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Paul George was not named to one of the All-NBA teams for 2016-17, and this fact could have important ramifications for both George and his current team, the Indiana Pacers.
The Indiana Pacers want to keep All-Star small forward Paul George with the team on a long-term basis, but that challenge grew even larger with a recent announcement by the NBA.
As reported by ESPN, PG-13 was not included in any of the three All-NBA teams for 2016-17, and that could have a huge impact on the Pacers' ability to re-sign him, since he can become a free agent one year from now.
Had Paul George made an All-NBA team, he would have become eligible for the so-called "super-max" contract, which allows teams to re-sign their own free agents for significantly more money than any other team is able to offer (per the league's new collective bargaining agreement).
The super-max deal, technically referred to as the Designated Player Extension, is a five-year contract extension that is worth approximately $210 million to those who qualify.
Since George did not make All-NBA last season, the most Indiana can offer him is a five-year contract worth about $177 million. Other teams can offer a max deal worth $135 million over four years.
The result of George failing to qualify for the DPE is that the Pacers' advantage in terms of overall contract value has been greatly decreased as compared to what other clubs can offer him.
No All-NBA for Paul George = $30m less for Pacers to offer him to stay, increases volume of already rampant PG-to-Lakers buzz. pic.twitter.com/a4OHLI1EHC
— Ric Bucher (@RicBucher) May 18, 2017
DPE players will average $42 million in annual salary, while max contract players can receive $36 million per season from their current teams. If a free agent signs with a new team, he can earn a maximum of $33 million per year.
Paul George has two years remaining on his current deal with Indiana, but he has a player option for 2018-19 that he is sure to exercise — which would make him an unrestricted free agent during the summer of 2018.
While the inability to offer George a super-max contract would seem to be a blow to the Pacers' chances of retaining their star player, there may be a silver lining to this scenario.
If Paul George makes an All-NBA team next season, he could still receive the DPE designation, which would give Indiana the bargaining power they may need to keep George in a Pacers uniform.
There is also an outside chance that George will eventually re-sign with Indiana for the regular max level, which would save the team $30 million in salary and perhaps give the small market Pacers an opportunity to build a stronger roster around Paul George.
All of this is a gamble for president of basketball operations Kevin Pritchard, who must gauge the odds that George can be lured back to Indiana after the 2017-18 campaign.
Trading Paul George is a definite alternative, as the Pacers might opt to deal him if they feel they are falling out of the running for his services.
It appears unlikely that the Pacers will trade George before the 2017 NBA Draft next month; they will probably wait to see what develops over the next few months, then take a closer look at dealing George near the 2018 trade deadline.
Taking a step back and examining the big picture for a moment, we should not assume that losing Paul George would be a disaster for the Indiana Pacers.
There are those who believe that George is not a player who can lead a team to an NBA championship as its No. 1 option. If true, it is conceivable that the Pacers could be better off going into a "forced" rebuilding phase.
Paying max or super-max money to a player who is perhaps not a true superstar could be more devastating to a franchise than losing said player in free agency.
The Indiana Pacers clearly want to keep Paul George at all costs, but this could ultimately be a case of "be careful what you wish for."
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