Designated player rule and the individual player max

winter_mute_13
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Designated player rule and the individual player max 

Post#1 » by winter_mute_13 » Sun Sep 4, 2016 6:40 am

Paul George qualified for the Designated Player rule while on rookie contract and became eligible for the 5th year 30% max. The actual contract he signed with the Pacers was something like 27% of the max.

Recently, there is talk that the Pacers and PG are discussing a renegotiate and extend deal similar to those signed by Westbrook and Harden. According to Eric Pincus, PG's contract becomes eligible for restructuring on 25 Sept (3rd year anniversary of his rookie extension). Unlike Westbrook or Harden though, PG has only 6 years of experience, so by the usual rule he should be eligible only for the 25% max instead of the 30% max that Harden and Westbrook signed for. Meaning that his salary this year can only go up to $22m instead of $26m for the other 2 guys. Is this correct or does Designated Player status (and higher player max) still apply here?
Smitty731
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Re: Designated player rule and the individual player max 

Post#2 » by Smitty731 » Sun Sep 4, 2016 11:01 pm

winter_mute_13 wrote:Paul George qualified for the Designated Player rule while on rookie contract and became eligible for the 5th year 30% max. The actual contract he signed with the Pacers was something like 27% of the max.

Recently, there is talk that the Pacers and PG are discussing a renegotiate and extend deal similar to those signed by Westbrook and Harden. According to Eric Pincus, PG's contract becomes eligible for restructuring on 25 Sept (3rd year anniversary of his rookie extension). Unlike Westbrook or Harden though, PG has only 6 years of experience, so by the usual rule he should be eligible only for the 25% max instead of the 30% max that Harden and Westbrook signed for. Meaning that his salary this year can only go up to $22m instead of $26m for the other 2 guys. Is this correct or does Designated Player status (and higher player max) still apply here?


I won't have the opportunity to look too deep in to this until later, but as far as I know, Designated Player only applies for the extension off of the Rookie Scale. Since the Renegotiate and Extend is a new deal, I don't think it applies here. I could be wrong, but I am fairly certain that is how it works.
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Re: Designated player rule and the individual player max 

Post#3 » by BdeRegt » Mon Sep 5, 2016 5:56 am

I've looked into this for awhile and can't figure out the answer. I have tweeted at Eric Pincus and Larry Coon hoping to find an answer. I think it is 30% but can't find it in the CBA or CBAFAQ stating the reason why.
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Re: Designated player rule and the individual player max 

Post#4 » by jaywalkszzz » Mon Sep 5, 2016 7:08 am

winter_mute_13 wrote:Paul George qualified for the Designated Player rule while on rookie contract and became eligible for the 5th year 30% max. The actual contract he signed with the Pacers was something like 27% of the max.

Recently, there is talk that the Pacers and PG are discussing a renegotiate and extend deal similar to those signed by Westbrook and Harden. According to Eric Pincus, PG's contract becomes eligible for restructuring on 25 Sept (3rd year anniversary of his rookie extension). Unlike Westbrook or Harden though, PG has only 6 years of experience, so by the usual rule he should be eligible only for the 25% max instead of the 30% max that Harden and Westbrook signed for. Meaning that his salary this year can only go up to $22m instead of $26m for the other 2 guys. Is this correct or does Designated Player status (and higher player max) still apply here?


I think Smitty is correct that the Designated Player "5th Year 30% Max Criteria" only applies for the extension off of a Rookie Scale Contract. Unless I'm missing something in the CBA, Paul George could only earn the "25%" max of $22,116750 if he were to renegotiate and extend his current non-rookie scale contract for the 2016-17 season.

Per Article I of the 2011 CBA:

(o) “Designated Player” means a player with whom a Team has,
pursuant to Article II, Section 7(d) and Article VII, Section 7(b), entered
into a Designated Player Rookie Scale Extension.

(p) “Designated Player Rookie Scale Extension” means an Extension
of a Rookie Scale Contract entered into between a Team and its
Designated Player that covers six (6) Seasons from the date the Extension
is signed and provides for Salary for the first Salary Cap Year covered by
the extended term equal to the player’s applicable Maximum Annual Salary
under Article II, Section 7 (or, in the case of a First Round Pick who has
satisfied or may satisfy the 5th Year 30% Max Criteria (as set forth in
Article II, Section 7(a)(i)), provides for Salary for the first Salary Cap Year
equal to twenty-five percent (25%) or thirty percent (30%) (or such other
percentage between 25% and 30% as agreed upon by the Team and the
player) of the Salary Cap (as calculated pursuant to Article II, Section 7) in
effect during the first Season of the extended term), with annual increases
in Salary for each Salary Cap Year following the first Salary Cap Year of
the extended term equal to seven and one-half percent (7.5%) of the Salary
for the first Salary Cap Year covered by the extended term.

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