New orleans unlocks optionality in deal with memphis

The New Orleans Pelicans struck a deal with the Memphis Grizzlies that afforded them some options this offseason. The full details of the deal are below:

• MEM Receives: Eric Bledsoe, Steven Adams, picks 10, 40, and 2022 top 10 protected Lakers first.
• NOP Receives: Jonas Valanaciunas, picks 17 and 51.

This gives the Pelicans two ways of operating this offseason, either as an over-the-cap team, or a cap space team. Le's take a look at the two options and the optionality within each.

Operating as an Over-The-Cap Team
This would be my preferred route to go this offseason if I were David Griffin, the executive vice president of basketball operations in New Orleans. As it currently stands, the Pelicans are over the salary cap. They are, however, able to generate meaningful cap space this offseason. To do this, they would need to renounce their ability to do the following:

• The ability to re-sign Lonzo Ball
• The ability to re-sign Josh Hart
• Use the Non-Taxpayer Mid-Level Exception, worth ~$9.5 million
• Use the newly generated Eric Bledsoe Traded Player Exception, worth $18,125,000
• Use the Nicolo Melli Traded Player Exception, worth $3,897,436

​Would giving up all this really be worth being one of many suitors in the 35 year-old Kyle Lowry sweepstakes? With the alleged reports of Lowry wanting a deal at $30 million annually, his deal certainly won't be cheap. Even if they are dead-set on Lowry, they could still work a sign and trade with Toronto that could benefit all parties involved.

Let's move back to the trade exception that the Pelicans just created in the Memphis deal. This seems to be getting overlooked as a pivotal part of the deal. Below are just some of the players that fit inside of that $18,125,000 exception:

• Myles Turner
• Marcus Smart
• Joe Ingles
• Caris Levert
• Terry Rozier
• Bogdan Bogdanovic
• Malik Beasley

Not to mention the ability to work a sign-and-trade into that exception for current free agents, such as Duncan Robinson or Devonte' Graham.

Despite being "capped out" I firmly believe that operating as an over-the-cap team gives the Pelicans front office much more flexibility heading into a crucial offseason.

Operating as a Cap Space Team
The other avenue the Pelicans can explore is operating as a cap space team this offseason. As previously mentioned, they would be giving up quite a bit just to get to meaningful cap space. But it certainly is meaningful cap space. New Orleans could generate up to $36.5 million in space. This puts them in contention with every free agent on the market not named Kawhi Leonard. Some that could be on New Orleans' radar include:

• Kyle Lowry
• Mike Conley
  
• Chris Paul
  
• Duncan Robinson
  
• Devonte' Graham
  
• Dennis Schroder
  
• Tim Hardaway Jr
  
• Evan Fournier
  
• Lauri Markkanen
  

Along with these names, they could also use cap space on their own free agents in Ball and Hart. They could also renounce Ball and retain Hart's bird rights, which would give them $26 million in space, probably still enough to have a real shot in the Lowry sweepstakes. Say they do win the sweepstakes with an offer of 3 years $90 million, then they have the luxury of paying $30 million to a *gulp* 38 year old Kyle Lowry.

This cap space gives the illusion of optionality, but really at the most they would come out with two of the names mentioned above. it just doesn't make sense to go this route, unless the front office is absolutely in love with bringing in a guy like Lowry or Conley. Which, after seeing what Chris Paul did in Phoenix and OKC, isn't such a terrible idea. If you think Zion Williamson and Brandon Ingram are ready to make the leap and just need a veteran point guard that will get them there, you pull the trigger. But just know when the bill comes due on a Zion max extension, the roster won't be cheap.

Only time will tell which route the Pelicans go, but the trade with Memphis certainly freed up the ability to choose, which is all you can ask for in the League today.