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So what happens if Rudy Gay opts out?

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  • #61
    slaw wrote: View Post
    Gay will almost assuredly exercise his option. He will get a 4-year deal at a minimum from some team and he will ensure himself more guaranteed money.

    As for people who think Toronto will sign him to some 4/40 deal, I do not think that is possible if he opts out. My understanding is that if Gay opts out and Toronto wants to sign a long term deal with him, the new deal must be for a minimum of two years (guaranteed and no options) and the first year salary must be no less than Gay would have made in the option year (i.e. at least $19 million). I isn't clear to me if subsequent years can be for less money but I don't think that can be done.

    Can one of our cap experts comment?
    You're thinking of if he signed an extension - if he opts out, then the 3 extension years would have to be 19M with max raises and decreases of 7.5% (So, at minimum, 19M, 17.6M, 16.2M). If he opts in and extends, then the 3 extension years would be 19M in the first year (his option year), then whatever he negotiates in the 2nd year, with the 3rd year having a max raise or decrease from the 2nd year of 7.5% (Say, 19M, 12M, 12.9M). If he opts out and doesn't sign an extension, the team has his Bird Rights, and can sign him to his maximum salary for up to 5 years, but he can also walk if he wants.
    twitter.com/dhackett1565

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    • #62
      p00ka wrote: View Post
      This year's prime example was Iggy, who opted out of $16M, to sign for 4 years at $12M I think. I don't think the Raps would have to pay the $19M if he opted out and re-signed with the Raps. Maybe that would be the case if they extended him before he opted out?
      yes, but did he opt out for guaranteed money, or to move to new team with a better chance of competing for a title? I guess one of the things i'm trying to understand here is: do players opt out and take less money per year (but ultimately, in a multi-year contract, more guaranteed money overall) because of the risk of acquiring an injury during the option year? I know it has to be looked at on a case by case basis as different players have different motivations, but is the threat of injury that big a factor?

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      • #63
        JawsGT wrote: View Post
        yes, but did he opt out for guaranteed money, or to move to new team with a better chance of competing for a title? I guess one of the things i'm trying to understand here is: do players opt out and take less money per year (but ultimately, in a multi-year contract, more guaranteed money overall) because of the risk of acquiring an injury during the option year? I know it has to be looked at on a case by case basis as different players have different motivations, but is the threat of injury that big a factor?
        If I were a pro athlete, the threat of injury would be a significant factor in my decision-making. You can be the fittest/best-conditioned player in the league, but still be vulnerable to a freak mis-step on the court.

        With the risk of injury being outside of a player's control, it makes sense that they would mitigate that risk by adjusting their contractual situations (which is in their control).

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        • #64
          DanH wrote: View Post
          You're thinking of if he signed an extension - if he opts out, then the 3 extension years would have to be 19M with max raises and decreases of 7.5% (So, at minimum, 19M, 17.6M, 16.2M). If he opts in and extends, then the 3 extension years would be 19M in the first year (his option year), then whatever he negotiates in the 2nd year, with the 3rd year having a max raise or decrease from the 2nd year of 7.5% (Say, 19M, 12M, 12.9M). If he opts out and doesn't sign an extension, the team has his Bird Rights, and can sign him to his maximum salary for up to 5 years, but he can also walk if he wants.
          ok, if I understand correctly, the best thing for Rudy to do is opt-out, as this would get him the most money if he re-signs with the Raps. So, if he opts out and doesn't sign an extension with the Raps, his maximum salary would be whatever the highest bidder is offering? But the Raps can match, and he can still walk, correct?

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          • #65
            JawsGT wrote: View Post
            yes, but did he opt out for guaranteed money, or to move to new team with a better chance of competing for a title? I guess one of the things i'm trying to understand here is: do players opt out and take less money per year (but ultimately, in a multi-year contract, more guaranteed money overall) because of the risk of acquiring an injury during the option year? I know it has to be looked at on a case by case basis as different players have different motivations, but is the threat of injury that big a factor?
            We'll never really know, but it could well be a combination of both. In any case, a career ending injury is always one play away for any of these guys, and $48M guaranteed looks a lot more enticing than cashing in for one year at $16M. There can be quite a few factors that these guys have to balance in making those decisions, but history says they often will go for the longer contract, given the opportunity, thus Rudy negotiating that player option.

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            • #66
              JawsGT wrote: View Post
              ok, if I understand correctly, the best thing for Rudy to do is opt-out, as this would get him the most money if he re-signs with the Raps. So, if he opts out and doesn't sign an extension with the Raps, his maximum salary would be whatever the highest bidder is offering? But the Raps can match, and he can still walk, correct?
              The Raps can match in the sense that they can offer whatever the other team is offering. He is unrestricted though, so they cannot "match" in the sense that he would be forced to stay. He can sign with whoever he wants at that point.
              twitter.com/dhackett1565

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              • #67
                Nilanka wrote: View Post
                If I were a pro athlete, the threat of injury would be a significant factor in my decision-making. You can be the fittest/best-conditioned player in the league, but still be vulnerable to a freak mis-step on the court.

                With the risk of injury being outside of a player's control, it makes sense that they would mitigate that risk by adjusting their contractual situations (which is in their control).
                That totally makes sense, I just didn't realize that it may be such a huge factor when considering option years, especially when an opt out may result in a significantly lower paycheck for one year, at least. But a guess the risk of a blown out knee and probably no paycheck the following year is significant enough to promote opting out and extending, even at a lesser rate.

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                • #68
                  How does insurance play into these types of situations?

                  Say, for example, Iguodala breaks his femur in training camp, ending his career. What happens? Who pays who?

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                  • #69
                    Thank you pooka, danh and nilanka...I learned alot today..I knew I came to work for something!!

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                    • #70
                      JawsGT wrote: View Post
                      Thank you pooka, danh and nilanka...I learned alot today..I knew I came to work for something!!
                      lol, I swear 95% of my time spent on this site is during the workday :|

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                      • #71
                        DanH wrote: View Post
                        You're thinking of if he signed an extension - if he opts out, then the 3 extension years would have to be 19M with max raises and decreases of 7.5% (So, at minimum, 19M, 17.6M, 16.2M). If he opts in and extends, then the 3 extension years would be 19M in the first year (his option year), then whatever he negotiates in the 2nd year, with the 3rd year having a max raise or decrease from the 2nd year of 7.5% (Say, 19M, 12M, 12.9M). If he opts out and doesn't sign an extension, the team has his Bird Rights, and can sign him to his maximum salary for up to 5 years, but he can also walk if he wants.
                        If this is the case, how was Tim Duncan able to take a paycut with his new contract/extension?

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                        • #72
                          Nilanka wrote: View Post
                          lol, I swear 95% of my time spent on this site is during the workday :|
                          Or do you mean 95% of your workday is spent on this site?? hahahaha

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                          • #73
                            Nilanka wrote: View Post
                            lol, I swear 95% of my time spent on this site is during the workday :|
                            I can attest to that. haha
                            Twitter - @thekid_it

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                            • #74
                              TheGloveinRapsUniform wrote: View Post
                              Or do you mean 95% of your workday is spent on this site?? hahahaha
                              isaacthompson wrote: View Post
                              I can attest to that. haha
                              How the eff have we not been fired?

                              I can see the headlines now...."Mass Layoffs Due To Basketball-Related Incompetence"

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                              • #75
                                TheGloveinRapsUniform wrote: View Post
                                If this is the case, how was Tim Duncan able to take a paycut with his new contract/extension?
                                Because an extension of an existing contract and a new contract with the same team are two different things. The first means that no other team can make an offer. The second doesn't. (The Duncan situation is a bit unique because everybody knew he wasn't going to sign with anybody other than San Antonio.)

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