PG contract details

[granger05]

There's a wiretap article on the front page about George's contract: LINK

If George makes an All-NBA team this season, his salary will settle at 27 percent of the cap level instead of the full 30 percent under the Derrick Rose rule. George's starting salary would then be at $15.8 million, approximately $1.75 million less than George could have earned had he fought for the full 30 percent.

The Pacers also reluctantly gave George an opt-out after Year 4.

I like that he's leaving a little money on the table which ought to help with keeping Lance around since it seems likely at this point that he'll hit the All-NBA qualifier. I'm curious from the various CBA experts about the 4th year opt-out. I recall something about teams having one max slot at 4 years and another max at 5 years...I think the Wolves got chastised for using the shorter deal on Kevin Love a couple years back. How does this deal fit into that context, are we paying the max deal that could be up to 5 years, but we've traded cash for this opt-out or is this the 4 years version? Did Hibbert already eat up a longer slot anyway? Surely, someone has this info off the top of their head.

Seems like a win-win compromise to me. The Pacers get a little flexibility right now and George will get to maximize his earnings later if he stays on his current trajectory. The only downside is that we'll have to listen to Knicks, Bulls and Lakers fans say that he'll be fleeing to their teams when his contract is up.

[granger05]

There's a Grantland article that answers some of this: LINK

If George makes an All-NBA team this season, triggering the raise, his salary will settle at 27 percent of the cap level, instead of the full 30 percent. That would set George's starting salary at about $15.8 million, given the league's projected cap for next season. That's about $1.75 million less than George could have earned had he fought for the full 30 percent. If the Pacers keep Scola at full cost, George's All-NBA salary would leave them with about $67.9 million in committed salary for next season — and about $7 million or so of space beneath the projected tax line for Stephenson's deal. That still won't be enough to keep Stephenson without jumping the tax, but it's close enough that the Pacers could get there without a single cost-cutting move.

The Pacers also gave George an opt-out after Year 4 of the new deal, which Mark Deeks of ShamSports.com has reflected in his salary database. Indiana was reluctant to do the opt out, but ultimately yielded on the issue, per sources close the talks. They'll have the advantage of George's Bird rights as long as he's on the team, regardless of the opt-out clause. The main point of the "designated player" provision is to give teams the chance to lock up a franchise player they drafted for a year longer than usual. George's deal subverts that principle, and allows him to hit the open market earlier than expected.

[pacers70]

"That still won't be enough to keep Stephenson without jumping the tax, but it's close enough that the Pacers could get there without a single cost-cutting move."

I respectfully disagree with that statement. I think Stephenson will leap at a 4 year contract paying 7M, 9M, 11M and 13M. A 4 year $40 million deal playing on a team he likes, for a team President he likes and a championship caliber team.

He would then be 27 years old and making $13 million on his final year. Just entering his prime. That's when the real question would arise whether or not he will stay in Indiana...in my opinion.

I think next year we will see the exact same team we have this year except Granger, Butler and maybe Copeland will be gone and replaced by our 2nd round draft pick and/or low cost free agents.

[Scoot McGroot]

I'd imagine that we got the 27% and he got the opt out after year 4 (much better than a year 3 opt out). Seems fair. And it goes along with what we heard of the time that PG got a max, but left a little in the table as well (27 vs 30%).

Ultimately, we have our 5 year max, and to give a guy a 5 year deal coming off their rookie deal requires a max, which Lance nor Solo are going to get, so that doesn't matter. Technically, we could still trade for one other 5 year max guy, but we couldn't add a 3rd, nor offer a 2nd 5 year max to someone on our roster.


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[Scoot McGroot]

"That still won't be enough to keep Stephenson without jumping the tax, but it's close enough that the Pacers could get there without a single cost-cutting move."

I respectfully disagree with that statement. I think Stephenson will leap at a 4 year contract paying 7M, 9M, 11M and 13M. A 4 year $40 million deal playing on a team he likes, for a team President he likes and a championship caliber team.

He would then be 27 years old and making $13 million on his final year. Just entering his prime. That's when the real question would arise whether or not he will stay in Indiana...in my opinion.

I think next year we will see the exact same team we have this year except Granger, Butler and maybe Copeland will be gone and replaced by our 2nd round draft pick and/or low cost free agents.

The raises and drops are limited by a 7.5% max, so the $2m raise per year is a bit more than can work. The first year would have to be closer to $8:5m to get that total amount of money, and that 1st year is where we have the biggest hindrance.


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[Wizop]

and that 1st year is where we have the biggest hindrance.

what happens in the second year to free up money? if it is Mahinmi's contract expiring, can we really play at this level with a significantly cheaper backup center? seems to me that we need the cap to go up.

[pacers70]

"The raises and drops are limited by a 7.5% max, so the $2m raise per year is a bit more than can work. The first year would have to be closer to $8:5m to get that total amount of money, and that 1st year is where we have the biggest hindrance."

Thanks Scoot. That may present a problem.

"what happens in the second year to free up money? if it is Mahinmi's contract expiring, can we really play at this level with a significantly cheaper backup center? seems to me that we need the cap to go up."

The second year (2015-16) we lose Scola (4.5M), Copeland (3.1M) and Watson (2M). The last year of Mahinmi's contract is 2015-16 so he will be off the books for the 2016-17 season.

[Wizop]

and you think you can replace them at lower cost and still have an effective second unit?

[mikepacernation]

I actually like the way mahinmi is play this year a solid big man off the bench

[Scoot McGroot]

and you think you can replace them at lower cost and still have an effective second unit?

well, you'll have to anyway, since they expire. Either way, at least you have the option and the cap flexibility to adjust. You don't have that in the first year of Lance's deal at all, except to waive Scola to save around $2.5m. That's it.


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[Starkiller]

All I know is that after this year, I want NOTHING or NO ONE to interfere with PG being a Pacer for life.

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[Grang33r]

These type of threads will become so much easier to read and respond to if we win atleast one championship.

[Indy4Life]

As far as replacing the bench goes...keep in mind that once you prove yourself as a legit contender, there will frequently be veterans that will come to you at a discount in order to compete for a championship.