The Mastermind

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How Rich Cho Rescued the Bobcats from Salary Cap Hell

The Carolina Panthers’ offseason of pain – fueled by a half decade’s worth of cap mis-management – reminded me of just how great a job Bobcats general manager Rich Cho has done in cleaning up the Bobcats’ books. Though Cho has struggled somewhat in the Draft, the guy is an undeniable Salary Cap Genius. And when I say undeniable, I mean UNDENIABLE. Have a look at the Bobcats salary chart as of July of 2010, the summer before Cho arrived (click for a larger image):

Bobcats Salary Cap Chart 1

The miserable story behind these numbers is another post for another day. For now let’s just fast forward to July 2014:

Look at those gorgeous books! It took the team four long and mostly gruesome seasons but they finally did it. Gone are the days of the Gana Diop mid-level monstrosities and the Eduardo Najera “14th Men for $5 million” deals. Gone are the five year, $40 million contracts for perpetually enigmatic weirdos (T-Time). Outside of maybe the relatively minuscule miscues of Brendan Haywood and Bismack Biyombo (slightly overpaid $3.8 million), there isn’t a bad contract on the roster.

Whereas Larry Brown and Rod Higgins would’ve traded for over-priced role players in years past, Cho instead scoops up under-valued guys on the NBA’s fringe. Chris Douglas-Roberts and Anthony Tolliver were barely in the league last season and Charlotte’s paying them a combined $1.4 million to be key rotation players on a Playoff team. I’ll take that over $18 million of Gana Diop any day.

Check out these cap beauties:

  • The team’s three key upcoming free agents, Kemba Walker (2015), MKG (2016) and Cody Zeller (2017) are all on restricted rookie scale deals so they won’t be going anywhere unless the team wants them to. Added bonus: Unlike many past Cats’ draft picks, all three are solid prospects worth re-signing.
  • The team’s highest paid guys, Henderson and Big Al, are playing above their salary numbers.
  • The team’s 6th man, Gary Neal, makes just north of $3 million – or about a million less than the Cats were paying Matt Carroll to guard the Gatorade just four years ago.
  • In 2010, Charlotte paid Tyrus Thomas, Diop and Nazr Mohammed a combined $20 million to do whatever it was that they did. Next season the Hornets will pay the same amount for the collective services of Henderson, Kemba, MKG, Cody and Neal.

The team’s strategy has been simple: 1.) invest in cheap rookie contracts, 2.) dump attractive assets on long-term deals for picks and expirings, 3.) don’t sign free agents above market value (especially your own) and, finally, 4.) let father time take care of the rest.

Breaking the third rule is what got the Panthers into their current mess and what ultimately led to the Bobcats cap problems back in 2010. Charlotte bid against itself when the Cats re-signed Emeka Okafor in ’08 and the enormous contract ultimately led to them dumping Tyson Chandler for nothing two seasons later. By contrast, Cho strong-armed Henderson’s agent last summer – fully aware that as a restricted free agent, Gerald had little leverage in the negotiations. Presto! Hendo signed to a very reasonable three year deal.

Cho’s management of the cap has given Charlotte a tremendous amount of flexibility going forward. If Josh McRoberts opts out of his player option this summer (basically a given) and the Cats renounce his rights, they’ll be able to throw up to $12 million at a key free agent or absorb one via trade. If, for instance, the Wolves make Kevin Love available, Charlotte has the juice to trade Minnesota a prospect (Cody), a lottery pick (Detroit’s) AND cap space. That’s a Godfather offer difficult to trump.

Of course, there’s probably a better chance that neither K-Love, Luol Deng, Gordon Hayward or any other marquee free agent or disgrunteld vet make their way to the QC. In that case, Charlotte’s still fine. They can #BringBackMcBob on a front-loaded deal and save a little cash once Kemba’s extension kicks in the following summer. They could use the rest of their cap space to sign a decent backup PG to a short-term contract (the return of Ramon Sessions?) and bring back at least one of the Tolliver/CDR duo for wing/frontcourt depth.

Should that scenario play out, the Hornets could enter into next season as a Playoff team with upside AND tidy books:

A few notes on the chart:

  • I’m budgeting a three year, $15 million deal for McRoberts. He’ll turn just 29 during the contract’s final year, the timing of which coincides with Cody’s eventual extension.
  • Ramon would probably like a little more long-term security but it’s reasonable to think he’d take $4 million to play close to home with his old pals.
  • For Kemba’s extension, I just copied and pasted Ty Lawson’s contract – though I think there’s a chance Walker doesn’t get quite that much cash. Maybe 90%-95% of what Ty got. Still, it’s a decent comp going forward.
  • It’ll be very interesting to see what Cho does with his three first round picks over the next two Drafts. Should the team uncover a diamond in the mid to late round – say a TJ Warren or a Kyle Anderson – it would only improve their rosy cap situation going forward.

In summary: We may question the selection of Biz in the Lottery. We may ponder what Bradley Beal, Damian Lillard or Andre Drummond would’ve looked like in teal & purple. But when it comes to mastering the salary cap and wrangling the teams’ once wild books, Rich Cho has proven infallible.

-ASChin

@BaselineBuzz

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2 Responses to “The Mastermind”

  1. Jay
    March 19, 2014 at 6:56 pm #

    Cho has done a great job as general manager, but the salary cap rescue started before Cho was ever hired. Both Gerald Wallace (10 million a year)and Stephen Jackson (9 million a year) was traded while Cho was still in Portland.

    • ASChin
      March 27, 2014 at 6:28 pm #

      That’s absolutely true. Fresh off of an All-Star selection, Crash was the easiest piece to move and Higgins wisely didn’t waste any time making it. Though maybe he should’ve held off until Billy King and the Nets got antsy – Portland ended up getting a Lottery pick (Lillard) for Wallace just over a year later.

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