Page 1 of 1

How does extending a contract affect cap?

Posted: Thu Jul 6, 2017 3:30 pm
by buriat
I have read Josh Richardson is eligible to be extended. How does that work and what are the advantages to the player or the team? Does any increase have to fit within the cap like normal salary or is there another set of rules? What are the criteria to be elgible for an extension?

Re: How does extending a contract affect cap?

Posted: Thu Jul 6, 2017 3:51 pm
by Rafly
They can go over the cap to keep him. The positive of extending him in august is that you can avoid a situation like TJ with a team offering him a PP contract. Of course they gotta be sure J. Rich is a player they want to keep around. I'm for it depending on the price. As long as it's a tradeable asset sign him up in august.

Re: How does extending a contract affect cap?

Posted: Thu Jul 6, 2017 4:29 pm
by buriat
What would you think would be a reasonable offer?

Re: How does extending a contract affect cap?

Posted: Thu Jul 6, 2017 4:53 pm
by BFRESH44
JRich becomes eligible to sign an extension in August, where he can receive a maximum payout of 42 million over 4 years. If I were Riley, I would most certainly be proactive in offering that. If he breaks out, you have another trade-able asset on your books in terms of a young player contract.

His agent may advise against it and let the season play out, and test restricted free agency. However, it's hard to say no to that guaranteed coins when you've been making the minimum the past 3 years.

Bottom line, Rich is one of our best young prospects, and we should look to being proactive with him.

Re: How does extending a contract affect cap?

Posted: Thu Jul 6, 2017 5:44 pm
by contract
buriat wrote:I have read Josh Richardson is eligible to be extended. How does that work and what are the advantages to the player or the team? Does any increase have to fit within the cap like normal salary or is there another set of rules? What are the criteria to be elgible for an extension?

It wouldn't affect this years cap. You're just tacking on additional years to the end of the current contract. The benefit to the player is locking up that guaranteed money as a protection against injury or poor play. The benefit to the team is avoiding a bidding war and poison pills if the player were to play well and become a restricted free agent.

I would not throw the max eligible extension at him because he's been hurt and inconsistent. He hasn't proven that he's starting material, so I wouldn't offer more than $24 million / 3 years ... with a team option in the 3rd year.

Re: How does extending a contract affect cap?

Posted: Thu Jul 6, 2017 6:09 pm
by Rafly
Definitely would love to get him on a Jae Crowder like contract

Re: How does extending a contract affect cap?

Posted: Thu Jul 6, 2017 6:26 pm
by Heat_Fan_87
BFRESH44 wrote:JRich becomes eligible to sign an extension in August, where he can receive a maximum payout of 42 million over 4 years. If I were Riley, I would most certainly be proactive in offering that. If he breaks out, you have another trade-able asset on your books in terms of a young player contract.

His agent may advise against it and let the season play out, and test restricted free agency. However, it's hard to say no to that guaranteed coins when you've been making the minimum the past 3 years.

Bottom line, Rich is one of our best young prospects, and we should look to being proactive with him.

unless he has an all star season, i hope we dont offer jrich anything close to 10mil per year. we have plenty of guards, i'd say try and trade him but as of now, im not sure we can get anything for jrich.

Re: How does extending a contract affect cap?

Posted: Thu Jul 6, 2017 6:55 pm
by BFRESH44
Get with the times. This is today's NBA. The mid-level exception is 8 million. Andre Roberson just signed 30million over 3, and he makes Joel Anthony look like Dirk at the free throw line.

Had it not been for the freak MCL injury last year, Rich was primed for a breakout after having a standout summer. In the month of April when he got his legs under him, He gave you 15.0 points, 3.4 rebounds, 3.4 assists, 2.8 steals and 1.6 blocks while shooting 53% from 3.

Re: How does extending a contract affect cap?

Posted: Thu Jul 6, 2017 6:57 pm
by Heat_Fan_87
BFRESH44 wrote:Get with the times. This is today's NBA. The mid-level exception is 8 million. Andre Roberson just signed 30million over 3, and he makes Joel Anthony look like Dirk at the free throw line.

Had it not been for the freak MCL injury last year, Rich was primed for a breakout after having a standout summer. In the month of April when he got his legs under him, He gave you 15.0 points, 3.4 rebounds, 3.4 assists, 2.8 steals and 1.6 block while shooting 53% from 3.

that deal was pretty surprising

Re: How does extending a contract affect cap?

Posted: Thu Jul 6, 2017 7:47 pm
by SCHeat
I'd offer the full extension/ 4 years/42. That's a bargain.

Re: How does extending a contract affect cap?

Posted: Thu Jul 6, 2017 11:44 pm
by King_Supreme
buriat wrote:What would you think would be a reasonable offer?


Start negotiations at 2yrs/18 mil and go as high as 2yrs/26 mil. If J Rich wants a bit more security, 3yrs/33 mil is fair for both sides.

Re: How does extending a contract affect cap?

Posted: Fri Jul 7, 2017 11:26 am
by gom
SCHeat wrote:I'd offer the full extension/ 4 years/42. That's a bargain.


And hope he takes it.

Seriously, folks. This offseason after the last offseason where so many fans get surprised by the contracts probably means our lens needs adjusting. In a world where Dion gets 4/52 and Olynyk gets 4/50, James Johnson is probably worth 4/60. In that world, Richardson at 4/42 is a BARGAIN.

Re: How does extending a contract affect cap?

Posted: Fri Jul 7, 2017 12:01 pm
by contract
BFRESH44 wrote:Get with the times. This is today's NBA. The mid-level exception is 8 million.

That's also starter money. For some reason people hear about the exploding cap last season and see some crazy contracts signed, and just ignore the math. As of today $8 million would rank in the top 110 salaries.

110 / 30 teams = an average of 3.67 players per team earning more than $8 million

Even when free agency is over it will still easily be starter money.

It may seem like it, but all rotation players aren't earning $10 million or more. Plenty of veteran starters don't earn that kind of money.

Re: How does extending a contract affect cap?

Posted: Fri Jul 7, 2017 12:03 pm
by contract
gom wrote:
SCHeat wrote:I'd offer the full extension/ 4 years/42. That's a bargain.


And hope he takes it.

Seriously, folks. This offseason after the last offseason where so many fans get surprised by the contracts probably means our lens needs adjusting. In a world where Dion gets 4/52 and Olynyk gets 4/50, James Johnson is probably worth 4/60. In that world, Richardson at 4/42 is a BARGAIN.

http://www.basketball-reference.com/contracts/players.html

These are NOT bargain contracts.

It will change some, but as of today, there are ~ 100 players scheduled to earn $8 million or more in the 2018-19 season. That < 4 per team.

Re: How does extending a contract affect cap?

Posted: Fri Jul 7, 2017 12:28 pm
by gom
contract wrote:
gom wrote:
SCHeat wrote:I'd offer the full extension/ 4 years/42. That's a bargain.


And hope he takes it.

Seriously, folks. This offseason after the last offseason where so many fans get surprised by the contracts probably means our lens needs adjusting. In a world where Dion gets 4/52 and Olynyk gets 4/50, James Johnson is probably worth 4/60. In that world, Richardson at 4/42 is a BARGAIN.

http://www.basketball-reference.com/contracts/players.html

These are NOT bargain contracts.

It will change some, but as of today, there are ~ 100 players scheduled to earn $8 million or more in the 2018-19 season. That < 4 per team.


That list has no new signings. It's essentially last season's contracts without free agency. Here are the signings so far:

- Stephen Curry (GSW): 5 yrs, $201M (more than 8M)
- Jeff Teague (MIN): 3 yrs, $57M (more than 8M)
- Jose Calderon (CLE): 1 yr, veteran minimum (less than 8M)
- Patty Mills (SAS): 4 yrs, $50M (more than 8M)
- Shaun Livingston (GSW): 3 yrs, $24M (about 8M)
- Tony Snell (MIL): 4 yrs, $44M (more than 8M)
- Blake Griffin (LAC): 5 yrs, $173M (more than 8M)
- Cristiano Felicio (CHI): 4 yrs, $32M (about 8M)
- Jrue Holiday (NOP) 5 yrs, $126M (more than 8M)
- David West (GSW): 1 yr, veteran minimum (less than 8M)
- Langston Galloway (DET): 3 yrs, $21M (less than 8M)
- J.J. Redick (PHI): 1 yr, $23M (more than 8M)
- Amir Johnson (PHI): 1 yr, $11M (more than 8M)
- Michael Carter-Williams (CHA): 1 yr, $2.7M (less than 8M)
- Joe Ingles (Utah): 4 yrs, $52M (more than 8M)
- P.J. Tucker (HOU): 4 yrs, $32M (about 8M)
- Taj Gibson (MIN): 2 yrs, $28M (more than 8M)
- Serge Ibaka (TOR): 3 yrs, $65M (more than 8M)
- Jodie Meeks (WAS): 2 yrs, $7M (less than 8M)
- Kyle Korver (CLE): 3 yrs, $22M (more than 8M)
- Nene (HOU): 3 yrs, $11M (less than 8M)
- Kyle Lowry (TOR): 3 yrs, $100M (more than 8M)
- Justin Holiday (CHI): 2 yrs, $9M (less than 8M)
- Ben McLemore (MEM): 2 yrs, $10.7M (less than 8M)
- Paul Millsap (DEN via ATL): 3 yrs, $90M (sign-and-trade) (more than 8M)
- Kevin Durant (GSW): 2 years, $53M (more than 8M)
- Darren Collison (IND): 2 years, $20M (more than 8M)
- Mike Scott (WAS): 1 year, veteran minimum (less than 8M)
- George Hill (SAC): 3 yrs, $57M (more than 8M)
- Zach Randolph (SAC): 2 yrs, $24M (more than 8M)
- Omri Casspi (GSW): 1 year, $2M (less than 8M)
- Gordon Hayward (BOS): 4 years, $128M (more than 8M)
- Danilo Gallinari (LAC via DEN) 3 years, $65M (sign-and-trade) (more than 8M)
- Patrick Patterson (OKC): 3 years, $16M (less than 8M)
- Nick Young (GSW): 1 year, $5.2M (less than 8M)
- Dion Waiters (MIA): 4 yrs, $52M (more than 8M)
- Andre Roberson (OKC): 3 yrs, $30M (more than 8M)
- Dirk Nowitzki (DAL): 2 yrs, $10M (less than 8M)
- Milos Teodosic (LAC): 2 yrs, $12.3M (less than 8M)
- Kelly Olynyk (MIA): 4 yrs, $50M (more than 8M)
- Rudy Gay (SAS): 2 yrs, $17M (more than 8M)
- Vince Carter (SAC): 1 yr, $8M (about 8M)
- James Johnson (MIA): 4 yrs, $60M (more than 8M)

24 (more)
4 (about)
13 (less)

Let's look closer at these 13 though:

Dirk (DAL) - in a class of his own. Was never on the market.

Ring chasers:

Calderon (CLE)
David West (GSW)
Omri Casspi (GSW)
Nick Young (GSW)

Nene (HOU) - Almost chasing rings too, but HOU is a rung lower (even now)

That leaves:

Galloway (DET)
Michael Carter-Williams (CHA)
Jodie Meeks (WAS)
Justin Holiday (CHI)
Ben McLemore (MEM)
Patrick Patterson (OKC)
Milos Teodosic (LAC)

----

From this list I like Meeks. Patterson's contract is also interesting. Teodosic, in spite of never playing in the NBA, is intriguing. I'm unconvinced about the others. We'll see.

Of the 24 that are more, many are MUCH more than 8, which raises the average. Also, next season's contracts will also raise the level. The tide is coming in and the salaries are all rising, but it will take a couple years.

Remember how much crap we got for Dragic's salary? Does anyone think he's overpaid now?

Re: How does extending a contract affect cap?

Posted: Fri Jul 7, 2017 1:09 pm
by contract
gom wrote:
contract wrote:
gom wrote:
And hope he takes it.

Seriously, folks. This offseason after the last offseason where so many fans get surprised by the contracts probably means our lens needs adjusting. In a world where Dion gets 4/52 and Olynyk gets 4/50, James Johnson is probably worth 4/60. In that world, Richardson at 4/42 is a BARGAIN.

http://www.basketball-reference.com/contracts/players.html

These are NOT bargain contracts.

It will change some, but as of today, there are ~ 100 players scheduled to earn $8 million or more in the 2018-19 season. That < 4 per team.


That list has no new signings. It's essentially last season's contracts without free agency.

Whoops! :oops:

Re: How does extending a contract affect cap?

Posted: Fri Jul 7, 2017 1:15 pm
by contract
gom wrote:Remember how much crap we got for Dragic's salary? Does anyone think he's overpaid now?

We got tons of crap about Dragic's salary, but a lot of that was from people mistakenly believing that we had maxed him, which was nowhere near true. Even before the cap spike, that was a reasonable deal.

Re: How does extending a contract affect cap?

Posted: Fri Jul 7, 2017 1:54 pm
by King_Supreme
Dragic' contract is fine compared to other PG's, but he has a year or two left at a high level before we have a tough deal to move. These days moving salaries cost assets(Mozgod for DLo) and we don't really have assets.

It's very conceivable that in 2018 or 2019, we'll have 4 difficult deals to move(JJ; Olynk, TJ, Dragic) with no real assets to give up to move these contracts. Trading those picks for Dragic and these recent signings have us **** for the foreseeable future.

Re: How does extending a contract affect cap?

Posted: Fri Jul 7, 2017 3:06 pm
by gom
contract wrote:
gom wrote:
contract wrote:http://www.basketball-reference.com/contracts/players.html

These are NOT bargain contracts.

It will change some, but as of today, there are ~ 100 players scheduled to earn $8 million or more in the 2018-19 season. That < 4 per team.


That list has no new signings. It's essentially last season's contracts without free agency.

Whoops! :oops:


No problem, contract. FWIW, I view these deals as questionable too. These players are going to have to play 30-11 ball to justify our confidence in them. That is asking a lot. Hopefully, our youth will develop.

Re: How does extending a contract affect cap?

Posted: Sat Jul 8, 2017 5:28 pm
by HeatFanLifer
King_Supreme wrote:Dragic' contract is fine compared to other PG's, but he has a year or two left at a high level before we have a tough deal to move. These days moving salaries cost assets(Mozgod for DLo) and we don't really have assets.

It's very conceivable that in 2018 or 2019, we'll have 4 difficult deals to move(JJ; Olynk, TJ, Dragic) with no real assets to give up to move these contracts. Trading those picks for Dragic and these recent signings have us **** for the foreseeable future.


The only way those deals end up being bad is due to injury, which is very well possible, especially with Waiters.

On another note, you guys may want to check out this APRON rule in the CBA if you haven't already. It essentially brings about a hard cap in the NBA.

This season it is $126 million.

It is possible to exceed this number, but only through trading already signed players or using an MLE that is less than the non-APRON MLE. All teams could eventually reach this APRON (I can explain mathematically why if someone requests). As a result, even if JJ, Olynyk, or Waiters don't work out, they may be the best player a team over the APRON could acquire and thus still be viewed favorably.