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I'm not good with this stuff. I guess what I am wondering is that if we trade him and cover 3 million of his salary would that free up the other 4 million or so as cap space since the trade partner would be picking up that remaining portion of his contract.
The $3mm has no impact on anybody's cap space. It is simply a cash payment.
There are only two ways that we could clear all or a significant portion of Tinsley's salary:
1. Tinsley could claim non-performance and void the contract (which is actually his remedy in the boiler plate player's contract). This is a virtual impossibility.
2. The Pacers could find someone below the cap willing to trade a pick for Tinsley, or they could find somebody willing to trade a largely unguaranteed contract for Tinsley. This is a more plausible impossibility.
I hope the Arbitration makes Tinsley take the same buyout that Mcdyess took at the last trade deadline w/ Denver so he could go back to Det... (Nuggets only had to pay like 25-30% of his contract and his salary was completely removed from their books...)
McDyess got a $6mm buyout on a $15.4mm contract (after 10% trade kicker), or about 40%, but the salary was not completely removed from their books. In fact, about $3.3mm remains on Denver's payroll for the upcoming year.
A buyout always replaces the original contract as the cap amount. It is always pro-rated over the rest of the contract at the same proportions as the original contract.
"The Suns completed a contract buyout Monday for Wallace, whom they acquired for such financial motivation in the Shaquille O'Neal trade in June. The Suns negotiated a $10 million buyout for a contract that would have paid him $14 million this season.
The Suns could save $8 million as a result of the buyout, because next season's payroll projects to exceed a $69.9 million luxury-tax threshold, kicking in a dollar-for-dollar penalty for the excess."