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View Full Version : Question about Granger's Contract Extension



CableKC
05-01-2008, 04:30 PM
In the 2009-2010 season, HoopsHype and DraftExpress indicate that Granger has a Qualifying Offer at $3.289mil. Assuming that TPTB decide to extend his contract that starts off at $9 mil per season for 4 years ( I'm just throwing out the # as a point of reference ) and he accepts the offer....does that mean in the 2009-2010 season $9 mil is counted towards Salary Cap?

or

Is $3.239 mil is counted towards the 2009-2010 season and in the 2010-2011 season his $9mil Contract kicks in?

I'm trying to figure out when we have to clear salary to ensure that we can resign players like Granger and Shawne. I'm not sure if we have to do that by the start of the 2009-2010 season...or if we have till the 2010-2011 season to get the Salary cleared..

SoupIsGood
05-01-2008, 04:38 PM
Are we really going to want to re-sign Shawne? Is the guy that promising? I'm sort of looking for him to get shipped out within a year or so.

Kegboy
05-01-2008, 04:45 PM
I believe Danny's eligible to sign an extension this summer, that would start the next season, 09-10.

count55
05-01-2008, 04:50 PM
In the 2009-2010 season, HoopsHype and DraftExpress indicate that Granger has a Qualifying Offer at $3.289mil. Assuming that TPTB decide to extend his contract that starts off at $9 mil per season for 4 years ( I'm just throwing out the # as a point of reference ) and he accepts the offer....does that mean in the 2009-2010 season $9 mil is counted towards Salary Cap?

or

Is $3.239 mil is counted towards the 2009-2010 season and in the 2010-2011 season his $9mil Contract kicks in?

I'm trying to figure out when we have to clear salary to ensure that we can resign players like Granger and Shawne. I'm not sure if we have to do that by the start of the 2009-2010 season...or if we have till the 2010-2011 season to get the Salary cleared..

It's the $9 million that counts towards the cap in 2009-2010. The $3.239 million is the minimum qualifying offer the Pacers would have to make to be sure that he would be a restricted Free Agent.

(Edit...the salary sites put those in as placeholders. No such offer has been extended by the Pacers, nor would it until that summer. In fact, to do an extension, we'd have to sign him this summer, I think the deadline would be just before the season starts. If we did not, then we'd have to wait until next summer and, at that point in time, we'd have to offer him what would technically be considered a new contract (not an extension). That contract would have to start at $3.239 or higher in order for us to maintain the "Restricted" FA tag, allowing us to match an offer sheet. I believe it would be in our best interest to get him locked up with an extension this summer, precluding him getting on the open market.)

Major Cold
05-01-2008, 05:09 PM
The thing is if he does sign that contract we are going to be over the luxury cap. Making a cost cut move is going to be crucial in retaining him.

OakMoses
05-01-2008, 05:19 PM
The thing is if he does sign that contract we are going to be over the luxury cap. Making a cost cut move is going to be crucial in retaining him.

That cost cutting move could be made as easily as not picking up Marquis's option for '09-10. That would leave us with about $10 million to commit to Danny. That's also assuming we make a qualifying offer to Ike and pick up Shawne's option and that Diener excercises his option, at least two of those things seem pretty questionable right now.

CableKC
05-01-2008, 05:28 PM
It's the $9 million that counts towards the cap in 2009-2010. The $3.239 million is the minimum qualifying offer the Pacers would have to make to be sure that he would be a restricted Free Agent.

(Edit...the salary sites put those in as placeholders. No such offer has been extended by the Pacers, nor would it until that summer. In fact, to do an extension, we'd have to sign him this summer, I think the deadline would be just before the season starts. If we did not, then we'd have to wait until next summer and, at that point in time, we'd have to offer him what would technically be considered a new contract (not an extension). That contract would have to start at $3.239 or higher in order for us to maintain the "Restricted" FA tag, allowing us to match an offer sheet. I believe it would be in our best interest to get him locked up with an extension this summer, precluding him getting on the open market.)


The thing is if he does sign that contract we are going to be over the luxury cap. Making a cost cut move is going to be crucial in retaining him.
How does that RFA status work? If we do not sign him to a Contract Extension this offseason.....and we sign him to the $3.239mil qualifying offer in the 2009-2010 season ( allowing him to be a RFA )........does that mean that in the 2009-2010 season only $3.239mil counts towards the 2009-2010 salary Cap?

Assuming that we do match any offer that he gets....that amount would then be counted towards the 2010-2011 season. Is that right?

Again....I'm just trying to figure out when we need to clear salary in order for us to resign him. Given our financial situation....I'm guessing that TPTB will simply let him become a RFA and then match/sign him for the Market Price.

So does that mean that we have to clear salary before the end of the 2009-2010 trade Deadline in order to sign Granger to a contract starting at $9+mil so that we don't go over the Luxury Tax?

IMHO......this means that TPTB will be cutting Salary ( likely JONeal and Tinsley ) anytime between now ( which may or may not be a good idea ) and the 2009-2010 trade deadline ( which is more likely ). It may also mean that we will likely not be making any major signings anytime soon in order to accomodate the resigning of Granger.

count55
05-01-2008, 05:47 PM
How does that RFA status work? If we do not sign him to a Contract Extension this offseason.....and we sign him to the $3.239mil qualifying offer in the 2009-2010 season ( allowing him to be a RFA )........does that mean that in the 2009-2010 season only $3.239mil counts towards the 2009-2010 salary Cap?

Assuming that we do match any offer that he gets....that amount would then be counted towards the 2010-2011 season. Is that right?

Again....I'm just trying to figure out when we need to clear salary in order for us to resign him. Given our financial situation....I'm guessing that TPTB will simply let him become a RFA and then match/sign him for the Market Price.

So does that mean that we have to clear salary before the end of the 2009-2010 trade Deadline in order to sign Granger to a contract starting at $9+mil so that we don't go over the Luxury Tax?

IMHO......this means that TPTB will be cutting Salary ( likely JONeal and Tinsley ) anytime between now ( which may or may not be a good idea ) and the 2009-2010 trade deadline ( which is more likely ). It may also mean that we will likely not be making any major signings anytime soon in order to accomodate the resigning of Granger.

If we matched an offer sheet, whatever the starting year's salary would go against the cap. For example, if we made a tender offer (starting at at least $3.3 mil), then he went out, got some team to offer him the max for his experience (starting at about $13 mil per year), then the 2009-2010 cap impact for the Pacers would be $13 mil (if they were to match).

The thing to remember is that the qualifying offer is actually fictitious. It means nothing other than information as to the minimum we'd have to pay Danny and still retain our right of first refusal. The only way that would ever be the cap figure is if Danny actually signed a contract starting at $3.3 million.

If we were under the cap, it may count against our free cap space as "reserved money", like draft picks, etc, but since we're so far under, it's really irrelevant. Danny's 2009-2010 cap hit will be equal to the first year of whatever contract he signs.

croz24
05-01-2008, 06:10 PM
why would the pacers pay two players nearly identical in age, ability, position, and relevance to team $8-12mil apiece?

AesopRockOn
05-01-2008, 07:31 PM
Are we really going to want to re-sign Shawne? Is the guy that promising? I'm sort of looking for him to get shipped out within a year or so.

I think they're going to try as hard as they can to trade Shawne for something young and more promising. Hopefully it's not Josh Howard.

count55
05-01-2008, 07:31 PM
why would the pacers pay two players nearly identical in age, ability, position, and relevance to team $8-12mil apiece?

Just to **** you off.

avoidingtheclowns
05-01-2008, 08:41 PM
why would the pacers pay two players nearly identical in age, ability, position, and relevance to team $8-12mil apiece?

Just to **** you off.

is it too late to nominate count and croz for best couple?

d_c
05-02-2008, 02:38 AM
How does that RFA status work? If we do not sign him to a Contract Extension this offseason.....and we sign him to the $3.239mil qualifying offer in the 2009-2010 season ( allowing him to be a RFA )........does that mean that in the 2009-2010 season only $3.239mil counts towards the 2009-2010 salary Cap?

Assuming that we do match any offer that he gets....that amount would then be counted towards the 2010-2011 season. Is that right?

Again....I'm just trying to figure out when we need to clear salary in order for us to resign him. Given our financial situation....I'm guessing that TPTB will simply let him become a RFA and then match/sign him for the Market Price.


If the Pacers and Granger don't agree to a contract extension and Granger decides to just sign the $3.239M qualifying offer for 2009-2010, then that's exactly the amount that will count against the salary cap for that year.

If it comes down to that, then Granger will be an UNRESTRICTED FA during the summer of 2010. He can still sign with the Pacers and they can offer him more than anyone else, but the Pacers will not have the ability to match any offer if he signs with another team because he'd be unrestricted.

The Pacers don't have to sign him to an extension this summer to avoid this situation. They can pass on an extension this summer and reach an agreement in the summer of 2009. If they reach agreement, the qualifying offer disappears off the table and his 2009-2010 salary will be whatever the first year of his new contract calls for.