Review of the two transactions of the Celtics: Tax avoidance and salary reduction without losing flexibility Crisis operation is textbook-level

Jason Tatum's injury forced the Celtics to take action, but Brad Stevens may have planned a soft landing with upside potential, from unbearable luxury tax penalties to over-expendable physical stress—which make every playoffs more like a war of attrition—the NBA's peak position has never been as precarious as it is now.

Just look at the Boston Celtics. As the defending champion, the Celtics miraculously retained 97% of their core rotation last season (the highest in the league) and achieved a 61-win record in the regular season, with a widely expected return to the Finals. However, in the fourth game of the Eastern Conference semifinals, when Jason Tatum suffered a rupture in the Achilles tendon in the competition for floor ball, the Celtics' world collapsed. Fate is always caught off guard.

The Celtics were almost forced to change their roster structure due to the bloated total salary and the subsequent impact of serious injuries that were sufficient to significantly reduce the short-term ceiling. In the past 48 hours, the Celtics did this: first traded Ju Holiday to the Portland Trail Blazers for Anthony Simmons and two second-round draft picks; then reached a three-party deal with the Atlanta Hawks and the Brooklyn Nets, sending Kristaps Porzingis to the Hawks for George Nyan and another second-round draft pick.

These two operations are predictable and pragmatic actions, but they are still a bit sad for Celtic fans. Tatum's injury diluted the lineup adjustment that should have been more painful, but when looking back at the invincible Celtics team two months ago, after examining the status quo, you will understand how accurate the management's decision to settle for the second best is. Under the current rules, smart decisions are punished, and successful teams find it difficult to maintain the continuity of the lineup, but these two transactions can be "profitable", which is worth discussing separately. If it happened in the era of the old labor agreement, the Celtics could have been waiting for Tatum's recovery. Unfortunately, today is different.

35-year-old Holiday has a remaining contract of up to $104 million (which lasts until 2028), while Porzingis, who will turn 30 in August, has a $30.7 million expiration contract. The Celtics not only did not need to post a draft pick and sent them away, but instead obtained two second-round draft picks in the process of salary reduction, which is a magical operation of the management. Overall, the Celtics gave out about $135 million in salary and recovered only 36 million - in other words, Holiday and Porzingis would have occupied about 40% of the salary cap next season, while Simmons and Nian accounted for only 23%. The two deals have allowed the Celtics to avoid the second rich line and are even expected to escape the luxury tax. Despite facing increasingly severe duplicate luxury tax penalties, the Celtics still have plenty of time and ways to make further salary cuts this summer or next year’s trade deadline. Jaylen Brown and Derek White will most likely stay with the Celtics, but if they receive a good offer, Stevens will also seriously consider it. Simmons, who just turned 26 and whose contract is about to expire, is particularly interesting. His stay with the Celtics is unpredictable, but I'm afraid it won't be too long. Despite the fatal flaws on the defensive end and lack of playoff experience, Simmons' explosiveness can meet the Celtics' needs for ball-holding and long-range shots after Tatum's injury. Under the Celtics' space system, Simmons may be able to contribute more than 20 points per game per game. If so, the Celtics could have a high chance of trading him for lower-paid players to avoid taxes completely.

As long as Joe Mazula remains the head coach, the team will still make a large number of three-pointers, but now it may need to rely on the vitality and athleticism of young players to speed up and create opportunities. This begs a key question: How strong will the Celtics be? The offseason has not officially started, and more questions (such as where Al Horford and Luke Cornett go) are to be solved, but if the new season starts tomorrow, the hypothetical rotation may be: Brown, White, Simmons, Nian, Sam Hauser, Payton Pritchard, Nimeas Cota, JD Davidson, Baylor Sherman, Jordan Walsh, plus the 28th overall pick this year.

For a team that actively and strategically retreats and looks forward to Tatum's comeback after a complete recovery in 2027, the current situation of the Celtics can be said to be pretty good. They can maintain their resilience and have a chance to get a good lottery. In the past two years, the Hawks have risen 9 places, the Houston Rockets have risen 6 places, the San Antonio Spurs have risen 6 places, and the Dallas Mavericks have risen 10 places. At present, the Celtics do not need to completely knock down and rebuild: they still retain the two starters of the 2024 championship team, the sixth man of the year, the top three-point firepower, and the mysterious ace of Simmons.

The Celtics also received a $22.5 million trade special from Porzingis's deal (valid until July next year), and may use the non-luxury tax middle class special next summer and control all first-round picks in 2026, 2027, 2028, 2030 and 2031 (the Spurs have only the right to exchange the draft picks protected by the No. 1 pick in 2028).

Evaluating these two transactions is like predicting the ending in the second act of the film. It is still difficult to assert when the Celtics will (or be able to) make another 19th championship again - it is difficult to judge for at least a year, and they also need Tatum to prove that they can return to the top. But giving up the decisions of Holiday and Porzingis demonstrates the Celtics' ability to strive for the best solution in desperate situations. In the coming weeks, we will see more clearly the difficulty of their return to the top.

Author: Michael Pina

Translator: GWayNe