The move was expected, and Ja Morant did not hide his feelings when it was done. The terms were shocking until more clarity appeared.
The Memphis Grizzlies brought back Luke Kennard on a reported one-year $11 million contract. They need his lights out shooting, but that deal would have pushed the franchise over the luxury tax.
Memphis has only paid the luxury tax twice in franchise history. Being over the line means owing a penalty and not getting a share of the taxes collected. The salaries are not calculated until the end of the season and teams cannot spend more than $170.814 million in the 2024-25 campaign.
The Grizzlies structured Kennard’s contract to narrowly avoid the luxury tax, but some unlikely incentives could shift the amount Memphis owes. Fans can already see how the front office will approach this situation.
Kennard actually signed a one-year deal worth $9.25 million with unlikely bonuses that could increase the value to $10.64 million, per Michael Scotto. The contract puts Memphis just $810,981 below the tax. Their wiggle room is small and could change quickly.
Kennard joins Desmond Bane and Brandon Clarke with impending bonuses. The front office will be watching those numbers closely. They are not paying the luxury tax and will likely pull off a trade if any of those three incentives are on pace to be met.
Memphis declined a $14.7 million team option on Kennard’s contract for the 2024-25 season. They clearly wanted him on their roster, but knew they were approaching the tax. It saved the Grizzlies more than $5 million but prevented them from keeping the sharpshooter long-term. That is a clear sign they won’t pay the tax.
Memphis will look to dump a cheap expiring contract before the deadline if they are expecting to exceed the tax. Derrick Rose or Mamadi Diakite seem like the most likely options to be let go if Bane, Clarke, or Kennard are on pace to get their bonuses.
The Grizzlies’ roster will only get more expensive. Jaren Jackson Jr. and Marcus Smart have just two seasons left on their contracts. JJJ will certainly want more on his next deal, and Memphis may need more pieces to build a serious contender around Ja Morant. The franchise wants flexibility, which means avoiding the tax this season.
The Memphis Grizzlies believe they will be back in contention with better health. Ja Morant is one of the NBA’s best and most electric players, and the franchise has talent. Just don’t expect to see the Grizz paying the tax.