At the tender age of 20, the man affectionately known as THT has been a vital component of the Los Angeles Lakers‘ rotation this season. Although currently playing only just under 17 minutes per game, Talen Horton Tucker’s combination of length, athleticism, and defensive ability make him a coveted target for rival teams.
On a recent episode of his podcast, ESPN’s Brian Windhorst acknowledged THT’s desirability stating, “People think that he could the Tyler Johnson poison-pill contract.”
So, what is a poison-pill contract?
Usually, a “poison-pill contract” is when a team extends a player before the end of his rookie deal, only to trade him before the extension kicks in. However, in Talen Horton-Tucker’s case, any potential offers he receives are limited by something known as the “Gilbert Arenas provision.”
As per Hoops Rumors:
"“The Arenas provision limits the first-year salary that rival suitors can offer restricted free agents who have only been in the league for one or two years. The starting salary for an offer sheet can’t exceed the amount of the non-taxpayer’s mid-level exception, which allows the player’s original team to use either the mid-level exception or the Early Bird exception to match it.”"
So, what does this mean for the Los Angeles Lakers?
Essentially, for restricted free-agents with less than three years of NBA experience, rival teams will offer heavily backloaded contracts to a player as means of circumventing these rules. The most famous example of this is Tyler Johnson, who received a four-year, 50 million dollar contract from the Brooklyn Nets in 2016.
As per Yahoo Sports:
"To sign Horton-Tucker to this offer sheet, a team must have enough 2021 cap space to fit the contract’s average salary. If the offer sheet goes unmatched, Horton-Tucker would count against the cap at his average salary each season of the deal. If the Lakers match, they could theoretically decide whether to count Horton-Tucker against the cap at his actual salary each season or his average salary all four seasons. However, only teams under the cap when matching can use average salaries. The Lakers will almost certainly be above the cap."
In other words, a poison-pill contract is a smart way for rivals to force the Los Angeles Lakers, who will likely be above the cap, into a tough spot.
Talen Horton-Tucker has tremendous upside due to his athleticism and youth, so there’s every chance that a team will pay for his future production. Any poison-pill offer to THT will likely exceed Tyler Johnson’s 2016 contract in value. As per ESPN, the structure of Johnson’s poison-pill contract was:
- Year 1: $5.6 million
- Year 2: $5.9 million
- Year 3: $18.9 million
- Year 4: $19.6 million
Don’t be surprised if the average annual value of THT’s poison-pill contract is around the $15 million per year mark, with the final two years being well north of $20 million per year.
Although he’s likely to be a target of several teams, there are three that stand out as strong candidates to offer THT a poison-pill contract this offseason.