Bogans Gets Paid Well in Celtics, Nets Deal
The Boston Celtics and Brooklyn Nets have agreed to a major trade, but the deal won’t be completed until after the league’s annual July moratorium.
On July 10, the Celtics are expected to send Kevin Garnett, Paul Pierce and Jason Terry to Brooklyn. In return they’ll acquire Kris Humphries, Gerald Wallace, Kris Joseph, MarShon Brooks and Keith Bogans. The Nets will also send first-round draft picks in 2014, 2016 and 2018 — along with allowing Boston to swap first-round picks in 2017.
The exact terms are unclear, but reverse engineering can show what is likely to transpire during the second week of July.
The first complication was already overcome when the Nets agreed to guarantee the full $12 million on Garnett’s final season (2014-15), which was originally just $6 million guaranteed.
Garnett was likely inspired to waive his no-trade clause by the additional commitment from the Nets (both to him and Pierce, whose $15.3 million for the coming year will also be fully guaranteed).
Another wrinkle was Terry’s 7.5 percent trade kicker.
Because he is owed $10.675 million left over the next two years, Terry will make an extra $800,625 as a bonus. It will be paid upon completion of the trade by the Celtics although they will still be credited with sending Terry to the Nets at his original salary of $5.225 million.
The cap hit of Terry’s bonus in Brooklyn will be spread out over his final two seasons. The Nets need to match Terry’s salary in trade with the kicker already applied ($5.625 million).
The Nets will be taking on $33,392,382 million in total salary in the deal with Boston. The combination of Humphries, Wallace, Brooks and Joseph are just not enough to get it done. This is where Bogans becomes the key to making the deal work.
Brooklyn is short by $2,529,069. Their total outgoing salary needs to be $26,633,906 (which, when padded by 125 percent plus $100,000, is $33,392,383).
Bogans can be sent by Brooklyn via sign-and-trade to bridge that gap, which is why the trade has to wait until July. Because Bogans made just $1.2 million last season, any raise greater than 120 percent triggers the base year compensation rule. Whatever the Nets pay him, only 50 percent is credited as outgoing salary.
To get to the additional $2,529,069 required to make the deal work, Bogans needs to be compensated at least $5,058,138. He’ll also get a three-year deal to conform to sign-and-trade rules, but the last two seasons are unlikely to have any guaranteed money.
Since Bogans just finished his second-straight year with the Nets, the team has his Early Bird Rights. The team can pay him up to the league average salary next season (approximately $5.3 million).
A league executive, unable to comment publicly on the proposed trade, confirmed that Bogans will indeed earn about $5 million to make the blockbuster go through.
HOOPSWORLD’s Boston Celtics Team Salary page gives a glimpse of what their numbers will look like come mid-July.
The Celtics will have to decide how to account for the trade but breaking it into three transactions would yield them the largest trade exception.
- Paul Pierce and Jason Terry for Gerald Wallace, MarShon Brooks and Kris Humphries
- Kris Joseph arriving as a minimum player without Boston sending out any salary
- Kevin Garnett for Keith Bogans
The difference between Garnett’s and Bogans’ salary would generate a trade exception of $7,374,735 for Boston.
Additionally, using sign-and-trade on Bogans will trigger a hard cap for the Celtics (which is expected to be $75.6 million next season). The team will have between $68.3 and $72.2 million in guaranteed salary after the deal is complete.
Brooklyn wouldn’t gain any trade exceptions in the deal, which (for the franchise) would be considered a single, eight-player transaction.
A look at HOOPSWORLD’s Brooklyn Nets Team Salary page shows $94.5 million in guaranteed salaries to just 10 players. Prior to filling their final 3-5 roster spots, the Nets will be on hook for $56.3 million in luxury tax. Additional spending will be at least $4 in tax for every dollar of salary.
The actual trade may look slightly different, but this represents a reasoned and reasonable expectation.
Finally, the Celtics have the ability to stretch out the contract of Gerald Wallace — if they decide the financial savings are better than searching (and possibly failing to find) a trade for him.
The veteran forward is owed $30.3 million over the next three seasons. The Celtics can stretch that amount over seven seasons at about $4.3 million a year.