woosah wrote:When people stop reporting that. There are a few conflicting things on here, in the business section about it but the majority of people i guess misunderstand the rule. Only you and about 2 other people on here keep saying it is wrong, but don't get into detail about why it is wrong. You keep saying something about in the first year there will be something but it doesn't really make sense what you are saying. Why is that first year different? Where is that extra money that you say he will get in the first year come from? Just break it down and explain, or let people say what all these so-called experts are saying.
I'm pretty sure he is right. It means in "guaranteed" money. In other words, if he were to somehow get catastrophically hurt during his 4 years and not be able to play (Brandon Roy), or just completely start sucking or something where he couldn't get a real 5th year (Gil), then you don't factor in that 5th year. Here is what I believe the differences would be (not factoring in state income tax savings, cost of living etc etc - which are actually QUITE substantial)
Stay with Magic or get traded before Jan 1 - in both cases he opts out, retain Bird rights with that team and re-sign before free agency:
I'm not 100% sure under new rules what his 1st year salary would be, but it will be something in the range of $19-$20 million next year, and from a pure comparison standpoint it won't change much, so lets use $20 million
(5 yr contract with 7.5% raises) -
Yr 1 - $20 million
Yr 2 - $21.5
Yr 3 - $23.11
Yr 4 - $24.85
Yr 5 - $26.71
Totals: $116.17 million
Get traded after Jan 1 and not retain Bird rights or sign straight up with new team as FA:
(4 yr contract with 4.5% raises)
Yr 1 - $20 million
Yr 2 - $20.9
Yr 3 - $21.84
Yr 4 - $22.82
This totals: $85.56 (this is where the $30 million gap that is reported comes from)
HOWEVER, assuming he is then going to re-up with that same team as a Bird righted free agent and get another 7.5% raise contract in the 5th year, he would theoretically make I believe
Yr 5: $24.54
New 5 yr total: $110.1 (only a $6 real difference factoring in that 5th year)