How reported Monk contract changes Kings’ luxury tax situation

How reported Monk contract changes Kings’ luxury tax situation originally appeared on NBC Sports Bay Area

Malik Monk appears not to be going anywhere next season.

Monk intends to stay with the Kings and sign a four-year, $78 million contract that includes a player option for the final year, ESPN’s Adrian Wojnarowski reported Thursday night, citing sources.

While all signs lead to Sacramento keeping its beloved sixth man, what does the reported move mean for the team’s luxury tax situation?

The Kings put out the maximum that they were allowed to offer Monk due to his status as an “Early Bird” free agent. They now are roughly $1 million into the luxury tax after re-signing Monk, pending other moves, $6.3 million under the first apron and $17.1 million under the second apron, per Spotrac’s Keith Smith.

Smith also broke down Monk’s projected yearly earnings, totaling a $77.9 million deal over four years.

I’ve got Malik Monk re-signing for a starting salary of 175% of his previous salary, which is the most the Kings could offer using his Early Bird rights. That looks like:

24-25: $17.4M – 12.3% of the cap
25-26: $18.8M- 12.1% of the cap
26-27: $20.2M- 11.8% of the cap
27-28:…

— Keith Smith (@KeithSmithNBA) June 21, 2024

Monk’s new deal could make the Kings a taxpayer next season. With Keon Ellis‘ non-guaranteed salary and the cap hold for the team’s slated No. 13 pick, Sacramento already had about $155 million on the books for 12 players. Adding a $17.4 million salary for Monk will push that total above the projected luxury tax line ($171.3 million) with at least one more roster spot left to fill.

Sacramento could look to shed a contract – possibly Sasha Vezenkov and his $6.6 million cap hit.

Monk, the 2023-24 NBA Sixth Man of the Year runner-up, earned $36 million in his first seven NBA seasons across stints with the Charlotte Hornets, Los Angeles Lakers and Kings.

He’ll now earn that over the next two seasons.

The new CBA rules allowed the Kings and Monk to begin negotiations one day after the NBA Finals. It didn’t take long, though Monk officially can’t sign the agreed contract until July 6.

But it will give Kings…

Source link : https://finance.yahoo.com/news/reported-monk-contract-changes-kings-175756273.html

Author : NBC Sports BayArea

Publish date : 2024-06-21 17:59:12

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