How the Heat hurt themselves and Hassan Whiteside with his contract
Hassan Whiteside has made an incredible journey – from being heralded as a potential lottery pick to playing in Lebanon to producing like a star in the NBA.
Unfortunately for him, he can’t immediately capitalize on his success. Unfortunately for the Heat, they might not be positioned to keep him once he can.
The key issue: the absence of a team option in Whiteside’s contract.
The Heat – who were over the cap and had available only the minimum-salary exception, which can be for one or two seasons – signed Whiteside to a two-year minimum-salary contract in November. The second season is partially guaranteed. Whiteside’s 2015-16 salary becomes $122,669 guaranteed July 1, $245,337 guaranteed Aug. 1 and fully guaranteed when training camp begins.
That’s a perfectly reasonable contract outline for a player like Whiteside.
He hadn’t played in the NBA in two years, so any contract – even a minimum deal – would have appealed to him. Therefore, Miami, holding leverage, fairly sought a cheap second season with no money automatically guaranteed. That way, the Heat would be rewarded for taking a chance on Whiteside if he exceeded minimum-salary production. And if he didn’t, it wouldn’t cost them anything.
After the second season of the contract, Whiteside will become an unrestricted free agent. That’s because there are only a couple conditions where a team can make a player a restricted free agent by extending a qualifying offer:
1. First-round picks coming off the fourth season of their rookie-scale contract
2. All players with three or fewer seasons of experience
Whiteside, a former second rounder who played for the Kings in 2010-11 and 2011-12, will have four seasons of experience after his current contract expires.
The only way the Heat could have made Whiteside a restricted free agent is making him a free agent after this season. There are two ways a team can make a player under contract a free agent – waiving him and declining his team option.
Unguaranteed seasons and team options are (too) often described interchangeably, but there are differences – and one is very relevant here.
If the Heat want to make Whiteside a free agent this summer, they must waive him. Of course, that would never happen – nor work. Every team would jump at the chance to claim Whiteside and inherit the final season of his minimum contract before he ever hit the open market.
But if Whiteside had a team option, Miami could have declined it and make him a free agent without going on waivers. With just three years of experience at that point, he’d be a restricted free agent.
Partial or unguaranteed seasons are not mutually exclusive with team options. The Heat could have kept the escalating guarantees in Whiteside’s contract and added a team option to give themselves another way of making him a free agent in case he blew up (which he has).
This is what the Rockets did with Chandler Parsons. Parsons began his career on a four-year contract with a final season that was both unguaranteed and contained a team option. The Rockets declined the team option to make Parsons a restricted free agent last summer. (That they declined to use their matching rights and let Parsons leave for the Mavericks is another story.)
There’s a key difference between Parsons and Whiteside, though. The Rockets, because they had him for three years, held Parson’s full Bird Rights. If Whiteside had a team option, the Heat would have only his Non-Bird Rights if they declined it and made him a free agent this summer.
Full-Bird Rights allow a team to exceed the cap to re-sign a player to a deal that begins up to his max salary, contains raises up to 7.5% raises and is up to five years long. That’s more than any outside team can offer, so it was impossible for Parsons to sign an offer sheet the Rockets couldn’t match. That they didn’t match Dallas’ was their choice.
Non-Bird Rights, technically a form of Bird Rights, allow a team to re-sign a player for 120% his previous salary or his minimum salary. Since Whiteside is making so little now, the Heat would have been able to offer him a starting salary of only $1,177,618 next summer (with up to 4.5% raises on a contract up to four years). Anything more would have required cap space.
Another team could sign Whiteside to an offer sheet worth up to the max salary. The Gilbert Arenas Provision applies for only players with one or two years experience, so that’s not a factor here, meaning neither are back-loaded contracts like Houston gave Omer Asik and Jeremy Lin. If an offer sheet exceed what they could pay with their Non-Bird Rights – which it surely would – the Heat would not have had an opportunity to match unless they’d already cleared the requisite cap space.
The Heat don’t project to have space, though, let alone enough to match a big deal for Whiteside. They already have $69,632,912 committed to Chris Bosh, Dwyane Wade (player option), Luol Deng (player option), Chris Andersen, Josh McRoberts, Mario Chalmers, Udonis Haslem, Danny Granger (player option) and Shabazz Napier. Those nine players alone take Miami above the projected salary cap of $66.5 million.
So, it’s quite possible the Heat wouldn’t have declined Whiteside’s team option even if they had given themselves the opportunity.
But by letting his two-year contract run out, Miami still must probably be cap-conscious to re-sign him.
After next season, the Heat hold Whiteside’s Early Bird Rights. Those allow the Miami to re-sign Whiteside on a two-to-four year contract that – using estimated figures until the NBA determines the average salary in 2015-16 – starts up to $5,885,440 and is worth up to$26,190,208 over four years. Anything more would require cap space.
If Whiteside keeps playing like this, he’ll definitely get bigger offers.
Bosh ($25,289,390 guaranteed) and McRoberts ($6,021,175 player option) are Miami’s only commitments in 2016-17. With the salary cap set to spike under the new national-TV contracts, the Heat should have plenty of flexibility to keep Whiteside.
But, if he continues to play like a star, Miami
won’t have an will have only a limited advantage in re-signing him. A 27-year-old center who protects the rim and cleans the glass with his eye-popping length and athleticism and adds an efficient scoring touch could fetch max offers. Again, anything more than $5,885,440 would require the Heat to use cap space to re-sign Whiteside , meaning they can offer the exact same contract as all the other teams using cap space to pursue Whiteside.
Update: As Nate Duncan of Basketball Insiders pointed out, the Heat can offer 7.5 percent annual raises, even if they use cap space to re-sign Whiteside. Other teams are limited to 4.5 percent. Like other teams, though, the Heat can still offer just four years. Miami also can’t pay Whiteside a starting salary of more than the projected $5,885,440 without using cap space.
Might it have been easier to clear salary before this July and make Whiteside a restricted free agent? Even if Miami doesn’t want to dump Andersen, Chalmers, McRoberts and/or even Deng, the cost doesn’t seem so high if it would have meant keeping a young and productive big man like Whiteside.
Instead, the Heat literally never gave themselves that option, and Whiteside will have to wait another season to get paid. Now, it’s more likely to be by another team.