Heat offer Dwyane Wade an extension
Mark Deeks on 07.13.09
ESPN.com: Heat try to keep Dwyane Wade for reasons that are hopefully really obvious.

When Dwyane Wade checked his cell phone shortly after midnight Sunday, he got perhaps the most predictable text message of his life.

After all, it hardly classifies as stunning news that the Miami Heat want to keep him.

Wade said Heat president Pat Riley texted those sentiments very early Sunday, in what amounts to a largely ceremonial move. The Heat had to wait until 12:01 a.m. on July 12 before they could formally offer an extension to the reigning NBA scoring champion, and Wade said Riley didn't wait too long before pressing the send button.

"It's no rush," Wade said. "We all know that."


Like the opening of the article says, it's not really news. It's just a necessary piece of procedure that we all knew was going to happen anyway.

But it does serve as an excuse for talking about the possibility of Wade coming to Chicago.

Trading for him is not a realistic option. Barring the rarest of rare exceptions (i.e. Shaquille O'Neal), teams do not trade the game's true elites. When they do, it's usually because there's something wrong with the superstar. And the only thing wrong with Wade in Miami right now is that his supporting cast involves giving rotation minutes to Yakhouba Diawara and Joel Anthony.

However, that's also the reason why he may become available. The best big man on the current Heat team is the corpse of Jermaine O'Neal. The best of the small forward conglomerate is Jamario Moon. The backup center is Joel Anthony, the backup point guard is Chris Quinn, the best shooter is Daequan Cook. It's a very weak supporting cast, and if Wade wants to win, that needs to change.

In theory - and it remains merely an optimistic theory until further notice - Wade can pursue what he considers to be a better situation in free agency. But, if that's a possibility, we need to consider the financial ramifications of such a decision.

Wade (along with friends LeBron James and Chris Bosh) signed three year maximum contract extensions to their rookie contracts, with the fourth year as a player option, when they could have signed 5 year extensions. He did this for a reason; the maximum salary changes depending on how many years a player has been in the league, and it spikes upwards when they become a seven year veteran. Therefore, by allowing himself a way to become a free agent after he completes his seventh season, Wade made it theoretically possible for him to get more money. And that matters to him.

Here's how those numbers break down.


1) If Wade opted out in the summer of 2010 and signed a maximum salary with another team, his salary would go thusly:

2009/10 - $15,779,912 (last year of current contract)
2010/11 - $16,568,908
2011/12 - $17,894,420
2012/13 - $19,219,933
2013/14 - $20,545,445
2014/15 - $21,870,958


Total: $111,879,576 over 6 years.


In this scenario, Wade plays out the 2009/10 season and then signs a five year contract with the new team, who are limited to 8% annual raises taken from the value of the first year of the new contract ($1,325,512.61 per annum). His maximum in the first year would be limited to 105% of the last year of his previous salary, but due to the opt out, it would now be 105% of $15,779,912 instead.

(The maximum salary for a 7 year vet - which is what Wade will be in the summer of 2010 - is calculated as being either 30% of 48.04% of the league's projected Basketball Related Income for the upcoming season, or 105% of the last season's salary of their previous contract; whichever is greater. Wade et al signed extensions with a 2010 opt-out on the belief that the salary cap would have gone up sufficiently to make their maximum salary in the 2010/11 season higher than the maximum amount of $17,149,243 that their extension could offer. But, since the cap has gone down and not up, that hasn't happened. So the 105% figure will be the applicable one.)


2) If Wade opted out in the summer of 2010 and re-signed with the Heat to a maximum contract, his salary would go thusly:

2009/10 - $15,779,912 (last year of current contract)
2010/11 - $16,568,908
2011/12 - $18,308,643
2012/13 - $20,048,378
2013/14 - $21,788,113
2014/15 - $23,527,849
2015/16 - $25,267,584


Total: $141,289,387 over 7 years.


In this scenario, Wade plays out the 2009/10 season and then signs a new six year contract with the Heat, who are limited to 10.5% annual raises taken from the value of the first year of the new contract ($1,739,735.30 per annum). As before, his maximum salary would be for 105% of the last year's salary of the previous contract (which was $15,779,912), creating a maximum starting salary of $16,568,907.60. The obvious advantage to Wade here is the extra year of salary.


3) If Wade opted in in the summer of 2010, and signed a maximum value extension with the Heat, (as the Heat would like him to do and as the initial article reports they have offered), he would be paid the following:

2009/10 - $15,779,912
2010/11 - $17,149,243 (last year of current contract)
2011/12 - $18,006,705
2012-13 - $19,807,376
2013/14 - $21,608,046
2014/15 - $23,408,717


Total: $115,759,999 over 6 years.


Wade can sign extensions up to six years in length (where seasons remaining on his current contract are included in that six years), with 10.5% annual raises taken from the last year of the previous contract (which would be $17,149,243, thereby meaning annual raises of $1,800,670.52). The extension would start at the maximum 105% of the final year of his previous contract (105% of $17and then increase by $1,800,670.52 for the life of the contract.

(By the way, I realise this is all really confusing. I'm having to take great care just to get it right myself.)


4) If Wade opted in in the summer of 2010, lets it expire, and then re-signed with the Heat for the maximum, this be his:

2009/10 - $15,779,912
2010/11 - $17,149,243 (last year of current contract)
2011/12 - $18,006,705
2012-13 - $19,897,409
2013/14 - $21,788,113
2014/15 - $23,678,817
2015/16 - $25,569,521
2016/17 - $27,460,225

Total: $169,329,945 over 8 years.


In this scenario, Wade plays out the 2009/10 and 2010/11 seasons on his current contract, and then signs a new six year contract with the Heat, who are limited to 10.5% annual raises taken from the value of the first year of the new contract ($1,890,704 per annum). As ever, his maximum salary would be for 105% of the last year's salary of the previous contract (which was $17,149,243), creating a maximum starting salary of $18,006,705. The obvious advantage to Wade here is the two extra years of salary.


Finally....

5) If Wade opted in in the summer of 2010, lets it expire, and then signed with another team for the maximum, he'd get:

2009/10 - $15,779,912
2010/11 - $17,149,243 (last year of current contract)
2011/12 - $18,006,705
2012-13 - $19,447,242
2013/14 - $20,887,778
2014/15 - $22,328,314
2015/16 - $23,768,851

Total: $137,367,045 over 7 years.


In this scenario, Wade plays out the 2009/10 and 2010/11 seasons on his current contract, and then signs a new five year contract with another team, who are limited to 8% annual raises taken from the value of the first year of the new contract ($1,440,536.41 per annum). As ever, his maximum salary would be for 105% of the last year's salary of the previous contract (which was $17,149,243), creating a maximum starting salary of $18,006,705.


(Phewph.)


All of these circumstances are dependent on the idea that either the Heat or another team will pay him the maximum amount. In the short term, this is a given, but there may be some objections to the 7 and 8 year longs scenario about giving a 30+ year old Wade over $23 million. I'd pause for thought on that too.

However, the point remains; if money is the sole motivation, then there's no doubt about the fact that the Heat are in the driving seat. Due to their ability to offer 10.5% raises and more years of salary, no matter how the situation plays out, they still hold more cards financially.

That's why, if you're a Wade-to-Chicago fan (or a LeBron-James-toChicago fan, or a Chris-Bosh-to-Chicago fan), then you ought to start rooting for the abject failure of the Miami Heat, their franchise and all their players. If Wade's priority is to get paid as much as possible, then we won't win him in a free agency bidding war, but if he wants to win AND get paid, then the Bulls need to keep their youngsters and best players while opening up maximum cap room. They have to be a more tempting basketball operation for him to play for than the Heat.

And there's a chance, you know. Regardless of what you think of the Bulls roster, it boasts a potential superstar young point guard, a cheap (for now) starting calibre centre, and a player who was regarded as one of the game's best young forwards until he broke his leg. It has youth, athleticism and potential on its side, and the future looks even rosier if you think anything of Tyrus Thomas, James Johnson and Omer Asik. (We'll disregard them for now, objectively.)

The Heat, currently, have Michael Beasley. And that's it. Mario Chalmers too if you're generous.

There's a future here in Chicago. There's genuine potential and genuine talent (as opposed to faux talent, the worst kind of talent). Add a superstar to it, and you're suddenly competitive. The 2010 crop will know this too, and the potential sell of that is what the Bulls have going for them as free agency players.

Having $18,006,705 in cap room will be pretty imperative, too.