Rockets: 3 reasons why trading for DJ Augustin was a smart move

1. Augustin’s contract makes him extremely valuable

Although Augustin is valuable on the court, perhaps his biggest value doesn’t have anything to do with his play on the floor. Prior to the start of the season, Augustin was inked to a three-year deal with the Milwaukee Bucks worth a total of $21 million, but as is often the case, the devil is in the details.

Of Augustin’s $21 million, only $13.7 million of it is fully guaranteed, as the contract structure is provided below:

• 2020-21: $6.7 million fully guaranteed
• 2021-22: $7 million fully guaranteed
• 2022-23: $333,333 guaranteed

In the final year of Augustin’s deal, he has just 5 percent of a potential $7.3 million guaranteed, but the full value becomes guaranteed on July 2nd, 2023. This has the potential to become extremely useful, as it can be perceived as an expiring deal, due to the nature of the deal.

The Houston Rockets could decide to turn Augustin into a trade piece next season, as his value as a good 3-point shooter could be appealing to a contending team that would be looking to add more 3-point shooting around the trade deadline next year. With such a low guaranteed number in 2022-23, it would be worth it for a team to make a trade for Augustin.

This could net the Rockets more draft capital, if they decide not to hold on to him. On the flip side, if Houston Rockets general manager Rafael Stone decides to hold on to Augustin through his final season, the Rockets would be able to take their time on fully committing to him, due to the late date in which the deal becomes guaranteed.