If the Miami Heat are serious about landing Jonathan Kuminga from the Golden State Warriors, they will need to figure out a way around one major obstacle: Base Year Compensation.
Otherwise known as BYC, this is a somewhat obscure NBA rule that applies exclusively to sign-and-trade scenarios. In the Heat’s case, it means everything to their pursuit of Kuminga, because they have no realistic way of acquiring him beyond a sign-and-trade.
Not only do the Warriors have the ability to match any offers the 22-year-old receives, but Miami will not be working with any cap space in free agency. All roads to landing Kuminga instead must run through trade talks with Golden State.
Landing Jonathan Kuminga is all sorts of complicated
Because Kuminga will be a free agent with full Bird rights and in line for a raise that exceeds 20 percent of his current price point ($7.6 million), his outgoing value to the Warriors will be 50 percent of his new salary. Miami, meanwhile, would have to plan around 100 percent of his new pay grade when making its own math work.
So let’s say the Heat agree to pay Kuminga $25 million per year. They must account for every single dollar of that amount when constructing a trade. Squads beneath the first apron can take back around $8.5 million in additional salary when moving a player making between $7.25 million and $29 million. Miami, in theory, can send out Duncan Robinson, and remain within the necessary parameters.
Yet, the BYC rule stipulates that Kuminga counts as just $12.5 million in outgoing salary for Golden State. That difference can make it difficult to properly match money.
The Warriors in this scenario can take back someone earning between $20 million and $21 million, so Robinson’s $19.9 million salary technically works. But that’s only if they also plan to remain beneath the first apron. Figuring out a package gets much harder if they’re attempting to avoid being hard-capped as part of any Kuminga sign-and-trade.
The Heat probably need help to trade for Jonathan Kuminga
While BYC renders Kuminga-to-Miami hypotheticals challenging, they are far from impossible. Everything likely hinges on finding a third team to facilitate the deal.
Yes, a sign-and-trade can be more straightforward if the Golden State doesn’t mind getting hard-capped at the first apron. But its willingness to do so will be dependent on the return. Even if the Warriors are also bringing back draft picks from the Heat, there’s no guarantee the Warriors view a package built around Robinson as worthwhile.
The Heat can explore multi-salary alternatives to iron out the wrinkles. But this invariably hollows out their rotation, forcing them to ship out some combination of Jaime Jaquez Jr., Haywood Highsmith, Kyle Anderson, and Nikola Jovic.
Identifying a third team to streamline the process is probably easier. Miami would ideally find someone to take on Robinson or Terry Rozier, and then that squad would send a smaller salary (or batch of salaries) to Golden State.
Still, even this can get complex. Not only must the Heat find teams willing to bankroll the final year of deals for Robinson or Rozier, but they also need that trade partner to have the flexibility required to take on additional salary. And this says nothing of having to compensate that team for its involvement.
Short of involving the Brooklyn Nets, the league’s only squad with cap space, successfully prying Kuminga from the Warriors may cost a pretty penny—not just in money, but assets. That’s fine if the Heat are certain he’s a good fit. But given the complexities and inevitable expense of acquiring him, they better be darn sure he is what they need.