Skip to content

Paul George just made $6,788,165*

Jun 4, 2014, 2:55 PM EDT

Paul George Paul George

Paul George is having a good day.

The Pacers forward just made $6,788,165.*

*That number, and numbers in this post, are based on the NBA’s latest cap projection. When the league reviews its books and sets the actual salary cap in July, these numbers will change slightly.

By making the All-NBA third-team, George will earn more money on the five-year contract extension he signed before the season. As detailed previously, that extension set George’s 2014-15 salary to rise from 25 to 27 percent of the salary cap if he qualified for the Derrick Rose rule. By making an All-NBA team – the second of his career – he qualified.

The yellow line shows what George will make the next five seasons (27% of the max). The blue line shows what he would have made if he missed the All-NBA teams (25% of the max).

image

Season 25% max 27% max
2014-15 $14,756,881 $15,937,431
2015-16 $15,863,647 $17,132,738
2016-17 $16,970,413 $18,328,046
2017-18 $18,077,179 $19,523,353
2018-19 $19,183,945 $20,718,660
Total $84,852,064 $91,640,229

Unfortunately for the Pacers, George’s good news is not their own.

They’ll owe George an extra $1,180,550 next season, cutting into their leeway for re-signing Lance Stephenson while avoiding the luxury tax (projected to start at $77 million).

Let’s say the Pacers keep all 10 players they have under contract for next season,* sign the No. 57 pick to a minimum contract and fill out a 13-player roster with one more minimum-salary free agent.

To avoid paying the luxury tax, that would leave $8,442,470 for Stephenson’s starting salary. Based on the length of the deal, here’s the most he could earn without forcing Indiana into the tax range:

  • One-year contract: $8,442,470
  • Two-year contract: $17,518,125
  • Three-year contract: $27,226,965
  • Four-year contract: $37,568,991
  • Five-year contract: $48,544,202

*George, Roy Hibbert, David West, George Hill, Luis Scola, Ian Mahinmi, Chris Copeland, C.J. Watson, Solomon Hill and Donald Sloan

If the Pacers need to offer Stephenson more money, they could waive Scola ($940,946 guaranteed) and replace him with a minimum-salary player. That would grant Indiana $3,953,256 in additional room below the tax line.

In that case, the Pacers could give Stephenson a starting salary of $11,454,780 and avoid the tax. Depending on length of the deal, that would look like (max):

  • One-year contract: $11,454,780
  • Two-year contract: $23,768,668
  • Three-year contract: $36,941,665
  • Four-year contract: $50,973,771
  • Five-year contract: $65,864,984

That should be enough wiggle room to re-sign Stephenson – though it leaves an opening for a preying opponent to poach him. Stephenson’s max starting salary next season is projected to be $14,756,881 – the same amount George avoided by making an All-NBA team. The Pacers would have to do more than just waive Scola to offer Stephenson his max.

Plus, if re-signing Stephenson requires waiving Scola, that wouldn’t leave much room under the tax line to upgrade the team elsewhere. Without making other moves, it’s unlikely Indiana could use its full mid-level exception ($5,305,000) without crossing the tax line.

However, the tax is not assessed until the end of the season. The Pacers could begin the year with a payroll over $77 million and figure out the rest as they go. Would they take that risk? I don’t know.

Paul George is having a good day. Because of it, the Pacers face a summer of tough(er) decisions.

Latest Posts
  1. Mavericks sign Doron Lamb

    Sep 23, 2014, 9:30 AM EDT

    Jimmer Fredette, Doron Lamb Jimmer Fredette, Doron Lamb

    Lamb, after playing for Bucks and Magic, likely to fall out of NBA following training camp

  2. Report: Nets signing Willie Reed

    Sep 23, 2014, 9:00 AM EDT

    Los Angeles D-Fenders v Springfield Armor Los Angeles D-Fenders v Springfield Armor

    Reed, previously a member of Kings and Grizzlies, in line to compete for roster spot

  3. Andrew Wiggins not bad with first pitch before Twins game (VIDEO)

    Sep 23, 2014, 8:30 AM EDT

    Arizona Diamondbacks v Minnesota Twins Getty Images

    He’s better than Charles Barkley already at this.

  4. NBA’s rookie transition program presents information in a compelling way in order to promote real discussion

    Sep 23, 2014, 8:00 AM EDT

    Initially uncomfortable information is presented in order to create a dialogue on real-life scenarios, which helps prepare rookies for their initial steps into the NBA life.

  5. NBA tips-off season-long All-Star charitable outreach program in New York area

    Sep 23, 2014, 2:25 AM EDT

    Adam Silver Adam Silver

    Monday tipped-off a series of NBA Cares and charitable events around the New York area tied to the All-Star Game.

  6. Celtics owner: Rajon Rondo ‘super stubborn,’ harder than average to coach

    Sep 23, 2014, 12:15 AM EDT

    Washington Wizards v Boston Celtics Getty Images

    Wyc Grousbeck also says he wants Boston to keep point guard long term

  7. Hornets, in search of big man, sign Dallas Lauderdale and Brian Qvale

    Sep 22, 2014, 10:33 PM EDT

    Texas-San Antonio v Ohio State Getty Images

    Charlotte also adds Justin Cobbs, who went undrafted out of Cal

  8. Lakers sign Wayne Ellington, who played best for Byron Scott

    Sep 22, 2014, 8:30 PM EDT

    Minnesota Timberwolves v Los Angeles Lakers Minnesota Timberwolves v Los Angeles Lakers

    Ellington, who played for Scott with Cavaliers, received partially guaranteed contract

  9. Blake Griffin understands that Los Angeles is still a Lakers’ town

    Sep 22, 2014, 7:40 PM EDT

    Kobe Bryant, Blake Griffin AP

    It’s not going to change anytime soon, either.

  10. Report: Jazz to work out John Stockton’s son

    Sep 22, 2014, 6:44 PM EDT

    WCC Basketball Tournament - Championship - Brigham Young v Gonzaga Getty Images

    David Stockton, an undrafted free agent out of Gonzaga, also worked out for Thunder

  11. Bruce Bowen says blame for James Harden’s defense falls on McHale, Rockets

    Sep 22, 2014, 5:14 PM EDT

    Los Angeles Lakers v Houston Rockets Getty Images

    The Rockets’ defensive system is not the problem with James Harden.

  12. Jazz sign Dahntay Jones

    Sep 22, 2014, 4:41 PM EDT

    Los Angeles Lakers v Atlanta Hawks Getty Images

    Jones previously played for the Grizzlies, Kings, Nuggets, Pacers, Mavericks and Hawks

  13. Report: Darko Milicic leaving basketball, taking up kickboxing

    Sep 22, 2014, 4:00 PM EDT

    Minnesota Timberwovles 2010 NBA Europe LIve Minnesota Timberwovles 2010 NBA Europe LIve

    Former Pistons No. 2 draft pick putting some distance between himself and basketball

  14. Caldwell Jones dies at 64

    Sep 22, 2014, 2:45 PM EDT

    Portland Trailblazers vs. San Antonio Spurs Portland Trailblazers vs. San Antonio Spurs

    Jones – who played for the 76ers, Rockets, Bulls (during Michael Jordan’s rookie season), Trail Blazers and Spurs – helped shape Tim Duncan’s career

  15. Tyson Chandler: ‘I’m going to make’ Mavericks defend

    Sep 22, 2014, 2:04 PM EDT

    Tyson Chandler, Ricky Rubio Tyson Chandler, Ricky Rubio

    Chandler: ‘We are going to be a great defensive team’

Featured video

What players stood out at World Cup?
Top 10 NBA Player Searches
  1. E. Bledsoe (2853)
  2. R. Rondo (2632)
  3. K. Bryant (2226)
  4. L. James (2157)
  5. R. Allen (1859)
  1. N. Young (1813)
  2. D. Rose (1726)
  3. J. Hickson (1672)
  4. B. Jennings (1613)
  5. R. Rubio (1578)