Manipulating the Pelicans’ Glass Salary Ceiling

Thanks to the diligence of Bourbon Street Shots’ own Dr. Jason Calmes, we now have a firm understanding of the ramifications of Jrue Holiday’s new contract with the New Orleans Pelicans. Though Jrue’s contract “only” contains $126 million in guaranteed money, the additional $24 million in incentives matter for reasons beyond what is deemed “likely” vs. “unlikely.” Should the Pelicans choose to use more than the $5.2 million tax-payer mid-level exception (an exception towards which Frank Jackson’s salary already counts), use the $3.3 million bi-annual exception, or acquire a player via a sign-and-trade, they will be hard-capped at just over $125 million.