The New York Knicks made a major move last night by reportedly signing talented fourth-year guard RJ Barrett to a four-year rookie extension. The Knicks have been heavily linked to talented Utah Jazz guard Donovan Mitchell, and teams such as the Charlotte Hornets who are also reported to be pursuing Mitchell would be wise to analyze the impact of this move.
New York Knicks guard RJ Barrett is finalizing a four-year rookie extension that could be worth up to $120 million, his agent Bill Duffy of @BDA_Sports + @WME_Sports told ESPN, complicating the franchise’s offseason trade pursuit of Utah Jazz All-Star Donovan Mitchell. pic.twitter.com/6KkGm4ch8o
— Adrian Wojnarowski (@wojespn) August 30, 2022
Barrett’s new deal could be worth up to $120 million when including bonuses for All-Star selections, All-NBA teams, and All-Defensive teams. Of the $120 million, $107 million is guaranteed, which means that Barrett now has the largest contract in Knicks history.
Barrett had been mentioned in ongoing trade rumors for weeks as the Knicks pursued Mitchell. However, Knicks president of basketball operations Leon Rose reportedly had set a Monday evening deadline after which the team would execute Barrett’s extension.
While the extension does not eliminate the possibility of Barrett being included in a deal for Mitchell, it makes it far more difficult due to the NBA’s “Poison Pill” provision. This provision stipulates that the Jazz must account for Barrett at the annual average of both his current contract and the extension, while the Knicks would only value his outgoing contract at his current amount for salary matching purposes. Given that his extension is for four year and $120 million and that his current salary is $10.9 million, the “poison pill” amount that Utah would have to account for Barrett at is $26.2 million. Meanwhile, New York would simply account for him at the $10.9 million figure.
What does this all mean for the Hornets?
While Barrett’s extension could complicate trade talks, it does not remove the Knicks from consideration. After getting back five draft picks in a deal that sent Rudy Gobert to the Minnesota Timberwolves, the draft compensation appears to be the crucial factor in any potential Mitchell deal. New York has been the odds-on favorite to land Mitchell since the rumors first came to light. Having grown up in the New York metropolitan area and with a father who works for the New York Mets, there are obvious connections to be made.
For the Hornets, the Barrett extension likely does not change much. Whether he was actually being included in discussions between Utah and New York or not, the Jazz appear to be favoring draft capital and clearing their salary cap above all else. With that in mind, Charlotte appears to be in the same position as they were before the extension was announced.