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.
Aug 31, 2015, 8:31 PM EDT
We have some Riley Curry news. You know you want to click now.
Aug 31, 2015, 7:15 PM EDT
Charlie Westbrook reportedly signs with Bucks
Aug 31, 2015, 6:15 PM EDT
The Clippers add more depth. It’s been a good offseason for Doc Rivers.
Aug 31, 2015, 5:35 PM EDT
He is a very good pick-and-roll guard with great court vision.
Aug 31, 2015, 5:02 PM EDT
The Suns have no leverage now even if they wanted to move him, and apparently they don’t.
Aug 31, 2015, 4:25 PM EDT
You don’t even need to pump up his sneakers
Aug 31, 2015, 3:27 PM EDT
Cleveland can watch Pointer develop without having to pay him
Aug 31, 2015, 2:26 PM EDT
Mike Clarkson says son committed to Lakers
Aug 31, 2015, 1:33 PM EDT
Don’t expect him to make the regular-season roster this season
Aug 31, 2015, 12:43 PM EDT
Could Lakers wing play in the 2016 Olympics?
Report: Tristan Thompson won’t accept less than max from Cavaliers, his agent thinks Raptors will offer it next summer
Aug 31, 2015, 11:43 AM EDT
Thompson might leverage the max from Cleveland, but it probably shouldn’t be because of this Toronto threat
Aug 31, 2015, 10:26 AM EDT
By dropping an NBA draft pick, Canadians show how far they’ve come
Aug 31, 2015, 9:30 AM EDT
Utah now has 20 players
Aug 31, 2015, 8:30 AM EDT
This would have been fun to attend.
Aug 31, 2015, 8:00 AM EDT
He’s a long shot to make a roster.
Aug 30, 2015, 10:16 PM EDT
Al-Farouq Aminu is headed back to the Olympics.
Aug 30, 2015, 9:39 PM EDT
There is no signed deal yet.
Aug 30, 2015, 9:02 PM EDT
Shaq said Phil Jackson was fair with them.
Aug 30, 2015, 6:30 PM EDT
We’ll all look back at the McCallum trade and say “it’s the Spurs doing Spurs things again.”
Aug 30, 2015, 5:00 PM EDT
He will be missed.
- Report: Veteran forward Chuck Hayes agrees to deal with Clippers 3
- Report: Lakers to sign Brazilian, FC Barcelona point guard Marcelo Huertas to one-year deal 5
- Shaq to Kobe on podcast: “I just want people to know that I don’t hate you” 18
- D’Angelo Russell on Tracy McGrady tweet: “Some Lakers fans are spoiled” 27
- Anthony Davis “definitely” plans on shooting more threes this season 4
- Jim Buss defends Byron Scott as Lakers coach, “He has the Laker blood in him” 24
- Jim Buss open to the idea of Kobe Bryant playing beyond this season 32
- Derrick Rose on sexual assault suit: “I am confident I will be proven innocent” 4