NBA AM: Is Wade Contract Loyalty Or Common Sense?

Wade Contract: Loyalty Or Common Sense?

As Basketball Insiders publisher Steve Kyler touched on in this space yesterday, the upcoming salary negotiation between the Miami HEAT and future Hall of Fame shooting guard Dwyane Wade will become a spirited dialogue between both parties over the next month.

For Wade, this is likely a final opportunity to secure a strong multi-year, lucrative payday before he hangs up the laces for good. The veteran has made over $120 million over the course of his career on the court and is known in basketball circles as being one of the savviest with his dollars off of it, in addition to having a large trail of endorsement and business pursuits.

According to Barry Jackson of the Miami Herald, a Wade associate has told people that the player is seeking a new deal averaging $20 million annually over the next three years.

On paper, the request doesn’t seem too farfetched. After all, Wade has averaged 20.7 points, 4.9 assists and 4.3 rebounds over the past three seasons and the team has won a title and made two Finals appearances in that stretch.

The problem is, Wade has only appeared in 185 out of a possible 246 regular season contests during this span and he’s suffered a plethora of injuries to a deteriorating body that haven’t allowed him to play 70 games in a campaign since 2011.

The motivation for Wade is simple. He’s still a largely productive player who has won three championships for the organization and is staring at his mortality in the mirror.

But for team president Pat Riley and the HEAT organization, is this the time to pay above market average to an aging legend in the name of loyalty?

Last summer, the team was left scrambling when four-time MVP LeBron James opted to take his services back to Cleveland. The team managed to re-sign All-Star forward Chris Bosh and Wade to new deals to stabilize the situation. But during the 2014-15 campaign, Riley found a diamond in the rough in center Hassan Whiteside and struck a deal at the trade deadline to acquire emerging point guard Goran Dragic.

A post All-Star break injury to Bosh severely limited Miami’s late-season playoff run, but the new influx of talent should have Miami in good shape entering training camp.

But the question is how Riley and company will handle Wade’s contract demands. The team has been cash strapped the past five seasons, paying multiple future Hall of Famers max deals, but have a golden opportunity to create financial flexibility as Wade enters the sunset of his career.

In 2017, the HEAT have only two guys, Bosh ($23.7 million) and Josh McRoberts ($5.8 million) on the books with guaranteed deals. This gives the team enormous power on the free agency or trade fronts in the future. Adding in a guaranteed $20 million to Wade restricts this flexibility even though the cap will skyrocket.

Another question to ask is just how much leverage does Wade in this situation? Obviously if the HEAT tried to low-ball their star and offer something in the neighborhood of $8 million annually, there will be plenty of suitors willing to open up their wallets more. But with a reported $20 million asking price, how many teams will be knocking on an aging guy’s door with multiple nagging injuries to his lower extremities?

This comes down to two sides each trying to protect their interests. Wade is attempting to make sure he’s compensated adequately as his skills diminish and he heads into his post-basketball life. The HEAT will approach the situation from the standpoint of rewarding their star for his past, current and future efforts while attempting to protect their financial flexibility.

Neither side wants an end to the union. It has been a mutually beneficial relationship since 2003. However, both sides have competing objectives and that’s why this situation is bound to get interesting over the next 45 days.

Monty Williams Lands in Oklahoma City

Recently dismissed New Orleans Pelicans head coach Monty Williams has landed in Oklahoma City as the top assistant on new head coach Billy Donovan’s staff, according to a Yahoo! Sports report.

Williams, who led the Pelicans to the Western Conference playoffs this past season, will join a team featuring All-Stars Kevin Durant and Russell Westbrook. If healthy, the Thunder should be in the title discussion next season.

But health was a nightly issue for Oklahoma City throughout the 2014-15 campaign and the team missed the playoffs for the first time since 2010, finishing behind Williams’ upstart Pelicans squad for the last spot in an ironic twist.

Williams compiled a 173-211 record in five seasons with New Orleans, posting two winning seasons and a 2-8 record in the playoffs during his tenure.