New Orleans Pelicans financial situation affects rebuild approach

With an Anthony Davis trade all but eminent, the New Orleans Pelicans are expected to go through a rebuilding period. The salary sheet for the next few seasons should help accelerate the Pelicans into a new era of playoff contention.

The chances of Anthony Davis staying in New Orleans are minuscule. In most of the hypothetical trades for Davis, the New Orleans Pelicans take back less than the $27 million Davis is owed next season. However, finding some trades to fill that space with NBA ready talent should be a priority. Jrue Holiday (28) will want to contend for the playoffs again very soon, and keeping him happy is paramount.

The Pelicans’ current roster has a few foundation pieces for a quick rebuild, of course starting with Holiday. Jrue Holiday has become the soul of the franchise, and is worth every bit of his $27,131,111 cap charge for next season.

Solomon Hill still counts for just over $13 million, but at least now it’s an expiring deal. Davis counts for $27 million. In two separate deals, a new general manager can find the Pelicans $40 million in useful talent if both of these players find new homes via trade. Hill’s contract, paired with the right assets and roster flotsam, could potentially net a solid NBA starter on the wing.

That’s $67 million towards an expected $110 million cap, with the expectation or hope that two-thirds of that is replaced with immediate upgrades and potential stars.

E’Twaun Moore is due $8.6 million and is the most likely candidate to be packaged with Hill in a trade. Replacing Moore and Hill with a $20 million dollar talent combined with the Davis trade haul should give Jrue a couple of borderline all-stars to begin a new era with.

Jahlil Okafor has yet to convince some, but there is value in his team option for $1.7 million. Christian Wood and Frank Jackson are both due just over $1.6 million and provide sufficient depth with plenty of room to improve.

Kenrich Williams and Dairis Bertans both have non-guaranteed deals worth $1.4 million. The Pelicans look to have both cap space and several high drafts picks this off season. Bertans and Williams have little trade value but could find themselves thrown into a bigger transaction if need be.

Picking up all options, having Julius Randle opt in, and matching Davis’ salary in a trade, the Pelicans have $92 million committed towards next season. If Randle opts out and the Pelicans decline options on Williams and Bertans, the total salary committed drops to approximately $52 million, plus the salary added in the Davis trade.

That would be plenty of room to resign Elfrid Payton ($3m) and Cheick Diallo ($1.5). As long as neither ask for double their current salary, the new front office should try to keep them on the roster. New Orleans would then be looking at around $57m committed.

Most expect Julius Randle to opt out of his sub-$10 million contract option for next season. Randle is arguably not worth much more to New Orleans. His on/off numbers and 21 PER suggest he makes but a marginal difference for the Pelicans despite his ability to score in bunches. However keeping Randle should not take the Pelicans’ wage bill past about $72 million.

All things considered, the new general manager should have a decent core around Jrue Holiday plus enough salary space ($30-55m) to add another difference maker. That, along with the Davis trade haul and one other smart move puts the Pelicans into playoff contention next season with assets moving forward in future drafts to continue an upward trajectory.

Considering the dour mood surrounding the end of the Dell Demp/Anthony Davis Era, any new general manager with a modicum of initial success would be considered for end of the year executive awards. Giving the city a feeling of basketball integrity and a playoff appearance would buy lots of goodwill as well for the New Orleans Pelicans.