CHARLOTTE, N.C. _ The Charlotte Hornets have offered less than $170 million to resign Kemba Walker, meaning that there's a strong chance the All-NBA point guard agrees to terms with another NBA team when free agency opens Sunday night.
An Observer source confirmed that the Hornets aren't comfortable paying $170 or more over five years _ far less than they're allowed under NBA rules _ over concern they would end up paying the league's luxury tax. Unless that changes, it looks likely the Hornets will lose Walker with no compensation.
When Walker was named All-NBA after this season, he qualified to be paid as much as $221 million over five years. The most any other team can pay him is $140 million over four years. The extra year and larger raises the Hornets can offer are intended to give a free agent's prior team significant advantages in keeping him.
However, the Hornets have such a clogged payroll _ the five highest-paid players combine to make $84 million next season _ that re-signing Walker could set off a luxury tax, the NBA's penalty for bloated payrolls, and reduce the team's revenue-sharing payment from the league after next season. That would cost owner Michael Jordan millions and might be the difference in a profit or a loss for the 2019-20 season.
The Hornets' resistance to crossing that line has opened the door to Walker's departure. Reducing the difference in contracts to less than $30 million undercuts the one advantage the Hornets had over other teams to keep Walker and opens the door for other suitors.
The Boston Celtics, Dallas Mavericks and Los Angeles Lakers all have room under the salary cap to offer Walker a maximum contract. Each of those teams also can promise Walker a better prospect of playoff runs over the next four seasons. Walker has called the chance to win a factor in his decision.
Other teams can start negotiating with Walker starting at 6 p.m. EDT Sunday. The Celtics, expected to lose point guard Kyrie Irving, figure to make an emphatic pitch.
Free agents can't start signing contracts until July 6.
