Frontloaded contracts v signing bonus

wpj23
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Frontloaded contracts v signing bonus 

Post#1 » by wpj23 » Wed Aug 26, 2009 4:35 pm

The Knicks (and 9 other teams) are trying to manage 2010 cap space for the summer of Lebron. I mention the Knick b/c they have an issue signed David Lee, who wants 10 mil per year.

Can the Knicks structure a deal so that the lowest paid (in terms of cap hold) year is 2010-11?

I realize that signing bonuses are spread across the guaranteed term of the contract for cap hold purposes, but does this mean you cannot effectively front load a contract?

If you can front load a contract (again, in terms of cap hold), how much of a differencve is allowed b/t y1 and y2 before the league starts to call it a signing bonus?
Three34
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Re: Frontloaded contracts v signing bonus 

Post#2 » by Three34 » Wed Aug 26, 2009 5:04 pm

You can absolutely make contracts that go downwards, even if only for one year. Jarrett Jack and Marvin Williams have done that in the last month, for example. However, the maximum percentage decreases are the same as the maximum percentage increases; 10.5% of the first year for your own FA's, and 8% for other peoples.
wpj23
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Re: Frontloaded contracts v signing bonus 

Post#3 » by wpj23 » Thu Aug 27, 2009 3:42 pm

Thank you Sham. That is exactly what I wanted to know.

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