Need a little brushing up on trade kickers...

User avatar
JES12
RealGM
Posts: 24,863
And1: 128
Joined: Jul 05, 2006

Need a little brushing up on trade kickers... 

Post#1 » by JES12 » Mon Jun 15, 2009 11:45 pm

I want to use the example of Josh Smith affter July 7th, 2009.

His remainding salary:

2008-09 $10,800,000
2009-10 $11,600,000
2010-11 $12,400,000
2011-12 $13,200,000
Total = $48,000,000

Trade Kicker = 15%

$48 mil X 15% = $7.2 mil.

That much, I know. What I don't know is what counts on cap vs. what counts on the $125 rule vs what the teams involved are resposible for.

The way I think it is.....
-Player salary = $10.8 mil + 7.2 mil = $19 mil, which is not allowed because the player max in 2009-10 for a 5 year vet should be lose to $14 mil. Is that true?

-$7.2/4 yrs = $1.8 mil added to his cap hold each year.

-Is the cap hold and/or player max effected if Atlanta pays part of the kicker?
-How much of the kicker (if any) would Smith have to waive to allow a trade to be done within the salary restrictions?
LarryCoon
Rookie
Posts: 1,113
And1: 0
Joined: Aug 09, 2002
Location: Irvine, CA
Contact:

Re: Need a little brushing up on trade kickers... 

Post#2 » by LarryCoon » Tue Jun 16, 2009 12:04 am

User avatar
JES12
RealGM
Posts: 24,863
And1: 128
Joined: Jul 05, 2006

Re: Need a little brushing up on trade kickers... 

Post#3 » by JES12 » Tue Jun 16, 2009 12:12 am

I read that, but is is quite confusing on the parts I asked about.

For trades, trade bonuses can be a nuisance. When a team trades for a player with a trade bonus, it must count the portion of the bonus that applies to team salary in that season as incoming salary.

Is that $10.8 mil + the $1.8 mil cap hit? Or is that $10.8 mil + the $7.2 mil salary paid.

Also, if a 5 yr vet is maxed out at $14 mil. Does that mean for Smith to be traded, he would have to give up $4 mil ($7.2 mil - ($14-$10.8 =$3.2)) in order to allow the trade to occur?
Three34
Retired Mod
Retired Mod
Posts: 36,406
And1: 123
Joined: Sep 18, 2002

Re: Need a little brushing up on trade kickers... 

Post#4 » by Three34 » Tue Jun 16, 2009 12:59 am

You're stuck on this $18 million figure, but you needn't be. The sentence you're looking for is here:

For the salary cap, the value of a trade bonus is applied to the team salary among the remaining years of the contract/


If it helps, here's how John Salmons' trade kicker was calculated when he was traded at the past deadlne.

Salmons' 2008/09 salary: $5,104,000
Salmons 2009/10 salary: $5,456,000
Salmons' 2010/11 salary: $5,808,000

Date John Salmons was traded: February 18th.
Days gone in the 170 day season when Salmons was traded: 113
Days remaining in the 170 day season when Salmons was traded: 57
The remainder of Salmons' 2008/09 salary that had still to be paid: $1,711,341 (which is $5,104,000 divided by 170 and multiplied by 57).

Total remaining salary on Salmons's contract: $12,975,341 (remember, salary in ETO years counts).

Value of Salmons's trade kicker = 15% of the remaining salary = $1,946,301

Number of fully guaranteed years (partial year included) over which that bonus should be equally spread - 2 (remember, ETO years don't count here)

Amount of trade bonus added to Salmons' 2008/09 and 2009/10 salaries: $973,151


Salmons' new salaries:

2008/09 = $6,077,151
2009/10 = $6,429,151
2010/11 = $5,808,000 (ETO)

Return to CBA & Business