Senchu wrote:xdrta+ wrote:Senchu wrote:Question to our capologists.
Can Ws extend Poole and there is capspike looming, so Lacob has to survive only one year till the next spike?
Also, imo it would be better to extend and then trade Poole for assests/capspace than just let him get some 130/4 from some rebuilding small market team.
If you mean extending and then trading this season, that would be difficult. You would run into the same situation the Knicks have with Barrett, the so-called Poison Pill provision. That is, if you extend a rookie scale contract and then trade him before the extension takes effect, there's a problem matching salaries. The player's current contract number, $3.9M for Poole, is used for the outgoing team (the Warriors) but for the incoming team the number is the average of each year of the extension plus the current salary.
So if you extended Poole for 4/100 say, that would mean the the other team would have about $20.8M incoming. About the only way to match would be to involve an under the cap team to absorb the excess salary. Very difficult and very rare that it happens.
If you extend him and plan to trade him next summer then you have to take back salary, and you're not really saving any tax money.
EDIT: To show how difficult it is to overcome the poison pill provision, according to Woj 179 players have had that limitation in the NBA, and the only player ever traded was Devin Harris in 2008.
Thank you for a great reply.
If Poole was extended, could he be traded for capspace + picks next summer or it would not have any effect on tax money?
His extension would begin next summer, so he could be traded to an under the cap team, who could absorb his salary into cap space, for draft picks and the Warriors wouldn't take back salary, so tax savings. If he were traded to an over the cap team, that team would have to send back matching salary, so no tax savings.
IMO, they should offer him an extension now of around 4/80, more than Sexton got but less than some others. The incentive for him would be security against injury, a down year, or teams just not having cap space to make him a big offer next summer. If he declines it to become a RFA next summer, play out the year and see what it looks like next summer. Several question marks will be settled next summer, Draymond and Klay in particular.