Monday, November 26, 2018

Otto Porter's Contract Is Even Tougher To Trade Than It Seems, Thanks To The Brooklyn Nets





WASHINGTON, DC - NOVEMBER 14: Otto Porter Jr. #22 of the Washington Wizards drives past Larry Nance Jr. #22 and Jordan Clarkson #8 of the Cleveland Cavaliers during the second half at Capital One Arena on November 14, 2018 in Washington, DC. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Will Newton/Getty Images)Getty





As reporting continues to flow out of Washington that the Wizards are unhappy with the current direction of their team, speculation will be rampant about which players will survive and which will be summarily shipped out of town for whatever return president of basketball operations Ernie Grunfled and his staff can find (assuming, of course, that owner Ted Leonsis retains Grunfeld through this process, which is an open question at this point). Many of the headlines will be regarding John Wall and Bradley Beal, as Wall is about to begin a massive new contract extension in 2019 and Beal has asserted himself as the best player on the roster and one of the best guards in the Eastern Conference. Further down the list of priorities is Otto Porter, who is said to have some intrigue from the New Orleans Pelicans, though those “whispers” haven’t evolved into anything more than that at this point. Porter’s contract isn’t as onerous as Wall’s, but there are some aspects of it that make it more difficult to deal than one might expect.


Porter has three years left on his current contract, during which time he’ll earn a total of $81.8 million, including a $28.5 million player option in 2020-21 that seems incredibly likely to be picked up at this point. Porter originally signed this contract with the Brooklyn Nets, who threw every perk in the book at him in an effort to dissuade the Wizards from matching. The maximum salary is a big enough issue for Washington to move, should they decide to do so, but the extra benefits on his contract make things even more difficult. On the face of it, a team trading for Porter would have to put up at least $20.7 million to match his $26.0 million salary for this season, but that number isn’t quite high enough, as the Nets tacked on a 15% trade bonus to his deal. That 15% bonus is immediately paid by the Wizards upon Porter getting traded but is included on his cap hit for both the trade math and the new team’s salary cap situation, which essentially bumps his value up even higher than his $26.0 million base salary for this season. Porter’s bonus shrinks with every passing day, but it’s still going to play a significant part in negotiations – if he were to be traded today, he’d count for $29.2 million in trade math and would slide onto his new team’s cap sheet at that value.


Complicating matters further is Porter’s payment schedule. At this point, it shouldn’t surprise you to find out that the Nets tacked on the most advanced payment schedule possible to Porter’s contract – he’s paid a full 25% of his base salary on July 1, another 25% on October 1, and the remainder is paid out in installments throughout the regular season. Teams and players have some leeway in negotiating payment schedules, but the Collective Bargaining Agreement does limit their ability to pay more than half in advance. While Porter’s payment schedule doesn’t change anything with regards to how he’s treated on a team’s cap sheet, it does represent two very large checks an owner would have to write each year before the season even begins. For the more cost-conscious owners out there, this could represent an issue for their organization’s overall cash flow.



Of course, Porter’s on-court production will be the most important factor in whether he’s traded and what his return will be, but his contract’s trade bonus and payment schedule could play a smaller factor in negotiations. Assuming he’s unwilling to forgo his bonus, matching salary for up to $29.2 million will be difficult for most teams, as he doesn’t have the same star power as Wall and Beal. The other 29 teams around the Association might be interested in moving multiple pieces to get one of those two, but adding up enough salary to get Porter, a high-level role player at best, will not be easy. Additionally, teams in smaller markets might not like the idea of shelling out roughly $14 million to Porter each year before the regular season begins, which could take a suitor or two off the board.