View Full Version : Darrell Armstrong question

Jose Slaughter
08-11-2007, 08:51 PM
When does his contract become guaranteed?

08-12-2007, 01:13 PM
I could be wrong on this, but I believe it doesn't become guaranteed until all other contracts become guaranteed, on January 10th. He made a comment to the effect that he's want his contract guaranteed if he came back to the Pacers, so it led me to believe that, unless the Pacers were to guarantee his contract (not sure how you do that), then he would be paycheck-to-paycheck player until the 10th.

Under the CBA, sign & trades must be guaranteed against "lack of skill" for the first year only. However, if DA were waived prior to Jan 10, but was injured as a result of playing for the Pacers, his salary would be guaranteed until he could play again or the end of the season, whichever came first.

90. Are contracts always guaranteed?

Not necessarily. There are a few specific types of contracts that must be guaranteed. All other guarantees are a matter of individual negotiation between the player and team when the contract is signed. Only a player's base salary can be guaranteed -- not bonuses or incentives. The percentage of base salary that is guaranteed cannot increase from one year to the next (e.g., if 50% of a player's salary is guaranteed one season, then no more than 50% of the player's salary can be guaranteed in any subsequent season of the contract).

There are actually several types of guarantees: lack of skill, death (insured or non-insured), injury/illness (insured or non-insured), mental disability (insured or non-insured), and non-insured basketball-related injury. So, for example, a contract might be fully guaranteed for any injury or illness, but not for lack of skill. Some guarantees are for a partial amount of the player's salary, and the amount can change on specified dates. For example, $2 million of Vlade Divac's $5.94 million 2005-06 salary with the Lakers was guaranteed through September 30, 2005. Had he remained on the Lakers' roster after that date, his entire salary would have become guaranteed. Since he was waived prior to that date, he was only owed $2 million.

The required guarantees are as follows:

For sign-and-trade contracts, the first season must be protected for lack of skill.

For rookie "scale" contracts, all seasons must be protected for skill and non-insured injury/illness for at least 80% of the rookie scale amount.
In addition, on January 10 the base salary in all contracts becomes guaranteed for the remainder of that season (except for one case -- see question 59). Also, if a player is waived prior to January 10 but is injured as a direct result of playing basketball with his team, then his salary is guaranteed until he is ready to play again or until the end of the season, whichever comes first.

Larry Coon #90 (http://members.cox.net/lmcoon/salarycap.htm#90)