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Unclebuck
03-03-2009, 08:23 AM
Buried in this excellent Vecsey column, is information that I was not aware of. Click on the link for the whole article. If I am reading this correctly - a player still gets his full salary buyout or no buyout

http://www.nypost.com/php/pfriendly/print.php?url=http://www.nypost.com/seven/03032009/sports/moresports/many_teams_best_when_big_names_sit_157742.htm

By PETER VECSEY

What's to prevent a licensed playoff team, you might be wondering, from claiming Drew Gooden or Joe Smith (bought out by the Kings and Thunder, respectively) off waivers, and thus prevent Team X & Y from signing them and gaining a championship edge?

Nothing.

However, a team must own sufficient cap room to do it, and 29 of 30 NBA clubs currently exceed the cap; 15-43 Memphis is $3.7M under it at $55M.

A common misconception needs to be cleared up:

1. When a buy-out takes place, the player actually doesn't reduce his salary. He agrees to reduce salary protection (guarantee), in exchange for being released. Stephon Marbury, for example, was due $20,840,625. He agreed to a confirmed $2.2M haircut. His salary remained the same but the guarantee was reduced to $18.6M and change, meaning the Knicks sliced their luxury tax by $4.4M.

2. If a team claims a contract on waivers, it gets the original contract, not a reduced contract.

FYI: Gooden's expiring salary is $7,151,183; the Kings saved $1.8M for liberating him. Smith's expiring salary is $4.795M; the Thunder saved his remaining guarantee.

Bottom line: No team has the money (or the inclination) to pick up either player off waivers; they become free agents within 48 hours.

Unconfirmed reports maintain Smith already has one of those wink-wink deals in place to rejoin the Cavs once he tiptoes across the waiver wire.

My sources assert the Lakers and Hornets - prepared to commit past this season to Smith - are giving the Cavs stiff competition. Cleveland also is in the running for Gooden, but someone in the know says he's leaning toward the Spurs over the Mavericks. Both will make their decision known today.

Will Galen
03-03-2009, 08:44 AM
Buried in this excellent Vecsey column, is information that I was not aware of. Click on the link for the whole article. If I am reading this correctly - a player still gets his full salary buyout or no buyout

http://www.nypost.com/php/pfriendly/print.php?url=http://www.nypost.com/seven/03032009/sports/moresports/many_teams_best_when_big_names_sit_157742.htm

By PETER VECSEY

What's to prevent a licensed playoff team, you might be wondering, from claiming Drew Gooden or Joe Smith (bought out by the Kings and Thunder, respectively) off waivers, and thus prevent Team X & Y from signing them and gaining a championship edge?

Nothing.

However, a team must own sufficient cap room to do it, and 29 of 30 NBA clubs currently exceed the cap; 15-43 Memphis is $3.7M under it at $55M.

A common misconception needs to be cleared up:

1. When a buy-out takes place, the player actually doesn't reduce his salary. He agrees to reduce salary protection (guarantee), in exchange for being released. Stephon Marbury, for example, was due $20,840,625. He agreed to a confirmed $2.2M haircut. His salary remained the same but the guarantee was reduced to $18.6M and change, meaning the Knicks sliced their luxury tax by $4.4M.

2. If a team claims a contract on waivers, it gets the original contract, not a reduced contract.

FYI: Gooden's expiring salary is $7,151,183; the Kings saved $1.8M for liberating him. Smith's expiring salary is $4.795M; the Thunder saved his remaining guarantee.

Bottom line: No team has the money (or the inclination) to pick up either player off waivers; they become free agents within 48 hours.

Unconfirmed reports maintain Smith already has one of those wink-wink deals in place to rejoin the Cavs once he tiptoes across the waiver wire.

My sources assert the Lakers and Hornets - prepared to commit past this season to Smith - are giving the Cavs stiff competition. Cleveland also is in the running for Gooden, but someone in the know says he's leaning toward the Spurs over the Mavericks. Both will make their decision known today.

I think Vecsey just mucked things up. He gets technical on salary's, when it amounts to the same thing, and then blows it by saying the Knicks sliced their luxury tax by $4.4M. Technically that's not so. Yes they saved $4.4M, but only $2.2m was luxury tax money.

wintermute
03-03-2009, 09:18 AM
I think Vecsey just mucked things up. He gets technical on salary's, when it amounts to the same thing, and then blows it by saying the Knicks sliced their luxury tax by $4.4M. Technically that's not so. Yes they saved $4.4M, but only $2.2m was luxury tax money.

i agree.

i was wondering what vecsey was driving at. he's saying that the player salary is untouched, but that the guaranteed portion goes down. so when the team buys him out, he only gets the guaranteed amount - which is exactly what you would get if the player's salary were in fact reduced.

maybe a technicality to get around the cba restriction on renegotiation?

Fool
03-03-2009, 12:26 PM
i agree.

i was wondering what vecsey was driving at. he's saying that the player salary is untouched, but that the guaranteed portion goes down. so when the team buys him out, he only gets the guaranteed amount - which is exactly what you would get if the player's salary were in fact reduced.

maybe a technicality to get around the cba restriction on renegotiation?

As I understand it, his comment is essentially about the ability of teams to pick up bought out players. While the team that buys out a player only has to pay the renegotiated sum, any team picking up that player's old contract on waivers would still have to pick up the original contract amount.

OTD
03-03-2009, 12:57 PM
This guaranteed contract has got to be the worse thing that was ever put in a contract. How man of you have a guarantee of a job?

Fool
03-03-2009, 01:04 PM
It is not extraordinary for the top 1% of a rarefied position to have a guaranteed salary.

A more analogous question would be, "How many of you are considered one of the top 600 people in the world at what you do, you produce millions of dollars in direct and indirect sales, and you have a guaranteed salary?"

able
03-03-2009, 01:08 PM
1: Wil; he is right about the LT savings, ity IS 4.4 as it is a 2 for 1 nowadays.
2: You may not have a job guarantee (though ask most civil workers in EU as there it is more or less a guaranteed job) but you can do your work till well past 65; they be lucky to get past 35.

Will Galen
03-04-2009, 04:14 AM
1: Wil; he is right about the LT savings, ity IS 4.4 as it is a 2 for 1 nowadays.


You lost me. :confused: How can it be 2 for 1 when the tax is a dollar for every dollar you go over the tax. That's 1 for 1.

Say the tax starts at $100. If you go a dollar over, that makes it $101, and you get taxed one dollar, to make it $102.

Now reverse it. Say you are at $102, and you reduce your payroll by one dollar, then the dollar tax on it disappears. You saved two dollars, but only one of them was a tax dollar.