To me, there are six absolute essential players for this Celtics team: the starting five and James Posey. Fortunately, we only have to face the possible loss of one of those guys - Posey. To me, he brings a unique skill set and energy to this team and I think we should make sure he stays as long as we keep PGA together.
His situation is that he has a player option for $3,462,480. As far as I know this amount does not count against the MLE - we would still have our $5 mil + MLE (plus our $1.5 mil + LLE) available for FAs if Posey exercises his player option. If he doesn't exercise it, we will probably have to offer him the full MLE to keep up with the MLE offers I expect him to get from teams like the Spurs, Lakers, Suns, Mavs, Hornets, Magic, Nuggets, maybe even Cavs, Warriors, Jazz, Blazers, Raptors, and if they trade Prince, Pistons.
I see at least 4 of those teams going after Posey because he showed his utility to all those contenders. Imagine him on the Spurs adding another outstanding perimeter defender to go alongside Bowen or in lieu of Bowen in crunch time, getting open looks from Parker, Manu and Duncan? Imagine him taking over that huge hole at the 3 in LA, providing them with much needed-perimeter D. Kobe can't stop Pierce, but maybe Posey can. With the Suns, they're going at it now but need that bigger perimeter defender to go alongside Bell (especially with Grant Hill so fragile). And for the Hornets, they have a great team, but if they can bring in Posey who has proven his ability to play great D on scorers as diverse and talented as Lebron, Kobe and Dirk, to lead their bench, wouldn't that put them over the top?
Why he wouldn't exercise option: (1) He can almost certainly make $2 million more than he would on his current contract, since there WILL be suitors and somebody will pony up the full MLE. (2) He's going to have his choice of contenders, from Boston to LA to SA to Phoenix, so it's not like he has to go to a low level team to get more money, he can still say on a contender. (3) After the Heat title, when his value was highest, he couldn't go cash in. Just one year later, last summer, there was almost no market for him because of a perception that he was over the hill and his defense wasn't the same. Had he become a free agent in 06, he would have gotten at least $5 mil. One year later, he got less than $3.5 mil. He, or at least his agent, will remember that. (4) He's proven his worth to Boston, and he may be able to stay in the same situation but get an extra $1-2 million.
Why he would exercise the option: (1) If he does leave Boston, he has to start over on any Bird rights. If he exercises, after next season, the Celtics can sign him for up to 175% of his current salary for a period of 2-5 years. So he could exercise this year and get $6 mil + from the Cs for 09-10 and 10-11 at least. After that, he'd have full Bird rights. (2) Maybe he wants another ring and can be convinced that by exercising and not forcing the Celtics to use their full MLE to keep him, Boston gets over $7 mil to play with in free agency instead of just $1.7 mil. Maybe he sees the ability to keep Eddie House, Tony Allen and bring in a high quality backup center and maybe point guard. How much loyalty has really grown in this one year?
Those are really his only reasons to exercise - a wink and nod deal that if he exercises and lets the Cs pick up some more help, he gets a 2 year-$12 mil or 3 year-$18 mil extension under his early Bird rights during the season.
Now, getting extra players, of course, comes down to the owners agreeing the luxury tax is A-OK since our salary for Garnett, Pierce, Ray, Perk, Posey under his option, Scalabrine, Rondo, Powe, Pruitt and Davis - 10 players - is already almost $75 mil - close to $5 mil over the luxury tax. Add in Tony Allen at a qualifying offer, and it's $77.5 mil, $7.5 mil over the luxury tax. How much of that $7 mil in exceptions (not to mention any salary to the 30th pick) will ownership really want to spend? Ownership has been extremely generous, but $75 million is actually $80 million, $77.5 million is actually $85 million, and $85 million is actually $100 million.
Bottom line, I would expect Posey not to exercise his player option and hit free agency instead, but I would give him whatever it took to keep him in Boston. We can find adequate replacements at other spots, but to me, Posey's a necessity and cannot be duplicated by Pietrus, Barnes, Childress or any other wing defender who might be available.