Vertical breakdown: Bulls-Knicks trade
An analysis of Wednesday’s five-player deal in which New York acquired former league MVP Derrick Rose.
THE PRINCIPALS
New York receives
PG Derrick Rose
SG Justin Holiday
2017 second-round pick
Chicago receives
PG Jose Calderon
PG Jerian Grant
C Robin Lopez
THE THOUGHT PROCESS
New York
With a below-average market for free-agent point guards, New York fills a position of need with Rose, a former All-Star and league MVP.
Although Rose has missed parts of the past four seasons with various injuries, when healthy he is still a top-15 point guard.
New York can now use cap space in free agency to get more athletic at the wings.
There is no risk associated with New York in making a trade like this.
Chicago
Since tearing his ACL in a playoff game in 2012, Rose has been a shell of his former self.
Chicago acquires Calderon, who can start if needed, and Grant, who can handle backup minutes.
With Joakim Noah and Pau Gasol likely departing in free agency, Chicago addressed the center position with Lopez.
Although Lopez has three additional years left on his contract, there is value because of the rise of the salary cap this summer and in the future.
ROSTER AND SALARY CAP IMPACT
New York
2016
New York has six players under contract, including the non-guaranteed contract for Tony Wroten.
New York will have $12 million in cap space before the free-agent cap holds are addressed.
The likely scenario for the Knicks would be to leave the holds of Derrick Williams and Langston Galloway on the books.
Leaving the two holds would give New York $30 million in room to address needs in free agency.
2017
New York gains additional flexibility in 2017 by trading the remaining three years left on Lopez’s contract.
The expiring contract of Derrick Rose will give the Knicks $29 million in cap space in 2017.
The room can increase to $51 million if Rose’s free-agent hold is released.
Chicago
2016
The trade is cap neutral for Chicago.
Chicago has 10 guaranteed contracts, not including its own first-round pick and the non-guaranteed contracts of Spencer Dinwiddie and Cristiano Felicio.
The Bulls will not have cap space until a decision is made on Gasol and Noah. If both players are renounced, Chicago will have $16 million.
2017
The Bulls will lose $13 million in cap space next summer with the addition of Lopez.
However, Chicago, with only $34 million in guaranteed contracts, will gain additional flexibility based on the $56 million in free-agent cap holds.
THE CONTRACTS
The players in the deal cannot be traded with another player for two months from the date of the trade. They can be traded by themselves, but only to a team with cap space as long as the deal does not combine them with another player.
Derrick Rose
Rose will enter the final year of a $94 million rookie extension signed in 2011.
Rose’s cap hit for New York in 2016-17 will be $21,323,252.
Although Rose had a 15 percent trade bonus, being traded before July 1 will void the bonus.
New York saves $3 million in cap space by making the trade before July.
New York and Rose cannot extend the contract until six months from the day of trade.
Jose Calderon
Calderon will be in the final year of his contract.
Calderon’s cap hit for 2016-17 is $7,708,427.
Justin Holiday
Holiday will be in the final year of his contract.
Holiday’s cap hit for 2016-17 is $1,015,696.
Jerian Grant
Jerian Grant will be in the second year of his rookie-scale contract.
Grant’s cap hit for 2016-17 is $1,643,040.
Grant has a $50,000 bonus for summer league.
Chicago has until Oct. 31 to pick up the third-year option in Grant’s contract.
Robin Lopez
Lopez is in the second year of a $54 million contract signed last July.
The cap hit for 2016-17 is $13,219,250, and Lopez is owed $13,788,500 in 2017-18 and $14,357,750 in 2018-19.
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