Report: Pacers’ five-year, $44 million offer to Lance Stephenson has him looking elsewhere
Apparently, producing a movie wasn’t enough.
The Pacers might have made an entertaining pitch to Lance Stephenson, but they didn’t follow it with a strong enough contract offer.
Chris Broussard of ESPN:
Sources: L Stephenson & Pacers at impasse. Indy offers 5 yrs/$44 mill. Lance wants more, will talk to others. Chi, LAL, Hornets interested.— Chris Broussard (@Chris_Broussard) July 2, 2014
Keeping their current 10 players under contract, adding two minimum-salary players and re-signing Stephenson to form a 13-man roster, the Pacers could offer Stephenson a five-year, $45,630,867 contract and remain below the projected luxury-tax line.
The reported offer falls a little shy of that, but not much. Indiana might want room to add a 14th or 15th player or tweak the roster in other helpful ways, but I don’t think that’s worth losing Stephenson. If he walks, the Pacers have very limited means to replace him.
Plus, Indiana would have until the end of the regular season to make other moves to duck the luxury tax. The Pacers might not want to flirt with that line, but it’s at least an option.
Paul George making the All-NBA third team, triggering a higher salary, is really biting Indiana here. If George received fewer votes, the Pacers would have much more room to operate.
As it stands, waiving Luis Scola and his partially guaranteed salary is probably Indiana’s simplest option to clear extra space. However, Scola reached milestones last season that make such a measure less effective.Tim Donahue of 8 Points, 9 Seconds:
Here’s the backstory of Scola’s deal: Originally, the salary ($11.0 million) for the final year on his deal (2014-15) was completely non-guaranteed. However, the deal said that the season could become partially or completely guaranteed if he met certain criteria over the first four years of the deal. It would have become fully guaranteed, had he been voted as a starter to the All-Star game. Other than that, he could get $500,000 guaranteed each year that he played 85% of his teams games and made the playoffs, and another $500,000 each year he either played in all 82 of his team games or played in 85% of his team’s games and the team went at least .500.
By the time he was amnestied by Houston in the summer of 2012, he had twice met those criteria (thus guaranteeing himself $1.0 million), but the Rockets are on the hook for part of that ($559,000). Then Scola earned another $500,000 with Phoenix by playing all 82 games, and he got another $1.0mm by (a) playing 85% of the games this year with Indiana and making playoffs, and (b) playing 82 games (also playing 85% on a .500 team).
That all adds up to $2.5 million guaranteed next year, though Indy is only on the hook for $1.9 million of it.
If the Pacers waive Scola and replace him with a minimum-salary player, they could offer Stephenson up to $57,012,360 over five years. That should be more than enough to reach a deal.
Stephenson should look around to leverage a higher offer, whether in Indiana or elsewhere. He’s earned that right. After making just $3.36 million over the last four years, it’s time to get paid.
If the Pacers want to keep Scola over paying Stephenson, that’s their prerogative. It also might be Stephenson’s prerogative to leave at that point.