Posted by VDesai:

Just for clarification:

60. How do buy-outs affect a team's salary cap?

The agreed-upon buy-out amount (see question number 59) is included in the team salary instead of the salary called for in the contract. If the player had more than one season left on his contract, then the buy-out money is distributed among those seasons in proportion to the original salary. For example, say a player had three seasons remaining on his contract, with salaries of $10 million, $11 million and $12 million. The player and team agree to a buyout of $15 million. The $15 million is therefore charged to the team salary over the three seasons. Since the original contract had $33 million left to be paid, and $10 million is 30.3% of $33 million, 30.3% of the $15 million buyout, or $4.545 million, is included in the team salary in the first season following the buyout. Likewise, 33.33% of $15 million, or $5 million, is included in the team salary in the second season, and 36.36% of $15 million, or $5.455 million, is included in the team salary in the third season.

The distribution of the buy-out money is a matter of individual negotiation. Changing the number of years in which the money is paid does not change the number of years in which the team's team salary is charged. In the above example in which the player's contract is bought out with three seasons remaining, the buyout amount is always charged to the team salary over three seasons. It does not matter if the player is actually paid in a lump sum or over 20 years (a spread provision).

http://members.cox.net/lmcoon/salarycap.htm

Which means if Zach gets bought out for 50% of his contract, then only 50% of his contract will count against the cap for the seasons remaining. Which is a SIGNIFICANT amount of cap savings if the Knicks were able to pull something like this off.

If a player is picked up off waivers there's an offset in salary liable on one team's cap vs the other. The cap figures reflect the offsets.

If a player is bought out no matter who signs him there is no offset in salary from one team to the other. The cap figure is whatever the buyout number is.

All of this is irrelevant because you guys are dealing with fantasy land thinking Zach will take$25-35mil of the $50mil owed to him. Name a player who's settled for 50% buyout at Zach's remaining salary left on the table.





[Edited by - TrueBlue on 06-16-2008 11:09 AM]

Posted by VDesai:

Just for clarification:

60. How do buy-outs affect a team's salary cap?

The agreed-upon buy-out amount (see question number 59) is included in the team salary instead of the salary called for in the contract. If the player had more than one season left on his contract, then the buy-out money is distributed among those seasons in proportion to the original salary. For example, say a player had three seasons remaining on his contract, with salaries of $10 million, $11 million and $12 million. The player and team agree to a buyout of $15 million. The $15 million is therefore charged to the team salary over the three seasons. Since the original contract had $33 million left to be paid, and $10 million is 30.3% of $33 million, 30.3% of the $15 million buyout, or $4.545 million, is included in the team salary in the first season following the buyout. Likewise, 33.33% of $15 million, or $5 million, is included in the team salary in the second season, and 36.36% of $15 million, or $5.455 million, is included in the team salary in the third season.

The distribution of the buy-out money is a matter of individual negotiation. Changing the number of years in which the money is paid does not change the number of years in which the team's team salary is charged. In the above example in which the player's contract is bought out with three seasons remaining, the buyout amount is always charged to the team salary over three seasons. It does not matter if the player is actually paid in a lump sum or over 20 years (a spread provision).

http://members.cox.net/lmcoon/salarycap.htm

Which means if Zach gets bought out for 50% of his contract, then only 50% of his contract will count against the cap for the seasons remaining. Which is a SIGNIFICANT amount of cap savings if the Knicks were able to pull something like this off.

thanks vd--I think some people should research before they speak. A buyout is a better option than a trade for the 6th pick in the draft in any shape of imagination. All we have to do is find 1 team that would like to give Zach a 3 year MLE[probably 6-8 teams would go in at that amount] and offer Zach the destination of choice.

Posted by BRIGGS:

Posted by VDesai:

Just for clarification:

60. How do buy-outs affect a team's salary cap?

The agreed-upon buy-out amount (see question number 59) is included in the team salary instead of the salary called for in the contract. If the player had more than one season left on his contract, then the buy-out money is distributed among those seasons in proportion to the original salary. For example, say a player had three seasons remaining on his contract, with salaries of $10 million, $11 million and $12 million. The player and team agree to a buyout of $15 million. The $15 million is therefore charged to the team salary over the three seasons. Since the original contract had $33 million left to be paid, and $10 million is 30.3% of $33 million, 30.3% of the $15 million buyout, or $4.545 million, is included in the team salary in the first season following the buyout. Likewise, 33.33% of $15 million, or $5 million, is included in the team salary in the second season, and 36.36% of $15 million, or $5.455 million, is included in the team salary in the third season.

The distribution of the buy-out money is a matter of individual negotiation. Changing the number of years in which the money is paid does not change the number of years in which the team's team salary is charged. In the above example in which the player's contract is bought out with three seasons remaining, the buyout amount is always charged to the team salary over three seasons. It does not matter if the player is actually paid in a lump sum or over 20 years (a spread provision).

http://members.cox.net/lmcoon/salarycap.htm

Which means if Zach gets bought out for 50% of his contract, then only 50% of his contract will count against the cap for the seasons remaining. Which is a SIGNIFICANT amount of cap savings if the Knicks were able to pull something like this off.

thanks vd--I think some people should research before they speak. A buyout is a better option than a trade for the 6th pick in the draft in any shape of imagination. All we have to do is find 1 team that would like to give Zach a 3 year MLE[probably 6-8 teams would go in at that amount] and offer Zach the destination of choice.

Yeah, the 6th pick should only be traded away if you can get back someone like the immortal Ronnie Brewer.

Some people should learn something about basketball before they speak.

Posted by islesfan:

Posted by VDesai:

The whole premise of the thread was that if Zach violated his contract, the Knicks could theoretically terminate with a buyout that's less than the full value of the deal. If an arbitrator ruled on that, then Zach would basically have no say in accepting the buyout. Now is this likely to happen, probably not- but that's the idea of the thread.

i.e. the initial premise is stupid and unrealistic.

BINGO!

Posted by BRIGGS:

thanks vd--I think some people should research before they speak.

perhaps you should have followed ur own advice before u posted ur trade down for Ronnie Brewer & Washington's #18... i guess the Wizards were gonna toss in that pick on a 3 way deal of some sort that you forgot to include.

honest mistakes are fine, but i find it funny he's gonna tell others to research their material before they speak & managed to overlook that minor detail... this guy is an entertaining read, i gotta give him that much.