Jazz and Danny Ainge put Sixers in tough spot with Paul Reed’s offer sheet

The 76ers have a tough decision to make, one that could cost them a lot of money.

Paul Reed, the team’s restricted free agent, signed a three-year, $23 million offer sheet with the Utah Jazz, a source confirmed Saturday. This comes after the Sixers made it known that they intended to retain the third-year center.

Now that he’s signed the sheet, the Sixers will have until 11:59 p.m. Sunday to match the offer if they want to keep him.

The problem is, the Sixers will exceed the $165.2 million luxury tax threshold and incur an additional $14 million hit in luxury tax penalties by matching it. And another kicker is the backup big man would have veto power on a trade for a season if he remains a Sixer.

» READ MORE: Sixers restricted free agent Paul Reed signs three-year offer sheet with the Jazz

That’s a lot for the team to consider, especially when it has already secured centers Mo Bamba and Montrezl Harrell to play behind MVP Joel Embiid. Filip Petrušev, a Sixers 2021 second-rounder who has been stashed overseas the past two seasons, hopes to make this upcoming season’s roster as a reserve big man.

So the Sixers have options should they decline to match the Jazz’s offer sheet. And based on their free agent signing, staying under the luxury tax threshold and freeing up salary cap space for next season are priorities.

Free agent additions Patrick Beverley ($3.1 million), Harrell ($2.8M), and Bamba ($2.3M) all received one-year deals at the minimum salary for their respective years of experience. But with $163.8 million in active roster cap space with three roster spots to feel, the Sixers are sure to be a tax team.

But give Danny Ainge, the Jazz CEO of basketball operations and alternate governor, credit. He’s aware of the Sixers’ intention to keep Reed. He’s aware of their cap situation. So it’s kind of like daring them to pay the tax for a valued reserve when there’s more transactions to be made.

How else can you explain the structure of Reed’s contract?

The first season of the deal is guaranteed. However, the two following seasons will become guaranteed if the team he’s playing for advances to the conference semifinals this season.

That would become a huge one-season turnaround for the Jazz, who missed the playoffs last season with a 37-45 record.

Based on the Sixers’ status as an elite team, they would most likely have to guarantee the final two seasons of his deal. The Sixers suffered Eastern Conference semifinal exits in five of the last six seasons. And new head coach Nick Nurse has already stressed that advancing beyond that round will be a point of emphasis in training camp.

But Reed blossomed into a key piece contributing to the Sixers’ success this past season.

One of his most memorable games was Game 4 of the opening-round series against the Brooklyn Nets.

With Embiid sidelined with a sprained right knee, Reed started at center in the 96-88 series-clinching victory at Barclay Center.

Reed ended up with 10 points, a career-high 15 rebounds — including eight offensive boards, tying a career high — along with three assists, one steal, and a block.

» READ MORE: With Joel Embiid out, Paul Reed stepped up when Sixers needed him most: ‘I know what I can do’

The solid performance came after what had been a breakout season for him.

The 24-year-old averaged 4.2 points and 3.8 rebounds in 69 games during the regular season. He had played in just 64 combined games his first two seasons.

Sweeping the NBA G League MVP and rookie of the year honors in 2021, one can argue the potential was always there. It was just a matter of getting an opportunity to show it.

He received that this past season.

Now, the question is will the Sixers match the offer sheet?