Report: Bulls, Mike Dunleavy Agree To 3-Year Deal

(CBS) The Bulls have accomplished one of their goals in free agency.

Chicago and forward Mike Dunleavy have agreed to a three-year deal worth $14.4 million, Yahoo Sports' Adrian Wojnarowski reported Wednesday morning. The Bulls held Early Bird rights on the 34-year-old Dunleavy, which allowed them to work above the salary cap and still lock him up.

Retaining Dunleavy isn't a flashy move, but it's important for the Bulls. He'll bring shooting to new coach Fred Hoiberg's offense that's predicated on floor spacing, and Dunleavy's proved to be a quality defender in his two seasons in Chicago.

Dunleavy averaged 9.4 points and shot nearly 41 percent from 3-point range while starting 63 games for the Bulls in 2014-'15. He also reportedly had interest from the Cavaliers, with LeBron James wanting them to bring him to Cleveland.

Dunleavy's new deal includes a partial guarantee in the third year, Wojnarowski reported. He can officially sign starting July 9.

Locking up All-Star wing and restricted free agent Jimmy Butler and adding a reserve guard with a form of the mid-level exception -- likely the mini mid-level -- are Chicago's two other primary goals in free agency. The Bulls could also add players on minimum contracts, if they choose.

Assuming the Bulls retain Butler, the signing of Dunleavy means they will likely enter the luxury tax for the second time in franchise history -- barring a trade or unexpected move. The luxury tax is projected to be around $81.6 million, though recent rumblings have the salary cap and luxury tax coming in a couple million more than expected.

If we assume Dunleavy's 2015-'16 salary to be around $5 million and Butler's to be around $16 million, the Bulls will have nearly $85 million committed to their top 11 players and another $1.9 million in non-guaranteed contracts to E'Twaun Moore and Cameron Bairstow.