The Trade​

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Demar DeRozan was involved in a 3 team sign-and-trade on July 6, 2024. He signed a three-year $80 million deal and was traded to the Sacramento Kings. In return, the Chicago Bulls receive Kevin Huerter, Chris Duarte, a lottery-protected Kings’ 2027 first-round pick (which turns into two second-round picks if it doesn't convey in 2027), and cash considerations. The San Antonio Spurs were the third team involved in the trade and they receive Harrison Barnes and an unprotected pick swap in 2031 with Sacramento. Additionally, the Spurs sent RaiQuan Gray to the Bulls to help balance the salaries.



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Analysis

 

The Kings get their 3rd star which comes in the form of a 34-year old (35 next month) Dear DeRozan. DeRozan continues to play at an all-star level and ahas been a pillar of consistency and durability throughout his career. DeRozan's scoring ability and veteran presence are expected to enhance the Kings' offense and provide leadership to the team. There are some questions about fit but the this move undoubtedly makes the Kings better as they add one of the premier clutch players in the league, and someone who can carry the offence his own at times. The Bulls do well to get something for DeRozan who they were intent on moving as the team is headed towards a rebuild. However the decision to disband the core comes a little too late for Chicago as they do not get sufficient value for what Demar is worth, they haven’t been competitive, and they still have Lavine on their roster (who will be difficult to move) along with Vucevic and Ball whose trade worth has diminished. The Spurs take on the contract of Harrison Barnes into their cap room and in exchange for doing this they receive an unprotected Sacramento Kings pick swap in 2031 which could prove valuable. Harrison Barnes had a $3 million trade bonus which the Kings will have to pay.

 

Cap Breakdown

 

Demar DeRozan signs his deal with the Chicago Bulls as the Kings did not have the cap room to sign him to a three-year $80 million deal (worthy of noting that Fox and Sabonis are extension eligible in 3 years). The Kings then acquire Demar in a sign-and trade and send out Kevin Huerter, Chris Duarte and Harrison Barnes. Under the NBA's Collective Bargaining Agreement (CBA), a sign-and-trade contract must be for a minimum of three years. According to ESPN’s Bobby Marks, the Kings are $5.1M below the tax and will avoid the threshold once they sign 2 veteran minimum players. However, Sabonis, DeRozan and Lyles have bonuses in their contract that could put them into the tax if they are realized.The spurs have added a couple of veterans this off-season in Chris Paul and Harrison Barnes to play with their young core. They are currently below the luxury tax threshold.The Bulls are also currently under the luxury tax threshold. In the deal they acquire a $17.6 million trade exception. A trade exception is created by sending out more money in a trade than you take back. Trade exceptions can be used to acquire a player or players whose combined salaries are equal to or less than the value of the exception without the need to match salaries in a trade.

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Published July 9, 2024.