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2013-2014 Offseason Transactions

Moderators: silentjim, RedHopeful, Fenris-77, DVauthrin, dasein

Re: 2013-2014 Offseason Transactions

Postby snakehuynh » Mon Aug 05, 2013 6:58 pm

Im buying out Elton Brands 8.5 mil.
25% (2.125 mil) will reflect on my salary for this year.
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Re: 2013-2014 Offseason Transactions

Postby dasein » Tue Aug 06, 2013 1:39 am

scully19 wrote:My understanding is that the final 2 years would be at 25%. I believe you guys came to that conclusion as well but just putting that in there. I'll leave him on the roster for now until we know for sure the deal.


Final 2 years? This would be his 3rd year coming up. The rules are quite clear in my opinion- he can be bought out this offseason for 50% of the 3rd year sallary. That was my understanding when writting them, so that's how I wrote it.
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Re: 2013-2014 Offseason Transactions

Postby scully19 » Tue Aug 06, 2013 2:29 am

Ya that is pretty clear actually re-reading it. I had thought it was 25% for both years and he would be charged this year and next, and that basically uses the other rule we have of combining the 2 years costs into 1 year. It seems to me like we should have the option for either or, but I'm good either way.
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Re: 2013-2014 Offseason Transactions

Postby RocketsDWM » Tue Aug 06, 2013 5:19 am

capoltorta wrote:RocketsDM and I have agreed on the following trade:

Cap. gets Royce White and RocketsDM's 2013 2.13 pick
RocketsDM gets Luis Scola

Please confirm, thanks.


Confirmed.
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Re: 2013-2014 Offseason Transactions

Postby So-Tex » Tue Aug 06, 2013 5:59 am

scully19 wrote:Ya that is pretty clear actually re-reading it. I had thought it was 25% for both years and he would be charged this year and next, and that basically uses the other rule we have of combining the 2 years costs into 1 year. It seems to me like we should have the option for either or, but I'm good either way.

Well, technically, that's what the other buyout rule is for - to get out of a three or four year deal - IF you have the cap space and can afford the complete buyout.

The version of the rule I used was under the "partially guaranteed" section. A four year deal is guaranteed except for the last two years, which are only "partially guaranteed". Two and three year deals are only partially guaranteed in the last year of the contract. That gives you the opportunity to drop a guy without making it a straight drop, and costing you 75%/50%.

But the option to buyout any contract is still there. You just have to be able to afford the entire amount that is left on the contract. So, if you owe a guy on a four year contract the last three years, and each year is at, say, 8M, then you could buy him out in year two for 24M (8+8+8), no questions asked. If you wait until year three however, you have the option to buy him out for only a % of that year's amount (in this case, 50% of 8M, or 4M). If you wait until year 4, it's even cheaper (25% of the final year). It's a money saving move in the long term, for certain.

The original issue I asked for clarification on was whether I had Gortat on a three year deal or a four year deal. I couldn't find any old spreadsheets which had that first year of Gortat's contract on it (shame on me, really), but I noticed on my current sheets, I had these last two years shaded as "partially guaranteed". Which meant, he was eligible for a 50% buyout here in year 3 of his contract. If he had only been on a three year deal (instead of four),then only the last year of the deal would have been eligible for the buyout, and I wouldn't have been able to use the "partially guaranteed" version rule. I still could have bought out Gortat though, for the two years left on his deal. But I would have had to pay the entire amount of the remaining contract (this year + next)...and again, only IF I had the cap space.

One other thing to remember is that any of these buyouts are only good for the off-season. Once the season starts, if I want to drop anyone, it doesn't matter who and what their contract states, it would be a straight drop, which follows the 75%/50% rule.

It's a lot I just typed out there, I know...but to me, it's really simple to understand. And the way it was explained to me is the way I first read it.

Nice discussion though...never hurts to reaffirm and refresh our memories and knowledge of the rules! ;-D
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Re: 2013-2014 Offseason Transactions

Postby DVauthrin » Tue Aug 06, 2013 4:58 pm

scully19 wrote:Ya that is pretty clear actually re-reading it. I had thought it was 25% for both years and he would be charged this year and next, and that basically uses the other rule we have of combining the 2 years costs into 1 year. It seems to me like we should have the option for either or, but I'm good either way.


if you buy out a 4 year contract in year 3, you pay 50% of that year's salary as one lump sum. if you buy out year 2, 3, or 4 in 2 year, 3 year or 4 year deals, it's 25% of that year's salary.
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Re: 2013-2014 Offseason Transactions

Postby dasein » Wed Aug 07, 2013 1:05 am

DVauthrin wrote: if you buy out a 4 year contract in year 3, you pay 50% of that year's salary as one lump sum. if you buy out year 2, 3, or 4 in 2 year, 3 year or 4 year deals, it's 25% of that year's salary.


In case anyone was confused by this, what he means is you can buy out a contract for a lump sum during the preseason if it is:

- the 3rd year of a 4-yr deal (you pay 50% of the 3rd-yr salary)
- the final year of a 2, 3, or 4 year deal (you pay 25% of the final-yr salary)
;-D
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Re: 2013-2014 Offseason Transactions

Postby nykos » Wed Aug 07, 2013 1:53 pm

Hi all,

when I came, I read, that for a 4years contract, if you buy it out before the 3rd year of the deal, then you had to pay 50% of the 3rd year + 25% of the 4th year, so it would be good to modify a little bit the right paragraph of the rules:

5.3 PARTIALLY-GUARANTEED CONTRACT BUYOUT (offseason only)
All Veteran Contracts, are deemed to include partial-guaranty clauses for:
- the final year of 2 and 3 years contracts.
- the final two years of 4 year contracts.
Teams may choose not to buyout the player during the off-season preceding the partially guaranteed year. If so, the player will be removed from the team’s roster and a cap hold equal to the value of the buyout will be placed against the team’s cap for that year. The value of the buyout shall be:
- 25% of the upcoming year’s salary, if it is the final year of a 2, 3, or 4-year contract.
- 50% of the upcoming year’s salary, if it is the third year of a 4-year contract. (and no fee for the last year)

so, there will be no more misunderstanding
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Re: 2013-2014 Offseason Transactions

Postby silentjim » Wed Aug 07, 2013 2:27 pm

nykos wrote:Hi all,

when I came, I read, that for a 4years contract, if you buy it out before the 3rd year of the deal, then you had to pay 50% of the 3rd year + 25% of the 4th year, so it would be good to modify a little bit the right paragraph of the rules:

5.3 PARTIALLY-GUARANTEED CONTRACT BUYOUT (offseason only)
All Veteran Contracts, are deemed to include partial-guaranty clauses for:
- the final year of 2 and 3 years contracts.
- the final two years of 4 year contracts.
Teams may choose not to buyout the player during the off-season preceding the partially guaranteed year. If so, the player will be removed from the team’s roster and a cap hold equal to the value of the buyout will be placed against the team’s cap for that year. The value of the buyout shall be:
- 25% of the upcoming year’s salary, if it is the final year of a 2, 3, or 4-year contract.
- 50% of the upcoming year’s salary, if it is the third year of a 4-year contract. (and no fee for the last year)

so, there will be no more misunderstanding


Yeah, this is what I was initially thinking as well, and agreed that some better wording might be necessary. I'm ok with the 50% buyout in the 3rd year of a 4 year contract since it's essentially 25% two years in a row with a bigger penalty now instead of dragged out.
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Re: 2013-2014 Offseason Transactions

Postby DVauthrin » Wed Aug 07, 2013 2:36 pm

DVauthrin and I have agreed on the following trade:

Cap gets DVauthrin's 2013 2.01 draft pick.
DVauthrin gets Kendrick Perkins and Austin Rivers


confirmed.
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