That Pau contract is overly emphasized (on the site in general, not necessarily your point.) Pau had a player option that he was likely to take. The Spurs wanted to make a run at Chris Paul and needed Pau to opt-out so they cold afford CP3. Then they colud re-sign Pau to a new contract with his Bird rights. Obviously, they had to make it worth Pau's time to opt-out so they gave him a richer contract. Unfortunately, CP3 blew off the Spurs for Houston. When he did that, the Spurs, being honest people and knowing if they renegged on their verbal agreement to Pau it would quickly become well-known in the market, gave him the agreed upon new contraact. Of course, it was bigger. Pau had to be incentivied to opt-out.
Everyone always wants the Spurs to swing for the fences, and this was a case of them trying to do it by getting CP3 price-be-damned, and why it isn't usually prudent to do so. You can argue it was a mistake, but it was a calcualated gamble that just didn't work in the Spurs' favor. It's not like PAFO were just morons or handing out loyalty contracts as is often asserted on ST. You roll the dice and sometimes you lose.