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Using the Larry Bird Exception To Create Expiring Contracts

Posted: Wed Feb 13, 2008 11:04 pm
by Courtside Cynic
I was thinking about this idea today and was really wondering whether it was potentially possible. I was hoping those with more knowledge than me on the CBA could clarify if there were any kinks in this theory. As well as this, I was equally hoping intellectual basketball thinkers would comment on the viability (as an improvement to a basketball team) of this theory as well.

As a result of the Pau Gasol trade, Ray Allen trade, etc...it has become imminently clear the importance of expiring contracts. Talk around the Realgm boards is that contracts (like rasho's next year) are in fact more valuable than legitimate contracts for your average player, when using them as trade bait. I personally think its because players are far too often overpaid, but that's a conversation for another day.

My hypothesis is that perhaps signing veteran players hugely overpaid, short term salaries will actually create a market for cap-clearing teams at the trade deadline, thus helping a team to land an all star to fill their roster.

How can you do this? well as long as your team remains under the Luxury tax threshold, you potentially could use Bird-Rights on a veteran player to sign a one-year Max Contract, only to trade them near the deadline for a whining all-star on a bad team. Now, an old player, who may retire anyways, would definitely consider a one-year deal worth 16 million, just to be used as trade bait that year and be bought out.

As an example, as it was one of the best ones I could find, is Atlanta and Anthony Johnson. He is an expiring contract this year, is 35 years old in the summer and from what I gather, Atlanta owns his Bird-Rights (if any of this is wrong, just assume it's right for arguments sake). He is a veteran and can sign for whatever price a team is willing to give him (below the max). He will not make 16 million the rest of his career (and may even retire in the off-season), so wouldn't it interest him to sign a one-year deal for that amount, just to be traded and bought out later on?

Would it be beneficial for Atlanta? Well, they remain under the luxury tax, even if they resign Josh Smith to a healthy contract. Then they can go out and get a big player in the middle of his contract to fill their needs. Who will that be? Who knows? Maybe Dirk will want out of Dallas, maybe Boozer will want out of Utah, maybe Baron Davis will want out of GS. Or maybe their owners will want to dump their contracts and start over like Minnesota did with KG.

So is this scenario plausible? Could it Work for Toronto?

Posted: Wed Feb 13, 2008 11:12 pm
by The Notic
BYC

Posted: Wed Feb 13, 2008 11:13 pm
by The Letter V
The problem though is I'm not sure if teams get Bird Rights on veteran contracts...as far as I know they're only used for players coming off their rookie deals. Could be wrong though.

Posted: Wed Feb 13, 2008 11:30 pm
by Courtside Cynic
You're right about the Base Year Compensation. so really given that scenario, you would only be getting 8 mil in cap relief, not 16 mil.

So instead of a one-year salary, would Atlanta still do it for a two year contract?

Posted: Wed Feb 13, 2008 11:35 pm
by yucatan87
It's possible, and it's exactly what the Lakers did with Aaron McKie. There was a list floating around of retired players that had their cap holds on the books for certain teams. There were players like Rik Smits in Indiana, Sprewell in Minnesota and Keith Van Horn in Dallas who could sign 1-year, near-max contracts without BYC concerns.

Posted: Wed Feb 13, 2008 11:43 pm
by The Notic
The Letter V wrote:The problem though is I'm not sure if teams get Bird Rights on veteran contracts...as far as I know they're only used for players coming off their rookie deals. Could be wrong though.


yeah, that's wrong.



Courtside Cynic wrote:You're right about the Base Year Compensation. so really given that scenario, you would only be getting 8 mil in cap relief, not 16 mil.

So instead of a one-year salary, would Atlanta still do it for a two year contract?


yeah, they could. but atlanta's ownership is stingy as hell. if the owner is willing to take the hit the one year, it could end up paying well. it's a risk, and one that only a GM with a great rapport with the owner(s) can make.

Posted: Wed Feb 13, 2008 11:45 pm
by CrookedJ
yucatan87 wrote:It's possible, and it's exactly what the Lakers did with Aaron McKie. There was a list floating around of retired players that had their cap holds on the books for certain teams. There were players like Rik Smits in Indiana, Sprewell in Minnesota and Keith Van Horn in Dallas who could sign 1-year, near-max contracts without BYC concerns.



I even heard someone mention that today . . . KVH never officially retired, and apparently Dallas still could sign him to a one year max contract and then trade him.