The headline reads that the San Antonio Spurs missed the playoffs for the first time since 1997.
But the Spurs are well positioned for the future. The seeding games in Florida proved that there is a young foundation in place, led by Dejounte Murray and Derrick White.
The Spurs now shift their focus to their veterans on expiring contracts: DeMar DeRozan, LaMarcus Aldridge, Patty Mills and Rudy Gay.
Let's look at the decisions San Antonio will face in the offseason, starting with the future of DeRozan.
MORE: Biggest trade, free agency and draft decisions for every eliminated NBA team
The future of DeMar DeRozan
In normal circumstances, a four-time All-Star coming off another strong season in the prime of his career would opt out of his contract, looking for that one last big bite of the free agency apple.
However, in the case of DeRozan, the unknown of the salary cap in 2020-21 -- along with a shallow pool of teams that have cap space -- makes his future uncertain.
Factor in that the Spurs are at a crossroads, heading to the lottery for the first time since 1997, when Tim Duncan was selected.
If DeRozan does opt into his $27.7 million contract (a decision that has to come by Oct. 13, five days before the start of free agency), both sides will need to weigh what the future holds and the below options:
The Chris Paul option
On June 28, 2017, Paul opted into his $24.3 million contract with the LA Clippers -- but with the intention of getting traded to the Houston Rockets. The players the Clippers received in the trade (Lou Williams, Patrick Beverley and Montrezl Harrell) would jump start the retooling of their roster. Paul played out the season on an expiring contract, eventually signing a $160 million contract the following summer with the Rockets.
This option would see DeRozan opt into his contract on Oct. 13 and eventually be traded either before the start of the moratorium on Oct. 19 or on Oct. 23.
A team not below the cap would need to send back $22 million in salary. Because San Antonio has not been a free-agent destination (outside of Aldridge), the goal for the Spurs would be to target players that have at least two years left on their contracts -- for example, Denver Nuggets shooting guard Gary Harris.
The contract extension
Is DeRozan part of the future? If so, an extension can add up to an additional four seasons (through 2023-24) and $149 million of new money. There are no restrictions on what percentage an extension can decrease.
Sign and trade
This would see DeRozan opt out of his contract and become a free agent, then be signed and moved to another team. It would also see San Antonio receive compensation back in the form of a player.
In this situation, because the free-agent market of teams is limited, DeRozan would follow the path of Jimmy Butler to the Miami Heat and D'Angelo Russell to the Golden State Warriors last offseason. However, as we saw with both the Heat and Warriors, a team acquiring a player in a sign-and-trade becomes hard capped, putting further financial restrictions on their roster.
One way to work around the hard cap would be for DeRozan to opt into his contract (see above) and then work out a trade. However, DeRozan would have to wait six months from the time of the trade to sign an extension for the maximum amount allowed: four years, $149 million.
Opt in and play out the season
We probably should move this up to the top of the list. This is the smart play, allowing DeRozan to have the financial security ($27.7 million) for the 2020-21 season and then work out either an extension or a trade.
Opt out and become a free agent
This is not the best summer to become a free agent. Atlanta Hawks, Charlotte Hornets, Detroit Pistons, Miami Heat and New York Knicks are the five teams projected to have cap space north of $20 million this year. Other than the Heat, these are considered rebuilding teams.
Would DeRozan sign with Miami on a one-year, $25 million contract and enter free agency in 2021? Does a team like New York see him as the face of the franchise moving forward? How about a young team like Atlanta?
Of course, DeRozan could choose to opt out without the assurance that a new contract is waiting from him either with San Antonio or a new team.
The direction with the roster
The optics would initially suggest that San Antonio will put a for-sale sign on their roster this offseason.
• The Spurs are making their first lottery appearance since 1997.
• In the three previous seasons, they were bounced out of the first round twice.
But the reality is that the eight seeding games in Florida should serve as a blueprint moving forward.
Playing without three starters -- Aldridge, Bryn Forbes and Trey Lyles -- the Spurs won five games with a starting lineup featuring one veteran: DeRozan.
The Spurs have made a conscientious effort to draft and develop well, with 60% of their roster projected to be under the age of 26 next season. In addition to their lottery pick and second-rounder in Oct., the Spurs will have five players under 25: Murray, Keldon Johnson, Luka Samanic, Lonnie Walker IV and Lyles. Restricted free agent center Jakob Poeltl is 24 and guard Derrick White turned 26 in July.
The big decisions now will come down to their veterans. San Antonio has four players with an average age of 33: DeRozan, Aldridge, Rudy Gay and Patty Mills. They are on expiring contracts worth $80 million -- 66% of the Spurs' total payroll in 2020-21.
While expiring contracts don't have the same value as they once did because the acquiring team views them as a short-term rental, all four players would help a contending team. But first San Antonio needs to make a decision on what direction they take: whether to rebuild, retool or remain the same.
The Spurs are currently projected to have close to $75 million in flexibility during the summer of 2021 if they let the contracts of their veterans expire.
The DeRozan player option and $11.3 million free-agent hold for Poeltl has San Antonio over the salary cap. San Antonio does not have room if DeRozan opts out, Poeltl returns and Lyles and Chimezie Metu are both waived.
Staying over the salary cap would leave the Spurs with the $9.3 million midlevel and $3.6 million biannual exceptions.
If they go under, San Antonio would have the $4.8 million room midlevel.
The resources available to build the roster
1. The draft: lottery pick and second-round selection
2. DeMar DeRozan: Cap flexibility if he opts out or can execute a sign-and-trade
3. Expiring contracts: LaMarcus Aldridge, Patty Mills and Rudy Gay
4. Young players: Dejounte Murray, Lonnie Walker IV, Derrick White, Keldon Johnson and Luka Samanic
5. Own free agents: Jakob Poeltl and Bryn Forbes
6. Exceptions: $9.3 million midlevel and $3.6 million biannual
Dates to watch
• While San Antonio cannot control the Oct. player option deadline for DeRozan, they do for two players: Lyles and Metu. Lyles started 53 games at power forward, averaging a career high in minutes (20.2) while averaging 6.4 points. He did not play in the eight seeding games because of an appendectomy. Lyles has $1 million protected of his $5.5 million contract with the balance guaranteed if he is not waived by Oct. 18.
Drafted in the second round in 2018, Metu has played 47 games, averaging 5.3 minutes and 2.3 points. His $1,663,861 contract is non-guaranteed but does have $500K in protection if he is not waived by early November (the date is not finalized).
• The Spurs will (or they should) tender Poeltl a $4.6 million one-year qualifying offer by Oct. 17. The former lottery pick acquired by San Antonio in the Kawhi Leonard trade played 17.7 minutes per game and averaged a career high 5.7 rebounds and 1.4 blocks per game. With Poeltl on the court, the Spurs allowed 108.9 points per 100 possessions; overall, San Antonio allowed 112.6 points per 100 possessions.
Restrictions
• The amount of protection Lyles ($1 million), Metu ($0) and Tyler Zeller ($0) to be used as outgoing salary in a trade. • Murray has a poison pill restriction in his contract that expires on Oct. 19. • For trade purposes, Murray counts as $13.2 million incoming salary for a team acquiring him and $2.3 million outgoing salary.
Extension candidates
The Spurs showed last year with the Murray rookie extension that they are willing to commit to a young player. Murray is the first player that the Spurs have signed to a rookie extension since R.C. Buford took over.
Now entering the offseason, will that continue with White? He's become a key player for San Antonio. In the first reseeding game against the Sacramento Kings, White showed how valuable he is to the Spurs. The box score shows 26 points, 8 rebounds, 5 assists and a plus-19 when he was on the court -- and doesn't show the five charges that White took in the 34 minutes on the court.
An extension for White should project in the four-year, $52 million range, allowing San Antonio to still have north of $70 million in cap space in 2021.
DeRozan, Aldridge, Mills and Metu are also extension eligible.
The draft assets
Here is how Jonathan Givony and Mike Schmitz have San Antonio selecting in Oct.:
• No. 11 (own): Devin Vassell | SG/SF | Florida State
• No. 41 (own): Desmond Bane | SG | TCU
The Spurs own all their first-round picks in future seasons.