Ricky Rubio Contract Negotiations
Posted: Tue Jul 29, 2014 3:59 pm
We are all focused primarily on what's going to happen with Kevin Love. And I assume that is currentlhy Flip's primary focus. But the next major focus for Flip will be contract negotiations with Ricky's agent. As we all know, Ricky is in the final option year of his rookie contract, which both sides have until Oct. 31 of this year to extend it. If not, then the Wolves can extend the qualifying offer to Ricky after this season, making him a restricted free agent next summer. Then the Wolves will be positioned to match any offer.
There is certainly a decent argument for the Wolves to wait until next summer and test Ricky's market value via restricted free agency. But that approach is risky. It's risky because it puts the Wolves at the mercy of the contracts other teams offer Ricky, including poison pill provisions. In other words, it takes control away from the Wolves. There's also the risk of alienating Ricky and fostering even more uncertainty at a time when this organization needs to create some certainty and avoid the sort of bone-headed moves we saw in the Kahn era. Of course, waiting is also risky for Ricky because it exposes him to the risk of losing his market value through another major injury this upcoming season.
So where am I going with this? My main point is that both sides, if thinking rationally, have a strong incentive to agree on an extension by the Oct. 31 deadline. Acheiving that end will require compromise by both sides. Ricky's agent can't expect a FULL 5-year max deal. If he does, the Wolves might as well wait for restricted free agency next summer. But the Wolves brass and owner can't expect to end up with nothing more than a Stephen Curry contract and they will have to poney up more than the valuation they calculate in the private seclusion of their Target Center offices.
Here are three possible scenarios:
1. In my view, a fair deal would be the 4-year $48 million deal that Toronto just gave Lowry. But I suspect that Ricky's agent won't accept that deal. Bledsoe's agent has already turned down that amount from the Suns. I have no doubt that some team will offer significantly more than this amount next summer if Ricky becomes a restricted free agent. And if Ricky significantly improves his shooting, as I think he will, then he'll get substantially higher offers next summer. On the other hand, if Ricky likes it here and he can lock in a guaranteed $48 million for himself, then perhaps he'd tell his agent to accept it.
2. Another possibility would be the 5-year deal, but without annual increases so that the deal would start and end at the current player max of $14.7 million (maybe round up to $15 million per year). That would be a reasonable deal given the fact that the individual player max is likely to increase substantially after next season when the new TV contract bumps the salary cap up from $63 million to over $80 million. If that happens, as expected, $15 million per year will look cheap. The problem with a 5-year deal is that it would take the 5-year rookie extension away from the Wolves as a potential contract offer to Wiggins or LaVine down the road if one or the other turns out to be a star. So I'd hate to use the 5-year deal on Ricky if that can be avoided.
3. Another possibility would be a 4-year max deal (with annual increases), but with a 3rd year opt out like the contract we gave Love. With Love gone and the cap going up, this would not create any risk of putting the Wolves over the luxury tax threshold. The risk to the Wolves, of course, is apparent in what we are now experiencing with Kevin Love. In fact, the 3-year opt out would be available to Ricky's agent at the very time the cap is expected to skyrocket under the new TV deal.
Obviously, there are any number of places to land in between the three scenarios I've suggested above. If a deal gets done, its total value will be somewhere between $48 million and $80 million. I'll take $60 million over 4 years without an opt-out -- same total value as Pek's contract. But let's just hope the two sides get something done in the next few months. Then let's enjoy watching Ricky play with Wiggins, LaVine, Thad Young and Glen Robinson as a talented young Wolves team begins to take shape under Flip.
There is certainly a decent argument for the Wolves to wait until next summer and test Ricky's market value via restricted free agency. But that approach is risky. It's risky because it puts the Wolves at the mercy of the contracts other teams offer Ricky, including poison pill provisions. In other words, it takes control away from the Wolves. There's also the risk of alienating Ricky and fostering even more uncertainty at a time when this organization needs to create some certainty and avoid the sort of bone-headed moves we saw in the Kahn era. Of course, waiting is also risky for Ricky because it exposes him to the risk of losing his market value through another major injury this upcoming season.
So where am I going with this? My main point is that both sides, if thinking rationally, have a strong incentive to agree on an extension by the Oct. 31 deadline. Acheiving that end will require compromise by both sides. Ricky's agent can't expect a FULL 5-year max deal. If he does, the Wolves might as well wait for restricted free agency next summer. But the Wolves brass and owner can't expect to end up with nothing more than a Stephen Curry contract and they will have to poney up more than the valuation they calculate in the private seclusion of their Target Center offices.
Here are three possible scenarios:
1. In my view, a fair deal would be the 4-year $48 million deal that Toronto just gave Lowry. But I suspect that Ricky's agent won't accept that deal. Bledsoe's agent has already turned down that amount from the Suns. I have no doubt that some team will offer significantly more than this amount next summer if Ricky becomes a restricted free agent. And if Ricky significantly improves his shooting, as I think he will, then he'll get substantially higher offers next summer. On the other hand, if Ricky likes it here and he can lock in a guaranteed $48 million for himself, then perhaps he'd tell his agent to accept it.
2. Another possibility would be the 5-year deal, but without annual increases so that the deal would start and end at the current player max of $14.7 million (maybe round up to $15 million per year). That would be a reasonable deal given the fact that the individual player max is likely to increase substantially after next season when the new TV contract bumps the salary cap up from $63 million to over $80 million. If that happens, as expected, $15 million per year will look cheap. The problem with a 5-year deal is that it would take the 5-year rookie extension away from the Wolves as a potential contract offer to Wiggins or LaVine down the road if one or the other turns out to be a star. So I'd hate to use the 5-year deal on Ricky if that can be avoided.
3. Another possibility would be a 4-year max deal (with annual increases), but with a 3rd year opt out like the contract we gave Love. With Love gone and the cap going up, this would not create any risk of putting the Wolves over the luxury tax threshold. The risk to the Wolves, of course, is apparent in what we are now experiencing with Kevin Love. In fact, the 3-year opt out would be available to Ricky's agent at the very time the cap is expected to skyrocket under the new TV deal.
Obviously, there are any number of places to land in between the three scenarios I've suggested above. If a deal gets done, its total value will be somewhere between $48 million and $80 million. I'll take $60 million over 4 years without an opt-out -- same total value as Pek's contract. But let's just hope the two sides get something done in the next few months. Then let's enjoy watching Ricky play with Wiggins, LaVine, Thad Young and Glen Robinson as a talented young Wolves team begins to take shape under Flip.