at deal that starts at $7M and increases, so as to maximize short term benefit. I'd advocate the opposite approach -- overpaying a little now to avoid doing so in year 3. I don't know what the CBA allows in terms of max decreases, but hypothetically something like 3 yrs, $27M with salaries of $10M, $9M and $8M

[Nivek]

Question for my cap geeks: Let's say Okafor opted out and re-signed for a deal that a theoretical number that left us $2M in cap space. If we then wanted to re-sign Webster for $4M/yr, could that space be split between our cap space and the MLE (and could we subsequently use the "leftover" MLE on a Devin Harris type?).

No. If a team is close enough to the salary cap that the MLE would put them over, there's an automatic hold placed on the cap in the amount of the MLE. The only way the team could use the hypothetical cap space would be to renounce the MLE. Teams cannot combine the MLE with cap space. Which makes sense when you think about it because the MLE is an exception to the salary cap.

Isn't there a smaller(1/2 maybe) MLE that teams can use once they use up cap space?

IIRC from previous discussions, cap space really only matters if it exceeds the MLE.

No. Teams either start the offseason with cap room or they start with exceptions. If they want to use cap room, they have to renounce the exceptions. Can't use cap room AND a cap exception in the same offseason. Only exception to that is minimum salary guys.

[Nivek]

How did that work out for the Spurs? Seems like that was one of the few big mistakes they have made.

I don't see Okafor taking a 50% paycut next year.

That extension was under the old CBA. I don't Okafor would get 4/$40M like RJ did. I also don't think he'd take 3/$21M. FWIW, I don't think the blog post suggests that either. I think they're intimating at deal that starts at $7M and increases, so as to maximize short term benefit. I'd advocate the opposite approach -- overpaying a little now to avoid doing so in year 3. I don't know what the CBA allows in terms of max decreases, but hypothetically something like 3 yrs, $27M with salaries of $10M, $9M and $8M

Max decrease is the same as the maximum increase -- 7.5% if a team is signing its own free agent; 4.5% if a team is signing a free agent from another team. There is one possible way around that (if it's still permissible under the new CBA). A team could give the player a signing bonus using available cap room in that first year.

If it's still allowed, Okafor could opt out and sign a 4-year deal worth $31 million total. The Wiz could use the cap room created by him opting out to give him a signing bonus and then spread the remaining money owed to him over the 4 years of the deal as base salary. And, they could make it a flat or declining deal.

[fishercob]

No. If a team is close enough to the salary cap that the MLE would put them over, there's an automatic hold placed on the cap in the amount of the MLE. The only way the team could use the hypothetical cap space would be to renounce the MLE. Teams cannot combine the MLE with cap space. Which makes sense when you think about it because the MLE is an exception to the salary cap.

Isn't there a smaller(1/2 maybe) MLE that teams can use once they use up cap space?

IIRC from previous discussions, cap space really only matters if it exceeds the MLE.

No. Teams either start the offseason with cap room or they start with exceptions. If they want to use cap room, they have to renounce the exceptions. Can't use cap room AND a cap exception in the same offseason. Only exception to that is minimum salary guys.

Got it. So is there a chance then that Okafor opting out could actually make it harder to retain Webster -- in that Okafor might not be willing to sign for an amount that would leave us enough leftover space to sign Webster?

[Nivek]

Right. If Okafor opts out, the Wizards should have more flexibility in re-signing Webster. Unless Okafor wants another big contract, in which case...no. Given the amount of cap room that's going to be available this offseason, Okafor might be smart to opt out. I looked at one scenario in which he'd get $31 million over 4 years. But, given the amount of money that's going to be chasing players, and his solid production this year, he might beat that by opting out and entering the FA market.

[SizzlinSimms]

With Okafor opting in. Assuming Ariza might opt in as well, how does that effect the Wizards chances to resign Webster?