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Woj: Wiz re-sign Gortat - 5 yrs/$60 mil

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Re: Woj: Wiz re-sign Gortat - 5 yrs/$60 mil 

Post#421 » by verbal8 » Fri Jul 11, 2014 1:56 pm

sashae wrote:IMO the 5th year salary is irrelevant due to the CBA expiration in '17. The financial landscape is TOTALLY unknown at this point, and fretting about Gortat's '18 contract is futile -- with the amount the cap is increasing yearly as well, it'd be unsurprising if that's a near "middle class" salary by the time the deal expires. Let's worry about then then and pillory Ernie for the stupid things he does in the now (hello, Otto Porter vs. Nerlens Noel.)


CBA uncertainty IMO is an argument for less than 100% guarrantee, front loading or in the very least flattening a long-term contract. With a few exceptionally terrible max deals, the deals from 1 to 2 times the average salary have historically been the worst for the owners. Even if the owners lose ground in a new CBA, I think they lose it to rookies, vet minimum players and/or star players, not the NBA "upper middle class".

If Gortat was in his early 20s and the deal was covering his prime, I could see being willing to take the risk. Howver this contract is for the end of his career as an effective NBA player. Even if his production stays strong into his mid-30s it is unlikely that his availability(old players are a bigger injury risk) will.
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Re: Woj: Wiz re-sign Gortat - 5 yrs/$60 mil 

Post#422 » by Zonkerbl » Fri Jul 11, 2014 3:47 pm

No, if you know the CBA is going to rise, a dollar spent this year is more expensive than a dollar spent in later years.

If we can still sign KD then it's all good.
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Re: Woj: Wiz re-sign Gortat - 5 yrs/$60 mil 

Post#423 » by nate33 » Fri Jul 11, 2014 4:07 pm

payitforward wrote:
nate33 wrote:Classic Ted Leonsis. It's all about the bottom line for him. He want's to avoid giving his money away until the last possible minute so he can earn as much interest as possible.

Have the Wizards EVER signed a player to a contract that didn't involve maximum backloading? Absolutely no forward thinking whatsoever. If you frontload some of these contracts, they become very tradeable in the later years.

I don't like Ted or Ernie; they are no good at all at building a franchise, but what you write here makes no sense. We are up against the cap and lux tax level -- it makes perfect sense to kick the money can down the road until Nene's ridiculous salary is gone.

I make perfect sense.

We are not up against the cap. The cap is irrelevant this year. We are over the cap and utilizing cap exceptions. All that matters is the luxury tax. We could frontload BOTH Ariza and Gortat to the MAXIMUM extent possible and still have $4.6M in luxtax room - almost enough for the full MLE. And that's assuming 4-years $36M for Ariza. If we made Ariza's salary flat instead of descending, we could have the full MLE at our disposal.

The bottom line is that it makes no sense to be more than a few hundred thousand dollars below the luxtax. It's better to push up right against the luxtax now so that we have a lot more flexibility in the future. The way Ted is handling it, we are going to have about $12M in luxtax room (minus whatever portion of the MLE we intend to use). That's a complete waste. He is sabotaging our future flexibility just to earn a few thousand dollars of interest in the short term.
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Re: Woj: Wiz re-sign Gortat - 5 yrs/$60 mil 

Post#424 » by The Consiglieri » Sat Jul 12, 2014 8:38 pm

TGW wrote:
closg00 wrote:http://bleacherreport.com/articles/2121828-report-card-grades-for-most-important-2014-nba-free-agent-deals-so-far/page/3


That's how I graded it as well. Gortat is a good player, but paid entirely too much. C+ is about right.


I think I'm of the same mind:

Keep on the sunny side of life:

If Gortat manages to avoid the injury issues that hamper most players in their thirties, and he's more likely than most, especially since he's a skill player rather than an athlete, to play well into his thirties. He's a top 12 or so center, at worst, top half of the league, and that will plug a hole/need since we were too stupid to draft Drummond or Noel (at least we got a superlative talent in passing on Drummond), he's a perfect piece to play with Wall and Beal, should be able to contribute quite well for the team at least for 2-3 more seasons, as long as he avoids injury.


Chicken Little:

Typical horrible contract from Ernie, perpetually giving awful second contrats to players like Gilbert, Baltche, Jamison, and friends.

Highly unlikely we'll want this player on our roster by '17-'18.

Eats up valuable cap room that could have been used to get a legit difference maker.

Showcases, and underlines managements interest in selling playoff tickets, rather than actually winning NBA championships.

Smart teams manage the cap to get quality contracts on quality players with upside, they don't pay players for past performance. We have habitually done the opposite.

Very frustrating to be a fan of this team, I recognize this isn't nearly as bad as some past moves, but that doesn't mean its a good move, it just means it's not a horrible one, and is also quite short sighted and uninspired.
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Re: Woj: Wiz re-sign Gortat - 5 yrs/$60 mil 

Post#425 » by nate33 » Sat Jul 12, 2014 10:08 pm

Well, now that Ariza has gone, there is no possible way we can even approach luxtax territory. With that in mind, I sincerely hope EG revisits the structure of Gortat's contract. There's no reason not to frontload it now so that he isn't as much of a financial burden in future years. He can either frontload it to the maximum, or he can structure it to minimize the cap hit in 2016. That would look like this:

Year 1: $12.77M
Year 2: $11.81M
Year 3: $10.85M
Year 4: $11.81M
Year 5: $12.77M

With that structure, Gortat costs about 1.15M less in 2016. It's not a huge difference, but every bit helps. As it stands now, we're about $26.5M under the cap in 2016 counting only Gortat, Wall Porter and Webster (assuming a modest cap increase of $2M a year). Beal's cap hold is about $16M, but hopefully his salary will be more like $12M. that leaves $14.5M in cap room. Tweak Gortat's salary and that's $15.6M in cap room. Dump Webster and it's $21.4M
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Re: Woj: Wiz re-sign Gortat - 5 yrs/$60 mil 

Post#426 » by stevemcqueen1 » Sun Jul 13, 2014 1:38 am

nate33 wrote:Beal's cap hold is about $16M, but hopefully his salary will be more like $12M.


Why is Beal's cap hold so high? That's more than the first year of the max deal he could sign.

How do they calculate the cap holds?
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Re: Woj: Wiz re-sign Gortat - 5 yrs/$60 mil 

Post#427 » by keynote » Sun Jul 13, 2014 1:42 am

nate33 wrote:Well, now that Ariza has gone, there is no possible way we can even approach luxtax territory. With that in mind, I sincerely hope EG revisits the structure of Gortat's contract.


Didn't Gortat already sign his deal? Is it even possible to restructure the deal at this point?
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Re: Woj: Wiz re-sign Gortat - 5 yrs/$60 mil 

Post#428 » by fishercob » Thu Mar 12, 2015 2:00 pm

With the cap spiking in 2016, the Gortat deal doesn't look bad. It's not just that Gortat's deal is going to be just 13% or so of the 2016 cap. It's also that the summer of '16 is going to be so insane -- huge numbers of free agents, tons of money flying around, etc. You're going to see some crazy deals next summer, and Gortat's deal is going to probably end up a decent value.
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Re: Woj: Wiz re-sign Gortat - 5 yrs/$60 mil 

Post#429 » by sashae » Thu Mar 12, 2015 2:09 pm

I rest my case ;P
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