As it turns out, Smith and the Timberwolves had an under-the-table agreement in place, where Smith would sign three one-year deals for very little money, allowing the Timberwolves to acquire his Bird rights, which would allow them to go over the salary cap to re-sign him. He would have then been rewarded with a lucrative contract that would have paid him up to $86 million. This arrangement, of course, was highly illegal, and sanctions came down hard on the Timberwolves when the league found out.According to J.A. Adande, then of the
Los Angeles Times, the entire plan was blown open when agents Eric Fleisher and Andrew Miller parted ways. Miller retained Smith and superstar teammate Kevin Garnett in the split, which prompted a lawsuit that led to the unearthing of many documents, including those detailing the Timberwolves’ illegal agreement with Smith.
Before the start of the 2000 offseason, when Smith had signed the third of his three short-term deals with the Timberwolves for one year and $2.5 million, the league’s investigation of the matter was completed and
punishments were handed down.
The Timberwolves were fined $3.5 million, and forfeited their first-round draft picks for the next five years (the team’s 2003 pick was eventually restored). Not only was Smith’s newly-signed contract voided, his previous two were as well, meaning he would no longer retain his Bird rights with the Timberwolves. Additionally, Timberwolves owner Glen Taylor was
suspended through August 31, 2001, and VP of basketball operations Kevin McHale took a leave of absence through July 31..