Camby's rumored extension

[lakerfan10770]

It is being reported that Marcus Camby and the Blazers have agreed to a 2 year contract extension. The deal is being reported as $21M guaranteed with $4M in unlikely incentives by these guys:

http://blog.oregonlive.com/behindblazersbeat/2010/04/marcus_camby_close_to_signing.html

From what I understand, the maximum amount of a 2-year extension for Camby would be $21,182,250. Is it possible for the Blazers to add on incentives (either likely or not) that would potentially push the value of the first year of the extension beyond the 10.5% maximum increase?

Just curious what you guys think....

[Dunkenstein]

Camby already has incentives in his current contract. I got this info from an NBA exec in January, 2008:

Camby has 3 more years left on his contract. The specifics are as follows…

Base Compensation
07-08 Base Compensation; $8M
08-09 Base Compensation: $8M
09-10 Base Compensation; $7.65M

Incentive Compensation
07-08 Possible Incentives: $3,787,500
08-09 Possible Incentives: $3,787,500
09-10 Possible Incentives: $3,725,000

Now this is where is gets a bit complicated. Incentives are broken down into Part 1 and Part 2. They have no impact on each other.

Incentives Part 1 (based on Regular Season play)
a) $500k if plays at least 50 games
b) $500k additional if plays at least 55 games
c) $500k additional if plays at least 60 games
d) $500k additional if plays at least 65 games

Total Part 1 Incentives $2M

Incentives Part 2 (based on Regular Season play)
a) $250k if player achieves ALL of at least 65 games played, average at least 10.0 points, average at least 10.0 rebounds, and average at least 2.0 blocks.
b) If, and only if, the Part 2a is achieved, then player is eligible for these additional Part 2b incentives…
i) average at least 11.50 points
ii) average at least 10.70 rebounds
iii) average at least 2.60 blocks

For 07-08 and 08-09
x) $500k if one of the three i, ii, iii is achieved
y) $500k additional if two of the three i, ii, iii are achieved
z) $537.5k additional if all three i, ii, iii are achieved

For 09-10
a) $500k if one of the three i, ii, iii is achieved
b) $500k additional if two of the three i, ii, iii are achieved
c) $475k additional if all three i, ii, iii are achieved

Total Part 2 in 07-08 or 08-09: $1,787,500. In 09-10: $1,725,000

I'm not sure how these would factor into an extension. Just thought you might find them interesting. They are probably the most complex incentive package ever in an NBA contract.

[FGump]

The CBA wording is kinda odd, but it looks to me like he can have unlikely incentives built into the deal of 2M +/- 10.5% in yr 1 and then +/- 10.5% in yr 2.

See CBA VII ..5 ...c ...(3) ...(ii)

In other words, it looks like he's getting a max 2 yr extension. Given his age, that may be the year limit on an extension too.

[Amen316]

It should work out to 10.3 per =) little birdie thinks

[lakerfan10770]

Thanks, interesting stuff Dunk, so it looks like Marcus got a nice little $500K bump in pay for playing more than 65 games. It also looks like he failed to meet the "part 2" portion of his incentives falling just short on PPG. So would that make his max raise percentage based on $9,650,000 as opposed to $9,150,000, which I believe is what was classified as likely?

The CBA wording is kinda odd, but it looks to me like he can have unlikely incentives built into the deal of 2M +/- 10.5% in yr 1 and then +/- 10.5% in yr 2.

See CBA VII ..5 ...c ...(3) ...(ii)

In other words, it looks like he's getting a max 2 yr extension. Given his age, that may be the year limit on an extension too.

Honestly I have no idea, but looking at Larry's site (which is my only source besides this board) it seems like they shouldn't be able to. The only thing I was basing my opinion on was #63 of the Faq's which is not necessarily applicable to extensions. I was going to say that I hope they clean some of this stuff up with the new CBA, but then it occurred to me that we wouldn't have as much to talk about and what a shame that would be.

As far as Camby's extension, I know you are referring to the Over-36 rule, but I think Portland is really overpaying for Marcus. But what's a few extra million to a billionaire like Paul Allen.

and btw, where do you guys live? (it's 12:30 in California) I was expecting to have to wait until the morning to see a reply. For some reason I pictured you guys as east coasters, but apparently not.

[Three34]

Nairobi.

[answerthink]

The C.B.A. rules that apply to Camby’s extension would be as follows:

1. In the first year of the extended term, base compensation, likely bonuses, and unlikely bonuses can each increase by 10.5% from the last year of the original contract
2. For annual raises, base compensation, likely bonuses, and unlikely bonuses can each increase by 10.5% from the last year of the original contract
3. Unlikely bonuses can be up to 25% of base compensation

If you combine the information provided by Dunk above with Camby’s current salary of $9,150,000 as provided by Sham, you will note that Camby’s 09/10 compensation breaks down as follows: (i) base compensation: $7,650,000, (ii) likely bonus: $1,500,000, and (iii) unlikely bonus: $2,225,000.

Applying the rules provided above, a max extension for Camby would be as follows:

2010/11
Base Compensation: $8,453,250
Likely Bonus: $1,657,500
Unlikely Bonus: $2,113,313
Salary Plus Likely Bonus: $10,110,750
Total Potential Compensation: $12,224,063

2011/12
Base Compensation: $9,256,500
Likely Bonus: $1,815,000
Unlikely Bonus: $2,314,125
Salary Plus Likely Bonus: $11,071,500
Total Potential Compensation: $13,385,625

Totals
Base Compensation: $17,709,750
Likely Bonus: $3,472,500
Unlikely Bonus: $4,427,438
Salary plus Likely Bonus: $21,182,250
Total Potential Compensation: $25,609,688

These numbers appear consistent with what is being reported in your link above, except for the fact that likely bonuses are not guaranteed.

[arenas809]

Per Marc Stein: According to official league memo, Camby extension w/POR is two-year deal worth $17.7 million ($8,453,250 in '10-11 and $9,256,500 in 11-12).

[Three34]

Look at the post above yours.



I wonder what they vetoed first time.

[FGump]

I wonder what they vetoed first time.

I 'm guessing the issue was in regards to which bonuses were likely and which were unlikely. When the contract was submitted for league approval, the league would have defined which bonuses were "likely" and which were not, and those definitions had to agree precisely with what the Blazers intended - if not, the contract was illegal; and (I'm speculating) initially when the league disagreed on one or more definitions, the incentive clauses had to be reworked.