Despite recent comments from Anthony Davis where he claims to value legacy over money, many NBA fans still believe (and New Orleans wishes) that the super-max contract is simply too much money for Davis to walk away from. However, I want to show you how he can get his legacy AND his money, all within the confines of the current NBA CBA.
To begin let’s clarify the extensions that Davis is eligible for…
If Davis resigns with the Pelicans they can offer him the max, 5 years $239 million.
If Davis is traded and then re-signs with that team, he can get 5 years $205 million.
If Davis just straight up leaves the Pels, the most he can get is 4 years $152 million.
An interesting note is that Davis has a trade kicker in his contract, meaning that if the Pelicans were to trade him, he would receive a 15% bonus ($4.1 million) in addition to his salary. He can discretionarily waive that kicker, meaning he has some leverage regarding what team’s trade for him as the Pelicans would like to avoid that penalty.
Now for this next part, we need to understand how maximum contracts work. The “max” is a fixed percentage of a team’s salary, and that percentage is variable to factors like years played, if they made an ALL NBA team, if they are signing with their own team or as a free agent, etc. All we really need to understand is that the “max” a player can receive is a variable number that fluctuates year to year and can be influenced by that player's achievement. For simplicity, there are really three max contracts. Players with 0-6 years’ experience are eligible for 25% of the cap, 7-9 years are eligible for 30%, and 10+ years are eligible for 35% of the cap. Additionally, players who sign under “Bird rights” are eligible for 8% annual raises, 5% otherwise. Bird rights are designed to favor the team that drafted you, but under specific circumstances can be transferred to another team.
So, with all that in mind let me lay out what I would if Anthony Davis were my client.
It’s clear to me that New Orleans will not trade Davis this year, they have little incentive to do so. Thus, with little leverage this year, it’s best to let Demps and co. know that they are on notice, and that if this trade deadline doesn’t bring you serious help you will request a trade in the off-season. I don’t care to speculate here as to who will trade for Davis, but my favorites are the Lakers, Celtics, and Warriors.
Now assuming you have been traded, rather than sign for the max AD can sign a 2+1 (player option). As he has been in the league for 7 years, this contract would get him to the ten-year mark where he can sign the most-max max contract. We have recently seen stars like LeBron James and Kevin Durant take such contracts to hit the decade mark.
See the breakdown below (Assume static cap of 101.869 million for comparison purposes).
Non-Pelican team
(2) + (max) + (max) [Next 12 years]
63,566,256 + 209,168,669 + 209,168,669 = $481,903,594
Pelicans
(max) + (max) [Next 10 years]
239000000 + 239000000 = $478,000,000
As you can see, over the next decade AD would make very similar money to what the Pelicans can offer him were he to join another team. These figures, however, do NOT take into consideration potential endorsements, investment deal flow, etc that a different market can offer. If my client can make the same or more money, play on a better team, and live in a nicer city... I think I have to advise him to take that deal! However, I believe AD does have loyalty to the city of New Orleans and would love to stay there if he thought they could win, but it's important to understand his decision will not be about money, it will be about basketball and lifestyle.