[UPDATE: I completely forgot about Jonathan Kuminga. I’ll fix it as soon as I get the chance]
Finally, we have some Sixers news! Well maybe not Sixers news per se, more like Sixers news adjacent that affects the one remaining item on the offseason to-do list, Quentin Grimes.
What Happened?
Heading into the offseason, there were 4 restricted free agents out there playing a high stakes game of chicken with their teams. Cam Thomas of the Nets, Josh Giddey of the Bulls, Jonathan Kuminga of the Warriors and Quentin Grimes of the Sixers were all given qualifying offers heading into their 5th season in the league having not yet previously secured a long term extension. All 4 are able to negotiate with any team in the league, but with the caveat that their current team gets the right of first refusal on any official offer sheet signed. Unfortunately for all 4, no one in the league has any real money to spend except the Nets and possibly the Jazz but they don’t want to spend. A few other teams only have the non-tax payer mid level exception of $14.1m.
Earlier this week, Cam Thomas chose to go the qualifying offer route after not getting the deal he wanted from anyone, including the Nets. This means he will play the season under a 1 year contract for $6m, but has a full no trade clause. At the end of this season he will be an unrestricted free agent. I can’t imagine he is too happy with the Nets though.
Yesterday, Josh Giddey resigned with the Bulls for 4/$100m. They were the only team in the league that could offer him such a large salary. It is probably a compromise from the likely $120m he wanted and the $65m the Bulls would have liked to pay. Why $65m? Because if no team can offer more than $14.1m this season, then $15m this year plus 5% annual raises comes to a deal that no one could match (except the Nets). The only thing Giddey had going for him is that the Bulls want to keep him and they are not a very smart organization. This made getting an above market deal much easier.
What Does It Mean?
If the other two RFAs signed this week, does that mean number 3 is right around the corner? Well, probably. Training Camp opens for the Sixers on September 24, just 2 weeks from today. The Qualifying Offer expires but can be extended on October 1. Basically, it is about time for one of these sides to make a move. If Grimes does not come to a deal and does not sign the Qualifying Offer, he cannot play this season.
What are the Options?
Not all Qualifying Offers are the same. Cam Thomas got $6m, but Grimes is in line for $8.7m. He could sign it. Neither side really wants to do that though. Signing ithe QO means a no trade clause that hurts the Sixers and less money hurting Grimes. The Sixers probably also have the same roughly $65m standing offer out to Grimes that I mentioned for Giddey. Since this is slightly more than anyone else can offer, the Sixers probably think market factors make this a more than fair deal. Grimes obviously wants more.
The Sixers are currently at around $186m in payroll. That’s just under the luxury tax, about $11m away from the First Apron, and $22m from the Second Apron. Signing Grimes to a $15m contract gets the team over the First Apron resulting in team building penalties and a higher luxury tax. That stinks for a team that might not be any good. If Grimes wants even more, that’s a tough pill to swallow.
What Can We Do?
Kelly Oubre hit the local news wire yesterday by complaining about Philly fans not wanting him. Kelly, this is no way to get people in the area to sympathize with you. He’s mad that they want to trade him and his $8.4m salary this season. He joins Andre Drummond and his $5m salary in contracts on the trade block that would make giving more money to Grimes much easier.
Despite their contracts not being very large, they are still not very movable. Drummond stinks, so no contender would want him at that number. Oubre could be helpful, but the team would need to match salary with a contender to get him off the team. They could engage the Nets or Jazz in trades that will not cost any additional salary, but it would cost draft capital. The Sixers don’t really want to do that.
In theory, if they could move off the $13.4m owed to Drummond and Oubre, that would take the currnt payroll down to $172.4 and the $65m contract could stay under the luxury tax (not that any of us care, but the Sixers clearly do). Or they could opt to up the contract to $20m per season and stay under the First Apron.
How Does it End?
As we head into the home stretch, someone is going to flinch. Either the Sixers offer a little more than they want, something around 4/$80m, or Grimes signs either the Qualifying Offer or for around 4/$65m. Grimes is not going to get anything near the Giddey contract. Let’s stop fighting guys, can’t we just come to a deal at around 4/$72m, open camp, and forget this whole thing ever happened?
All contract values courtesy of Spotrac, but the estimates are my own.
Philly Front Office 
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