What is an 'early termination' clause.

basketballwacko2 · Post #1 » by **basketballwacko2** » Thu Jul 17, 2008 3:14 am

I was looking at Shamsports and some players have what is shown as an "Early Termination" clause. It's shown in mauve color, what exactly is meant by an Early termination clause? Blue - team option Green - player option. So what's the diff between an team option and the ET? Here is an example.

Player 2008/2009 2009/2010
Quentin Richardson $8,685,500 $8,700,000

http://www.shamsports.com/content/pages ... knicks.jsp

tylrrr · Post #2 » by **tylrrr** » Thu Jul 17, 2008 3:56 am

An ETO clause allows the player to opt out of his contract while a team option allows the team to decide on whether they'll pick it up for additional yeasr.

Post #3 » by **Scoot McGroot** » Thu Jul 17, 2008 4:05 am

Basically, it's an "opt-out". The reason an ETO is different from a player option is that a player option has to be exercised to "opt-in" to the final year of a contract (and player options only exist for a final year I believe, otherwise it's an ETO).

JO had one for this offseason, but he declined to exercise it, thus keeping in his contract for this year and next year.

basketballwacko2 · Post #4 » by **basketballwacko2** » Thu Jul 17, 2008 5:42 am

I figured you know Scoot, so the ETC is when the player opts out and the Player Option he has to elect to stay. I was looking at shamsports.com and kept seeing that on various players and couldn't decide the difference.

Trent Hassell for example has a ETC for 2009-10. I was thinking about a Tinsley trade say JT and a swape of #1 picks for Hassell and Van Horn whose deal is not guarnteed. IDK if that's enogh for the Nets to take him. We release KVH and buy out Hassell, that's a lot less expensive than buying out JT.

Post #5 » by **Scoot McGroot** » Thu Jul 17, 2008 5:49 pm

I think the issue with that deal is simply that NJ may be worse off than us, and may not want to trade down to pick up Tinsley. Plus, they already have Devin Harris and Marcus Williams in town. Devin is going to be a solid PG for them, while Marcus may be trade bait, but I'm sure they wouldn't want Tinsley at his salary.