Stretching Jose Calderon's contract

rein08 · Post #1 » by **rein08** » Wed Jan 7, 2015 6:34 am

Jose Calderon is still owed by the Knicks roughly $15M for the next two seasons. How much annually would it take if NY uses the stretch provision on his contract?

according to Hoopshype.com
Calderon's salary for 2015-2016 - $7,402,812
Calderon's salary for 2016-2017 - $7,708,427

DBoys · Post #2 » by **DBoys** » Wed Jan 7, 2015 9:39 am

About 3.02M per season of dead money, for 5 seasons. (You just add the two years together and divide by 5.)

rein08 · Post #3 » by **rein08** » Thu Jan 8, 2015 9:19 am

Is it always stretched for 5 seasons (I'm assuming this season is counted if he gets stretched now) ?
Plus, correct me if I'm wrong but New York would be off that hook is some other team picks up Calderon off waivers?

Post #4 » by **Smitty731** » Thu Jan 8, 2015 2:47 pm

For how many seasons the stretch is for depends on a couple of different criteria. From the CBA FAQ:

•If the player is waived from July 1 to August 31, then his remaining salary is paid over twice the number of years remaining on his contract, plus one. For example, if the player is waived on August 1 with two seasons remaining on his contract at $10.2 million and $10.3 million, respectively, then his remaining salary is paid over five years (two seasons times two, plus one), in even amounts of $4.1 million per year.
•If the player is waived from September 1 to June 30, then the current season is paid per the normal payment schedule, and any remaining years are stretched over twice the number of years remaining plus one as described above. For example, if the player is waived on December 1 with two seasons remaining on his contract at $10.2 million and $10.5 million, respectively, then the current season (at $10.2 million) is paid normally, and the final season (at $10.5 million) is stretched over three years (one season times two, plus one) and paid in even amounts of $3.5 million per year 3.

And yes, if Calderon was claimed on waivers, the other team would absorb all responsibility for his salary. If he clears waivers, and then is signed elsewhere, there could be some form of set-off that would relive the Knicks obligation. But that portion has some variables as to how much.

Questions 65-67 in the FAQ deal with these issues.

bstein14 · Post #5 » by **bstein14** » Thu Jan 8, 2015 7:48 pm

So for Josh Smith, if the Stretch provision was used on him 2 years remaining after this one at $13.5 million per year, you take that $27 million and divide it by 5, so its a cap hit of $5.4 million per season after this one?

Post #6 » by **Smitty731** » Thu Jan 8, 2015 8:17 pm

You got it. the full 13.5 million this year and 5.4 each year for the next 5.

HornetJail · Post #7 » by **HornetJail** » Thu Jan 8, 2015 8:34 pm

rein08 wrote:Is it always stretched for 5 seasons (I'm assuming this season is counted if he gets stretched now) ?
Plus, correct me if I'm wrong but New York would be off that hook is some other team picks up Calderon off waivers?

It is stretched for 2 twice the league of the contract plus one year. Not sure whether that is the only way it can be done but I am positive that is the maximum.

Theoretically if Player X just signed a 5 year deal and immediately had buyers' remorse during the first season, could the final four years of contract be stretched over 9 years or is there a limit?

Post #8 » by **Scoot McGroot** » Thu Jan 8, 2015 9:09 pm

BizGilwalker wrote:
rein08 wrote:Is it always stretched for 5 seasons (I'm assuming this season is counted if he gets stretched now) ?
Plus, correct me if I'm wrong but New York would be off that hook is some other team picks up Calderon off waivers?

It is stretched for 2 twice the league of the contract plus one year. Not sure whether that is the only way it can be done but I am positive that is the maximum.

Theoretically if Player X just signed a 5 year deal and immediately had buyers' remorse during the first season, could the final four years of contract be stretched over 9 years or is there a limit?

There's a percentage limit per year of how much of their salary can be stretched that Larry Coon mentioned. Don't believe any limit to number of players or total length.

Keep in mind though that a team has to really like their own guy to sign him 5 years now 4 is essentially the longest signing, and so the longest remaining salary is really about 3 years, so stretched over 7 (theoretically of course).

HornetJail · Post #9 » by **HornetJail** » Thu Jan 8, 2015 9:16 pm

Scoot McGroot wrote:

There's a percentage limit per year of how much of their salary can be stretched that Larry Coon mentioned. Don't believe any limit to number of players or total length.

Keep in mind though that a team has to really like their own guy to sign him 5 years now 4 is essentially the longest signing, and so the longest remaining salary is really about 3 years, so stretched over 7 (theoretically of course).

Alright, that's what I thought.