RUMOR HAS IT…

Today's section is geared exclusively towards the latest rumors floating around the NBA …

Gordon and Iggy:  In addition to the stalemate in Atlanta with the Hawks and Josh Smith, the Chicago Bulls and Philadelphia 76ers have yet to come to terms with restricted free agents Ben Gordon and Andre Iguodala.

From a distance it appears Gordon will have a more difficult chance getting a serious contract from the Bulls since it would put the team over the luxury tax.  Arguably Gordon is expendable with the addition of top pick Derrick Rose.

Iguodala looks to be integral part of the Sixers who, upon his return, could be a serious contender in the Eastern Conference with the addition of Elton Brand.

If the contract negotiations fail, it's likely the pair accept the smaller, one-year qualifying offers from their respective teams.  Either could be signed and traded although the Base Year Compensation (BYC) rule can complicate matters significantly.

The topic of Josh Smith and BYC was broken down last week and while there doesn't appear to be any momentum towards resolved Smith's case, the following breaks down how BYC would impact any Gordon and/or Iguodala trades.

First check out the link for an explanation of the rule, but the brief summary is that a team can only take half of the value of their BYC player in trade.

One quick question before diving in:

Why BYC?  Considering how much BYC can complicate matters, what's the point of it? 

BYC is included in the Collective Bargaining Agreement to prevent teams from bypassing the rules with creative accounting.

Assuming the rumors are true that New York Knicks forward Zach Randolph is on the trading block, here's an example to illustrate the value of BYC.

Purely for the sake of making a point, let's say the Golden State Warriors were willing to take on Randolph's salary and that the Knicks would give him away for a player in the final year of his contract.  The Warriors could theoretically sign and trade free agent Austin Croshere to a contract with just one guaranteed year at say $12 million (if there were no BYC).

Since, however BYC would be a factor since he earned the league minimum as a Warrior last season, Golden State would only be permitted to bring back $6 million in salary for Croshere, making a two-way swap for Randolph untenable.

That's why the league has BYC in the rules and why it's unlikely to go away in the next CBA despite tension between the teams and the players over the subject of restricted free agency

Gordon and BYC:  Assuming Gordon would accept a contract starting at roughly $10 million a season, the Bulls would have to send out an additional player to offset the BYC factor.  Considering the $25 million still owed to Larry Hughes over the next two seasons, the Bulls would probably have to include Andres Nocioni, Drew Gooden or Ty Thomas in any Gordon package.

Gordon ($10 million) with Tyrus Thomas permits the Bulls to take in a maximum of $11,037,350.  The receiving team would be credited with taking in $13.7 million in salary for which they would have to send out a minimum of $10,919,904 to match.  Of course, Gordon's amount could be adjusted and other throw-ins included, but the parameters for a workable deal may be very narrow.

Gordon combined with Gooden enables Chicago to take in as much as $15,288,978 in salary.  The trade partner would need to send out at least $13,640,946.  The numbers are slightly higher for Nocioni, who makes about $850k more than Gooden.

Not only would the Bulls have to find a team willing to pay Gordon a massive salary, but they need to part with a piece they might rather keep.  Even if Gordon and Nocioni are a talented duo, their combined salary may be daunting in what is a relatively conservative economic climate.

A deal including Gordon with the smaller salary of player like Cedric Simmons won't work two-way since the Bulls can't take in more than $8.5 million and the incoming team has to send out at least $9.3 million.

The two teams capable of getting involved without the BYC issue don't appear to be interested.  The Denver Nuggets have a $10.1 million trade exception and the Memphis Grizzlies have some room under the cap to work with.

It seems unlikely the Bulls invest heavily in Gordon, and with sign and trades so difficult to orchestrate it appears Gordon is destined to sign the qualifying offer and test the unrestricted free agent market next summer.

Iguodala and BYC:

Rumors have Iguodala wanting a contract at a starting salary of $12 million.  Keeping in mind he's more likely to stay in Philadelphia for the qualifying offer or a negotiated long-term deal, sign-and-trades would also require the Sixers to send out another player.

The list is relatively short with very few players earning enough to make a deal feasible.  The only two who stand out as obvious potential filler are Reggie Evans and Willie Green.  Forward Evans was a valuable contributor last season; Green was the team's third leading scorer, starting 74 games alongside Andre Miller in the backcourt.

While Iguodala's salary is a variable that can be adjusted, the window for an Iguodala/Green deal is just $11,835,000-$12,230,400 in outgoing salary for the acquiring team.

The margin is even thinner for an Iguodala/Evans deal - with the partnering team responsible for sending out $13,232,000 - $13,400,000 to match salaries for both teams.

That assumes Iguodala's deal starts at $12 million.  While the flexibility in a sign-and-trade remains limited, the numbers change across the board based on what he gets in the first year of his contract.

There doesn't appear to be an easy solution for the Bulls, Sixers or Hawks.  Most of the top free agents have already landed this summer, but the trio of Ben Gordon, Andre Iguodala and Josh Smith remain unresolved.

Best guess - the Sixers come to terms with Iguodala while Gordon and Smith accept their qualifying offers.