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Toronto Raptors: Buying into the NBA draft makes financial sense

By Mark Birdsell

TORONTO, CANADA - JANUARY 17: Toronto Raptors General Manager Masai Ujiri talk before the game against the Detroit Pistons on January 17, 2018 at the Air Canada Centre in Toronto, Ontario, Canada. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. Mandatory Copyright Notice: Copyright 2018 NBAE (Photo by Ron Turenne/NBAE via Getty Images)
TORONTO, CANADA - JANUARY 17: Toronto Raptors General Manager Masai Ujiri talk before the game against the Detroit Pistons on January 17, 2018 at the Air Canada Centre in Toronto, Ontario, Canada. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. Mandatory Copyright Notice: Copyright 2018 NBAE (Photo by Ron Turenne/NBAE via Getty Images) /
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Without any picks in the 2018 NBA Draft, the Toronto Raptors will need to be creative if they want to improve their roster. One option is to buy another team’s selection.

The NBA Draft is on Thursday. A draft in which the Toronto Raptors do not have a selection. Bobby Webster, the Raptors General Manager, indicated the team was exploring ways to acquire a pick. There have been rumors the Sacramento Kings and Memphis Grizzlies are open to trading their first round pick. However, acquiring such a pick would likely require trading DeMar DeRozan.

There are a number of teams that have multiple second round picks. With two or more picks available, the Philadelphia 76ers (38, 39, 56 and 60), Phoenix Suns (31 and 59) and Orlando Magic (35 and 41) all may be willing to part with one or more come draft time.

NBA teams have $5.1 million available to be used in a trade during the 2017-18 Season. This amount expires at the end of the season and cannot be carried forward. The Raptors have not used any portion of this $5.1 million, and therefore, have every dollar available to purchase a draft pick Thursday night.

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The Golden State Warriors used $3.5 million last year to buy the number 38 pick from the Chicago Bulls and draft Jordan Bell. A deal that is looking like a home-run for Golden State.

Last year’s draft is a prime example of finding value in the second round. In addition to Bell, both Semi Ojeleye and Dillon Brooks, drafted 37 and 45 respectively, were useful contributors to their teams.

The Raptors will have limited options available to improve their roster this summer. Buying a second round pick would be a cost-effective way to add talent.

The $5.1 million used to buy the pick does not count against the team’s salary cap, and teams usually sign second round picks to contracts at or near the minimum. Bell, Ojeleye and Brooks all signed contracts starting at less than $1.3 million last season.

Furthermore, any dollar Toronto spends towards a draft pick comes “tax-free”, allowing them to effectively spend money they otherwise wouldn’t be able too without paying a hefty luxury-tax bill.

Next: Chances of each Raptor returning next season

Ultimately, a multitude of additional factors will determine if buying into the draft makes sense for the Toronto Raptors. Who is available, other trade offers, and the final cost. Still, buying into the second half of Thursday’s draft is something Toronto should at least look into.

Larry Coon’s Salary Cap FAQ and the Basketball Insiders salary pages were used in the creation of this post.