Chris Paul's financial situation

Cappy_Smurf · Post #1 » by **Cappy_Smurf** » Wed Jun 28, 2017 6:04 pm

Ok, we've been having a discussion on another board as to Paul's motivation to opt-in and then get traded, as opposed to signing outright with Houston. Some posters believe he was helping Houston, some LA and some believe he was helping himself, financially.

So I'm just looking for some input on how this affects him financially. I've read conflicting info on the new changes to the CBA and don't really feel like I can trust anything until Coon updates his info.

Thanks.

Post #2 » by **Smitty731** » Wed Jun 28, 2017 6:30 pm

He loses money this coming season by opting in. But he got to the destination he wanted. The Rockets couldn't have signed him for his max anyway. At least not without gutting the team.

Cappy_Smurf · Post #3 » by **Cappy_Smurf** » Wed Jun 28, 2017 8:18 pm

Smitty731 wrote:He loses money this coming season by opting in. But he got to the destination he wanted. The Rockets couldn't have signed him for his max anyway. At least not without gutting the team.

Yeah, I get that, but what about the big picture? Compared to signing outright this year, what do you expect to happen next year? The rockets could sign him to a longer deal next year, but is there any chance of that happening, considering his age?

I'm just wondering what the pros and cons are here, and the biggest reason for opting in instead of signing outright. Do you think he was making a sacrifice to make it easier for Houston to make a run at Paul George or do you think he's gambling on taking less of a financial hit over the long run? I can't imagine he was just helping LA to avoid losing him for nothing. Seems like a huge gamble with an injury hurting his ability to sign a big contract next year.

I guess I'm torn between this being something to help Houston or a personal financial decision. Houston gave up a pick to the clippers, so that certainly doesn't help in pursuing George.

DBoys · Post #4 » by **DBoys** » Wed Jun 28, 2017 9:30 pm

ALL IMO

This is a one year detour for CP3. By getting traded rather than opting out, Paul gets his salary plus a 15% raise (trade bonus) and gets to be a FA in 2018.

Why? Because LeBron is a FA in 2018.

So the real destination is not HOU, and don't believe all the gushy nonsense about how much CP3 wants to be there and be the SG next to Harden and blah blah blah. No one will say it, because it's too touchy in NBA circles to mention the player collusion. But LeBron is forming a new super team and getting the caravan packed, and the angle is for the banana boat divas to find the best way to bide time until summer 2018.

LeBron, Paul, Melo, and maybe one more.

Destination TBD, maybe LA.

BdeRegt · Post #5 » by **BdeRegt** » Thu Jun 29, 2017 6:11 am

DBoys wrote:ALL IMO

This is a one year detour for CP3. By getting traded rather than opting out, Paul gets his salary plus a 15% raise (trade bonus) and gets to be a FA in 2018.

Why? Because LeBron is a FA in 2018.

So the real destination is not HOU, and don't believe all the gushy nonsense about how much CP3 wants to be there and be the SG next to Harden and blah blah blah. No one will say it, because it's too touchy in NBA circles to mention the player collusion. But LeBron is forming a new super team and getting the caravan packed, and the angle is for the banana boat divas to find the best way to bide time until summer 2018.

LeBron, Paul, Melo, and maybe one more.

Destination TBD, maybe LA.

I completely disagree. I think opting in is about maximizing money. By opting in, he potentially gets trade kicker (I personally think he waves it) and saves money on taxes this year. More importantly, Houston now has his bird rights. This means he can sign 5 year max with Houston next year. This will be higher cap with 8% raises and take him later in his career. That last year will be a golden parachute of about $40M. Paul is maximizing his money in the scenario planned.

DBoys · Post #6 » by **DBoys** » Thu Jun 29, 2017 7:40 am

You may be right, but he would have made way more money by opting out and signing a new max-salary deal with HOU beginning this season. Let's see what happens next summer.

Post #7 » by **ranger001** » Thu Jun 29, 2017 6:12 pm

The other option is that he could have opted out though and worked a sign and trade, correct? The clippers would probably have done that rather than lose him outright. I think he wanted to try the situation for a year then he can re-evaluate.

BdeRegt · Post #8 » by **BdeRegt** » Thu Jun 29, 2017 10:00 pm

I think he makes more money by opting in. He only makes more money long term if you think he would get like $30M per year in 6 years. I think he will get a 5 year max at higher starting number next year and he wouldn't have gotten a big contract in 6 years so it doesn't hurt delaying his next free agency.