Opt In, Opt In, and Opt In

Opt out or opt in? That is the question. While there are many answers to this question, the best answer to this question for the Utah Jazz is opt in. Opt in, opt in, and opt in. Carlos Boozer, Mehmet Okur, and Kyle Korver all should opt in for the remaining year of their contracts with the Jazz.

The main goal of any organization is to maximize assets, while minimizing liabilities (debts and expenses). NBA organizations are no different. Take a look at some of the most successful organizations in recent years (including major turnarounds):

Boston Celtics: Built a significant share of assets, used those assets to bring in Kevin Garnett and Ray Allen. The Celtics went from one of the worst teams in the NBA, to NBA champions, and arguably the best team in the NBA when healthy.

San Antonio Spurs: The Spurs have been more successful drafting late in the first round, than most teams in the lottery. Drafting players and keeping them overseas only to have their stock rise upon arrival to the US. Manu Ginobli and Tony Parker are resonating examples of the Spurs philosophy.

Los Angeles Lakers: The Lakers built a supporting cast for Kobe Bryant out of mid to high level role players. They used the asset of Kwame Brown’s expiring contract to land Pau Gasol, and they acquired and developed two nice assets in Shannon Brown and Trevor Ariza. Again, that seems to be working well for the Lakers.

Portland

Trailblazers: The Blazers were an absolute train wreck only a few years ago. That’s when the organization changed their philosophy and started to acquire draft picks and young talent. With the drafting of Brandon Roy, look for the Blazers to use these young assets to acquire a proven piece to pair with Roy in bringing the Blazers back to the highest stage of the NBA.

With the Economy in the pits, the most valuable assets in the NBA next season will be expiring contracts (NBA superstars excluded; LeBron, Kobe, DWade, and a few others). If the economy doesn’t rapidly turn around, half of the teams in the NBA will continue to bleed money. The longer these organizations bleed, the more desperate they will get. Unless a team is a contender by December, the trade deadline will arrive with many organizations desperate to move players and save money…enter Boozer, Okur and Korver.

Another reason why the expiring contracts would be valuable, is the 2010 off season. The Jazz would never be a major player in attracting top tie free agents, but other teams would love to clear cap space just to be in the picture.

On the flip side, if the economic struggles continue beyond this season, Andrei Kirilenko’s expiring contract will be far more valuable in two years than it is right now. In fact, I would argue that in terms of asset value, it would be more valuable for the Jazz if Andrei Kirilenko did NOT play a single game next season and trade him next season, then it would be for the Jazz to trade Andrei Kirilenko for say, a lower lottery pick or a couple of decent players.

Teams such as Sacramento, Golden State, Phoenix, Houston, San Antonio, New Orleans, Oklahoma City, Minnesota, Indiana, Chicago, Detroit, Philadelphia, New York, New Jersey, Charlotte, Miami, Atlanta, Washington and Denver all could be looking to acquire expiring contracts if the season turns in a negative direction.

With Korver, Boozer and Okur returning to the Jazz next season, the Jazz would have near $30M in expiring contracts in 2010, and near $23M expiring in 2011. In theory, the Jazz could acquire 2 high level stars in return for these players, possibly 3.

Don’t forget the Jazz own the rights to the New York Knicks draft pick in 2010, a draft considered to be significantly stronger than this year’s draft.

Opt in, opt in, and opt in. That’s the best case scenario for the jazz. The jazz need to focus on increasing their asset value. Having Boozer walk away now, would be like selling a stock at a 4 year low. Hold the stock, know that the stock will increase significantly next year.