“You're either all the way in or all the way out. There is no in-between.”
Executive Vice President David Griffin stressed that approach during his introductory press conference with the New Orleans Pelicans back in 2019. The remark was directed at Anthony Davis but has since been applied to Zion Williamson and Brandon Ingram. It's about time for that same mantra to trickle up to executive levels. Team Governor Gayle Benson and Griffin have to take a hard look at the message being sent to the Pelicans fanbase if the franchise refuses to operate over the luxury tax threshold just once over the next few seasons.
They also have to consider the hits to their legacies, especially if the mostly homegrown roster hits a first-round NBA Playoffs wall.
Griffin was last seen in the NBA Finals congratulating Lebron James, who will get most of the credit for that Cleveland Cavaliers championship. Griffin even admitted that the chance to build something organically was an attractive part of the New Orleans job. He has done well assembling a decent on-court product but this Pelicans squad is still arguably at least one piece away from truly contending for an NBA Finals appearance.
This is also a franchise that has never paid the luxury tax; ownership cashes a multi-million dollar check every year the team operates below the tax threshold.
That's a fine approach when building up a lottery team. It's borderline negligent when there is a title window pried wide open by Zion Williamson and Brandon Ingram. The tens of millions in revenue coming from playoff games and merchandise sales would go a long way to offset luxury tax fees. If it's money Benson is worried about, sell a minority stake to an eager investor contractually obligated and willing to foot the bill. I've confirmed the team has been approached by an interested party recently.
If Griffin thinks it's possible to win in the margins and build a non-luxury-tax contender is a different issue. Either way, the Devonte' Graham trade last year and Kira Lewis Jr's probably departure this year is one thing. If the Pelicans wind up shedding a fan-favorite like Herb Jones or Jose Alvarado just to duck the tax there will be some canceled season tickets. It may not cost Mrs. Benson money, but it'd be a small stain on the legacy as far as Big Easy basketball fans are concerned. Saving the franchise was a saintly move but letting it remain stagnate 20 years later would strike a sour note in a musical city.
Gayle Benson and David Griffin have to take into account how the next 18-36 months will largely define their stewardship of the Pelicans.
Sure, Gayle Benson saved the franchise from being relocated and pushed through a mostly well-received rebrand. Ownership has also pocketed millions per season for decades having never paid a cent into the collective luxury tax pool. If Zion Williamson pulls an Anthony Davis and is asking out in three years, all David Griffin did was spin the wheels to wind up where he started. In that case, he might not get to finish the job of rebuilding yet another roster.
Pelicans can cash in on Kira Lewis Jr.
The luxury tax line is set at $165,294,000. New Orleans need not go past that threshold until they are convinced the roster is of championship-caliber, and that may be a year away.
In that case, the Pelicans need to shed $2,936,197 in salary to avoid the luxury tax this season. Kira Lewis Jr. accounts for $5,722,116 on the cap sheet. Shedding that salary, even if it costs the team ‘cash considerations' in the deal, is all that is necessary to duck below the tax line. The organization would net around $15 million going that route.
There is another way to cash in on Kira Lewis Jr. but in assets, not actual cash. The Pelicans could use a rim-protecting reserve big man going into the February 8 trade deadline. Snagging Xavier Tillman (Memphis Grizzlies) or Goga Bitadze (Orlando Magic) for Lewis Jr. and a second-round pick would give New Orleans some depth while also avoiding the cap.
There aren't many other moves to be made except paying another team to take Lewis Jr. Team Governor Gayle Benson and EVP of Basketball Operations David Griffin have to be bold, and possibly break out the checkbook. If they don’t pay the tax and languish in the middle of the standings throughout Zion Williamson’s remaining five-year contract, both Benson and Griffin risk a substantial hit to their respective legacies.
One thing is for certain though, a move will be made. Bet your own legacy on it.
The worst spot to be in for the Pelicans going into the new CBA is where they are now. There is no sensible reason to be barely over the tax line and in the middle of the NBA Play-In Tournament battle with no way to substantially improve the roster. That half-way in, half-way out approach does not mesh well with the steadfast, family-like, culture-building philosophy Griffin has used to guide the team so far.
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