Golden State Warriors: The Pros And Cons Of David Lee’s Departure
Pro: Saving Money
At the end of the day, dealing Lee isn’t about how rarely he’s used in games or how the organization owes him a solid after he sacrificed his minutes for the betterment of the team. No, when all is said and done, trading this former All-Star is all about getting that $15.5 million contract off the books and avoiding a steel-toed kick in the ass from the luxury tax.
Had the Warriors kept Lee and his massive deal on the books for the upcoming 2015-16 season, they’d be paying about $50 million in salary and luxury tax payments. Wallace’s $10.1 million contract is a lot for a 32-year-old wing who looks like he doesn’t have anything left in the tank, but the savings extend beyond the simple difference in salary between the two.
The Dubs have until Aug. 31 to waive Wallace and use the stretch provision on his contract, chopping up his $10.1 million salary for this season into $3.4 million over the next three years.
Warriors could reduce their payroll by $12 million if they use the stretch provision, at the cost of 0 draft picks/future assets.
— Zach Lowe (@ZachLowe_NBA) July 7, 2015
The Warriors have options from here. If they choose to use the stretch provision to spread out his remaining salary over three seasons, they’ll be looking at a 2015-16 luxury tax bill of just under $16 million — assuming Green makes the minimum he can make in the first year of his max deal and that Ognjen Kuzmic accepts his qualifying offer, both reasonable assumptions.
Between payroll and luxury tax bills, the total would look something like $108 million if Wallace’s salary is stretched. However, stretching his contract would also prevent the Dubs from using his contract in another salary dump trade for an actual player of use, and it would take up cap room next summer when Kevin Durant becomes a free agent.
If the Dubs choose not to stretch Wallace’s deal, they’d be looking at a luxury tax bill of about $33 million and a grand total of $133 million. If they stretch Wallace’s contract, the Warriors will have shaved nearly $50 million off their total bill. But even if they don’t, the Lee trade still saves them $24 million, making it well worth it to send him to a team where he’ll actually play.
Next: Con: Loss Of Depth?