mysticbb wrote:heathmalc wrote:Since so many of you seem to be totally unaware of the salary cap, and it's affect on what LeBron and other free-agents do, I will educate you as to why LeBron is very unlikely to sign as a free-agent in another city.
Well, you should have looked that up before, because James can't sign a 5yr max extension this summer, but only a 4yr max extension. The salary for the first year of that extension is restricted to the same rules as if he would sign a new contract in that year. With the upcoming new CBA in 2011 we don't even know how that will look like.
No, you are wrong. To the casual eye, it appears LeBron could only sign a 4yr max extension. This appears this way because of the option year, which you assume would be year-1 (5yr max on all extensions, minus any years left in current contract), thus allowing LeBron to sign an extension of only 4 years max; which would begin in 2011-2012 season.
However, this is not correct. An option year is exactly what is says...an option. It does not become part of the contract until it is signed. Also, LeBron needs not sign that option year in order to qualify for an extension. By quickly looking at LeBron's contract, you probably thought that he needed that 4th year to even qualify ( to qualify for an extension, the contract must be for 4 years or more). However, once again, this is wrong. LeBron never signed a 3 year contract... he signed a 3 year extension in 06, to his rookie 4 year contract. According to the CBA (Which you can download in-full from the player's association site), he is still playing under this contract, as he never became a free-agent, and the original contract was extended... meaning he is currently playing on a 7 year contract, that has a 8th year option (4 year rookie contract + 3 year extension + option). Also, the Cavaliers and LeBron can mutually agree to terminate the option on his contract. If he were to sign the option...then you would be correct, that he could only sign a 4yr max extension...which would start in 11-12. However, by terminating the option, the Cavaliers and LeBron can sign an extension anytime up to Oct 31st... The only requirement is that the extension cannot be signed until 3 years (exact) has passed since the extension was signed. At that time, up to 10/31, the Cavs may sign LeBron to a 5 year max extension (assuming the Option is terminated). The extension would begin for this next season, and the first year's salary would be 110.5% of last season's salary. Also, because the extension begins before the new CBA, it is unaffected.
Dirk was brought up as an example...on why he didn't sign an extension. Dirk's situation was totally different. Dirk had an ETO. An ETO year IS part of the current contract, and must be honored before any extension can begin. Therefore, Dirk would have been in the exact situation you described, only he wouldn't know if his raises would be as high or much of anything else, because the New CBA would be in-effect when his extension started. LeBron didn't have an ETO; he has an option year, and like I said earlier, it is not part of the contract until/unless signed. LeBron signed his extension 4 years ago. So he can sign an extension at any time, for up to five years, and all of the years of the extension would fall under the current CBA, as directed by NBA rules and union agreements.
