Financial Planning and Favors

Salary Numbers Referenced Below

While things can change quickly in the NBA, the current course for the Jazz involves keeping the band together and seeing how much they can develop. The Jazz will need a few to blossom into all stars and continue their team defensive mojo to become a regular contender in the west. So how long could the Jazz afford to keep these theoretical all stars together? The good news is that there are a few years before the cap becomes an issue - as currently constructed the Jazz should easily be able to afford Gobert and Hayward in 2017 if they desire. The real issue is the next offseason in 2018 when the cap is suspected to shrink slightly and Favors/Exum/Hood will all need new contracts if they are going to remain with the Jazz. Now it's likely the team won't be quite this stable and at minimum they will need to lose one of these players (or they don't pan out and don't need to get paid), but its worth looking at how the Jazz could prepare for that offseason.

I am not a CBA expert (so this post might be completely wrong) but I believe the Jazz can do some pretty crazy shenanigens to keep most of their players (or some combination of their own players and new signings). The key is Derrick Favors - his contract length and status means it is eligible for renegotiation in 2017/18 Go ahead and read up on it here if you like...

CBA FAQ - Renegotiation

Basically in 2017/2018 Favors is slotted in for the bargain price of 12 million. The Jazz can renegotiate him to a max(ish) deal as long as they have the cap space. This should be easy as the cap will be jumping up a good chunk in 2017 (numbers in spreadsheet). It is a little silly to figure out the exact max as the cap is just estimated (and its 30% of some not-quite-cap number) so I'm going to pretend it is 30 million. The Jazz would be giving Favors 18 million dollars, but not out of the goodness of their hearts... Where it gets interesting is that you can immediately extend the renegotiation, starting at 60% of the new amount. The new deal can have raises/decreases of up to 7.5%, and the best possible outcome for the Jazz looks something like this...

17/18: 30 million (renegotiated)

18/19: 18 million

19/20: 16.65 million

20/21: 15.4 million

Effectively this all works out for Favors as a 3 year extension at 22.7 million/year but does the Jazz a huge Favor by massively frontloading the deal. Favors has shown himself to be a team first guy that values security and this is by no means a bad deal for him.

This could keep the Jazz about 30 million under the tax threshold for when Hood/Exum come off of their rookie deals. That allows the Jazz to keep one if not both (depending on their value). Let me know what you think or if I my CBA logic is faulty...

All comments are the opinion of the commenter and not necessarily that of SLC Dunk or SB Nation.