Jun 4, 2014, 2:55 PM EDT
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.
May 26, 2015, 12:10 PM EDT
Pay up, Cleveland
May 26, 2015, 11:34 AM EDT
Mohammed, 37, already one of NBA’s oldest players
May 26, 2015, 10:56 AM EDT
Is Chicago really that petty?
May 26, 2015, 10:20 AM EDT
May 26, 2015, 9:42 AM EDT
Not the most reliable report. Not the least reliable report.
May 26, 2015, 9:07 AM EDT
Referee falls during Rockets-Warriors
May 26, 2015, 8:30 AM EDT
That’s three out of four games this series Harden has been fantastic.
May 26, 2015, 8:00 AM EDT
Based on that Al Horford precedent, Dwight Howard should have gotten a Flagrant 2 and ejected.
May 26, 2015, 2:29 AM EDT
In the four Rockets’ elimination games this season, Smith has 63 points on 22-of-34 shooting (64.7 percent).
May 25, 2015, 11:59 PM EDT
MVP runner-up shines while MVP misses substantial portion of Houston’s Game 4 win
May 25, 2015, 10:45 PM EDT
He was not ejected.
May 25, 2015, 10:30 PM EDT
It’s a sign Thomas may be around for a little bit.
May 25, 2015, 10:21 PM EDT
It didn’t count.
May 25, 2015, 9:59 PM EDT
Scary moment in Houston.
May 25, 2015, 9:00 PM EDT
What do they know?
May 25, 2015, 7:30 PM EDT
The league had been exploring moving Game 1 up to June 2.
May 25, 2015, 6:00 PM EDT
Horford was ejected from Game 3.
May 25, 2015, 4:30 PM EDT
Cavaliers star says he will research case further before saying more
May 25, 2015, 2:59 PM EDT
Doc Rivers decided to offer his mid-level exception money last summer to Spencer Hawes instead of Pierce. He’d like that one over.
May 25, 2015, 2:00 PM EDT
Expect a resilient Rockets team on Monday night.
- Elimination game Josh Smith is a thing, Rockets live to play another day 5
- Rockets show it’s better to have James Harden than to not have Stephen Curry 6
- Stephen Curry leaves game after taking a hard fall, cleared to return (VIDEO) 10
- Rumor: Paul Pierce might opt out of contract with Wizards, join Clippers 18
- Golden State Warriors vs. Houston Rockets Game 4: Three things to watch from Houston 9
- LeBron James posts triple-double, Al Horford ejected as Cavaliers take 3-0 series lead with OT Game 3 win over Hawks 30
- Kyrie Irving out for Game 3 for Cavaliers with knee tendonitis 3
- Lil B says James Harden is officially under the Based God’s curse 31