Pelicans Have Flexible Mid-Level And Trade Exception Options
In this story:
Executive Vice President of Basketball Operations David Griffin to the media to expect a calmer, quieter summer compared to the last three years but no team stands pat through the whole offseason. Barring a surprising NBA Draft night trade, they will most likely add at least one prospect before tackling the free-agent market on July 1. How the team uses their Mid-Level and Trade Exception options will signal their intent for the coming seasons.
Using the standard non-taxpayer option would hard-capped the team at the tax apron for the rest of the league year. If a team uses their Bi-Annual, Non-Taxpayer Mid-Level, or completes a Sign-and-Trade deal they must stay below the Luxury Tax Apron ($155,196,200). The taxpayer mid-level exception would signal the front office has plans to surpass the tax apron.
No matter what route the team takes, the roster will get expensive once Zion Williamson's contract extension kicks in. Assuming the extension does get signed, it makes sense to see Williamson's growth within the team before paying a luxury tax. However, the team led by CJ McCollum and Brandon Ingram showed they are ahead of schedule in opening their championship window with Williamson.
Mar 8, 2022; Memphis, Tennessee, USA; New Orleans Pelicans forward-center Larry Nance Jr. (24), guard Jose Alvarado (15), guard Devonte' Graham (4), forward Gary Clark (12) and center-forward Willy Hernangomez (9) walk toward the bench at the end of the third quarter against the Memphis Grizzlies at FedExForum. Mandatory Credit: Petre Thomas-USA TODAY Sports
Salary Cap Situation
The Pelicans have $141 million committed to a near-full 14-player deep roster going into the 2022 NBA Draft. They have only one open spot. The Luxury Tax Threshold stands at approximately $149,000,000, giving the team $7.8 million of room below the tax line. New Orleans would need to make an unbalanced trade to open up both a roster spot and their Mid-Level Exception options.
They do have two trade exceptions worth $6.3 million and $1.7 million from trades with Memphis and Portland. Both can be used without crossing the luxury tax threshold with a minor move but the larger exception does expire on July 7.
May 3, 2021; New Orleans, Louisiana, USA; New Orleans Pelicans forward Zion Williamson (1) flexes his muscle after making a basket against Golden State Warriors forward Draymond Green (23) during the second half at the Smoothie King Center. Mandatory Credit: Stephen Lew-USA TODAY Sports
Paying a luxury tax this season would be the most compelling evidence that everyone up to and including Gayle Benson believes this team is a championship contender. New Orleans could jettison Devonte’ Graham, Garrett Temple, Kira Lewis Jr., or Jaxson Hayes and use the full range of exceptions without hitting the tax line.
Finding Exceptional Options
The Standard MLE will start at $10,349,000, covering four years for $44.5 million. They can still use the $6,392,000 Taxpayer MLE over three seasons for a total of $20.13 million if they make a big move that adds salary. The two-year $8.3 million bi-annual exception is in play if the team operates over the cap but plans to stay under the tax apron.
Last year's biggest MLE signings around the league were Alex Caruso, Dennis Schröder, and PJ Tucker. The Pelicans have split up their exceptions the past few years to sign Naji Marshall and Jose Alvarado. The front office will likely keep a portion of their exception open for similar reasons next season.
The Pelicans starting five of CJ McCollum, Herb Jones, Brandon Ingram, Zion Williamson, and Jonas Valanciunas seems to be set. Trading Graham or Lewis Jr. would leave the team needing backcourt depth.
Apr 5, 2022; Sacramento, California, USA; New Orleans Pelicans head coach Willie Green and guard CJ McCollum (3) talk before the game against the Sacramento Kings at Golden 1 Center. Mandatory Credit: Darren Yamashita-USA TODAY Sports
One of Ricky Rubio, Goran Dragic, or Victor Oladipo might be convinced to take a pay cut to play for a ring. Patty Mills could opt out of his player option to leave Brooklyn's dysfunction and join the Pelicans. Bryn Forbes, Gary Harris, and Austin Rivers would be cheap options providing the spark plug shooting the team needs off the bench.
Gary Payton II, Delon Wright, and Tyus Jones could all team with Jose Alvarado to form one of the best reserve guard units in the NBA. T.J. Warren, Kyle Anderson, Nicolas Batum, and Derrick Jones Jr. would provide solid wing depth. Marvin Bagley III, JaMychal Green, Chris Boucher, and Jalen Smith would give Willie Green versatile stretch-four options.
Should Hayes or Larry Nance Jr. be dealt, Mitchell Robison could fit in at near the veteran minimum to come back home to patrol the paint. Thomas Bryant, Mo Bamba, and JaVale McGee are affordable reserve options but the Pelicans could aim for DeAndre Ayton if they plan to pay top dollar for a contender. Perhaps the front office will not take phone calls about a move that big, the use of their exceptions will signal their intent to pay for a contender in the future.
Read New Orleans Pelicans News
- Pelicans Rookie Review: Jose Alvarado
- Pelicans Rookie Review: Herb Jones
- Pelicans Rookie Review: Trey Murphy III
- Pelicans Season Review: Larry Nance Jr.
- The Naji Marshall Plan Worked Perfectly
- Pelicans Picking Up Trade Calls During NBA Draft Combine
- 12 Takeaways from Pelicans Exit Interviews
- Zion Williamson Cleared To Play With No Restrictions
- Pelicans Top-10 Rookies for 2022 NBA Draft's Second Round
- Pels VP Swin Cash Hopes to Improve Student-Athletes' Financial Literacy
- Pelicans 2022: Biggest Surprises
- Pelicans Juggling Several Options With Jaxson Hayes
- Pelicans' 'Statement Red' Uniforms Have Winning History
