Glen Davis and Leon Powe are Unrestricted Free Agents? Inconceivable!
In the waning moments of Game 7 between the Magic and the Celtics, when it was clear that Boston's season was over, TNT displayed the obligatory "Off-season priorities" graphic. On it, they listed both Glen Davis and Leon Powe as unrestricted free agents. This is simply not true. Both Davis and Powe are RESTRICTED free agents.
It's a common mistake, one we've made on Clips Nation regarding Steve Novak's status. As Vizzini might say, we fell victim to one of the classic blunders. "The most famous is never get involved in a land war in Asia, but only slightly less well-known is this: never go in against a Sicilian when death is on the line!" Slightly less well-known still is, never assume that second round picks are not restricted free agents. From time to time we like to get into the nitty gritty of the CBA in order to understand better what's going on, so let's look at what appears to be causing so much confusion.
The issue seems to center around second round picks, as Davis and Powe and Novak all are. This is because first round draft picks have their own set of of very, very specific rules under the CBA, and those rules tend to be better understood (mainly because those players have such high visibility). For first round draft picks, the first two years are guaranteed at a salary determined by their draft position, years three and four are team options, and the pick USUALLY can become a restricted free agent after four years in the league. So the high visibility RFA's, the ones that are most likely to sign for big money, fall into that category. Even so, the team has to make a qualifying offer (again, for a specific amount determined by their draft position) in order to secure the right of first refusal, the essence of the 'restriction' on a restricted free agent.
Many of the first rounders from the draft class of 2005 will be RFA's on July 1. The best of the best have already signed big money extensions - Chris Paul, Deron Williams, Andrew Bogut, Andrew Bynum, Danny Granger - and Portland locked up Martell Webster on the cheap. But Marvin Williams and Charlie Villanueva lead a group of intriguing if not overwhelming four year vets into RESTRICTED free agency this year.
Of course there are lots and lots of exceptions. Yaroslav Korolev was drafted in 2005, but the Clippers declined their third year option on him. Likewise, Luther Head was waived by the Rockets this season, and finished the year in Miami. He is no longer governed by his first round draft pick contract, but rather by his one year deal in Miami. And Utah did not exercise their third year option on Morris Almond, a first round pick in 2007, making him an UNrestricted free agent this summer.
Second round picks (or more to the point, everyone other than first round picks) are governed by a different set of rules - but it does not mean they are never restricted free agents. Why does TNT think they are? Well, I'm guessing it's mostly slothfulness. There are a handful of very popular web sites that most everyone, whether they are fans or bloggers or graphics guys at TNT, tend to turn to for salary and contract information: HoopsHype is the de facto standard, although ShamSports is probably a little more thorough and accurate. On HoopsHype, the first round picks are listed with their option years and even the amount of the qualifying offer. What happens is that many, many people look at the qualifying offer Ilisted in green type) and incorrectly correlate it directly to RFA's. Unfortunately, whereas it is true that all green qualifying offers on HoopsHype are Restricted Free Agents (assuming the team actually extends the offer), the converse is NOT true - not all RFA's have green qualifying offers on HoopsHype.
So take a quick look at Boston's page on the site. Look at Rajon Rondo - a first round draft pick in 2006, the team has already exercised their fourth year option on him for next season, and his QO of almost $3.8M is listed for the following season. If Boston does not extend him before summer 2010 (which they probably will), he will be an RFA at that point. Simple: Green = RFA. Now look at Davis and Powe. Davis was a second round pick in 2007, Powe a 2006 second rounder. Neither is signed for next season, and as such HoopsHype lists a zero for them. For most people, that zero has come to mean UNrestricted free agent.
Unfortunately, the wealth of information available on the web has made everyone lazy, and very few people actually understand the underlying rules (and I'm not suggesting that I'm one of them, but I do try.)
The fact is, restricted free agency is not limited to first round draft picks. Here is the relevant sentence from Larry Coon's Salary Cap FAQ (but you really should read the whole thing on RFA's):
Restricted free agency exists only on a limited basis. It is allowed following the fourth year of rookie "scale" contracts for first round draft picks.... It is also allowed for all veteran free agents who have been in the league three or fewer seasons.
(Emphasis added.)
Glen Davis, Leon Powe, Steve Novak, Paul Millsap - they all fall into that second category. They have been in the league three or fewer seasons.
As it happens, the team still has to make a qualifying offer in order to secure their right of first refusal - but given that second round picks usually sign rookie minimum contracts, the QO is invariably so small as to be insignificant. Again, from Coon's faq:
The qualifying offer for all other players [i.e. other than first round picks] must be for 125% of the player's previous salary, or the player's minimum salary plus $175,000, whichever is greater.
That puts the QO for all of these guys (Davis, Powe, Novak, Millsap, etc.) right around $1M - HoopsHype and ShamSports could list them (and probably should, I guess), but they tend not to impact the team's future cap situation significantly, so that's likely why they don't.
So, as Inigo said to Wesley, "Let me 'splain. [pause] No, there is too much. Let me sum up."
- First round picks become restricted free agents after their fourth season, provided the team has exercised all of their contract options on the player and then extend a qualifying offer;
- All other NBA players are restricted free agents provided they have been in the league three or fewer seasons and the team extends a qualifying offer.
There are many other things that get confusing surrounding these second round picks. One issue that often gets conflated with RFAs is the question of Bird rights. Back when Gilbert Arenas signed with Washington, the Warriors were unable to match the Wizards offer. However, that was NOT because Arenas was unrestricted - it was because the Warriors did not have full Bird right's and were therefore not allowed to go over the salary cap to retain him. (That loophole has since been closed, but the solution is incredibly complex, even by NBA CBA standards - feel free to read about it if you like.)
Here are two key things you need to remember about Bird rights:
- As we learned in Schoolhouse Rock, three is the Magic number. A player qualifies as a Larry Bird free agent if they have been in the NBA at least three consecutive years without being waived or without signing as a free agent.
- Bird rights are tradeable. So the Clippers have the right to go over the salary cap to sign Steve Novak, even though he has not played for LA for three seasons, because he has played under his current contract for three years and Houston traded him to LA. (By contrast, Luther Head was waived and signed with Miami as a free agent - Miami does not have Head's Bird rights.)
Because three is a 'sweet spot' here (RFA's have been in the league three or fewer seasons, Bird free agents have been under contract three or more seasons), three year vets like Novak and Powe and Millsap have a set of circumstances making them much like first round picks:
- they can sign for any amount of money;
- their current team can choose to match any offer (i.e. they are restricted free agents);
- their current team can go over the salary cap to do so (i.e. the team holds the player's Bird rights).
Of course, this is most applicable to Millsap, as he is the only one of the three who is going to sign for more than the mid-level exception.
Glen Davis, on the other hand, being a two year veteran, is an 'early Bird' free agent - Boston can go over the cap to re-sign him, but only up to the mid-level exception. Fortunately for them, in the wake of the Arenas situation, other teams are only allowed to sign him for the mid-level, so Boston can definitely keep him if they really want to.
So there you go. A quick primer on RFA's and Bird rights. If you don't get it all, don't feel bad. Neither do the guys at TNT.
Getting back to the point of the graphic, Boston does have some difficult decisions this summer. All of their starters are already signed, the big three to truly massive contracts. They are already over the luxury tax threshold, without any significant salary coming off their books at this time. Moverover, two key reserves in Davis and Powe are restricted free agents. The fact that TNT reported them as unrestricted is sloppy, but not significant - they'll play for Boston if they can get paid. But they both made major contributions to the team while playing for the league minimum. They are clearly in line for decent pay days, which will push the team's payroll to new heights. (Of course, Powe's situation is further complicated by his ACL injury.) It's Boston, so they'll likely continue to be over the tax threshold (way over the threshold) through the end of next season when Ray Allen's deal expires. But even the Celtics are going to have to think long and hard about signing Big Baby for $5M when it's really going to cost the $10M.
On a related note, if you want a late first round pick in this draft, get on the phone with Danny Ainge. The last thing he wants right now is a guaranteed salary for a player unlikely to hlep next season.
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Is it just me
Or does Boston have some real salary issues coming up?
Didn’t Simmons cover this after Garnett’s injury?
They’re on the hook to Garnett for a ton of money. Then comes Pierce. You mention that Ray Allen’s deal expires at the end of next year, but I think it’s safe to say that Ray Allen is still going to be a really good basketball player at that point—the comps could start with Michael Finley, but I’m sure there are others. Not that he should be one of Boston’s big three, but the point is that he will overlap with Rondo’s extension.
So next year they have Garnett (post-injury)/Pierce/Allen/Rondo and Perkins. The question is whether they’ll have money for Davis and/or Powe.
Then in 10-11 they have Garnett/Pierce/Rondo/Perkins, assuming they extend Rondo or at least give him the qualifying offer (no brainer). They wouldn’t have to give all of the Ray Allen money (18 mil) to Rondo, and Scalabrine also goes away.
Can you extend Rondo and resign Ray Allen for the same money they were paying Allen? Probably, if that’s what you want. But at that point Ray Allen is coming off the bench (like Finley), and you’re not investing in young players. You’re still trying to drain the dregs of Pierce and Garnett, I guess.
And none of that addresses the paying of 10 mil to sign Davis or Powe for 5 mil. Let’s remember that Simmons is the one writing about the No Benjamins Association, which also includes his doomsday lockout scenario, along with reduced revenues around the entire league.
Another wrinkle is that Ray Allen’s contract expires in a timely fashion, in the banner free agent year. That would be good, except that they are already paying Garnett and Pierce so much money that they still wouldn’t have much to spare—and my guess is that they think Rondo is their guy. I suppose they could make him the qualifying offer and then pay him as an RFA the next year, but extending him seems more straightforward.
I don’t know. Now I’ve confused myself. It’s hard to see how the Celtics will figure this out, but I’m sure they will—it’s the Celtics.
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When they acquired KG and Allen (who were each 31 and 32 at the time) they knew that they had a limited number of years to try to get something done. Winning the championship in the first year of having them together is a bonus – but I doubt they’re going to get crazy and imagine they can keep it together as is beyond next season. Look at it this way – when the 2009 NBA season starts, the Celtics will have three of the 10 highest salaries in the entire league – that’s not sustainable, even for the Celtics.
Even if Ray is willing to take a massive pay cut (which he might), how much longer is he going to be a factor? He’ll be 34 in 2 months. And Pierce is getting up there, and KG has both the years and the mileage. The window for those three is closing fast, it seems to me.
If they win a title in 2010, the decision to possibly keep it all together gets tougher. If they have an experience anything like this season (diminishing returns based on injuries and lack of depth, a formula that very well could play out time and again with this roster), they realize they have to do something very different.
But the Celtics magic lives on. Who knew that Rajon Rondo was a superstar when they made him the starting point guard?
In this world, you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant. - Elwood P. Dowd
by Steve Perrin on May 19, 2009 9:11 AM PDT up reply actions
I think the C's showed they can be a competetive team sans 1 of the Big 3
From what I can see, they live and die by Rondo. His progression, along with that of Big Baby & Perkins, should keep them competeive, even if one of the stars walks.
But Ainge will be busy trying to figure it all out.
F-Elton!
Wait... wait...
Steve Novak is a restricted free agent. Got it. Okay. But I believe the Clips do NOT have his Bird rights because he was waived and resigned by Houston (at some point in the foggy past). So, no Bird rights. Therefore, if Novak signs an offer sheet with another team and the Clips need to go over the cap to keep him, they can’t. That could happen, especially if they wait to act on Novak and go out and sign their first round pick and a free agent or two.
It’s actually an interesting dilemma. IMO they should quickly sign the rookies, Fred Jones (1.5M?), and Novak (maybe 1M). That will leave them near the cap and they can use a mid-level exception on a free agent (wing/defender).
That’s if I understand the rules correctly. Which seems, given their complexity, not all that likely.
That's not my understanding....
I believe they have his full Bird right’s. The transaction database I use shows him signing with Houston in 2006, and being traded to the Clippers in 2008. No waivers. You’re correct, it would have changed had he been waived in there. But he wasn’t, AFAIK.
Novak will get more than $1M, I believe. He’s a one trick pony to be sure, but it’s a really good trick. What would he be worth to a team like San Antonio, with Duncan drawing double teams and Parker and Ginobili breaking defenses down? Obviously the defense is an issue, but he’s such a good shooter, I think someone will offer him in the $2M to $2.5M range.
In this world, you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant. - Elwood P. Dowd
by Steve Perrin on May 19, 2009 12:54 PM PDT up reply actions
Okay...
This time I did some homework and, of course. Novak started his second year in the D-league but was a member of the Rocket’s 15-man squad. I thought he was cut in training camp and resigned later.
I’m not at all sure of his value. Certainly less to the Clips than to a team with good defenders like the Spurs.
As a celtics fan, this is one of the better articles i have read on SB nation in a while, so I just wanted to comment and say great job on this blog, and congrats on the # 1 pick clips fans!!!!!
Thanks
In this world, you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant. - Elwood P. Dowd
by Steve Perrin on May 20, 2009 8:45 AM PDT up reply actions

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