Important New Details on Memphis Grizzlies’ Latest Free Agency Signing

The Memphis Grizzlies were intentional when structuring Luke Kennard's contract in NBA free agency

Apr 4, 2023; Memphis, Tennessee, USA; Memphis Grizzlies guard Luke Kennard (10) and Memphis Grizzlies guard Ja Morant (12) talk during the second half against the Portland Trail Blazers at FedExForum. Mandatory Credit: Petre Thomas-USA TODAY Sports / Petre Thomas-USA TODAY Sports

The Memphis Grizzlies recently announced the re-signing of sharpshooting guard Luke Kennard, but the contract details were not released by the team.

"The Memphis Grizzlies today announced the team re-signed wing Luke Kennard," the Grizzlies wrote in their announcement. Per team policy, terms of the deal were not disclosed."

While Memphis did not reveal the contract details, it was reported by ESPN's Adrian Wojnarowski that Kennard had agreed to a one-year, $11 million contract in NBA free agency. While this is technically correct, important new details have emerged about Kennard's contract that provide clarity on what his deal means for Memphis.

Mar 16, 2024; Memphis, Tennessee, USA; Memphis Grizzlies guard Luke Kennard (10) shoots for three during the first half against the Oklahoma City Thunder at FedExForum. / Petre Thomas-USA TODAY Sports

In a report from Michael Scotto of HoopsHype, the NBA insider wrote, "Grizzlies signed Luke Kennard to a one-year deal worth $9.25 million guaranteed, which can become $10.64 million if he hits unlikely bonuses, sources told. Memphis is now narrowly below the luxury tax, pending bonuses earned by Kennard, Desmond Bane and Brandon Clarke."

The initially reported $11M salary for Kennard projected to put Memphis slightly above the luxury tax.

Re-signing Luke Kennard for $11M will put the Grizzlies about $1M into the luxury tax. That's easy enough to work around with a smaller move.

Reminder: teams don't need to be under the tax by the start of the season. The last real date to dip under the tax is the trade deadline.

— Keith Smith (@KeithSmithNBA) July 31, 2024

Instead of needing to make additional moves to avoid the tax, Memphis instead structured Kennard's deal to include "unlikely bonuses" that should keep his payout closer to $9M for next season. This was a savvy move by the Grizzlies front office, as they retain one of the NBA's best shooters on a contract that makes sense.

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