In August of 2021, Josh Hart signed a three-year, $38 million contract with one of the more unusual structures that you will see in the NBA. The third and final year of the contract was a player option (meaning Hart could decide whether to play out that year or to hit free agency) but it was also non-guaranteed. By choosing not to hit free agency, he would be putting his fate in the hands of whatever team he played for, which could choose to waive him.
Hart will almost certainly hit free agency this summer, as he has played well enough to try to secure a new contract and won’t want to put all of the power in the hands of the Knicks, no matter how amicable the relationship is.
The Knicks are already projected well over next year’s salary cap, and likely into the luxury tax, so they will be extremely limited in the contracts they can offer to free agents. Hart’s situation is different, however, as because he was traded the Knicks gained his “Bird Rights” which means they can re-sign Hart to any amount up to the max. He’s not going to command a max contract, but the Knicks aren’t limited by league rules in working out a deal.
With that being said, whatever the Knicks pay Hart will cost them much more in luxury tax payments, unless they find ways to offload salary. That’s very possible, but the reality of this team growing increasingly expensive as young players get new contracts will be looming over any contract negotiations moving forward.
So to set the table: Hart will almost certainly become a free agent, the Knicks can offer him any contract they like, and they have very real luxury tax concerns in factoring in their total team salary. What sort of a deal could the Knicks offer? Let’s look at three players around the league and the contracts they are playing on to provide some ideas.
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<p>— Tommy Beer (@TommyBeer) <a href=https://dailyknicks.com/2023/03/22/3-contracts-knicks-model-josh-hart-new-deal-after/2/"https://twitter.com/TommyBeer/status/1637805772292734976?ref_src=twsrc%5Etfw%22>March 20, 2023</a></p></blockquote>
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<p>Not only do the Knicks and their fans love Hart, but for his part, the journeyman wing loves being in New York as well. A recent profile from <a href=https://dailyknicks.com/2023/03/22/3-contracts-knicks-model-josh-hart-new-deal-after/2/"https://andscape.com/features/josh-hart-is-loving-life-with-the-new-york-knicks/" target="_blank" rel="noopener">Andscape’s Marc J. Spears</a> revealed that Hart and his wife, who is expecting twins, were excited to move back to the East Coast to be closer to family. Hart attended Villanova, alongside two other stars and close friends now in the Big Apple: his teammate Jalen Brunson and Brooklyn Nets forward Mikal Bridges.</p>
<p>Hart also revealed in the interview that he hopes to <a href=https://dailyknicks.com/2023/03/22/3-contracts-knicks-model-josh-hart-new-deal-after/2/"https://dailyknicks.com/2023/02/27/josh-hart-latest-comments-foreshadow-long-term-knicks-deal/">sign long-term in New York</a> to stick around and build a legacy with the Knicks. The Knicks seem to love him, so there is certainly fertile ground for a deal to get done.</p>
<p>What would a potential contract look like? Let’s first dig into Hart’s contract status and what the Knicks can offer, and then we will look at some examples from around the NBA that highlight the basic contract structures available to Hart and the Knicks.</p>
<div class="next-slide slider"> <a class="next-slide-btn" style="background: #007BC1" data-track="shortcode" data-track-action="next-slide-shortcode" href=https://dailyknicks.com/2023/03/22/3-contracts-knicks-model-josh-hart-new-deal-after/2/"#"> <span class="title">Next:</span> What's the contract situation? </a>
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flipped Morris to the LA Clippers</a> for a first-round pick.</p><div class="widget fs_ads"> <div class="fs_ad_widget-ad" style="margin:0 auto; width: 300px;"> <div class="fs-ll-ad" data-ad-type="minutemedia_slideshow_inline_300x250__desktop__tablet" data-vendor="minutemedia">
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<p>That following summer, the Clippers found themselves in something called the Bird Rights Trap. Marcus Morris was a free agent, and if he walked the Clippers were so far over the salary cap that they couldn’t replace him. They almost had to re-sign him, and Morris and his representation knew it, leveraging that reality to secure a four-year, $64 million contract. Even as Morris has fallen off a bit in his mid-30s, he is playing on a great contract that pays him an average of $16 million per season.</p>
<p>It’s obvious why Josh Hart would prefer this type of contract, a deal that is both lucrative and long-term. The equivalent of $16 million per season three years ago is now $18 million at least. Hart would almost certainly jump at a straight four-year, $72 million deal. Is $80 million over four seasons insane?</p>
<p>Why would the Knicks do this? Like the Clippers in 2020, they are way over the salary cap this offseason. They have the assets to try and offload salary, but right now (and if Hart opts into his deal) they will be at or just above the estimated luxury tax line of $162 million, well above the salary cap of $134. If Hart decides to walk in free agency, they burned a first-round pick on a few months of his play and got nothing else for him, and they won’t have the cap flexibility to sign a player of Hart’s caliber in free agency.</p>
<p>Hart is less important to the Knicks now than Morris was (and probably is) to the Clippers. Even so, Hart has shown in just a few games how much he fits perfectly into what the Knicks want to do, and with roster uncertainty looming as they go big-star hunting it would mean something for Hart to be locked in long-term. Are the Knicks prepared to wade into the luxury tax to retain a competitive team?</p>
<p><strong>Final Verdict</strong>: Josh Hart and his family seem to love playing in New York, and the Knicks love having him. He is not a star and doesn’t play a high-scoring brand of basketball, so he will almost always be undervalued by the market. Given his age (just turned 28) and the Knicks’ financial situation, a mid-term deal with flexibility for Hart seems most likely.</p>
<p><strong>Projection: Three year, $45 million deal</strong></p>
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