Atlanta Hawks: Danny Ferry looking to trade but avoid the tax
Danny Ferry didn’t make the decisions that led to the Hawks owing $61 million in salaries next season to six veteran players on a team that’s topped out in the second round of the playoffs.
But now that’s he’s Hawks GM, Ferry will have to build a roster for next season without much financial flexibility. And he will have to start doing it pretty much on the fly because the free-agent negotiating period opens Sunday, less than a week after he took the job.
“It’s a crash course, for sure,” Ferry said. “I think we want to make the best decisions possible in the short term. We want to make right decisions, whether it’s a trade, whether it’s free agency. But especially trades.”
The trade market remains the best way for the Hawks to make significant additions to the roster (which of course means they’d also have to make significant subtractions).
They continue to get a lot of calls about Josh Smith but the impetus for pursuing Pau Gasol came from Rick Sund and Ferry so far hasn’t taken that baton. Ferry hasn’t even had a chance to fully assess the roster or meet the players.
Smith has a lot of value as a talented and productive player on a reasonable contract that expires after next season. Al Horford is an attractive piece, too, because he’s an All-Star big man locked up for four years and $48 million. Good luck dealing Joe Johnson with four years and $90 million remaining on his contract.
(Aside: I’ve heard some of my blog people wonder if Ferry will be “allowed” to trade Marvin Williams. Please accept that the Hawks have tried to trade Williams for at least two years and no one is biting. That shouldn’t be hard to do since you don’t want him on your team at his salary, either.)
If the Hawks don’t make a trade, then they’ll have to find some value on the free-agent market and perhaps get some contributions from unheralded rookies.
After signing first-round draft pick John Jenkins, Atlanta will have roughly $62 million in salaries committed to seven players. If second-round pick Mike Scott makes the roster and sticks for the year, that’s another $473,604. Ferry said he hasn’t decided if he will extend a qualifying offer to Ivan Johnson; if the Hawks do so and Johnson ends up playing on that deal, add about $1 million.
That’s about $63.5 million dollars for nine players. The roster minimum is 13 and the maximum is 15. The salary cap next season will be no less than $58 million. The luxury-tax threshold last season was $70.3 million and won’t rise significantly unless the players and league agree on a big increase in projected BRI for next season.
So, basically, the Hawks likely will have somewhere in the neighborhood of $6.5 to $9 million of room below the tax line to sign four to six players. Ferry said he’s authorized to spend into the tax but would like to avoid doing so.
“I want to build a roster that has some flexibility to it,” Ferry said. “Ownership has told me when appropriate, that when going over the tax makes sense as far as making us a better team, that is something we would be allowed to do. I want to use that judiciously, though, when you are given that opportunity to do so.
“In this new CBA, some of the challenges when being over the tax as far as trade restrictions as far as exceptions available to you going forward have changed the spending habits in the NBA. Would I think over the next few years we would go over the tax? I think there is a good chance but, again, I want to do that in a judicious manner.”
Ferry is talking about the more-punitive tax penalties that begin in 2012-13. Teams over the threshold will pay a higher tax; will have a smaller mid-level exception and no bi-annual exception; can’t take as much salary back in trades; and won’t be able to receive a player in a sign-and-trade if they are $4 million or more above the tax level.
Translation for the Hawks: Ferry can use the mid-level and bi-annual exceptions and make the Hawks tax-payers again but he’d better be sure he’s signing players that put the Hawks over the top.
“If the belief was it was going to make us a lot better, those things are on the table whether now or later in the year,” Ferry said. “The dollar amount certainly is a parameter as it relates to the tax. You’d prefer not to go over it. But right time, right trade, right thing [then] ownership, Bruce Levenson, has told me that if it’s appropriate and right and it would really make a difference we would have the ability to do so.
“I want to say with that I don’t think it’s always the right thing to go over the tax because of the rule and because of the way things operate. Most teams are never one player away. I think that’s a mistake sometimes teams make. We are going to look at opportunities and make a decision.”
The opportunities will be there for the Hawks on the trade market. There’s a sense of urgency because free agency opens in a couple days but Ferry said he plans to stay patient.
“Every player we may like, [the process] will take its own pace,” he said. “We will have some control over that but the players will have some control over that, as well. So we are going to make our calls on July 1, we are going to explore every option and hopefully we can make good decisions.
“Honestly, last year–I know I keep crediting Rick–but I thought they did a pretty nice job filling out their roster from where they were. Hopefully we can find avenues to do as well, [and] hopefully even better.”
Michael Cunningham, Hawks beat
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363 comments Add your comment
High-sider
June 29th, 2012
4:49 pm
Rod from College Park
June 29th, 2012
11:12 am
“My only issue with the Mike Scott pick is if we re-sign Ivan to backup Josh, when will Mike Scott play? In blowout games, or if Ivan gets in foul trouble?”
It means Ivan is gone. The one guy on the team that played with toughness, and scared everyone except Zaza is gone. I think he a Drew had problems anyway after the season started. We got more ‘NICE GUYS”. Don’t know much about Scott, but it hard for me to believe that is is more NBA ready than Ivan. Maybe it is a money thing.
—————————————————————————————–
No, “it is (not) a money thing”; it’s a “(conservative) culture change thing”/approach. With the “Danny boy” (Ferry) at the helm, you can expect the Atlanta Hawks (franchise) to become the “Duke Blue Devils” of the NBA. The Atlanta Hawks will look to add players who are supposedly clean cut, upright, wholesome, have a positive image, have very little to no tattoos, have no checkered (chequered) past(s), “good guy” types. I can’t blame Hawks management if it wants to go this route in pursuing players but sometimes an NBA team might need a few players who are rough, rugged and raw with checkered pasts to get it (the team) “over the hump.” The Hawks should NOT be in the business of signing players to be “saints” (for the organization) or “sing in the choir”; the Hawks should be in the business signing players who give the (Hawks) franchise the best chance at winning. After all, this is the NBA. I’m just sayin’.
The Hawks need players – not choir (and/or altar) boys.
Buddy Grizzard
June 29th, 2012
4:51 pm
PREACH HAWKS BLOG LEGEND WORLDWIDE CLYDE
High-sider
June 29th, 2012
4:52 pm
I forgot to add “heady” and intelligent (to my list of adjectives).
Mike
June 29th, 2012
4:54 pm
Okay, what is so special about PJIII, if he is so special, while did 25 other teams passed on him as well? Dont answer at once. He could be a beast one day but Atlanta has its own problems, so let that alone.
Now back to the MC stuff, I think Hawks would pull a trade even the value is lower, its a crime shame that DF has to be in this situation because of mismanagement.
Slimjr
June 29th, 2012
4:57 pm
Did not know that Ray Allen and Woody are really tight. Golfing buddies?
No wonder the Knicks have a real good shot at Ray signing with them! What a huge acquisition that would be…Make’s Woody’s job even easier…..
57-63 wins sound about right….
Mike
June 29th, 2012
4:57 pm
Mr. Ferry, Here is the trade to get JJ out of town! Let’s do it! Bulls need a more proven scorer to pair with DRose and Noah. We can save 2 years on that hideous contract and not lose much in terms of talent. http://espn.go.com/nba/tradeMachine?tradeId=79g3ofk
Section 303
June 29th, 2012
4:58 pm
High-sider, I am usually right there with you. I always think a team should have two tough guys. Ivan is a tough guy ( a really f’ing tough guy, actually). But, his past issues are pretty extreme. And, like the people at Grantland.com say, he is like a cyborg. From the outside looking in, I’m never sure if Ivan is going to just snap and go postal.
Not sure if he gets re-signed. His price tag is getting higher, for one thing. Another, not sure if the guy is stable. Will be interesting to see what Danny Ferry does with him.
Ivan is a good player, no doubt.
Section 303
June 29th, 2012
4:58 pm
Mike, pretty d@mn good fake trade.
Buddy Grizzard
June 29th, 2012
5:00 pm
“From the outside looking in, I’m never sure if Ivan is going to just snap and go postal.”
The Hawks should not make personnel decisions based on the fact that some Hawks fans are afraid of black people. Ivan is a player. He kept his emotions in check all season. The only reason Hawks management has a problem with him is because he called out teammates who have bigger paychecks.
Smeer516
June 29th, 2012
5:03 pm
Ivan can ball. Letting him go would be a big mistake to our bench.
http://www.youtube.com/watch?v=hrjjjT5p27o
Pay the man.
Ra'mon
June 29th, 2012
5:03 pm
Slim, Knicks just had JR Smith in the same role as Ray Allen, and they didn’t get a top 5 seed, even with a Disney written two months from Lin. Allen would come here before NYK. As Phil Jackson said, the Knicks roster is sloppy. They’re even worse than the Hawks. I wouldn’t trade Josh for Melo or Al for Amare.
Buddy Grizzard
June 29th, 2012
5:04 pm
“Not sure if he gets re-signed. His price tag is getting higher, for one thing.”
All the Hawks have to do is extend a qualifying offer so they have the right to match. If he signs an offer sheet with another team, the market is established. If not, the Hawks get him for one year at $1m which is less than a veteran’s minimum salary. Why wouldn’t you extend the qualifying offer?
Astro Joe
June 29th, 2012
5:05 pm
Funny, folk complain during the season about the “same old Hawks” but heaven forbid they decide to do something different. Yeah, finding a few players who can look you in the eye and speak in complete sentences would certainly be an awful thing. We should petition to have the Hawks maintain whatever image has historically resulted in a bottom 10 home attendance and the 2nd round ceiling. Or better yet, model ourselves after the Jailblazers. Can Isiah Crowell play SG?
prison mike
June 29th, 2012
5:05 pm
“Ferry said Scott is strictly a power forward.”
Ferry is a got dam idiot. Scott obviously has some small forward skills. As to the free agency, it looks to be pretty bleak.
NCHawksFan
June 29th, 2012
5:06 pm
Trying to figure out what the infatuation with Wroten. He is the worst shooter in the draft. At the NBA pro day he didn’t make even 1 3 pointer. The Hawks don’t need mother player who can’t shoot or score. I am so glad we passed on him.
Mike
June 29th, 2012
5:07 pm
High-sider,
I think you are off by a lot and frankly I think that was kinda of low blow as well.
Here is the thing, the culture that DF is teamwork not no DBD thing with clean shaving and stuff like that. There is too many “me” not enough “us” on that team. You can count it on your hand for that. Ivan has been producing but at the same time, maybe he doesnt fit that mold that Ferry or there is something else, we will never know unless you work the Hawks or get good backroom information.
Do I want him return, Yes I do. He was only few Hawks that did something last year but we got a real GM and he isnt afaid to do stuff like that to improve this team.
Astro Joe
June 29th, 2012
5:10 pm
If Ivan doesn’t get extended, I’d blame LD or the players. It wouldn’t surprise me if some of them didn’t like the way he talked to them… especially those players who seem focused on the hierarchy of things.
Ray
June 29th, 2012
5:12 pm
If all we can do is amnesty Marvin this offseason that’s a win in my book for Danny Ferry there are trades to be had for Joe Johnson like the Bucks, Bulls, and maybe even Charlotte.
last one not so much, but still with Bulls looking to unload Luol Deng and maybe some other players they might take Joe Johnson only if we take say Rip, Deng, Asik, and one other guy.
Rod from College Park
June 29th, 2012
5:13 pm
“Rod from College Park, I like reading your posts. You’re a knowledgeable fan, from what I can tell. But…..I think you are forgetting how bad Jamal Crawford was his last season here. He had some good moments (the shot in Game 3, in 2010 Magic Series. And, Game 1 against the Bulls, also in 2010). He had more bad games than good, though. He often took poor shots and that put the Hawks in a lot of holes.”
If Jamal Crawford was bad his last season here, then our team was horrible as he was easily one of the best players on the team. I did see your correction post, but lets not forget that that season he was 6th man of the year. Did you see James Harden thie year in the playoffs? Would you still take him on your team right now. These are quotes from Stan Van Gundy and Josh Smith from the Orlando playoff series that we won:
“Jamal is playing with unbelievable confidence. Everything he throws up, he knows it’s going in,” Orlando coach Stan Van Gundy said. “We’re at the opposite end of the spectrum. We have a lot of guys throwing it up, and they have no idea if it’s going in.”
“We rely on Joe and Jamal to get it done in tough situations,” Atlanta forward Josh Smith said. “They answered the bell again.”
Did Chicago shut Jamal Down in the Chicago series. Yes. That is what great defensive teams do. They also shut down Horford, Joe and Josh. Blaming Jamal is nonsense especially when the Chicago made it their top priority to contain him. I don’t seem to remeber the many bad moments you speak of. I remeber the first year he was here playoffs when the whole team stuck up the joint, and I remember the Chicago series.
Ray
June 29th, 2012
5:15 pm
@ Astro Joe
I’d say the same thing that’s the problem with the culture the 6 guys remaining three of them I can see saying something about not wanting him back.
Marvin, Joe, and maybe even Josh might even want to say 4 cause I can see Horford in there too.
Zaza and Teague probably think he’s good especially Zaza cause he got a partner in crime down in the paint.
Ra'mon
June 29th, 2012
5:16 pm
Guys, should the Hawks make a run at OJ Mayo?
moorman
June 29th, 2012
5:17 pm
the hawks HAVE to resign ivan johnson. if they dont, im officially done with them………
Ray
June 29th, 2012
5:19 pm
@ Ra’mon
Not happening at all OJ there long-term it’s only Rudy Gay that is being shopped or moving out of Memphis if at all that is.
Rod from College Park
June 29th, 2012
5:20 pm
Keep it up High-sider. All this clean cut, great guy all american boy crap is what keeps these Atlanta franchises from winning anything.
Mike
June 29th, 2012
5:22 pm
Okay, and dont forgot to lock the door and cut off the lights
Astro Joe
June 29th, 2012
5:22 pm
Ray, I’m doubting that it would have been Joe or Al. They don’t have anything to prove to a 27 YO rookie. Not to mention that Horford wasn’t even around the team most of the year. But there was a player who seemed to want to keep Teague in his place as a distributing PG.
Ra'mon
June 29th, 2012
5:25 pm
Ray, Memphis didn’t extend a tender offer to OJ Mayo. He’s an unrestricted free agent.
Ray
June 29th, 2012
5:27 pm
It could have been any of guys though Astro Joe you seem to have forgot that one episode about dysfunction in the locker room in ATL so that means I’m not going to say it’s Josh’s fault and what not. Or just blame it all on Al.
To be honest it could be Marvin he’s the only one of all the core we don’t hear much about at all.
Ray
June 29th, 2012
5:30 pm
@ Ra’mon
Here’s the thing though what about Joe Johnson that now makes three SG’s we’ll have and one we’ve already overpaid for and Joe is not a SF he got the height not the skill set to play it effectively.
Astro Joe
June 29th, 2012
5:30 pm
Yeah, that Miami team with all of those guys who Corporate America runs away from won the title against that felon-filled team in OKC who only attract the scariest members of our society to their home games. Did you see that gang-beard that the Thunder fans wore? Let’s keep it real.
jhan
June 29th, 2012
5:31 pm
OJ Mayo – remember how stupid McHale was for trading him for Kevin Love? Hopefully our new GM will pull off a stupid trade like that someday! I’m taking a wait and see approach to Jenkins & Scott. If you told me we would end up with the best outside shooter & an all ACC performer from this draft I would have been happy. That’s what we ended up with so I’m happy for now.
welikebaseball2
June 29th, 2012
5:32 pm
Not to be Captain Obvious or Mr. Pessimist, but…no matter who we get for Josh (if we trade him), we’re screwed until/if we can find a sucker to take Joe’s & Marvin’s contracts. Screwed for the next couple of seasons…at least…
Big Ray
June 29th, 2012
5:35 pm
Rod from College Park – right on Marvin, wrong on Jamal, jury’s out on John Jenkins. ‘Nuff said…
SteveW
June 29th, 2012
5:35 pm
Mike Scott has had surgery on his ankle twice. This can’t be a good sign. Maybe as a career 10-15 mpg backup, which is actually excellent for a #43 pick. But I wouldn’t count on him over Ivan.
Jae Evolution
June 29th, 2012
5:36 pm
Sign Chauncey Billups and Omer Asik.
Four guard and big man rotation use the rest on quality wings for Williams.
jhan
June 29th, 2012
5:38 pm
Astro is correct – James & Wade are both clean cut & well spoken athletes. Everyone is sporting tatoos these days so that means nothing. Gentleman or A-hole who cares – its all about what happens on the court.
SteveW
June 29th, 2012
5:40 pm
H-S – Is Mike Scott “squeaky” clean? I have know idea. Maybe the Hawks are working on a trade, and the $500,000.00 they save on Scott over Ivan is a part of that, I don’t know.
We may keep Ivan for all any of us know right now..
newkid
June 29th, 2012
5:41 pm
To this point Ferry’s interview quotes aren’t the BS that consistently came out of the mouth of the Chump. Not sure if how long it’ll hast, but it’s a refreshing start.
Regarding the quality of last night’s selections, we’ll see.
Not disappointed that Ferry didn’t trade Josh to get into this year’s lottery. There’s more upside in the crop of post players expected in the ‘13 draft, therefore I’d prefer a Smoove deal (during summer of ‘12) that could land a ‘13 lottery selection. If so, sure hope we don’t blow it again.
Oh, has anyone seen Marvin since the spring of ‘05? Some have said that multiple poor lottery selections will set a franchise back a decade. If so, we’ve got at least an additional 3 years of purgatory. However, when combined with the Chump’s moronic financial decison on Joe, could be we’re in for an additional 5 years. Maybe that’s why Ferry insisted on a 6-year deal. Hope he brought an elephant-sized shovel.
Ra'mon
June 29th, 2012
5:41 pm
Ray, last season we had three SGs with Joe, Green, and Kirk. And that’s if you don’t include Tracy McGrady who played a lot at the 2 position. And Joe played a good bit of the 3 last season. If you bring in Mayo (who can run either guard spot), you have a better player than Kirk or JC was when they were here. A line up of Teague – Mayo – Joe – Josh – Al, is one that sounds a lot better than ANY lineup of Marvin or Kirk starting.
Big Ray
June 29th, 2012
5:41 pm
Did Chicago shut Jamal Down in the Chicago series. Yes. That is what great defensive teams do. They also shut down Horford, Joe and Josh. Blaming Jamal is nonsense especially when the Chicago made it their top priority to contain him. I don’t seem to remeber the many bad moments you speak of. I remeber the first year he was here playoffs when the whole team stuck up the joint, and I remember the Chicago series.
LOL….wrong. Chicago is a very good defensive team, and Orlando was a sorry one. But by your argument, Jamal was the shizzle…that is, until he ran into a team that could play defense (so how does that make him good again?).
Meanwhile, Joe is not the great player that we pay him to be, and he proved last season that he isn’t even the guy he used to be a couple/few years ago. Josh shut his own damn self down. Horford didn’t have enough offensive repertoire to overcome a defense like that.
But Jamal? If he’s so dang awesome, what happened out there in Portland?
BTW, getting sixth man of the year is what happens when you play in an ISO offense and you get to take the 2nd most shots on the team, while playing starter’s minutes because the starting SF on the team just can’t get the job done. Jamal should dedicate half that trophy to Marvin. Without him, he would not have gotten it.
baako
June 29th, 2012
5:43 pm
@lewis,
you can’t get mad at crawford for not “scoring with the offense” that fell on woody not having any semblence of an offense. i know i said woody but drew is guilty too. we looked like we don’t know where to go (or that you can pass the ball faster than you can dribble it)
SteveW
June 29th, 2012
5:45 pm
Ooops, “no” idea instead of “know” idea – I wonder if I beat Dept.?
SteveW
June 29th, 2012
5:51 pm
John Jenkins was shadowed by most teams. And I know Vandy plays a screen heavy O. But he did still get his shot off. And his stop and pop is great, as well as his J however his J is being shot in the offensive.
That said, the guy is no Ray Allen, Reggie Miller, or any other HOF type. DraftExpress says best case scenario is Anthony Morrow – NBADraft.net, who had him rated where the Hawks did evidently, much higher (#24) says Dell Curry or JJ Reddick
Seems like a good kid. Let’s give him a shot and see. But I never see him as a starter in the NBA, unless somebody’s injured or something.
AJ – If he turns into Ben Gordon, then I’m happy – except for the contract!
Jae Evolution
June 29th, 2012
5:53 pm
Chauncey Billups will probably be getting close to working out again. He is a guy that can start or come off the bench he is fine with both. Teach our relatively young guards in Teague/Jenkins. Leader who will get on guys like Smith if they are hanging their head. Does take bad shots, but makes a lot of shots. Gets to the FT line 5-6 times per game. Still has some game left in him.
SteveW
June 29th, 2012
5:53 pm
The Bulls are evidently releasing Korver, Brewer, and Watson in an effort to keep Asik this year, then Gibson next.
Sign CJ Watson. Yes he looked terrible in the playoffs – he’s not supposed to be a #1 option. But as a backup PG, he’s really good.
SteveW
June 29th, 2012
5:57 pm
Billups won’t be back until January at the earliest. I don’t care. I sign him in a heartbeat if I’ve got the opportunity.
Shamrock
June 29th, 2012
5:58 pm
I played with the Bulls on NBA2K, yeah CJ Watson is the #### as a backup. Sign him!
SteveW
June 29th, 2012
5:58 pm
Chicago is targeting Kirk to train Marquis Teague. Seriously.
Marquis Teague is going to surprise some people. He’s going to be an ok PG in the League.
SteveW
June 29th, 2012
5:58 pm
Marquis was rated way higher than Jeff coming into College.
jim
June 29th, 2012
6:00 pm
At the risk of being hung, I think this team can be very good next year. Before Horford got hurt they had already beaten Miami in Miami and Chicago at home. The core of this team is still intact plus I saw Zaza really step up last year. Teague will be in second year as starting point and if the idiot that is the coach will let him run the team they will get better. Josh can be an elite player if he focuses, Horford is solid, and they are stuck with Joe so make the most of it. They desperately need a backup center for Zaza that can play defense and if they can somehow find someone stupid enough to take Marvin they should resign Kurt. Resign Ivan and hope the 2 rookies are worth something and see what happens. If this team wins next year Josh won’t go anywhere.