newyorker4ever wrote:Why are you guys talking about the amnesty clause when there is no amnesty clause in the NBA right now. We used ours on Amare long ago. Is the NBA planning on giving each team another one which i just haven't heard about yet??
The amnesty is a silent "buy back" for the NBAPA after each labor war and after substantial changes in the CBA.
With an amnesty, there is a "cash hit" but not a "cap hit" meaning a team can spend the same cap charge TWICE. ( i.e. you amnesty a guy with three years and 60 million left on his contract, you are forced to pay the 60 million, but your cap is free 20 million each of the next three years to spend somewhere else) You really spent 120 million in cash for 60 million in actual cap charge, which the NBAPA is fine with since it means more of their guys are getting paid. Agents don't mind because they can dip more commission. The owners simply accept it as a way to dump sunk costs off the roster. GM's like it because it washes out contracts that could get them fired.
STAT was actually bought out in the last year of his Knicks deal. Billups was the amnesty usage from the 2nd league wide amnesty ( the first was during the "Allan Houston Era" )
Buyout - Cash is left on the table by the player, team may get relief from "cash hit" but get full charge against cap hit
Stretch is a subform of the normal buyout provision. No "cash hit" relief. You must pay every last time in cash. This is for the trade off that the cap charge is used to a 2X+1 formula ( X being the number of full calendar league years left in the contract)
IIRC, the difference in effect for the player is a standard buyout, the player has to go through 48 hour waivers before becoming a free agent, and in the stretch, the player doesn't become subject to waivers, they go right into free agency. With the amnesty, there is a "blind bidding" process before the player can become a free agent ( i.e. teams must submit a silent bid, and the top offer wins the player, this happened with the Clippers got Billups, when their offer was just a fraction above the next offer, more Stern BS. Donald Sterling should have really seen it coming, the league had planned to gut him of his franchise for years before it happened.