Is this a team option or something else?

[d-train]

Ariza's contract is only partially guaranteed for 20-21. It's guaranteed for $1.8M and becomes fully guaranteed for $12.8M on Jun 30, 2020. Is this a 'regular' team option that can be declined and the team retains a non-bird exception to re-sign Ariza? Or, does it require that Ariza be waived to decline the full guarantee? And, if Ariza must be waived, does the waiver request cancel the team's non-bird exception to re-sign him?

Note: there are 3 question here

[DBoys]

There is no "option" in that deal (although some reporters lazily or stupidly say it that way) and nothing to accept or decline. Ariza has a contract for next season for $12.8M.

If his team (currently Portland) chooses to waive him, they will only have to pay him $1.8M if they do so by 6/29/2020. If he is waived at any point (regardless of date), his team (currently Portland) would then have the same signing rights (which is none) as a team has on any player they have waived.

[d-train]

There is no "option" in that deal (although some reporters lazily or stupidly say it that way) and nothing to accept or decline. Ariza has a contract for next season for $12.8M.

If his team (currently Portland) chooses to waive him, they will only have to pay him $1.8M if they do so by 6/29/2020. If he is waived at any point (regardless of date), his team (currently Portland) would then have the same signing rights (which is none) as a team has on any player they have waived.

If Blazers waive Ariza by 6/29, do they have the same re-signing rights as allowed to a team with non-bird exception to re-sign a player?

[DBoys]

I literally just answered that. C'mon, man.

[d-train]

I literally just answered that. C'mon, man.

I didn't see the answer. I just re-referenced the CBA FAQ. It clearly says Blazers would have the right to re-sign Ariza for upto 120% of his prior years salary even if he is waived, which is not the same as any team would have that doesn't have room or an exception.

[d-train]

My next question is, why did the Kings and Ariza structure the deal this way as opposed to having a team option? What advantages did the Kings gain?

Edit: One reason: The Kings didn't need Ariza's approval to trade him to Blazers.

[DBoys]

~note: prior answer replaced for better collegiality~

[The CBA FAQ] clearly says Blazers would have the right to re-sign Ariza for up to 120% of his prior years salary even if he is waived, which is ....

If you're saying you get it now, but here's why you failed to grasp my simple answer the 1st time I gave it, then yeah, got it and understood.

If that's meant as a further question, or a challenge to my answer, then my reply is that you apparently have misread the FAQ.

You only get re-signing "rights" (with cap exceptions) to players who were on your team and whose contracts expired (and who haven't signed with another team after that). So once waived, a player is not your "own" free agent. It's as simple as that. Unless he is claimed in the waivers process (in which case he isn't a free agent at all and is under contract to a different team), a waived player is a free agent of no one. Therefore, there could be no cap exception granted to ANYONE to re-sign him as their "own free agent" (which we call Bird rights, or variations thereof).

My next question is, why did the Kings and Ariza structure the deal this way as opposed to having a team option? What advantages did the Kings gain?

Edit: One reason: The Kings didn't need Ariza's approval to trade him to Blazers.

Yes, you offer a logical possibility - ie maybe SAC wanted to create the semblance of a tradeable multi-year deal without the full obligation, in the event they decide later that they'd rather use him in trade and the other team might not want future salary.

It's really hard to know why, of course, since a contract is a result of two sides arriving at a deal that they both like, for their own varying reasons. The final result can be a product of trade-offs, perhaps (such as "we will give you more money in year one, if we don't have to fully guarantee year two" ...or who knows what other back and forth there may have been). Only they could offer the precise answer(s).

[d-train]

There is no "option" in that deal (although some reporters lazily or stupidly say it that way) and nothing to accept or decline. Ariza has a contract for next season for $12.8M.

If his team (currently Portland) chooses to waive him, they will only have to pay him $1.8M if they do so by 6/29/2020. If he is waived at any point (regardless of date), his team (currently Portland) would then have the same signing rights (which is none) as a team has on any player they have waived.

What about changes to the guarantee date and/or the unguaranteed amount? The guarantee date can be modified by agreement. There are restrictions on renegotiating guaranteed pay, but I don't see restrictions on parties mutually modifying unguaranteed pay, other than it has to be done before the player is waived or the guarantee date passes.

[DBoys]

Can they change the guarantee date by mutual agreement? Yes. (Is that ever done? Yes.)
....One side note - of necessity, the NBA and NBPA will move all league deadlines and contract dates back by a certain length of time, like 2-3 months, so his deadline date "as is" will have a new deadline without any agreement needed.

Can they change the guarantee amount by mutual agreement? Yes. (Is that ever done? Yes. Every "buyout" does exactly that.)
... Is that going to happen with Ariza? No. There's nothing to be mutually gained by such a revision.

Can they simply alter the total amount of the contract face value itself by mutual agreement? In general, No.
...There are some theoretically possible scenarios that in essence provide a path to a brand new deal, but teams are rarely in position to even consider that, as they have to be under the cap to do such a thing. We see one of those happen somewhere in the NBA maybe once every three or four years, it seems. And those deals MUST provide a raise, never a reduction. But Ariza isn't eligible anyhow.

What is going to happen with Ariza's current deal? Either (a) he will simply get waived by Portland by the guarantee deadline, for the quick cap reduction that his contract offered and that they traded for, or (by) they will decide they want him at that 12.8M price for 2020-21, and do nothing. But it's going to be one or the other.

[d-train]

Yes, there is nothing to be mutually gained by revising the guaranteed amount of salary.

There are many restrictions on renegotiating guaranteed salary, however, as far as I can find, these restrictions don't apply to modifying the amount of unguaranteed salary.

I suspect Ariza's value is substantially less than the unguaranteed $11M in his contract. However, Ariza and Blazers have a great deal of incentive to amend the unguaranteed amount lower before the guarantee date.

[DBoys]

Yes, there is nothing to be mutually gained by revising the guaranteed amount of salary.

There are many restrictions on renegotiating guaranteed salary, however, as far as I can find, these restrictions don't apply to modifying the amount of unguaranteed salary.

I suspect Ariza's value is substantially less than the unguaranteed $11M in his contract. However, Ariza and Blazers have a great deal of incentive to amend the unguaranteed amount lower before the guarantee date.

"There are many restrictions on renegotiating guaranteed salary, however, as far as I can find, these restrictions don't apply to modifying the amount of unguaranteed salary."

This ^ is incorrect. I think you misunderstand how contracts are structured.

Ariza's contract for next year is for $12.8 million. That $12.8M number cannot be changed at all. It is set in stone and cannot be altered.

What can be changed by mutual agreement is the clause that specifies how much of that $12.8M is guaranteed if he is waived. Right now, only $1.8M is guaranteed in the event of waiver; and after June 29, if he has not already been waived, that guarantee amount becomes $12.8M. By mutual agreement, the date and the amount of guarantee can be changed, but the $12.8M contract size cannot.

If they wanted to "amend the unguaranteed amount lower" as you suggest, then to do that they would make the guaranteed amount bigger, because the contract for next year must stay at $12.8M total. I trust that is NOT what you have in mind.

So the bottom line is either
(a) he will simply get waived by Portland by the guarantee deadline, for the quick cap reduction that his contract offered and that they traded for, which means he gets $1.8M and becomes a street free agent, or
(by) they will decide they want him at that $12.8M price for 2020-21, and do nothing, which means he stays and gets $12.8M.
But it's going to be one or the other.

[d-train]

"There are many restrictions on renegotiating guaranteed salary, however, as far as I can find, these restrictions don't apply to modifying the amount of unguaranteed salary."

This ^ is incorrect. I think you misunderstand how contracts are structured.

Ariza's contract for next year is for $12.8 million. That $12.8M number cannot be changed at all. It is set in stone and cannot be altered.

What can be changed by mutual agreement is the clause that specifies how much of that $12.8M is guaranteed if he is waived. Right now, only $1.8M is guaranteed in the event of waiver; and after June 29, if he has not already been waived, that guarantee amount becomes $12.8M. By mutual agreement, the date and the amount of guarantee can be changed, but the $12.8M contract size cannot.

If they wanted to "amend the unguaranteed amount lower" as you suggest, then to do that they would make the guaranteed amount bigger, because the contract for next year must stay at $12.8M total. I trust that is NOT what you have in mind.

So the bottom line is either
(a) he will simply get waived by Portland by the guarantee deadline, for the quick cap reduction that his contract offered and that they traded for, which means he gets $1.8M and becomes a street free agent, or
(by) they will decide they want him at that $12.8M price for 2020-21, and do nothing, which means he stays and gets $12.8M.
But it's going to be one or the other.

As of now and the day the contract was signed, Ariza's contract for the 20-21 season is $1.8M. It can become a contract for $11M more unless Blazers take action on or before July 29. The $1.8M does not buy Ariza's services for the 20-21 season, if this is a problem the NBA wouldn't have approved the contract. It does in practicality, set a maximum price for Ariza's services for the 20-21 season. Had NBA revenues boomed instead of tanked the past 1 1/2 months, the maximum price might be useful to the Blazers.

I agree the guaranteed portion of Ariza's contract is set in stone and can't be altered. These are the terms of the CBA. The guaranteed portion of Ariza's contract for the 20-21 season is $1.8M. The NBA approved the contract. Now, unless the CBA contains a provision prohibiting players and teams amending the amount of unguaranteed salary when the parties mutually benefit, Blazers and Ariza can amend the unguaranteed amount in Ariza's contract until the amount becomes guaranteed and set in stone.

There is an option (c) to be added to your bottomline, I believe. Unless, you can show me language in CBA that says amending unguaranteed salary is subject to the same restrictions as amending guaranteed salary. Or, a previous example of such an amendment being disallowed.

I'm guessing you are aware the Blazers are not the only team with a contract structured in this exact manner. The Knicks are sitting on 4 contracts structured the same way. I can't point to a previous example of the amending of the unguaranteed amount of salary being allowed or denied. We might soon have an example.

[DBoys]

LOL You bored with the epidemic lockdown? Respectfully, much of what you wrote above was off or convoluted in relation to the rules, but I guess you probably know that and are just trying to create conversation and entertainment during boring times.

To make things clear and accurate for others who may read this thread ....

1 NBA contracts designate the agreed salary in an Exhibit 1 (or 1A, 1B, or 10 instead). If there is any bonus money or incentive compensation (other than a trade kicker), it will also be detailed in Exhibit 1. Per the standard contract itself, none of that amount is guaranteed in the event of waiver. All of that is governed by the salary cap rules and limits, and therefore can't be changed after the contract is approved by the NBA. In Ariza's case, it says his salary is $12.8 million for the 20-21 season.
2 NBA contracts may also designate "compensation protection" in the event of a waiver in an Exhibit 2. That number and its parameters can be altered later by mutual agreement, since it will always be the same or less than Exhibit 1. The vast majority of NBA contracts are given full compensation protection in an Exhibit 2. In Ariza's case, it currently says his compensation protection is '$1.8 million until 6/29/2020, then full' (after that date), for the 20-21 season.

[d-train]

LOL You bored with the epidemic lockdown? Respectfully, much of what you wrote above was off or convoluted in relation to the rules, but I guess you probably know that and are just trying to create conversation and entertainment during boring times.

To make things clear and accurate for others who may read this thread ....

1 NBA contracts designate the agreed salary in an Exhibit 1 (or 1A, 1B, or 10 instead). If there is any bonus money or incentive compensation (other than a trade kicker), it will also be detailed in Exhibit 1. Per the standard contract itself, none of that amount is guaranteed in the event of waiver. All of that is governed by the salary cap rules and limits, and therefore can't be changed after the contract is approved by the NBA. In Ariza's case, it says his salary is $12.8 million for the 20-21 season.
2 NBA contracts may also designate "compensation protection" in the event of a waiver in an Exhibit 2. That number and its parameters can be altered later by mutual agreement, since it will always be the same or less than Exhibit 1. The vast majority of NBA contracts are given full compensation protection in an Exhibit 2. In Ariza's case, it currently says his compensation protection is '$1.8 million until 6/29/2020, then full' (after that date), for the 20-21 season.

I get it. I think. Basically, guaranteed pay and unguaranteed pay are a single benefit, as unintuitive as that is.

[DBoys]

Yep, the NBA says the entire contract amount is his salary, not just whatever part is guaranteed. For Ariza, it's 12.8M. Then a portion of that contract amount (up to 100%) can be specified to be guaranteed in the event of termination, and dates/conditions can be made. Later, they can alter those dates/conditions by mutual agreement. But until and unless he is waived and paid only what is guaranteed, Ariza's contract for next year is considered to be for $12.8M.

There is a blank Uniform Player Contract that's part of the CBA, and can be examined online at any site that has the 2017 CBA. A contract between team and player is not allowed to use anything different. There's a link at Coon's FAQ if you want one.