76ers free agent Paul Reed Jr. signs jazz demo sheet

Reed signed the offer sheet on Saturday morning. The Sixers will have until 11:59 p.m. ET on Sunday to game Reed and either keep him or let him go to the Jazz.

One period of the bid sheet contains a unique twist: The first season of the contract is all but guaranteed, while the next two seasons become guaranteed if the Reeds advance to the conference semifinals in 2023-24, the sources said. Given where the two franchises stand, the Sixers will likely have to guarantee a total of $15.7 million for the 2024-25 and 2025-26 seasons of the Jazz.

If the 76ers match the bid sheet, they will pass the $165 million luxury tax threshold and incur an additional $14 million in luxury tax penalties. Reid would have veto power over the trades for a year if he remained in Philadelphia.

Reed was something of a revelation for the Sixers last season as he played in 69 games — more than the 64 he played in his first two seasons together. Reed, the 58th pick in the 2020 NBA Draft, ranked in the top 10 in offensive rebound percentage last season, according to ESPN Stats & Info.

In four games in 2022-23, including the regular and postseason, Reid averaged 11.8 points and 11.5 rebounds. In his first playoff game, he had 10 points and 15 rebounds in Game 4 against the Brooklyn Nets. Reed was the first Sixers player to score 15 points in his postseason debut since Samuel Dalembert in 2005.

ESPN’s Bobby Marks contributed to this report.