Extending Coby White Makes Future Trade Easier For Chicago Bulls

The Chicago Bulls are in a potentially difficult spot with guard Coby White, who is currently eligible for a contract extension. The 22-year-old will become a restricted free agent (RFA) in the summer of 2023 if he receives no extension, and that can be a bit of a drag for both parties.

Look no further than the ongoing Collin Sexton situation in Cleveland these days. The former 24-point scorer has been offered $40 million over three seasons, which is substantially below market value for what he provides. Yet, the Cavs might get away with it due to the small market that remains out there.

For White, the situation will be much the same next year, if he enters RFA. Seemingly, the Bulls should then be in the driver’s seat and be able to dictate his future. There’s some truth to that, but White’s cap hold could complicate matters for Chicago.

$22.2 million cap hold

White is, indirectly, on the books for $22.2 million for the 2023-2024 season via his cap hold, unless of course the Bulls waive his rights or replace that cap hold with a new actual salary. Say White is signed to a four-year contract worth $60 million, and is paid out a flat rate of $15 million every year. His cap hold would morph from $22.2 million to $15 million, subtracting $7.2 million of salary cap cloggage.

However, until then, assuming the Bulls wish to retain his rights, they’ll have to live with the bigger number, which could affect what type of exception they have available between the non-tak mid-level exception, or the tax mid-level exception.

As-is, the Bulls are roughly $7 million away from being in the luxury tax this year. Having re-signed Zach LaVine. With both Ayo Dosunmu and Nikola Vučević coming up for new deals in 2023, a large Coby White cap hold is likely to clog up the cap and make things difficult.

(Of course, Bulls ownership could just decide to pay the tax and not make a problem out of it. But historically, they haven’t been keen on doing that. Hence the need for cost analysis.)

Re-signing both Dosunmu and White to new, and larger, deals will significantly increase the overall price tag of the roster. If White isn’t a player the Bulls wish to hang onto for much longer, they aren’t likely to get a ton for him as he enters the final season of his rookie contract, given that potentially interested teams would then be forced to go through the restricted free agency process without knowing if they’re able to retain him at the right salary or not.

The extension angle

If the Bulls aren’t interested in retaining White long-term, the best way out of that situation could – quite ironically – be to extend him this summer.

Not only would teams then know what type of salary White is earning in 2023-2024, but there would be no Poison Pill status (which only applies after signing an extension, but before it actually kicks in), thus simplifying potential trades.

The 2023 market should be more open, and have more money to go around, making it easier for teams to absorb a part of White’s contract if they so choose. The Bulls won’t be under the cap, presumably, so they would be sending out the full amount of what White’s first-year extension salary would be, and if the receiving team can absorb a portion of that, they only need to match salary for the remaining bit.

For the sake of simplicity, let’s assume White signs the aforementioned $60 million over four years, which actually seems like a fair deal all things considered.

The Bulls, and their trade partner, would both fully avoid any RFA nastiness, and allow White to move on without being forced to take into account contractual restrictions. That’s about as smooth of a runway the Bulls can make the White situation.

Granted, the Bulls would be gambling a bit by extending White to $15 million a year, as they theoretically don’t know if any team has interest in him at that price point. If no one wants to trade for White, the Bulls are stuck with a player they don’t want, on a contract they don’t want to pay.

Therefore, analyzing the trade market thoroughly before any extension is signed is of vital importance. Some teams will let their interest be know, and some might even share what their tolerance level is for a certain player, contractually speaking.

It would thus behoove the Bulls to have a list of teams ready for the summer of 2023, for when White should be traded.

Aiding Chicago in their quest however is the rising salary cap, which will make most rookie extensions in the near future look cheap compared to their cap percentage.

A salary of $15 million in 2025, where the cap could check in at around $160 million, would only be 9.4% of the cap. So in the long run, teams should be able to talk themselves into those kind of deals quicker, and maybe even deals with larger monetary outputs.

For the Bulls, it’s time to be progressive. Hash out a deal with White that they know is tradeable next summer, play out the year with him in the rotation, and move him to fill bigger needs while re-signing Dosunmu to take over his role full-time.

It may sound complicated, but it’s the best way to get something in return for a player who can contribute, albeit on a lesser scale. White gets financial security now, the Bulls avoid restricted free agency. For all parties, that should be a win.

Unless noted otherwise, all stats via NBA.com, PBPStats, Cleaning the Glass or Basketball-Reference. All salary information via Spotrac. All odds via FanDuel Sportsbook.