Los Angeles Lakers: Understanding Their Financial Flexibility

By Chris Walton | Sep 27, 2014

November 15, 2012; El Segundo, CA, USA; Los Angeles Lakers general manager Mitch Kupchak during a press conference at the Lakers training facility in El Segundo. Mandatory Credit: Jayne Kamin-Oncea-USA TODAY Sports /

It’s safe to say that several players outside of Kobe Bryant won’t last the entire season for the Los Angeles Lakers. The team has been set up by design for financial flexibility and maximizing the last two years that they have Bryant signed. Many fans believe that Los Angeles that the team is going to sit back and hope for health and the possibility of making a miracle run to the NBA title.

The Lakers’ front office is fully aware that the team is at its best, and city, when they are competing for championships. The stance remains no different heading into the season, as Lakers general manager Mitch Kupchak will look to make the necessary moves.

The quickest way to catapult into contention is to patiently develop draft picks like the Oklahoma City Thunder, or hit a home run in free agency like the 2010-11 Miami Heat. Being financially aware of your team’s status and seeking the right acquisitions also plays a big part.

The Lakers have proven to prosper from the latter. Bringing in important players like Trevor Ariza, Pau Gasol, and Lamar Odom secured several championships for the Lakers. To add to establishing their core, they also have made surprising trades for Pau Gasol and Dwight Howard, which ended up with the two leaving Los Angeles.

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In terms of being financially sound, the Lakers have invested their contracts in the best way possible over the last seven seasons. Kobe Bryant is the last player to sign for more than $20 million per year, and that’s for obvious reasons. Pau Gasol was the team’s last big contract (three-year, $64.7 million in 2009), which they nearly were able to move in 2011 before the failed

Chris Paul

trade. His deal, along with Kobe’s, has placed financials constraints on the team in the past few years, but it seems that they are heading in better directions.

Bryant is still on the books for this season, and next year for his two-year, $48.5 million deal. Outside of him, only Nick Young possesses a multi-year deal for more than three years.

Players such as Xavier Henry, Wesley Johnson, Ryan Kelly, and Jordan Hill have one and two-year contracts ranging from $1 million to $2 million. Hill is the exception, as he signed for two years and $18 million with next season as a team option.

Carlos Boozer, Jeremy Lin, and Steve Nash have expiring deals heading into next season. The rookies Jordan Clarkson and Julius Randle both will play on rookie contracts with inexpensive price tags.

Why so many short deals for the Lakers? The plan is simple: Keeping intriguing players on cheap deals means tradeable assets. When February arrives, the trade deadline looms, and teams are seeking guys that can help them lose salary and build cap space for the next season.

For example, two contracts like Lin and Nash, valued at around $18 million combined, could help a team looking to create that much room next year. It’s an added bonus when you can get production from those players as well.

On top of the team having these moveable contracts, the cap space that follows next season will catch the eye of agents around the league. Los Angeles may have around $28 million to $30 million in cap space pending the NBA’s next TV deal. This summer’s market saw plenty of dollars being thrown around to players.

With the likes of Eric Bledsoe recently signing a five-year, $70 million deal, next season a player like Rajon Rondo or Rudy Gay could demand similar money. If both players respective teams can’t commit to offer this much, than the need to find a team that will grows as the season begins. The Lakers can sell big money to a player and assets to a team. The combination of both can lead to a competitive Lakers squad, and an even better NBA.

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