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The veterans minimum reimbursement thing

Posted: Sun Jan 10, 2010 12:21 am
by Three34
So as we know, the league reimburses teams who sign three or more year veterans to one year minimum salaried contracts, charging the team only for the amount of a two year minimum and paying the rest themselves.

I read in a post on here once (can't accurately remember who or when, but it may have been Dunkenstein) that that reimbursement thing only applies when a player stays on the roster for the duration of that contract. This seems to be supported by the case of Austin Croshere, who last season signed an unguaranteed one year minimum with the Pacers for training camp, got waived, was claimed off of waivers by the Bucks, and who was on the roster until January 6th, at which point they waived him to avoid the guarantee date. He was charged as $543,026 on the Bucks salary figure, which was 73 days worth of the ten year veteran minimum ($1,262,275). Had the reimbursement thing been applicable, Croshere would only have cost $342,490, 73 days worth of third year minimum ($797,581).

However, after the guarantee date and just before the trade deadline, the Celtics traded Sam Cassell (who was also signed to a one year minimum) to the Kings, who waived him. The Kings seem to have been billed only $797,581 for this, even though he didn't see out the life of the contract. That seems oh so very different to the Cassell example.

So why is there a difference there? Was it because Croshere was unguaranteed and Cassell wasn't?



I am thinking specifically of the case of Mikki Moore, who had a guaranteed one year minimum and who was waived the other day. If he cost only the third year minimum $825,487 to waive, it makes more sense, but if waiving him turned the Warriors a ten year or more minimum instead ($1,306,455), then the Warriors just cost more money. The latter scenario seems far less likely, because otherwise they wouldn't have done it. Yet because of the conflicting examples above, I can't tell which it is.

Help me. And if you won't help me, help Keira Knightley.


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Re: The veterans minimum reimbursement thing

Posted: Sun Jan 10, 2010 7:53 am
by Dunkenstein
As it was explained to me, the team is responsible for all payments to a minimum salaried player with 3 or more years in the league until such time as they have paid the player as much money as a minimum salaried player with two years gets. After that, the league reimburses the team for however much the team additionally pays the player to meet the requirements of his contract. This also hold true for a player whose minimum contract is traded during the season, as well as for a player with a guaranteed contract who is waived before the end of the season.

Even though Cassell was waived before the end of the season, because his contract was guaranteed, he was paid for a full season. Therefore, the league reimbursed the Kings for the amount they had to pay Cassell after he had received $797,581.

Because Moore's contract is guaranteed, he will be paid the full $1,306,455 by the Warriors, and the league will reimburse the Warriors $480,968 so that his cost to the Warriors will only be $825,487.

Re: The veterans minimum reimbursement thing

Posted: Sun Jan 10, 2010 1:36 pm
by Three34
Well, now. That does seem a little odd. It also makes it extra odd that the Bucks cut Croshere, given that it cost $540,000 for 73 days and would have cost only an extra $250,000 for 107 more.