Protected Picks Wring Out Some Sizzle From Trade Deadline Day

Indiana decision-makers Donnie Walsh (left) and Kevin Pritchard (Ron Hoskins/NBAE)

Indiana decision-makers Donnie Walsh (left) and Kevin Pritchard (Ron Hoskins/NBAE)

Trade deadline day in the NBA isn’t what it used to be, for a variety of reasons. The 2014 Draft has loomed large over this season, making teams leery of doing anything – trading a potentially valuable pick, improving their way out of the right combination of lottery balls – that might get between them and a franchise-altering prospect. New luxury-tax penalties have made teams loathe to cross the tax threshold for what might be a couple months’ impact. And looming free agency argues against a rent-a-player move.

Well, here’s another reason: the protected first-round pick.

Time was, a traded first-round pick was just that – traded. It got packaged up immediately in the deal, designed for whatever year applied. If it was for the very next draft, great. If it was for two or three years hence, that was fine, too. Everyone, including the team’s fans, knew the trade’s price and the payoff.

Now consider the way draft picks are dealt in the NBA of 2014. When the Chicago Bulls in early January surrendered to Luol Deng‘s impending free agency, compounded by their dashed ambitions in the wake of Derrick Rose‘s second season-ending knee injury, they shipped Deng to Cleveland. The headlines billed it as “Deng to Cavs for Bynum, three future picks.”

The devil, as they say, was in the details. Two of the picks sent to the Bulls in the deal will be second-rounders from Portland (2015, 2016). And the first-rounder they acquired, which began as Sacramento’s, could shrink all the way down to nothing thanks to the qualifiers attached to it: This year, the pick belongs to Chicago only if the Kings are poised to draft at No. 13 or later (they’re 18-36 at the moment, tied for the league’s fourth-worst record).

It is protected in 2015, 2016 and 2017 through No. 10, which is to say, if Sacramento isn’t at least vying for a playoff berth over the next three years, it still won’t have to cough up the pick. And if that’s the case, it becomes a 2017 second-round pick – but with protection for Nos. 56-60. If that kicks in, then the obligation is extinguished entirely.

Even the right to swap draft slots with the Cavs in 2015, a sweetener in the Deng deal, is protected through the lottery. As for center Andrew Bynum, he was involved merely to shed his $6 million salary off both teams’ caps; Chicago cut him the next day before a contract guarantee kicked in.

A half-season of Deng, in other words, potentially was traded for two second-round picks. That’s a lot less sexy and headline-grabbing than the deal originally appeared. And that has sapped some of the excitement from NBA trades, period, including deadline day.

What happened to cause this? Three little letters: C. Y. A.

“We all did it, I think, the minute the lottery came in,” said Indiana’s Donnie Walsh, a consultant to Larry Bird after a long career running the Pacers’ and Knicks’ front offices. “With the lottery, you could end up [losing] the first pick in the draft. Nobody wants to have that happen. You’d look like a fool.”

Or you’d look like the Clippers, who as recently as 2011 sent an unprotected first-round to Cleveland in a multi-player deal designed primarily to shed guard Baron Davis‘ $28 million contract obligations. Two months later, that pick bounced up to No. 1 in the lottery and became All-Star MVP Kyrie Irving. Neil Olshey, the Clippers’ GM at the time, works in Portland these days.

“So the lottery started it,” Walsh said, “and then it got more regimented from there. Because there were, what, seven teams in the lottery at first, then 11 in the lottery. Every time it got bigger, more teams tried to protect whatever it was, on that one chance they could lose something really good.”

For the folks who run NBA teams, it is a form of buying on credit. It is insurance for those who cut the dramatic deals that can dictate a team’s success or failure for a decade.

Sometimes protecting a pick and having its eventual payout hang over the franchise for several years – during which local media can remind fans of a bad trade again and again – can be worse than taking one’s medicine quickly and moving on. Voila!

“Sometimes you put that in the deal,” Walsh said. “Teams will put something in there where, you don’t have to give it but you can make them take it.”

Having what starts out as a glamorous first-round pick shrivel down to drab second-rounds or even vanish entirely might seem like bad business. But Walsh saw the pragmatic side of that. “If you’re looking to get rid of money and you have to wait three years to find out you got some seconds, so be it,” he said. “You’ve got time to make up for it.”

Protecting first-round picks rivals Congress for the way it kicks a potentially unpleasant can down the road.  Why give up a pick sooner when it can be conveyed later, presumably on someone else’s watch?

“I don’t think you think it out like that, because I don’t think you think you’re ever gonna get fired,” Walsh said, laughing before a recent Pacers home game. “But you want to push it down the road, yeah.

“You hope that you’ll be good by then and it won’t really hurt you. You figure, if it doesn’t work, I won’t be here. But if I am here, I don’t want to have to pay this off.”

One Comment

  1. Suresh says:

    A good read,very well written and it makes lot of sense too.