Someone explain Tyler Johnson's contract to me

Egg Nog · Post #1 » by **Egg Nog** » Sat Jul 7, 2018 4:47 am

Somehow I missed this. This seems like the most insane thing ever.

Miami is set to have the highest payroll in the league this season by a huge margin, over $145,000,000 total.

What on earth happened here?

Xherdan 23 · Post #2 » by **Xherdan 23** » Sat Jul 7, 2018 4:49 am

Poison pill contract:

How the Poison Pill Contract Works
The poison pill is designed to make it difficult for a player's team to match a contract offer from another team.

Suppose, team X wants to sign a restricted free agent away from team Y. Team Y has the right to match any contract offer.

Team X structures the contract offer to maximize the potential luxury tax penalties if team Y chooses to match the contract offer. The total value of the contract might be $40 million, but the pay schedule might be $5 million in each of the first two years and $15 million in the second two--designed to put the original team over the luxury tax threshold in years three and four.

https://www.thoughtco.com/poison-pill-contract-325982

That contract was offered to him from the Nets and matched by Miami.

Pattycakes · Post #3 » by **Pattycakes** » Sat Jul 7, 2018 4:53 am

Every play I've watched with the dude he looks like complete garbage, but as someone who witnessed the entire Blazers team look like garbage in the playoffs, I tend to have a bit of forgiveness if he's better than I've seen. Looks like he should barely play.

RCM88x · Post #4 » by **RCM88x** » Sat Jul 7, 2018 4:56 am

Back loaded contract designed to put Miami in a bad cap situation down the line when Brooklyn rebuilds a bit might be a more attractive FA option and or trending upwards.

Sometimes this makes sense for teams as it allows them to have cap space to sign guys alongside such a player, with the idea they'll go over the cap later and just accept the tax now that they have their guys. However, since this was an offer sheet it was more just Brooklyn trying to build a deal that they though Miami would match that would also hurt Miami the most. Like Xherdan mentioned in his quote.

Kurt Heimlich · Post #5 » by **Kurt Heimlich** » Sat Jul 7, 2018 5:00 am

Meth Curry making Wack LaVine's contract look....well still terrible.

316Hornets · Post #6 » by **316Hornets** » Sat Jul 7, 2018 5:03 am

Yikes

Picasso · Post #7 » by **Picasso** » Sat Jul 7, 2018 5:06 am

This just made that 2021 pick the Sixers picked up a very good trade.

badass316 · Post #8 » by **badass316** » Sat Jul 7, 2018 5:08 am

His agent better have gotten a good cut for that quackery.

Mylie10 · Post #9 » by **Mylie10** » Sat Jul 7, 2018 7:02 am

With all that coin, he better get that grill fixed!!

DaddyCool19 · Post #10 » by **DaddyCool19** » Sat Jul 7, 2018 7:15 am

The 145 M on hoopshype is with Bosh (26,8 M) included

kamaze · Post #11 » by **kamaze** » Sat Jul 7, 2018 7:21 am

RCM88x wrote:Back loaded contract designed to put Miami in a bad cap situation down the line when Brooklyn rebuilds a bit might be a more attractive FA option and or trending upwards.

Sometimes this makes sense for teams as it allows them to have cap space to sign guys alongside such a player, with the idea they'll go over the cap later and just accept the tax now that they have their guys. However, since this was an offer sheet it was more just Brooklyn trying to build a deal that they though Miami would match that would also hurt Miami the most. Like Xherdan mentioned in his quote.

Oh you want to play games Riley? how bout that.

DirtyDez · Post #12 » by **DirtyDez** » Sat Jul 7, 2018 7:26 am

Picasso wrote:This just made that 2021 pick the Sixers picked up a very good trade.

They clear that salary before the 20/21’ season.

Dr Aki · Post #13 » by **Dr Aki** » Sat Jul 7, 2018 7:30 am

Tyler Johnson was a second round pick.

His rookie contract lasted two years before he hit restricted free agency. But because he only played two years with the Heat, they only had his Early Bird rights.

What Early Bird rights allows a team to do is offer a contract with a starting salary of 175% of the previous years salary (which as a 2nd round pick was a pittance) or 105% of the average salary in the league i.e. 105% of the MLE in 2016.

The problem is, the Nets then decided to offer Johnson a 4 year/50 million contract with their open cap space with an annual salary of 12.5 million dollars a year.

Now because Miami was over the cap at the time, and thus were only able to offer a starting salary of 105% of the 2016/17 MLE. Under the previous CBA, this would've meant that the Heat would've been unable to match the contract offer despite the fact Johnson was a restricted free agent. Indeed, this did occur with Gilbert Arenas, himself a second round draft pick and RFA was poached away from GSW by the Wizards.

Thus the "Gilbert Arenas provision" was brought in place in a later CBA to remedy this loophole where the team holding a restricted free agent's Early Bird rights were unable to match a contract - so that a team trying to poach a Tyler Johnson would be restricted to only offering a 1-2 year veteran 105% of the MLE and subsequent 5% raise, so as to bring a second round draft pick's earnings over the first 4 years of their NBA career in line with the #1 pick of their draft class, with the remaining contract money backloaded in years 3 and/or 4 of their contract.

Hence why Tyler Johnson's contract looks the way it does

Spens1 · Post #14 » by **Spens1** » Sat Jul 7, 2018 7:37 am

Have you seen that Miami payroll, all those guys are getting paid big bucks. Not sure what Riley is up to but anyway.

Pachinko_ · Post #15 » by **Pachinko_** » Sat Jul 7, 2018 7:41 am

you need a lawyer an accountant and a shrink to figure it out

Egg Nog · Post #16 » by **Egg Nog** » Sat Jul 7, 2018 8:01 am

Dr Aki wrote:Tyler Johnson was a second round pick.

His rookie contract lasted two years before he hit restricted free agency. But because he only played two years with the Heat, they only had his Early Bird rights.

What Early Bird rights allows a team to do is offer a contract with a starting salary of 175% of the previous years salary (which as a 2nd round pick was a pittance) or 105% of the average salary in the league i.e. 105% of the MLE in 2016.

The problem is, the Nets then decided to offer Johnson a 4 year/50 million contract with their open cap space with an annual salary of 12.5 million dollars a year.

Now because Miami was over the cap at the time, and thus were only able to offer a starting salary of 105% of the 2016/17 MLE. Under the previous CBA, this would've meant that the Heat would've been unable to match the contract offer despite the fact Johnson was a restricted free agent. Indeed, this did occur with Gilbert Arenas, himself a second round draft pick and RFA was poached away from GSW by the Wizards.

Thus the "Gilbert Arenas provision" was brought in place in a later CBA to remedy this loophole where the team holding a restricted free agent's Early Bird rights were unable to match a contract - so that a team trying to poach a Tyler Johnson would be restricted to only offering a 1-2 year veteran 105% of the MLE and subsequent 5% raise, so as to bring a second round draft pick's earnings over the first 4 years of their NBA career in line with the #1 pick of their draft class, with the remaining contract money backloaded in years 3 and/or 4 of their contract.

Hence why Tyler Johnson's contract looks the way it does

Thanks, that was magnificent.

WuTang_CMB · Post #17 » by **WuTang_CMB** » Sat Jul 7, 2018 8:21 am

He's legit garbage. No idea why Miami matched that. Everyone knew he wasn't worth it ... we all called for them not to match and now with spending tight couple years later, Miami is f***ed.

SlowPaced · Post #18 » by **SlowPaced** » Sat Jul 7, 2018 8:57 am

Bosh's 26 mil is included in the Heat's payroll so that's a bit misleading.

Arteezy · Post #19 » by **Arteezy** » Sat Jul 7, 2018 8:58 am

Outside the obvious signings of Lebron and Bosh, Riley as GM has been awful for quite some time.

Capped out #7-8 team, with no upside at all

NaturalBuns · Post #20 » by **NaturalBuns** » Sat Jul 7, 2018 9:39 am

Arteezy wrote:Outside the obvious signings of Lebron and Bosh, Riley as GM has been awful for quite some time.

Capped out #7-8 team, with no upside at all

I mean yeah those are the results and facts but he was betting on dragic becoming a star and having prime bosh. Both haven't lived up to what was thought to be.

Dragic
Bosh
Whiteside
Have let him down fair or not. Those are the cap eaters.
All 3 of them looked promising at one point in time but yeah all is bad and they are capped now