Delonte West - Option Buy-Out or Conditional Guarantee?

[bgwizarfan]

"Cleveland wanted to limit West, a restricted free agent, to two guaranteed seasons to preserve as much financial flexibility as possible for the summer of 2010, when LeBron James is an unrestricted free agent. But West, sources said, is guaranteed $500,000 for the 2010-11 season from the Cavs in the event they decline to pick up his option."


Granted, it's the media's version.... BUT wouldn't this make it sound like he has an Option Buy-Out Amount associated with the last year? And since Option Buy-Out Amounts are treated like signing bonuses, wouldn't $250,000 be added to each of the first 2 seasons salaries?

I'm trying to think what the alternatives are...A Team Option Year must have the same percentage of Base Compensation guaranteed as the year before, so unless the media has it wrong and there's no Team Option, then it sounds like we have an Option Buy-Out Amount....thoughts?

[Three34]

Sounds like the latter. The whole "final year only $500,000 guaranteed until June 30th 2010" thingybob thornton. I base this conclusion off of ntohing but the above.

[Dunkenstein]

Though the media described the third year as a team option, it is more likely a guarantee of $500K which goes to full if he is still on the roster on some specific date in mid-July. Cleveland wouldn't want to make it too early, because they'd want to know what their cap needs are based on what LeBron does in early July.

[Dunkenstein]

From today's news reports it's looking like West has a three-year deal averaging around $4.2M a year with only $500K of the third year guaranteed.