Joe Smith Loses Appeal
N E W Y O R K, Nov. 10, 2000 -- Joe Smith is now looking for a new team after an arbitrator on Thursday upheld the penalties issued against him by NBA commissioner David Stern.
“I think the league has made it very clear that they would likeJoe to play somewhere other than here,” Minnesota Timberwolvesowner Glen Taylor said.
Arbitrator Kenneth Dam ruled that Stern did not exceed hisauthority when he voided Smith’s contracts for the 1998-99 and1999-00 seasons, taking away any financial incentive for him tostay in Minnesota.
The Timberwolves can now offer Smith a one-year contract for nomore than $611,000. Other teams, including the Miami Heat andChicago Bulls, can offer Smith more than six times that amount.
Dallas, Atlanta and New York also are believed to be on Smith’sshort list.
“This could be a great opportunity for him. He could be lookingat a starting position,” Heat coach Pat Riley told reporters inMiami.
More Punishment from NBA?
The Timberwolves signed an illegal secret agreement with Smith,promising him a multiyear, multimillion-dollar contract extensionthat was to begin in the 2001-02 season after Smith had playedthree seasons in Minnesota.
Stern penalized the Timberwolves by taking away their next fivefirst-round draft picks and fining the team $3.5 million.
The commissioner also voided Smith’s contract for the currentseason along with his one-year contracts for the previous twoseasons, thereby taking away his so-called Larry Bird rights.
Players with Bird rights can re-sign with their team even if theteam is over the salary cap. Smith will have to play three moreseasons to re-earn those rights.
“I think the arbitrator recognized the importance of enforcingthe provisions relating to secret agreements,” NBA deputycommissioner Russ Granik said. “It demonstrates that if you enterinto secret agreements, the consequences of getting caught can befairly significant.”
Stern may not be finished penalizing the Timberwolves.
A hearing must still be held to determine which team officialshad knowledge of the secret agreement. Taylor, vice president ofbasketball operations Kevin McHale and other team officials couldface one-year suspensions.
Heat, Bulls Have Money to Spend
Smith’s agent, Dan Fegan, is free to negotiate with any of the29 NBA teams interested in signing Smith, who was the overall No. 1pick in the 1995 draft.
The Bulls, with about $6 million in salary cap room, could makeSmith the largest offer.
“Nothing to say. I have nothing to say right now,” Bullsgeneral manager Jerry Krause said.
The Heat have a $3.92 million salary cap exception that wasgranted by the NBA after they lost Alonzo Mourning for the seasonbecause of a kidney ailment. The Heat must use the exception byNov. 26.
The Dallas Mavericks, New York Knicks and Atlanta Hawks alsohave expressed interest in Smith, but the best offer they couldmake is a one-year contract for $2.25 million.
The Timberwolves had been hoping that Smith would win his appealand re-sign with them, while the commissioner adamantly felt the team should lose Smith since they had broken the rules toacquire him.
“Now that there is a decision, the best thing for everyone isto move on,” Timberwolves coach Flip Saunders said. “We have tomove on and put some finality to this.”
In their appeal, Smith and the players’ union argued that Sterndid not have the authority under the collective bargainingagreement to void past contracts. The league had argued that Sternhas the authority to void any contract — past or present.
“We were expecting a contrary ruling, but unfortunately wedidn’t get it,” union director Billy Hunter said. “We’re inconsultation with Joe and his agent and we’re studying the rulingto see what our next action, if any, will be.”
The union later issued a statement saying it was weighing anappeal.