Ok, Pau Gasol's contract has 2 years remaining, the current one, Guaranteed for $16.8 M, and 19-20, for $16M, of which $6.7M is covered by a partial guarantee.
If he is waived and stretched over the summer (2019), he will have one year left, the team will have a cap hit for 3 seasons, 19-20, 20-21, 21-22 of ~$2.3M. He will have a cap value of $16.8 million for 18-19 when calculating the lux tax
But what if he is traded & waived and stretched immediately? As he is only partway through this year (18-19) ( I will assume exactly halfway for ease of math), I expect the value to be stretched is 8.4 (the current year pro-rated, having already been paid the first half) + 6.7 (the guaranteed portion of next year) = $15.1 M. Do you round up or down for how many years the contract is stretched over ? Rounding up would imply a 5 year cap hit, 18-19, 19-20, 20-21, 21-22, 22-23 of ~3M. Rounding down would be a 3 year cap hit, $18-19, 19-20, 20-21 of ~$5M. Is the number of years the team's choice?
What would be his lux tax cap hit in the 18-19 year? Without the waive and stretch, he would hit for $16.8. With it, I could see A) $8.4 ( the half of the year he's already been paid for) + the value of the stretched remainder (either $5M or $3M, yielding immediate cap savings of $3.4M or $5.4M respectively), B) just the value of the stretched contract (either $5M or $3M, yielding immediate cap savings of $11.8M or $13.8M respectively), or C) the full $16.8M.
Thank you for your assistance with this CBA question.
Pau Gasol and an Immediate Stretch
Pau Gasol and an Immediate Stretch
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- Sixth Man
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Re: Pau Gasol and an Immediate Stretch
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- Starter
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Re: Pau Gasol and an Immediate Stretch
"If he is waived and stretched ...." For starters, this hypothetical is ludicrous on its face regarding Pau Gasol.
But to provide the technical answer, no stretch can be done on 2018-19 salary, simple as that. For how to apply partial guarantees on stretch salary when it is allowable, see www.cbafaq.com for the rules to evaluate your various hypotheticals.
But to provide the technical answer, no stretch can be done on 2018-19 salary, simple as that. For how to apply partial guarantees on stretch salary when it is allowable, see www.cbafaq.com for the rules to evaluate your various hypotheticals.