ESPN.com - NBA - Arbitrator upholds NBA ruling on Smith

Arbitrator Kenneth Dam ruled Thursday that NBA commissioner David Stern did not overstep his bounds when he voided Smith's contracts for the 1998-99 and 1999-00 seasons.

Smith, a free agent, now has no financial incentive to stay in Minnesota since the Timberwolves can only offer him a one-year contract for $611,000. Other teams, including the Miami Heat and Chicago Bulls, can offer Smith a much more lucrative contract.

The Timberwolves signed an illegal secret agreement with Smith, promising him a multiyear, multimillion-dollar contract extension that was to begin in the 2001-02 season -- after Smith had played three seasons in Minnesota.

Thurs., Nov. 9

Joe Smith has said he'd prefer to stay in Minnesota. It remains to be seen if he will now that the previous contracts he has signed have been voided. If Smith doesn't play for the Timberwolves -- if the obstacles are simply too great -- he will be in the free agent market and the Miami Heat must look very attractive to him right now. With the allowance given to the Heat because of Alonzo Mourning's injury, they have almost $4 million extra dollars; so they certainly have money to offer.

The only other team with comparable money to offer is the Chicago Bulls, but they aren't going anywhere anytime soon. Miami has a chance to be a playoff team this year and Smith would only increase that chance. The Heat are thin on the front line, and the absence of Mourning makes them even more deficient. Because they haven't seemed comfortable going very deep into their bench, Smith looks like he would be a welcome addition for the Miami Heat.

According to ESPN's David Aldridge, the Chicago Bulls are among six teams with interest in signing Smith. The Bulls also have the most money available ($6 million) to spend under the salary cap.

The Heat have $3.8 million at their disposal with the injury exception because of Alonzo Mourning's illness. They must use the exception by end of the month.

Dallas and New York both have the $2.25 million exception to offer Smith. Indiana can spend $1 million, while Minnesota can only sign Smith for the veteran minimum of $611,000. Also, Atlanta has the $2.25 million exception and will make an offer.

Stern penalized the Timberwolves by taking away their next five first-round draft picks and fining the team $3.5 million.

The commissioner also voided Smith's contract for the current season along with his one-year contracts for the previous two seasons, thereby taking away Smith's so-called Larry Bird rights.

Players with Bird rights can re-sign with their team even if the team is over the salary cap. Smith will now have to play three more seasons to re-earn those rights.

"I think the arbitrator recognized the importance of enforcing the provisions relating to secret agreements," NBA deputy commissioner Russ Granik said. "It demonstrates that if you enter into secret agreements, the consequences of getting caught can be fairly significant."

"We are disappointed that the arbitrator, in this instance, gave the commissioner authority that the NBA did not receive during collective bargaining to strip a player of service time for purposes of acquiring 'Larry Bird' rights," players' union chief Billy Hunter said. "We are weighing an appeal but will need to consult with all the parties involved before taking any action."

Timberwolves coach Flip Saunders declined immediate comment on Dam's ruling.

Stern may not be finished penalizing the Timberwolves.

A hearing must still be held to determine which team officials had knowledge of the secret agreement. Owner Glen Taylor, vice president of basketball operations Kevin McHale and other team officials could face one-year suspensions.

Smith's agent, Dan Fegan, has had almost two weeks to negotiate with any of the 29 NBA teams who would be interested in signing the forward, who was the overall No. 1 pick in the 1995 draft.

Fegan and Taylor did not immediately return calls seeking comment.

The Timberwolves had been hoping that Smith would win his appeal and re-sign with them, while the commissioner adamantly felt that the team should lose Smith since they had broken the rules to acquire him.

In their appeal, Smith and the players' union argued that Stern did not have the authority under the collective bargaining agreement to void past contracts. The league had argued that Stern has the authority to void any contract -- past or present.

"We were expecting a contrary ruling, but unfortunately we didn't get it," Hunter said. "We're in consultation with Joe and his agent and we're studying the ruling to see what our next action, if any, will be."

Information from The Associated Press was used in this report.

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