The New Orleans Pelicans have not even entered free agency and already have two big additions -- first the hiring of new head of basketball operations David Griffin, and now the No. 1 pick in the 2019 NBA draft (and the chance to select Zion Williamson).
Despite the strong start to the offseason, there is still work to do, primarily with finding a resolution to the Anthony Davis trade demand.
Let's look ahead to free agency, draft and trade decisions facing the franchise this summer.
Get more team-by-team NBA offseason guides here.
Set a timeline on an Anthony Davis trade
The results from the lottery prove the Pelicans made the right decision in showing restraint at the trade deadline and choosing not to deal Davis. Instead of forcing a trade, New Orleans let the lottery dictate what direction the team would take with Davis.
Still, this result wasn't expected. Now the decision with Davis shifts to two choices: Sell the All-Star on a partnership with Williamson or continue to explore the market for the right trade package.
Despite the addition of Williamson, a Davis trade is still the likely outcome. Be prepared for the saga to remain at a slow crawl, with talks accelerating up to July 1 for these reasons:
Teams are operating under the 2018-19 salary cap until July 1. The Los Angeles Lakers are projected to have $32.5 million in room in the new cap year that can be used in a Davis deal.
Free agents cannot be signed and traded until July 1.
Playoff teams are ineligible to make trades until after they are eliminated.
The Boston Celtics are still in a holding pattern until July 1 and are waiting on a decision from Kyrie Irving.
Despite those restrictions, the goal for New Orleans is to have a framework of a deal settled when the July 1 moratorium is lifted. While the Pelicans were right to slow-play the Davis trade talks in February, that won't be the case this offseason.
If Davis is still on the roster in late July, New Orleans will begin to lose leverage. It would also keep the organization from executing a real rebuilding or retooling plan during the key early weeks of free agency.
The future of Jrue Holiday
The point guard will likely be collateral damage when Davis is traded. Once AD is gone, Holiday becomes New Orleans' best trade asset. Here's why he has appeal with teams:
Under contract through 2021-22 with these cap hits: $25.9 million, $25.9 million and $27.1 million
In the prime of his career; doesn't turn 29 until June
Elite defender who can play multiple positions; 2018 All-NBA defensive first team
Ranks No. 11 overall in ESPN's real plus-minus and No. 4 among point guards
Of course, New Orleans can do nothing, build around Holiday and go into next season with a competitive basketball team. The good news for the Pelicans is they have time to decide, given the length of Holiday's contract.
Summer salary-cap and roster breakdown
Resources available to build the roster:
The draft: top-10 pick and two second-rounders
Players and draft picks in a Davis trade
Cap space: $22 million to $30 million
Own free agents
Cap exceptions
Dates to watch
• Julius Randle has a June 29 deadline for his $9.1 million player option. Randle will likely opt out of his contract with the goal of securing a more lucrative deal. However, a big contract might have to wait until the summer of 2020, when the cap will spike to $118 million and more teams will have room.
Despite averaging a career-high 21.4 points per game this season, Randle is still a liability on defense. But the worst-case scenario is that he signs for the $9.2 million midlevel exception and pursues a big payday a year later.
• Former general manager Dell Demps' best work in free agency was identifying reclamation projects (Jahlil Okafor) and undrafted college players (Kenrich Williams). Okafor has turned into a serviceable backup center (8.2 points, 4.7 rebounds in 15.8 minutes per game) and has a team option that needs to be exercised by June 29. Unlike most team options -- under which the contract would be guaranteed if exercised -- Okafor is guaranteed only $54,323, with the remaining portion not protected.
• Williams has been one of the best success stories in the NBA this season. The only undrafted player out of the 2018 class to earn a regular-season roster spot, Williams averaged 30.9 minutes, 8.1 points and 6.4 rebounds after Jan. 29. Williams has $200,000 in guaranteed money if he is on the roster past July 20, with the remaining amount of his contract becoming guaranteed if he is not waived before the Pelicans' first game of the regular season.
• Former second-round pick Frank Jackson has a June 30 trigger date that would see his $1.6 million contract become guaranteed. After missing the 2017-18 season with a broken right foot, Jackson appeared in 61 games (16 starts). He averaged 29 MPG and 13.7 PPG after the All-Star break. Expect the guard to see his contract guaranteed.
• Stanley Johnson's post-trade audition wasn't great. He averaged a career-low 13.7 MPG and posted just 5.3 PPG. Johnson will become a free agent this summer, and the Pelicans have up until June 30 to tender him a $4.5 million qualifying offer. If New Orleans passes (a likely scenario), Johnson will still have Bird rights but with the unrestricted tag.
• Dairis Bertans' $1.4 million nonguaranteed contract has two trigger dates for partial protection. Bertans will receive $150,000 if he is not waived by Aug. 1 and an additional $150,000 if he is on the roster past Nov. 4.
• Christian Wood's $1.6 million nonguaranteed contract has $823K in salary protection if he is not waived before the team's first regular-season game.
Restrictions
Davis is one of 17 players with a trade bonus in his contract. Although the bonus is valued at 15 percent of his remaining compensation, Davis would earn only $65,976 if he's traded before July 1. The bonus cannot exceed the max ($25.46 million) for a player with zero to six years of service.
When Davis is eventually traded, likely after July 1, his years of service will increase to seven, thus making him eligible to receive a $4.06 million bonus. The amount of the trade bonus will be paid by the Pelicans and added to his 2019-20 salary (up to $31.15 million).
Keep in mind that Davis does have the right to void (or waive part of) the bonus in order to make the finances work in a deal. This will be a likely scenario if a trade with the Lakers materializes.
The Pelicans received $877,544 cash as part of the Markieff Morris trade and now have $4.36 million to use before July 1.
Extension candidates
Davis has met the supermax criteria (All-NBA in 2016-17 and 2017-18) and is eligible to sign a five-year, $239.5 million extension. Davis is not supermax eligible if he is traded to another team and is restricted to signing a four-year, $145.6 million extension six months after being traded.
For the second consecutive offseason, Solomon Hill and E'Twaun Moore are extension eligible. Though Hill will not receive a new contract, Moore is an interesting case. Since signing a four-year, $32 million contract in 2016, Moore has started 138 games, averaging 11 PPG while shooting 48.2 percent from the field and 40.9 percent from 3. Extending Moore an additional two seasons (2020-21 and 2021-22) to a contract comparable to the midlevel exception (projects to be $10 million in 2020-21) would give the Pelicans an insurance policy at a market-friendly salary. The maximum New Orleans can extend Moore for is four years, $49.5 million.
The draft
The big silver lining of Davis making his trade demand in February is that New Orleans didn't give up its first-round pick to make a quick fix to the roster. Instead, the Pelicans found a way into the middle of the lottery and then jumped all the way up to No. 1.
Here's how ESPN's Jonathan Givony and Mike Schmitz see New Orleans picking in the draft:
No. 1 (own): Zion Williamson | F | Duke
No. 39 (own): Luka Samanic | PF | Olimpija Ljubljana
No. 57 (Denver): Zylan Cheatham | PF | Arizona State