CBA question on Injury Insurance.

basketballwacko2 · Post #1 » by **basketballwacko2** » Wed Jul 1, 2009 1:06 pm

I have a question for Scoot or one of our guys that knows the CBA better than I do. NYK has Mobley who I hear has some kind of a heart condition that is gonna end his career. Are the Knicks getting insurance for him the 80% thing. And if they were to trade him would that mean the receiving team would benefit from the insurance as well. I thought that only the team where he last played could get the insureance but I'm seeing trades on the trade board that say the new team gets it as well. Like Mobley and Curry to Houston for McGrady and the Rockets only pay 20% for Mobley because of the Ins.

Post #2 » by **count55** » Wed Jul 1, 2009 1:58 pm

I'm pretty sure that the insurance goes with the player & contract.

What cannot be traded is a retiring player benefit. That is, if a player retires due to injury, his salary comes off the salary cap in the season where the first anniversary of the injury is incurred. (The last game played is generally treated as a surrogate.)

For example, if Mike Dunleavy were to announce his retirement this season, and it was certified as a medical retirement by a league physician, then his salary would come off the Pacer's cap one year from his last game, or early February. This would be retroactive to the start of the season. so the Pacers cap figure this year would drop by $9m, and it would be gone from the following year as well.

Now, the Pacers would still have to pay Junior, and seek recompense from the Insurance company, but his pay would no longer count against the cap.

This medical retirement can only be claimed by the team for which the player was playing at the time of the injury.

In Mobley's case, the insurance moves with the player, but now no one will ever be able to claim him as a medical retirement exemption.

basketballwacko2 · Post #3 » by **basketballwacko2** » Wed Jul 1, 2009 2:27 pm

So if we were to aquire Mobley in a deal somehow we'd get savings of 80% of his $9.5 million salary or $7.6 million and only have to pay him $1.9 million, but he stays on the cap.

Post #4 » by **Scoot McGroot** » Wed Jul 1, 2009 3:08 pm

count55 wrote:I'm pretty sure that the insurance goes with the player & contract.

What cannot be traded is a retiring player benefit. That is, if a player retires due to injury, his salary comes off the salary cap in the season where the first anniversary of the injury is incurred. (The last game played is generally treated as a surrogate.)

For example, if Mike Dunleavy were to announce his retirement this season, and it was certified as a medical retirement by a league physician, then his salary would come off the Pacer's cap one year from his last game, or early February. This would be retroactive to the start of the season. so the Pacers cap figure this year would drop by $9m, and it would be gone from the following year as well.

Now, the Pacers would still have to pay Junior, and seek recompense from the Insurance company, but his pay would no longer count against the cap.

This medical retirement can only be claimed by the team for which the player was playing at the time of the injury.

In Mobley's case, the insurance moves with the player, but now no one will ever be able to claim him as a medical retirement exemption.

This. Correct.

basketballwacko2 wrote:So if we were to aquire Mobley in a deal somehow we'd get savings of 80% of his $9.5 million salary or $7.6 million and only have to pay him $1.9 million, but he stays on the cap.

We would only pay him $1.9 million in cash, but yes, he would still count as his full salary against the salary cap and luxury tax. So, it's a half good, half still really bad type contract.