“If Lin proves to be a disaster over the next two seasons, the Knicks can waive him, stretch the payment of his $14.8 million salary over three years, and reduce his salary cap amount to about $4.9 million in each season.”

http://espn.go.com/blog/new-york/knicks/post/_/id/22232/coon-makes-cent-to-bring-lin-back

So how about that? The Knicks would have to eat that salary on the cap a little longer, but would save a significant chunk of change based on this provision. Does it really make sense not to sign him with this out?

gunsnewing wrote:This confusion is driving me nuts i thought the sp only applies to houston not new york hence the poison pill 3rd yr

The difference is that the Knicks would have to Waive Lin in order to do the stretch payment.

By reducing his salary burden by $10 mil in year 3, you would reduce your luxury tax burden by the same amount - a $20mm savings in year 3.

You would have to eat dead money in year 4 and 5, but by then Melo/Chandler/Stat go off the books and you don't have to incur the luxury tax if you so desire.

Gives us all the incentive in the world to keep him to have that asset and essentially go all in over the next two years.

BRIGGS wrote:

VDesai wrote:Coon points out that the stretch provision in the new CBA could lessen the burden of Lin's contract, in the event that things don't work out. Here's part of Coon's argument, via ESPN Insider:

“If Lin proves to be a disaster over the next two seasons, the Knicks can waive him, stretch the payment of his $14.8 million salary over three years, and reduce his salary cap amount to about $4.9 million in each season.”

http://espn.go.com/blog/new-york/knicks/post/_/id/22232/coon-makes-cent-to-bring-lin-back

So how about that? The Knicks would have to eat that salary on the cap a little longer, but would save a significant chunk of change based on this provision. Does it really make sense not to sign him with this out?

Funny how they did all this stuff today. Bottom line is that there is no financial excuse not to sign Lin and the Melo pr BS today was set up. Lin is gone and they are just going to try and justify it while removing any burden from Melo as a conduit.

I do agree that there is some sort of Melobury situation going on. The only other guys talking about Lin's deal are the Melo cronies like JR Smith...

VDesai wrote:John Schmeelck actually had a nice article this morning about this as well:

http://newyork.cbslocal.com/2012/07/17/schmeelk-ever-hear-of-stretch-provision-knicks-can-avoid-poison-pill-3rd-year-of-lin-contract/

The luxury tax burden definitely is overblown with the ability to use this provision.

THat was the best SP article I have seen.

THanks for sharing VDesai!

We shall soon see...

HARDCOREKNICKSFAN wrote:If this is indeed the case as a possible option, and if Knicks management is aware of it, then I guess that the Knicks will announce that they'll match the offer for Lin then.

We shall soon see...

The Knicks can't make a financial excuse- they will take a hit by doing this, but its nearly the epic size that is being bandied about. If the Knicks don't match its likely for non-financial reasons, and if so, there will need to be some explanation.

Fact of matter is Lin messed up this situation he and agent was beyond greedy and usually when a player gets $money in the back and is set things happen like

Expectations higher, injuries or ability to play thru being hurt is a question.

Lin clearly put himself before team. For a $hefty$ price. 25 games does not make a star

Lin will be viewed as a nice young pro player whom became a fart in less than 1 month.

So tune in if he stays, we now hear J.Dolan wants to keep Lin though his $$$ may say no & he's still ticked.

If Lin doesnt do well or Knicks struggle I am very sure the whole town will once again blame Carmelo Anthony to
put public whippings on Melo for anything & everthing to do with misfortunes of Knicks or ill play of J.Lin if
this occurs.

nixluva wrote:I think they should match on Lin so that we have another PG to insure that we can deal with any injuries. Last year we saw a rash of guard injury and if they sign Lin then we have a really deep guard corp. You can never have enough good players.

nixluva wrote:I think they should match on Lin so that we have another PG to insure that we can deal with any injuries. Last year we saw a rash of guard injury and if they sign Lin then we have a really deep guard corp. You can never have enough good players.

Exactly