Salary cap question

[BRIGGS]

The NY Knicks have two players--Al Harrington and Chris Duhon who have contracts that run out after the 2009-2010 seasons that make then unrestricted free agents. Can the Knicks sign a free agent and then sign them to longer contracts or do they have to be renounced? If renounced--no way to resign?

[Three34]

You can renounce them and re-sign them later, but if you do, you can only sign them with whatever cap room you have left after signing everyone else that you want. Which, if things go the way that the Knicks want them to, won't be much.

[Warspite]

Harrington and Duhon on July 1st count 1.5 times there salary against FA cap space. So if they are making 10 mil combined then they count 15 mil against the cap space avail. They have to be resigned or waived and then they come off the 150% cap hit. Either waived and not resigned untill next April or signed and there new salary counts against the cap.

LBJ for instance Shaq makes 20 mil so he will count as 30 mil against the cap in 2010 untill he is resigned or released.

[FGump]

^^^what Sham said

The Knicks have a choice
a. renounce their Bird rights in order to clear them off their cap rolls, or
b. keep them on the cap rolls (and retain Bird rights) for 150% of prior year's salary - which is not gonna happen.

Once they are renounced, if the Knicks want them they would have to sign them to a contract that fits within their available cap space.

[D21]

...
LBJ for instance Shaq makes 20 mil so he will count as 30 mil against the cap in 2010 untill he is resigned or released.

IMO, it's not a good example because it adds another rule.

Unless I am wrong (LarryCoon will be able to confirm), the cap hold is limited by the Maximum Salary the player can get being the greater of 14M, 35% of the cap, or 105% of his last year salary (all numbers for for a 10+ year veteran).
Shaq cap hold is limited to 2010-11 Max Salary, and won't be 150% of his 20M.

[Dunkenstein]

Larry confirmed at lunch today that Shaq's cap hold will be 105% of his 2009-2010 $21M salary, since that is the maximum amount that Phoenix will be able to pay him in 2010-11.

[d-train]

There is a somewhat unlikely loophole. The Knicks could renounce Duhon and Harrington to make available cap space to sign free agents and then resign one or both Duhon and Harrington to a 1-year veteran’s minimum contract. That would allow the players to retain their bird rights so they could be resigned to bigger deals starting the 2011/12 year. The reason it’s an unlikely loophole is you would think any player worth more than the veteran’s minimum wouldn't go along with the plan.