ESPN analyst analyzes financial ramifications of Hawks selecting player with No. 1 pick

The Hawks stunned the NBA world by winning the 2024 NBA Draft lottery on Sunday after entering the day with just a 3% chance of landing the No. 1 pick. Going from No. 10 to No. 1 is huge in any draft, even if this draft is perceived to be weaker than others. The Hawks could be facing an interesting situation with the salary cap according to ESPN’s Bobby Marks, as he explained yesterday:

“In any other year, climbing nine spots in the draft to No. 1 would be considered a coup, especially for an Atlanta Hawks team that has been mired in mediocrity over the past few years. of the past three seasons But team executives spoke to ESPN hours after Sunday’s draft lottery did not want to discuss who Atlanta might draft, but rather the financial ramifications of now having the top pick.

Since the NBA operates with a sliding rookie scale depending on when a player is selected, Atlanta would have to increase its payroll by an additional $7 million (the first pick is $12.6 million, up from $5 million). $5 million for a player selected 10th). This is important because Atlanta now has a salary of $175.9 million and is expected to be subject to the luxury tax for the first time since 2010-11.

What’s more important, however, is that the Hawks are $2.2 million over the top apron, due to improbable bonuses from De’Andre Hunter, Dejounte Murray and Clint Capela. Improbable incentives continue to count for the first and second apron even if they are not achieved. Signing restricted free agent Saddiq Bey to either a qualifying offer or a new contract would also push Atlanta over the second apron.

As teams have pointed out, keep an eye on the Hawks’ $23 million trade exception that expires on July 7. If Atlanta doesn’t lose salary, the exception is not allowed in a trade. Atlanta would also not be allowed to consolidate contracts or recoup more money in a transaction if the acquirer’s salary left them beyond the second apron.

Despite the bleak financial outlook, Capela (the Hawks’ starting center) has a $22.3 million contract that’s expiring and could be replaceable if Atlanta drafts Alex Sarr at No. 1. Additionally, except of veteran Trae Young, no player on the Hawks roster. earns over $25.5 million.

Atlanta is a team that has avoided paying the luxury tax in recent seasons, with the Kevin Huerter trade two summers ago and the John Collins deal last summer as two deals worth considering as savings salary for the team.

While this is an interesting thing to note, I don’t think it will be something that lingers on the Hawks using the No. 1 pick. If the Hawks take Sarr, I think they’ll try to move Capela. Even if Atlanta decides to take another prospect like Matas Buzelis or Donovan Clingan, I think moving on from Capela could be considered likely and a way to lower their salary.

Alex Sarr has been mocked by the Hawks by several major media outlets over the past 24 hours since the Draft Lottery and if Atlanta takes him, it makes a lot of sense. Atlanta has struggled on the defensive end in recent seasons and lacks size, athleticism and length, which Sarr brings in spades. He is 7’1, 220 LBS and has a wingspan of 7’4. He uses his athleticism well and would immediately be an impact guy on that side of the floor. He’s arguably the highest prospect in the draft at a position of need for the Hawks. He is the presumptive favorite to be selected No. 1 for a reason.