Option Buy-Out Amounts

[bgwizarfan]

okay so this is the last of the group considered a "signing bonus" for cap purposes that I'm not sure about it...so Dunk doesn't kill me, i have just 2 questions:

1) do we have a recent example (post 2005 CBA) of a player having an option buy-out amount associated with his contract

2) what's the point in general of having it for the team's purposes? It would make perfect sense if the buy-out amount wasn't spread among the earlier years of the salary cap, but I don't get its purpose for being included in that group that's counted as a "signing bonus." That's especially considering if the player doesn't take the option buy-out amount, the team would have had the extra amount against the cap earlier and still paid the same thing in the last year. Perhaps I don't have a firm grasp of this concept in general!

[Three34]

I want more questions. Add wind to that bad boy. Flesh it out. Bollocks to Dunk, he doesn't make the rules. And you're a maverick, you don't play by them. Essentially what I'm saying here is that you are to do as I say, not as Dunk says.

[Dunkenstein]

The only form of buyout allowed in contracts are conditional guarantees, and these are all in favor of the teams. I don't know of any players having both signing bonuses and conditional years in their contracts. In fact, I can't think of any players getting signing bonuses in recent years.

[bgwizarfan]

what do you mean by conditional guarantees?

here's where I got Option Buy-out Amounts from:

Article I:
(mm)

[Dunkenstein]

A conditional contract is one in which a player has no guarantee or a partial guarantee that becomes fully guaranteed on a specific date unless he is waived before that date.

I didn't read anything past the first sentence.

[bgwizarfan]

A conditional contract is one in which a player has no guarantee or a partial guarantee that becomes fully guaranteed on a specific date unless he is waived before that date.

I didn't read anything past the first sentence.

okay, is that what Brevin Knight had in Charlotte last year? I thought that wasnt allowed under this CBA, but I think you're just not allowed to give a player a Bonus if he's on a team's roster after a certain date

All I did was post the CBA portions of "Option Buy-Out" amounts... was wondering the point of them even given those portions, but if you didn't know what that term was to begin with, then you probably don't know.

[Three34]

Yes it was. Conditional guarantees are commonplace.

[bgwizarfan]

okay awesome, so that's really like making your own January 10th in essence if you want to. so this is what antoine walker has too i assume? if he's not waived after the 08-09 season, his last 2 years become guaranteed? and i think greg buckner has something weird like this associated with his contract, tho his might be a little different

[Dunkenstein]

Both Walker and Buckner have conditional contracts.

[Three34]

Think of them as being like team options with different deadline days to June 30th (although, in Antoine's case, that IS the deadline day - they just couldn't put both an ETO and TO on, so they gave him the ETO and made the final two years a conditional guarantee). It's technically different, but pretty much the same. For example, not many minium salary players have TO's this offseason, but a whole lot of them have conditional guarantees, i.e. "contract becomes fully guaranteed if not waived by August 1st 2008" or something like that.