NBA free agency: J.R. Smith agrees to new 4-year deal with Knicks

But the Knicks didn’t correct the record, and actually passed up opportunities to correct the record as the press badgered the front office about Smith’s surprise surgery. Beck reports he learned the contract info from a rival team executive.

Possible explanations as to why Glen Grunwald wants everyone to think he signed J.R. Smith for a bad 4-year deal instead of a shaky 3-year deal:

Smith was believed to have agreed to a four-year, $24.5 million deal to return to New York. But amid the recent news that Smith underwent left knee surgery on Monday, it has been revealed that the deal is for three years and $17.95 million.

Smith will make $5.57 million next year, $5.98 million in 2013-14 and then have a player option worth $6.4 million in the third year of the contract. While a three-year deal doesn’t carry quite as much risk as a four-year deal, it still may be a bit much for a streaky player coming off knee surgery.

Smith and the Knicks reached a new four-year, $24.5 million contract earlier this month. Smith, the reigning Sixth Man of the Year, will turn 28 years old in September.

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In a case like this, the devil is all in the details. The Knicks needed J.R. Smith, J.R. Smith needed the Knicks, and this was about the only way either side could get a fair deal done.

Smith is one of the few NBA free agents that has Early Bird rights, which happens when a player either signs a two-year contract or, in Smith’s case, inks two straight one-year contracts with the same team. How does that work? Via Larry Coon’s salary-cap FAQ:

Smith declined his player option on the back end of the two-year deal he signed with the Knicks in 2012 to become a free agent this summer, and the decision paid off handsomely for the 27-year-old gunner. His new deal with the Knicks puts him on par with the contract Kyle Korver signed with the Hawks, and he will nearly double his NBA earnings if he stays for the full four years.

Seth Rosenthal of Posting and Toasting points out that the Knicks didn’t lose any flexibility this summer by signing Smith to a new deal, although the four-year commitment may still be a bit problematic for the long term:

Isola reports that Smith might get the “Average Player Salary Exception,” which could net him $24 million over the life of his contract.

The 27-year-old Smith has spent two years with the Knicks, breaking out last year with a career-best 18.1 points and 5.3 rebounds per game off the bench. He opted out of a $2.9 million player option last month to become a free agent after originally inking a two-year deal with New York in July 2012.

The question is whether Smith wants to leave New York. There is speculation that Smith would never want to play in a smaller city like Milwaukee, and all things equal, a return to New York appears to be his preference. But there is a chance Smith will not get his “all things equal” scenario. The Knicks may not offer him as much as the Bucks or the Pistons do, leaving him to choose between less money in the big market he enjoys or more money away from the bright lights of New York.

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Smith recently opted out of his $2.9 million contract for next year, and the most the Knicks can offer him is $5.58 million due to his early Bird rights. While Smith struggled in the playoffs, he proved his worth throughout the regular season, averaging 18.1 points and winning the NBA’s Sixth Man of the Year award. The shooting guard has stated that he would like to remain in New York, but if he gets a hefty offer from Milwaukee, it’s possible he changes his mind.

As for Copeland, he just received a qualifying offer from New York, officially making him a restricted free agent. Because Copeland’s a non-Bird free agent, the most the Knicks can give him is the taxpayer’s mid-level exception, which starts at $3.183 million this offseason. Like Smith, Copeland has expressed a desire to stay in New York.

The biggest dangling carrot for another team would be pitching to the 27-year-old a chance to start, which would undoubtedly prove intriguing to him.

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