Thursday, July 9, 2009

The Kirilenko Dilemma

Let’s start with a trivia question:

How much money will the Jazz pay for Andrei Kirilenko this season?

$15 Million?

$17 Million?

$20 Million?

The answer is $35 Million.

…Now wait a minute…isn’t Andrei Kirilenko set to make nearly $17M next season? In terms of salary… yes. In actuality, his cost to the franchise is much, much more. The Jazz are looking at $13 Million in luxury taxes, and an additional $5 Million in lost revenue. $17M + $13M + $5M = $35 Million.

This whole financial crisis the Jazz currently face can be directly linked back to Andrei Kirilenko. Never mind his lackluster production and sensitive skins, the Jazz have inescapably tied themselves to Kirilenko’s freakishly absurd contract for 2 more seasons.

Well, critics might argue that it’s only one year of luxury tax until Boozer’s contract comes off the books, and the Jazz will be OK. Bull Crap. $97 Million in real salary cost next season is unacceptable and has the potential to sink a small market franchise like the Jazz, no matter how “stable” they view themselves.

So the real question for the Jazz is how do they get rid of Andrei Kirilenko?

There are 3 options to this shiver creating nightmare:

#1 – Let Kirilenko play out his contract, underperform, and cost the team millions of dollars in luxury tax.

Consequences of #1 – The Jazz are bound financially this year and next year. The Jazz make the playoffs but fail to earn home court advantage, and thus l

ose in the first round both years. Failure to make the second round of the playoffs will cost the Jazz an additional $1 Million in potential revenue for every playoff game they miss. Kirilenko is set to cry at least twice more after a game. Jerry Sloan will rip AK a THIRD A-hole for trying to do too much outside the offense, 2 vacations will be planned during the last week of the season for the second round of the playoffs, and Kirilenko will never be happier despite his team being very mediocre.

#2 – Trade Kirilenko this year for cap relief this year.

Consequences of #2 – Though still facing luxury tax issues from returning contracts, relief from Kirilenko’s contract one year in advance would be very welcome. This would also allow the Jazz some flexibility in trading Carlos Boozer for a long-term high level player, rather than a role player with an expiring contract (see Joel Pryzbylla under “Expiring Role Player”). I believe this is the direction the Jazz would pursue if the Rip Hamilton for Carlos Boozer trade were to occur. Keep in mind the Jazz have a sure lottery pick next season from the Knicks, potentially in the top 5.

#3 – Keep Kirilenko this year, trade him next year when his contract is expiring for a high level player. The side piece here is to either trade Boozer now for cap relief, or let his contract expire.

Consequences of #3 - The positive side about this option is the Jazz would most definitely receive a very high quality player in return for Kirilenko’s expiring contract (an Emeka Okafor + expiring, or a sign and trade for one of the many free agents on the market like Joe Johnson or Michael Redd). The negative side about waiting to trade Kirilenko is we have to watch him all year. The Jazz also would face the major luxury tax problems this season still.

Kirilenko’s value will unquestionable increase significantly next season when he is set to expire. Would you be willing to sell your Zion’s bank stock for $12.00 per share right now knowing that next year the stock is going to be worth $20.00 per share? I believe Kirilenko’s value is set to increase by 50%-75% next season.

Again, the wildcard in this situation is the lottery pick the Jazz own next season, though you’ll never hear O’Connor mention that outside of Deron Williams, that is the most valuable asset the Jazz own.

Who knows, maybe we can trade his Masha’s “exception” clause. That would certainly net us more value than AK’s production at SF.