SH Blog: GMs see Parsons as game-changer for restricted FAs

Could the unique contract structure arranged by the Dallas Mavericks and owner Mark Cuban to pry Chandler Parsons from the Houston Rockets become a template for freeing future restricted free agents?

Multiple league GMs think it could, according to a new report from ESPN‘s Marc Stein. The Parsons contract, which is almost-max-level over three years and includes a player option after Year 2 and maximum 15% trade kicker, proved difficult for the Rockets to match on several levels, even though they fully intended to keep Parsons.

First, players in the inaugural year of a matched offer sheet can’t be traded without their consent. In other words, with the potential pool of bidders greatly diminished, the matching team (in this case, Houston) has to likely wait at least 12 months in order to extract fair value through true competition on the trade market.

Second, with the opt-out after Year 2, Parsons’ value to a non-contender after Year 1 would be limited because he could leave after a single season with his new team. Think Kevin Love this past summer. This unique wrinkle would not have been the case had Parsons signed a more standard four-year contract. Meanwhile, contenders might also hesitate because Parsons would also have the right to opt in for his third year, potentially taking a team out of the 2016 Kevin Durant sweepstakes. (Stein reports the Rockets hope to recruit Durant with his former teammate, James Harden.)

In the Parsons case, the decision for Houston and general manager Daryl Morey came down to whether the 25-year-old small forward would have positive net trade value going forward. If he did, the Rockets likely would have matched, knowing they could deal Parsons later for more salary-cap flexibility, should they need it. But Morey, based on the unique structure of the contract, called it “one of the most untradeable structures that I’ve ever seen” and opted to pass.

Quoting multiple owners and GMs, Stein explains why that could become a roadmap for NBA teams hoping to pry restricted free agents loose going forward:

“It created the most amount of problems for them,” Cuban said. “The trade kicker not only made [the contract] more expensive, but the opt out [after Year 2] could create a Kevin Love-type situation for any teams interested in trading for him, where you don’t know if he’s gonna opt in or opt out.”

The impact this three-year pact and its various complications had on Parsons’ fate has some league observers wondering now if shorter contract offers from big-market teams to future restricted free agents, such as the San Antonio Spurs’ Kawhi Leonard and Minnesota Timberwolves’ Ricky Rubio if they make it to the open market next July, will become more commonplace.

“The contract structure was extremely creative,” Cavs general manager David Griffin said. “I think it will be a significant moment in the way restricted free agency discussions are handled in the future.”

Said Grizzlies general manager Chris Wallace: “The concept of a short-term offer sheet is intriguing and could be the wave of the future. With the reduction in the decision time to match reduced to three days, the team who writes an offer sheet is only out of action for a short period of time. [So] there is no downside. If the sheet is not matched, you have your player, and if it is matched, then the player will be back on the market soon, which increases the pool of players in free agency two or three years down the road.”

For years, restricted free agency has been a thorny subject for players. The player’s original organization typically leverages its ability to match on the rest of the league, making other teams reluctant to even waste time with the offer-sheet process.

That, of course, cuts away at a player‘s leverage and often forces him to re-sign at a cheaper rate than he would’ve gotten in a truly open market. The Rockets themselves used that strategy in recent years to lock up Kyle Lowry and Luis Scola on favorable terms for the team.

But this year, Cuban and agent Dan Fegan found a new way to break down that wall. For it, Parsons finds himself a wealthier man (and on a different team) than most predicted going into free agency.

So as 2015 free-agency approaches in the coming months, this situation is worth remembering. Those restricted free agents could be more available than most think.

PACERS SIGN HEAD COACH FRANK VOGEL TO MULTI-YEAR EXTENSION

The Indiana Pacers enter 2014-15 in a state of uncertainty following the offseason departure of Lance Stephenson and the gruesome injury to Paul George that will cost him most or all of the coming season.

But after back-to-back trips to the Eastern Conference Finals, Indiana will have stability in its coaching ranks after signing Frank Vogel to a multi-year extension. Vogel would have been in the final year of his deal, giving him “lame duck” status and adding pressure to an already-challenging situation.

From the team’s official news release:

“We’re very happy to extend Frank’s contract,” said Pacers President of Basketball Operations Larry Bird. “I believe he has done a great job and I look forward to continuing our relationship and working together to achieve all of our goals.”

“I’m excited for the opportunity to continue my tenure as Pacers’ coach,” said Vogel. “It’s an honor to represent this franchise and lead this team. I look forward to the challenge ahead. I’m grateful to have had good, coachable teams along with coaching staffs that have been second to none.”

Vogel, now 41, has a record of 147-82 in three full seasons as Indiana’s head coach and remains one of the NBA’s brightest defensive minds. Though some reports said Vogel was “coaching for his job” in the playoffs amid a late-season slide, the Pacers did finish with the East’s best record and came within two games of the NBA Finals. That résumé is not usually one that leads to a dismissal.

Moreover, given Indiana’s newfound instability, the franchise finds itself at a crossroads. Even if George were healthy, they weren’t likely to seriously contend in 2014-15. They let Stephenson walk because they couldn’t agree on a price point. Power forward David West is now 34 years old and has a player option after this season. Center Roy Hibbert remains maddeningly inconsistent.

George is still a strong foundation piece, but the franchise likely needs to retool around George before regaining its contending status. Should the team have let a well-respected and successful coach go, the job of convincing elite free agents to consider Indiana would become even tougher.

OTHER NEWS FROM AROUND THE NBA

DeJuan Blair, Nene, Daniel Orton and Xavier Silas of the Washington Wizards were each suspended one regular-season game for leaving the bench area during an altercation in Monday’s preseason game against the Bulls.

The group left the bench area when a shoving match broke out between Chicago’s Joakim Noah and Washington’s Paul Pierce. Both Noah and Pierce were fined $15,000 for their roles in the scuffle.

In the announcement from the league office, the NBA said the suspensions are to be served by the players during the first regular-season game in which they are physically able to play.

Washington opens the season in Miami on Oct. 29.

Cleveland’s Kyrie Irving is in a walking boot for precautionary reasons after spraining his right ankle in practice this week.

Irving, who confirmed the news on his Twitter, had X-rays taken and underwent an MRI on Tuesday before the team charter left for Brazil. That’s where the Cavaliers will play the Miami Heat in a preseason game on Saturday.

Both tests were said to be negative, and Irving is considered day-to-day. Reporters said Irving was using a walking boot when he left with teammates for sightseeing on Wednesday’s off day.

“Not that serious, I’m all good,” Irving wrote.

Chris Bosh says he hasn’t spoken to LeBron James since James decided to leave Miami and return to the Cleveland Cavaliers.

Bosh discussed his thoughts, or lack of, when asked by reporters about the Heat’s preseason game against the Cavaliers on Saturday, when Bosh and Dwyane Wade will take the court for the first time against James. With LeBron out of the picture, Bosh is now the highest-paid member of the Heat and undoubtedly the franchise’s centerpiece moving forward. His comments:

Asked by reporters if he had talked to his former teammate since James’ decision to leave the Heat, Bosh answered a succinct, “No.”

As to whether he was looking forward to seeing James on Saturday at the game in Rio de Janeiro, he replied with a lukewarm, “Yeah … I don’t know.”

“I’m in the mode where I’m trying to lead my team, help these guys out around here.”

“If guys aren’t in this locker room, I don’t have much time for them — if any.”

The first Heat-Cavaliers matchup in the regular season is set for Christmas Day in Miami.

Ben DuBose is a veteran sports reporter who has followed the Houston Rockets and the NBA since Hakeem Olajuwon was Akeem Olajuwon. He writes for SheridanHoops and ClutchFans, an independent Rockets blog. You can follow him on Twitter.