Jun 4, 2014, 2:55 PM EST
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).
|Season||25% max||27% max|
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
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.
Mar 3, 2015, 2:55 AM EST
Goran Dragic would have sat out with back pain against anyone else, but he dropped 21 on the Suns.
Mar 3, 2015, 1:14 AM EST
Zach LaVine can get up. But you already knew that.
Mar 3, 2015, 12:01 AM EST
The Warriors fell to 46-12.
Mar 2, 2015, 11:15 PM EST
Griffin has missed the Clippers’ last 10 games.
Mar 2, 2015, 10:30 PM EST
Whiteside grabbed Len by the legs.
Mar 2, 2015, 9:45 PM EST
Hamilton had no chance.
Mar 2, 2015, 9:00 PM EST
Yes, you read that right.
Mar 2, 2015, 8:15 PM EST
Teletovic is also out for the season.
Mar 2, 2015, 7:30 PM EST
We’ll see about that.
Mar 2, 2015, 6:44 PM EST
He will sit out Tuesday vs. Atlanta.
Mar 2, 2015, 6:15 PM EST
Nine total shoes, three colorways each.
Mar 2, 2015, 5:30 PM EST
Has his extra run and touches since Josh Smith was released changing the dynamic in Detroit?
Mar 2, 2015, 4:30 PM EST
Nobody is talking about Dwight Howard as long as the Rockets are winning.
Mar 2, 2015, 3:45 PM EST
The Knicks got some wins and move out of the cellar.
Mar 2, 2015, 3:08 PM EST
Wizards forward has twice been suspended following altercations with Chicago
Mar 2, 2015, 2:28 PM EST
Lakers guard says he can take a joke – just not this one
Mar 2, 2015, 1:45 PM EST
Bulls facing big challenge without their best player
Doc Rivers on DeAndre Jordan for Defensive Player of the Year: ‘If anybody else gets that award, we need to have an investigation’
Mar 2, 2015, 1:18 PM EST
Clippers coach: ‘What he’s doing defensively, if he was doing that offensively, he would be recognized as the MVP’
Mar 2, 2015, 12:38 PM EST
I can’t wait
Mar 2, 2015, 11:59 AM EST
Sleeves notwithstanding, these are good
- Five Things We Learned in NBA Monday: Goran Dragic got his revenge in concentrated form 0
- League suspends James Harden one game for kick to LeBron James’ groin 19
- PBT’s weekly NBA Power Rankings: Hawks seem to be out of malaise. Maybe. 8
- Report: Jimmy Butler could miss three to four weeks with elbow injury 5
- Five Things We Learned in NBA Sunday: James Harden, LeBron James want your MVP vote 11
- Report: Sixers agree to buyout with JaVale McGee; he can sign with contender 36
- Bulls’ Jimmy Butler leaves with elbow injury, does not return (VIDEO) 0
- Adam Silver says data may prove Gregg Popovich right in terms of resting multiple players 18