Jermaine O’Neal signed a seven-year, $123 million contract, the maximum allowed, on July 16, 2003. According to ESPN, and Storyteller's site, JO will make $19,728,000 this year. After this season he has an (ETO) Early Termination Option, which gives him the right to terminate his contract early. JO was born on Oct 13, 1978, so right now he is 28 years old and in his prime. He will turn 29 years old right before the regular season starts this year.
(2007) $19,728,000..... age 29, this coming season.
(2008) $21,352,500......age 30
(2009) $22,995,000......age 31
If JO opted out he would be opting out of $44,347,500.00 million dollars.
JO could sign an extension for up to 4 years with raises of 10.5% each year. (NBA raises are not compounded) The only way I see that happening is if he leads a team to the NBA championship this year. That won't happen, even the Lakers couldn't afford to extend both Kobe and JO. Just for example JO would be making.
(2010) $25,409,475.....age 32
(2011) $27,823,950.....age 33
(2012) $30,238,425.....age 34
(2013) $32,652,900.....age 35
After actually putting the figures down, I would have to say that would be a JO fantasy, because it's not happening!
Well on second thought, it being LaLa land I guess if he was traded to the Lakers and they won three straight championships with him as a major piece it would be possible. Kobe makes a hair less than JO so the Lakers would be paying two players about $65 million at the end of JO's extension.
Okay now lets see what a more relistic outcome tells us. If he invokes his ETO, he would have three options.
One) He could then resign with the Pacers for six years with 10.5% raises each year.
Two) He could be part of a sign and trade to another team, and still get the above.
Three) Or he could opt out and just sign with another team. His maxamum would be 5 years with raises of 8%.
If JO is still with the Pacers next year and opts out, or hes traded and opts out, his likely expectations are about that of Vince Carter's. Carter just opted out and resigned with New Jersey for a rumored "$66 million guaranteed -- which includes four years plus a partial guarantee for a fifth year -- and could make as much as $80 million." Carter is 30 years old. That means Carter will start his new contract at around $13 million. So starting JO at $13m, and giving him 10.5% raises for six years his contract would look like this.
(2008) $13,000,000.....age 30
(2009) $14,365,000.....age 31
(2010) $15,973,325.....age 32
(2011) $17,540,024.....age 33
(2012) $19,381,726.....age 34
(2013) $21,416,807.....age 35
If he started at $14 million you would add $1,547,000 million for each of 5 years. That would be $7,735,000 million more, or $109,411.882 million total.
Now if he opts out and just signs with another team his maximum would be 5 years with raises of 8%.
(2008) $13,000,000.....age 30
(2009) $14,040,000.....age 31
(2010) $15,163,200.....age 32
(2011) $16,376,256.....age 33
(2012) $17,686,356.....age 34
For the purpose of comparing six year periods.
(2013) $19,543.423.....age 35
That would be his pay in the first year if he signed a contract extension. An extension is doubtful at age 35 though. If he did sign an extension the total would be $94,809,235 over six years when including the first year of his extension.
The reality is he would probably sign a new contract and get the minimum of about $6 million, which would be a total of $82,265,812 over six years.
Now lets look at the figures if JO doesn't opt out. He would be starting his 32nd year so lets say he signs a new contract starting at $10 million a year.
(2008) $21,352,500.....age 30
(2009) $22,995,000.....age 31
(2010) $10,000,000.....age 32 Conjuncture. If he would start at $13m, this obviously would be the way to go.
(2011) $11,050,000.....age 33
(2012) $12,210,250.....age 34
(2013) $13,492,326.....age 35
Over a six year period the figures are thus;
$116,124,750....If he signs an extension. Obviously JO would think he would have a better chance of signing an extension with a team like the Laker's.
$101,676,882 to $109,411.882.....if he opts out and either resigns with the Pacers or does a sign and trade at either $13 or $14 million. If he thinks he can resign for more than $14 million he will obviously opt out.
$76,265,812 to $82,265,812.....if he just signs with another team and leaves the Pacers with nothing.
$91,100,076.....if he doesn't opt out.
Basically it comes down to what you think JO is going to be worth at certain periods in his life. If this coming year is a year like the past couple he probably won't opt out. If he has a MVP type year he no doubt will.
My conclusion is I see no way JO just walks and leaves the Pacers with nothing. That could cost him $40 million dollars.