Merlin
07-06-2005, 12:31 PM
http://cbs.sportsline.com/print/nba/story/8609786
Loophole in new agreement gives owners second chance
June 30, 2005
By Tony Mejia
Teams over the salary cap can escape paying a dollar-for-dollar luxury tax, thanks to a one-time loophole in the new collective bargaining agreement.
How? By waiving a player.
While the discarded individual would still get paid for the entire length of his deal, the team would erase his salary figure from tax implications. In the case of Dallas' Michael Finley, letting him go would save the Mavericks organization over $50 million dollars.
The only stipulation is that once a player is waived, he can't re-sign with his current team for the entire length of his deal, but is free to sign elsewhere for any amount. In that regard, this is a concession that is good for both players and franchises.
A large part of the new CBA, while primarily seeking improvement in the current system for the overall good of the game, was also constructed to help save the owners from themselves. Bidding wars have a tendency to force some to lose their minds and make grievous errors in judgment, part of the reason the maximum length of a contract was reduced from seven years to six for signing your own free agents, and from six to five for signing arrivals from other teams.
This one-time opportunity to erase a mistake is another, and teams are expected to take full advantage of it beginning July 1.
Here's a list of 15 players who could be luxury tax casualties, adding to the free-agency fun:
Luxury tax casualties?
Player, Team Salary Avg./Years Remaining Approx. Money Saved
Raef LaFrentz, Boston $11.3 million/4 years $45 million
With Mark Blount set in the middle and youngsters Al Jefferson and Kendrick Perkins developing rapidly, LaFrentz appears to be expendable.
Carlos Boozer, Utah $11.8 million/5 years $59 million
Despite his disappointing first season in Utah, it would be a huge shock if he doesn't stay put.
Rasho Nesterovic, San Antonio $7.5 million/4 years $30 million
The world champs have an interesting decision to make. But given that he fell out of the rotation in the playoffs, he might be worth cutting loose.
Jalen Rose, Toronto $16.2 million/2 years $32 million
Both parties were unhappy last year and the Raptors look to be in rebuilding mode; the two sides might finally trim ties.
Theo Ratliff, Portland $11.5 million/4 years $46 million
Joel Przybilla has taken his job, anyway.
Doug Christie, Orlando $8.2 million/1 year $8 million
It would appear departed GM John Weisbrod will have traded Cuttino Mobley away for nothing.
Eddie Jones, Miami $15.2 million/2 years $30 million
Considering the Heat are chasing a championship and his defense is still superb, Jones should be safe.
Jason Williams, Memphis $8.2 million/3 years $25 million
The Grizzlies were said to be fed up with his antics, but who is going to run the show if they cut him?
James Posey, Memphis $6.1 million/2 years $12 million
Injuries are a concern, but given Jason Williams' presence and the flashes of brilliance he demonstrated two years ago, he'll likely be kept.
Chris Webber, Philadelphia $20.7 million/3 years $62 million
If he's going anywhere, this is obviously the time to do it. He'll never be the same C-Webb, but he is still an upper-echelon power forward. The Sixers face quite a dilemma.
Jamal Mashburn, Philadelphia $10.5 million/2 years $21 million
Either he or Chris Webber will be looking for a new home, provided he's interested in making a comeback.
Wally Szczerbiak, Minnesota $11.5 million/4 years $46 million
There's no rumbling that he'll be sent packing, although he is making a pretty penny.
Michael Finley, Dallas $17.3 million/3 years $52 million
Teams are already jockeying for position to push for his services. Though he'll likely have his number retired by Dallas in the future, his days there are done.
Allan Houston, New York $19.9 million/2 years $40 million
His earning potential is limited, so unless he really wants to play and feels he can regain a good part of his previous form, he may retire when the Knicks let him go.
Brian Grant, L.A. Lakers $15 million/2 years $30 million
Phil Jackson mentioned him as a player who could make the triangle work, but given his history of injury and at such a high price, L.A. will make due without him.
Ruben Patterson, Portland $6.6 million/2 years $13 million
He no longer wants to play for a team in rebuilding mode, so if he is sent off, this could be blessing for both parties.
Loophole in new agreement gives owners second chance
June 30, 2005
By Tony Mejia
Teams over the salary cap can escape paying a dollar-for-dollar luxury tax, thanks to a one-time loophole in the new collective bargaining agreement.
How? By waiving a player.
While the discarded individual would still get paid for the entire length of his deal, the team would erase his salary figure from tax implications. In the case of Dallas' Michael Finley, letting him go would save the Mavericks organization over $50 million dollars.
The only stipulation is that once a player is waived, he can't re-sign with his current team for the entire length of his deal, but is free to sign elsewhere for any amount. In that regard, this is a concession that is good for both players and franchises.
A large part of the new CBA, while primarily seeking improvement in the current system for the overall good of the game, was also constructed to help save the owners from themselves. Bidding wars have a tendency to force some to lose their minds and make grievous errors in judgment, part of the reason the maximum length of a contract was reduced from seven years to six for signing your own free agents, and from six to five for signing arrivals from other teams.
This one-time opportunity to erase a mistake is another, and teams are expected to take full advantage of it beginning July 1.
Here's a list of 15 players who could be luxury tax casualties, adding to the free-agency fun:
Luxury tax casualties?
Player, Team Salary Avg./Years Remaining Approx. Money Saved
Raef LaFrentz, Boston $11.3 million/4 years $45 million
With Mark Blount set in the middle and youngsters Al Jefferson and Kendrick Perkins developing rapidly, LaFrentz appears to be expendable.
Carlos Boozer, Utah $11.8 million/5 years $59 million
Despite his disappointing first season in Utah, it would be a huge shock if he doesn't stay put.
Rasho Nesterovic, San Antonio $7.5 million/4 years $30 million
The world champs have an interesting decision to make. But given that he fell out of the rotation in the playoffs, he might be worth cutting loose.
Jalen Rose, Toronto $16.2 million/2 years $32 million
Both parties were unhappy last year and the Raptors look to be in rebuilding mode; the two sides might finally trim ties.
Theo Ratliff, Portland $11.5 million/4 years $46 million
Joel Przybilla has taken his job, anyway.
Doug Christie, Orlando $8.2 million/1 year $8 million
It would appear departed GM John Weisbrod will have traded Cuttino Mobley away for nothing.
Eddie Jones, Miami $15.2 million/2 years $30 million
Considering the Heat are chasing a championship and his defense is still superb, Jones should be safe.
Jason Williams, Memphis $8.2 million/3 years $25 million
The Grizzlies were said to be fed up with his antics, but who is going to run the show if they cut him?
James Posey, Memphis $6.1 million/2 years $12 million
Injuries are a concern, but given Jason Williams' presence and the flashes of brilliance he demonstrated two years ago, he'll likely be kept.
Chris Webber, Philadelphia $20.7 million/3 years $62 million
If he's going anywhere, this is obviously the time to do it. He'll never be the same C-Webb, but he is still an upper-echelon power forward. The Sixers face quite a dilemma.
Jamal Mashburn, Philadelphia $10.5 million/2 years $21 million
Either he or Chris Webber will be looking for a new home, provided he's interested in making a comeback.
Wally Szczerbiak, Minnesota $11.5 million/4 years $46 million
There's no rumbling that he'll be sent packing, although he is making a pretty penny.
Michael Finley, Dallas $17.3 million/3 years $52 million
Teams are already jockeying for position to push for his services. Though he'll likely have his number retired by Dallas in the future, his days there are done.
Allan Houston, New York $19.9 million/2 years $40 million
His earning potential is limited, so unless he really wants to play and feels he can regain a good part of his previous form, he may retire when the Knicks let him go.
Brian Grant, L.A. Lakers $15 million/2 years $30 million
Phil Jackson mentioned him as a player who could make the triangle work, but given his history of injury and at such a high price, L.A. will make due without him.
Ruben Patterson, Portland $6.6 million/2 years $13 million
He no longer wants to play for a team in rebuilding mode, so if he is sent off, this could be blessing for both parties.