When I originally wrote about the Grizzlies caving into pressure, I mentioned that the San Antonio Spurs might suffer the most based on the Grizzlies folding its hand.  The Spurs are known to make its players perform on their rookie contracts if they want to earn the max on their contracts.  And they have had quite a bit of success under that model.

This year, James Anderson was selected by the Spurs at #20 overall.  He also accepted a rookie deal that includes performance bonuses.  The thing that may end up saving the Spurs is that Anderson will likely meet the performance goals that were set.  As long as the Spurs did not and continue to not set those goals at a level that is unconscionable, and their rookies have a track record of meeting the goals, I do not see why the Spurs will be held back from continuing the practice of making their rookies earn top dollars.

Will any teams attempt what the Grizzlies aimed to do this past offseason and demand that their first-round selection(s) sign a rookie contract that includes performance bonuses for the extra 20% over slot?  If so, I have to imagine they will use the Spurs as Exhibit A.

Rookies “Earning” The Extra 20% Over Slot from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Here are the final NBA previews.  I am very excited for the season to begin, and especially interested in seeing how my Miami Heat fare this year.  But let’s talk Northwest Division for a minute.  It seems like every year the San Antonio Spurs are in contention.  I don’t think this year will be any different.  All the main pieces are back, but I am focused on how Tiago Splitter adds to the team.  I have been following him for a while; I think he has big upside.

Grizzlies:  Straight Outta Vancouver | 3 Shades of Blue | SBN Recap

Hornets: At the Hive | Hornets247 | SBN Recap

Mavericks: MavsMoneyball | The Two Man Game

Rockets: The Dream Shake | SBN Recap

Spurs: Pounding the Rock | Project Spurs | SBN Recap

NBA Blog Previews: Southwest Division Recap from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

No more ragging on the Memphis Grizzlies…for now.  Last week the Grizz finally came to terms with first-round selections Xavier Henry and Greivis Vasquez.  No training camp missed.  No harm, no foul, right?  That’s true to an extent.  The players shouldn’t suffer.  They ended up with the historically agreed upon rookie contract of 120% of the league’s rookie salary scale, after the Grizz did not want to give up more than 100% of the rookie salary scale and make the rookies “earn” the additional 20% through performance bonuses.  Their agents won’t suffer either.  Henry’s agent, Arn Tellem, said the following:

“I assured the Grizzlies that I wouldn’t yield to pressure. I also informed them that to take any pressure off Xavier, I would pay his salary myself if a deal couldn’t be reached.”

That is quite a bold statement for an agent to make, and speaks to the type of person Arn Tellem is.  At the same time, he is blessed to be surrounded by people and a company (Wasserman Media Group) with deep pockets, so when he makes that kind of claim, he can back it up.  Not many of his competitors could or would do the same.  Henry noticed that and showed his appreciation.

“My agency was behind me, and they were fighting for me.  My agent took a step forward and said if they weren’t willing to cooperate then we were prepared to go as far as we needed on principle. … But I’m ready. I’ve been ready for a while. I’m anxious to play.”

Tellem won’t have to spend any of that money, though.  So who might suffer the most out of all of this?  How about a team that had zero involvement in the entire matter?  The San Antonio Spurs have bucked the trend of throwing 120% to rookies for a long time.  The Spurs load up their rookie contracts with performance bonuses, which if reached, don’t always pay the players the 120% slot ceiling.  Will the battle won by Arn Tellem change things for the Spurs?  They have been extremely quiet over the years regarding their rookie contracts.  Will they now be under the radar.  Will an agent step up and challenge them next year on a rookie deal?

The Grizzlies Cave In To Pressure. Will It Affect Other Teams? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

The Memphis Grizzlies kick-off their 2010-11 campaign against the Indiana Pacers on October 6.  The date is only a little more than a month away, and the Grizzlies have still yet to lock up their most recent #1 overall pick, Xavier Henry.  They also have failed to sign their second 1st round pick, Greivis Vasquez.  All other teams have signed their domestic 1st round picks.

This whole topic of conversation is a new one for the basketball media to cover.  Traditionally, a 1st round pick signs a deal at the mandatory slot, and the team throws in easily attainable bonus clauses (like promotional appearances on behalf of the team, perform in a conditioning program, and sometimes minutes played), which allows the player to end up with a payment at 120% of the slot (the ceiling as proscribed by the NBA’s current Collective Bargaining Agreement).  Some rookie contracts do not contain these bonuses, and the team guarantees all 120% of the slot, but this type of treatment is not the norm.  Occasionally, but very rarely, a team will not give a first rounder a chance to earn 120% of the slot (almost strictly players drafted by the San Antonio Spurs).  Just because giving 1st rounders a chance to earn up to 120% of the slot is standard practice, though, does not mean that the Grizzlies have to follow suit.  And they are trying to break tradition…getting some flack in the media in the process.

The word is that the Grizzlies are willing to sign Xavier Henry to a contract that could be worth up to 120% of the slot that he was selected, but that the bonus clauses are much more difficult for a player to attain than the types of incentives that are more common in 1st round players’ contracts.  Instead of including easy promotional incentives or performance incentives, the Grizz might be trying to push unlikely performance incentives (think along the lines of large minutes played) on Henry and his agent, Arn Tellem.  If the Grizzlies are not in contention for the playoffs, Henry could receive the Nate Robinson treatment, where a team sits a player as a cost prevention strategy.  Such a move could cost Henry $1.7 million over the course of his rookie deal.

I almost want to side with the Grizzlies on being bold to challenge an unwritten rule that has allowed 1st rounders to basically earn 120% of the slot without doing much, but then I remember that the team just paid Rudy Gay over $80 million.

The Memphis Grizzlies Not Budging With Xavier Henry from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Article VIII of the NBA Collective Bargaining Agreement (CBA), explains how the Rookie Scale works for players selected in the first round of the NBA Draft.  Each contract is good for two seasons of play, followed by a club option for the 3rd season and a club option for the 4th season, should the club pick up the 1st of the 2 options.  Salaries are determined by the slot at which the player is selected.  The reason that it is called a scale is because the club and the player’s agent may negotiate a contract that will be worth as low as 80% and as high as 120% of the slot value.

Exhibit B of the CBA actually breaks down the slot values by pick.  The value for this year’s #12 overall pick is $1,683,500 in year 1, $1,809,700 in year 2, $1,936,000 in year 3 option, and the 4th year option percentage increase over 3rd year salary is 37.8%.  This year’s #12 overall pick is former AAU star and University of Kansas guard, Xavier Henry.  Henry is being represented by Wasserman Media Group’s Arn Tellem.

Arn Tellem wants Henry to get closer to the 120% ceiling than the 80% floor.  In fact, Tellem has been holding Henry out of the Memphis Grizzlies Summer League because Henry’s rookie contract is still not signed.

What’s the hold up Chris Wallace?  You just gave Rudy Gay $80+ million.  Can’t fork out a few more thousand dollars to lock up the #12 overall pick in the most recent draft?

Xavier Henry Still Not Signed With The Grizzlies from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

2010 NBA Mock Draft 2.0 (First Round) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

The NBA Draft is this Thursday?  Doesn’t it seem like there has been much less press/hype/coverage leading up to this year’s draft?  There are no LeBron James, Kobe Bryant, Dwight Howard, or Dwyane Wade caliber players in this year’s draft pool, but there are plenty of guys ready to contribute strong minutes in the NBA.

Even though there are less opportunities for players to showcase their skills in front of NBA teams, it seems like the athletes don’t mind.  In fact, many players are opting out of invitations to work out in front of scouts and GMs.  Some teams have taken a worse media backlash than others.  Chad Ford of ESPN.com thinks that the Memphis Grizzlies, in particular, are struggling with some image problems.  He quotes an unnamed person as saying,

“[The Grizzlies] don’t spend any money anymore. They don’t have a commitment to put a winning team on the floor right now. It’s not where an agent wants to send his star pick.”

Agents do have a lot of sway when it comes to where their superstar clients are picked.  A lot of that decision often revolves around the market of the city that the team plays in, the players already on the team, and the money that teams ordinarily dish out.  For rookies, though, that first contract is pretty much set in stone depending on the slot you get selected.

Memphis isn’t all that bad!  There is good BBQ, and it’s home of the Memphis Redbirds, where Pete Parise is tearing it up.

Grizzlies Taking A Beating Leading Up To The Draft from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

I wrote several articles relating to this specific matter regarding Miles (Blazers Miles From Resolving Conflict) and his financial situation with Portland, and after this last bit of news it is pretty much official.  Even if Darius did not re-sign for the entire season, the Blazers were in debt to him for $18 Million from a two year contract since January 16th, when he participated in his tenth game of the year.  The Blazers were told that Miles was to have career ending surgery on his knee last year when he had two years left on his contract.

Since his amazing return from injury, Miles has averaged 5.7 points and 2.6 rebounds in 10 games this season.  He is looking good for someone who had a “career ending injury.”  Maybe Portland was too quick to dismiss him and pay the minimal amount for ending a contract with an injury, versus paying the rest of his salary and seeing if he could recover.

Despite everything, the implications of this are not as severe as the Trailblazers made it out to seem when they sent threatening emails league-wide.  The new arrival of Darius’s yearly salary to this year’s cap puts Portland at $80,884,803 on the season.  The additional $9 million each year would clearly place them over for this year and force the team to pay a large luxury tax, which would change the team’s ability to go out and re-sign and sign free agents this off-season.  Not to mention another $9 million they would have to account for in 2010.

This could be good for some players and agents as the Blazers will be looking to unload some talent and large contracts to free up much needed cap space.  Channing Frye, Steve Blake and Ike Diogu will all be looking to sign again with the team after this year and could be the first ones management looks at to find some space.  All three have no official contract for the 2009 season yet, only qualifying offers that are non guaranteed contracts.  No one on the team has a contract with an early-termination clause.  Stars like Greg Oden, Brandon Roy, and LaMarcus Aldridge are looking good in Portland jerseys and will likely continue to do so for many years to come.

The Blazers have many young, talented players, making the future seem bright.  However, the Darius Miles situation does throw an unexpected wrinkle into the salary aspect of the team and will cause this free agent season to be one to remember for Portland.  On top of Miles, Portland is paying Steve Francis $15,730,000 for this season and he is no longer with the team. Any way you see it ,the team will have to make some adjustments.  Agents for some players will be forced to get their clients adjusting to playing elsewhere.

Darius’s Dirty Deal from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

After all of the hype last week about the Blazers sending threatening emails to all NBA teams, Miles did not do much over the weekend and still needed only one more game to make the Portland organization really upset.  Well, as of only hours ago, the Grizzlies have signed Miles to yet another 10-day contract.

After his first debut with Memphis, Miles played in three games overall and averaged 8.3 points and grabbed 3 rebounds.  His stats and ability on the court are what the Grizzlies will be evaluating again, however, what the Blazers and the rest of the league will be watching for is if Miles will step on the court in a game for any amount of time and ruin the Blazers off-season.

After signing a second 10-day contract, it seems likely that Miles will log some minutes.  The number of games and overall minutes he plays in will be crucial as Portland is likely to file some type of greveince or complaint regarding the issue.  A loss of $18 million more to the Blazers budget will only make the rough economy seem worse for Portland, but realistically they have to honor the contract they made with Darius and may be held to it fully.

One More Mile from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Dallas Mavericks

Jake Kerr: Mavs Moneyball

Houston Rockets

grungedave and UofTOrange: The Dream Shake

Memphis Grizzlies

Joshua Coleman: 3 Shades of Blue

New Orleans Hornets

Rohan: At the Hive

ticktock6 & mW: Hornets Hype

Ryan Schwan & Ron Hitley: Hornets247.com

San Antonio Spurs

Graydon Gordian: 48 Minutes of Hell

Also see links to all the previews at CelticsBlog.com

NBA: Southwest Division Previews from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules