The Los Angeles Lakers are now in position to have a max salary slot in free agency and still acquire Anthony Davis. However, it will take cooperation from one or multiple teams, including the New Orleans Pelicans.
On Tuesday, league sources confirmed to ESPN that the Lakers have been canvassing the NBA looking for a third team (and possibly a fourth) to expand the Davis trade, which was agreed to on Saturday.
How would this work, what would the Lakers have to give up, and can they actually get it done? Let's dive into the details.
The current deal
As currently constructed, the trade package of Brandon Ingram, Lonzo Ball, Josh Hart, the No. 4 pick in Thursday's NBA draft and future draft compensation will cause the Lakers' salary-cap space to shrink from $32 million to $27.8 million if the trade is completed July 6. That flexibility will further decrease if Davis elects not to waive his $4.1 million trade bonus.
The Lakers could have asked New Orleans to wait to complete the deal July 30, when the salary for the No. 4 pick could have been included in the trade, allowing the Lakers' outgoing salary to fall within 125% of Davis' salary with or without the bonus, making the trade possible. In that scenario, Los Angeles would have been able to use $32 million in cap space for free agents before finalizing the move.
But the Pelicans are unwilling to move the trade back to July 30, according to league sources. As a result, the Lakers are now exploring the option of shedding the salaries of the remainder of the roster (except for Kyle Kuzma), including Moritz Wagner, Isaac Bonga and Jemerrio Jones. Jones' $1.4 million contract would need to be guaranteed to be included as part of the trade.
How the Lakers can create max space
Here is the timeline of what needs to happen for the Lakers to create $32 million in room, enough to offer a max contract to a third star:
1. Before free agency officially begins June 30, Los Angeles would need to find a third team or additional teams to take Wagner, Bonga and Jones. Theoretically, the Lakers could wait to find a three-team trade until after free agency starts, but they would be pitching free agents with $32 million in room that does not exist yet. That's an incredibly difficult sell.
Because the acquiring team or teams would be taking back guaranteed salary up to $4.9 million, they would need to have cap space. And to facilitate the deal, the Lakers would likely need to send draft picks and/or cash (to offset salary) as compensation. Currently, the Lakers are scheduled have $5.6 million in cash available to send and hold second-round picks in 2020, 2022, 2023, 2024 and 2025.
2. If Step 1 happens and Davis agrees to waive his trade bonus, the Lakers would have $32 million in cap room available to sign Kyrie Irving, Kemba Walker, Jimmy Butler or possibly even Kawhi Leonard to a max deal. Or they could split up the money among two or three free agents such as Patrick Beverley, Darren Collison, Danny Green, Bojan Bogdanovic, Jeremy Lamb, Nikola Mirotic and JJ Redick. In this scenario, each player would need to sign a contract July 6 before the Davis trade is completed.
3. With the Lakers acting as a team over the salary cap after space is extinguished, Davis could be acquired without Los Angeles needing room as a buffer. By combining the salaries of the six players leaving the Lakers for a total of $22.8 million, Davis could then be acquired using the 125% trade exception.
What a three-team trade could look like
Here is an example of a possible trade involving the Atlanta Hawks -- a team that could be looking to use its cap space to acquire future assets:
Lakers receive: Anthony Davis
Pelicans receive: Brandon Ingram, Lonzo Ball, Josh Hart, 2019 No. 4 pick, future draft assets (via Los Angeles, as previously agreed to) and $1.1 million in cash (via Atlanta)
Hawks receive: Moritz Wagner, Isaac Bonga, Jemerrio Jones, cash (via Los Angeles) and future second-round compensation (via Los Angeles)
Because the trade involves more than two teams, the touching rule would be enforced as part of the deal, meaning Atlanta and New Orleans would have to exchange some sort of asset. That could include cash (included in the above trade), a future draft pick (though not a top-55 protected second-rounder), a player under contract or the draft rights to a former pick. A protected second-round pick is not allowed here because there is no guarantee that the draft compensation would ever be conveyed.
Is this trade a realistic possibility?
While this trade would make sense for the Lakers and Hawks (if the draft assets and cash going to Atlanta are compelling enough), it doesn't appear very compelling for the Pelicans. In such a trade, New Orleans would benefit by not being on the hook to pay Davis his $4.1 million trade bonus -- but the Pelicans would also be granting the Lakers the cap flexibility to add a third superstar or an extra $9 million to fill out their bench. That seems unlikely when the Pelicans own multiple first-round picks via the Lakers in future years.
So, without significant additional assets headed to New Orleans from the Lakers or the other teams in the deal, there is little incentive for the Pelicans to allow this to happen. And while Wagner and Bonga might have some appeal to a team like Atlanta, they're unlikely to fetch enough for the Pelicans to engage in these complicated mechanics.
But if the Pelicans do agree to cooperate, the question then becomes: Can the Lakers find a team willing to join the trade as the clock ticks down to June 30? If they do, the difference could be a third max player or enough money to bolster the depth of this roster around Anthony Davis and LeBron James.