Is it possible to do a restructure and trade?

[clydewally]

Can the Wizards pay Arenas a big chunk of the money he would be due over the life of his contract as an inducement to restructure the balance of his contract and then trade the restructured contract. The goal would be to make it both shorter and less per year after this season so that it is tradable, which would only work if the acquiring team only took the cap hits on the restructured basis.

It might even work if the team taking him took the cap hit based on his current salary in 2010 as long as it would only be absorbing the restructured contract in future years.

[FGump]

Forget the trade angle - I don't think the Wiz can "restructure" the contract to reduce their financial hit. Pay it, or buy him out.

[Dunkenstein]

Can the Wizards pay Arenas a big chunk of the money he would be due over the life of his contract as an inducement to restructure the balance of his contract and then trade the restructured contract. The goal would be to make it both shorter and less per year after this season so that it is tradable, which would only work if the acquiring team only took the cap hits on the restructured basis.

It might even work if the team taking him took the cap hit based on his current salary in 2010 as long as it would only be absorbing the restructured contract in future years.

The only time a contract can be restructured is if a player is waived, and as part of the waiver agreement his contract is bought out for a lesser amount and/or the payments are stretched out over a longer time period

[clydewally]

Thanks.

Would he be allowed, with Wizards permission, to test the market for his services as a waived free agent for purposes of helping the Wizards negotiate a fair buy out? For example, he is owed close to $78 million over four years. If he knew he could sign a three year $15 million deal, he should be willing to accept $63 million as a buyout (ignoring the time value of money for the moment).

Would it be legal, again with the Wizards permission, for him to tee up an agreement which he could sign upon the buyout? And to take it a step further, could the Wiz do a simultaneous trade with the team signing Arenas which would not involve Arenas (but which would perhaps be skewed one way or the other to acknowledge the Arenas signing)?

I wouldn't be surprised if the first part worked, but would be somewhat surprised if the last sentence worked.

[Dunkenstein]

Thanks.

Would he be allowed, with Wizards permission, to test the market for his services as a waived free agent for purposes of helping the Wizards negotiate a fair buy out? For example, he is owed close to $78 million over four years. If he knew he could sign a three year $15 million deal, he should be willing to accept $63 million as a buyout (ignoring the time value of money for the moment).

Would it be legal, again with the Wizards permission, for him to tee up an agreement which he could sign upon the buyout? And to take it a step further, could the Wiz do a simultaneous trade with the team signing Arenas which would not involve Arenas (but which would perhaps be skewed one way or the other to acknowledge the Arenas signing)?

I wouldn't be surprised if the first part worked, but would be somewhat surprised if the last sentence worked.

#1) Yes.
#2) No.

[Malinhion]

Can the Wizards pay Arenas a big chunk of the money he would be due over the life of his contract as an inducement to restructure the balance of his contract and then trade the restructured contract. The goal would be to make it both shorter and less per year after this season so that it is tradable, which would only work if the acquiring team only took the cap hits on the restructured basis.

It might even work if the team taking him took the cap hit based on his current salary in 2010 as long as it would only be absorbing the restructured contract in future years.

The only time a contract can be restructured is if a player is waived, and as part of the waiver agreement his contract is bought out for a lesser amount and/or the payments are stretched out over a longer time period

Careful, though. Stretching out the payments is purely a matter of time of payment. The team's cap will still be affected by the amount of the contract that they do not buy out. You can't amortize the remaining contract's cap hold.