What is Happening to Restricted Free Agency?
It’s been about one month since NBA free agency started, and there’s an ongoing trend. Most of the top available free agents are restricted free agents, but they’ve yet to be signed.
First, what does it mean to be a restricted free agent? Typically, players become restricted free agents after their rookie contract expires. However, for a player to become a restricted free agent, their original team must extend a qualifying offer. Being a restricted free agent means that the player’s original team (the team they’re with when their rookie contract expires) has the right to match any offer sheet the player signs with another team, giving them priority to re-sign the player.
Why are restricted free agents struggling to find a market and get signed? The top restricted free agents in this year’s class—Jonathan Kuminga, Josh Giddey, Cam Thomas, and Quentin Grimes—are all talented players who could command significant contracts. However, the teams that hold their rights don’t see them as long-term fits, or their situations clash with other offseason plans. It’s also important to note that under the new CBA, NBA teams have very limited cap space. This makes it easier for teams to retain their players, but much more difficult for players to sign elsewhere or find a deal that meets their expectations. For many of these teams, signing these restricted free agents would push them into the first or second apron, making it harder for front offices to make roster adjustments. General managers now face stricter limitations, and organizations could be heavily taxed as a result.
In Jonathan Kuminga’s specific situation, it’s clear he doesn’t want to be in Golden State after some dissatisfaction with his role amongst other things. The Warriors have his rights but are looking for sign-and-trade options so they can receive something in return. So far, there’s been no market for Kuminga. One, teams don’t have enough cap space to sign Kuminga for what he wants. Two, if a team were to acquire Kuminga via sign-and-trade, both teams involved in the deal would automatically be hard-capped at the first apron, which means they will only be allowed to use their Taxpayer MLE ($5.6 million) and sign players to minimum contracts. Organizations aren’t willing to lose their offseason perks for Kuminga.
Cam Thomas and Josh Giddey are being "lowballed" by the Bulls and the Nets, respectively. Giddey is seeking a five-year, $150 million contract, while Thomas is expecting more than a two-year, $28 million offer. Both the Bulls and Nets have implied that Thomas and Giddey do not fit their future plans and committing to them long-term for lots of money doesn’t make sense for the front offices. Philadelphia on the other hand, wants to keep Grimes, yet they won’t give him a hefty contract due to their money being all tied up in Joel Embiid, Tyrese Maxey, and Paul George.
What can free agents do if there’s no market for them? Since these players are restricted free agents, it means their original team extended a qualifying offer to them. A qualifying offer is a one-year extension worth 135% of a player’s previous salary. Players may have to put their dreams of a big payday on hold for another year, but once that one-year contract expires, they become unrestricted free agents. As unrestricted free agents, they can sign with any team that offers them a deal, and they will be more sought after, as potential new suitors don’t have to worry about former teams retaining their rights. Additionally, there will be an increase in cap space next season, which gives players a better chance of getting paid next summer. As it stands, this may be the most likely course of action for all four restricted free agents.
