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From HumanVictoryCigar.com With the Pistons season coming to an abrupt end, fans are in the streets, shouting for change. ...

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Old 06-03-2007, 03:30 PM
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[HVC] 2006/7 End of Season Contracts Review

From HumanVictoryCigar.com

With the Pistons season coming to an abrupt end, fans are in the streets, shouting for change.

Fire the coach. Release/trade players.

Here is a quick and dirty primer on the Pistons current roster, contracts and salaries and what this means going forward to next season. So before you propose trading Jason Maxiell and Flip Murray for KG, you might want to check this out.

At Pistonsforum.com, we have an up-to-date contract listing for this season.

The listing is from information gathered by Sports Illustrated and despite the fact it may read differently than other salary websites, does conform to the Collective Bargaining Agreement and should be considered to be a very reputable source for information.

I have tried to keep this information as general and accurate as possible, which isn’t always easy considering the many loopholes and nuances of the NBA’s CBA. As always, I recommend that fans should use a trade checker (such as at RealGM or ESPN) and/or consult the Collective Bargaining Agreement FAQ. If you still have questions, I am happy to help readers find answers. Just reply to this thread.

Unrestricted Free Agents
  • Dale Davis
  • Chris Webber
Unrestricted Free Agents are players that the Pistons are able to sign or simply let go. Their contracts are up and the franchise is under no obligation to bring them back however they can do so if they choose. This requires the player’s approval when signing a new contract.

Dale Davis is an Early Bird Free Agent under the Collective Bargaining Agreement. The Pistons can sign him for the minimum $1.2 million up to $6.1 million. A minimum contract can be for one year, any larger deal must be for at least 2 years and no longer than 5 years with 10.5% raises.

Chris Webber is Non-Bird Exception player. The Pistons can offer him a minimum contract or a minimum contract with a 20% raise (based off of one year of service in Detroit). The Pistons will also have the Mid-Level Exception and can use this to sign Webber for the League average salary, projected in 2007/8 to be between $5.5 and $6 million to start. The Pistons can only use the Mid-Level Exception once this offseason and may want to reserve it for a free agent.

Restricted Free Agents

Alex Acker and Amir Johnson

Alex Acker spent the last season playing with Piraeus Olympiacos of Greece in the Euroleague. He is rumoured to have a second year option that would pay him more than Detroit can offer, as well as provide starter minutes to build his value for his next contract. European contracts can also feature free lodging, lower taxes and other fringe benefits that are not allowed under the NBA CBA. As much as he might be able to help the team as a slashing shooting guard, the team would have to commit to him in a significant manner. With at least 3 incoming draft picks, this does not seem likely on a team which will be investing money into developing more prospects.


Amir Johnson will be a restricted free agent until he is able to re-sign in Detroit. I have no doubt that the Pistons will match any incoming offers for his services, and can do so as he is an Early Bird Free Agent and falls under the so-called Gilbert Arenas provision of the Collective Bargaining Agreement. Johnson has shown tremendous upside and the patience to wait for his opportunity. Look for a deal signed this summer that will establish him as an important piece of the franchise.

Players with Player initiated options

All player options must be taken no later than July 1st. These players are in the driver’s seat with their contracts. The team must negotiate a trade, or cut them and take a hit against the salary cap to remove them if they take their options.

Ronald Dupree - One year option for the 2007/8 season.

Flip Murray - One year option for the 2007/8 season.

Antonio McDyess - One year option for the 2007/8 season.

Chauncey Billups - Has an early termination option but for all intents and purposes to this post, is the same as a player option.


Ronald Dupree is likely to return, if only because his lack of playing time has not increased his value around the league and the option year is guaranteed.

Flip Murray is in a similar position to Dupree, with less playing time than the previous year he was a free agent. Strategically, Murray might be wise to take his option to see how the Chauncey Billups negotiations work out. With a strong showing next year, he would be able to get more money on the free agent market in 2008/9 either from Detroit or another team.

Antonio McDyess is slated to earn $6.3 million next year. I see him taking the option because he won’t get more in free agency and based on his performance will not lose any value in 2008/9 when he would become a free agent again. The man has at least one more contract in him if he choses to play longer or one well paying year if he choses to retire after this deal.

Chauncey Billups will take his early termination option without a doubt. There is too much risk at his age of playing out the remaining year on his deal and possibly losing a lot of future earnings in the event of injury. Billups will be looking for a nice raise and a lot more years of guaranteed money, however the teams who can afford to pay him more than he makes now are not very good. This puts the Pistons in the driver’s seat, as Billups’ agent (Andy Miller) will have to find a better offer than Detroit’s to have a position to negotiate from.


A sign & trade is a possibility if a Western Conference team is hot for Billups and Joe Dumars can get a variety of player assets, disposable contracts and draft picks in return. However, a S&T is difficult to pull off for a franchise as cost conscious as the Pistons. Joe Dumars will not accept garbage in return for moving an All-Star unless his back is up against the wall (Grant Hill). Perhaps he can get lucky again (Ben Wallace) if that is the case.

It has been rumoured that Lindsey Hunter has an option in 2007/8 to opt out of his contract and join the Pistons front office in some capacity. If this is true then it is highly likely Hunter will make the move away from the court given his age, effectiveness and the recent diet pill fiasco.

Players with Team initiated options

Will Blalock - Rookie point guard, has a minimum contract option for next year. Unless the Pistons have absolutely zero belief in any upside for this player, he will be back simply because he is 1) cheap and 2) already indoctrinated into the Pistons culture.

Jason Maxiell - Has an option for year 3 of his 4 year rookie deal. This is pretty much a no-brainer that the Pistons will take this option, because like Blalock he is very affordable and has Pistons DNA, and unlike Blalock, the Pistons know he has a lot of upside.

Stuff to remember

There are rumours floating around about Zach Randolph coming to Detroit and likely more players will be added to that list. Any player who is currently under contract to another team, must be acquired in a trade. Trades must be very close dollar to dollar and please keep in mind that no other GM wants lesser players from the Pistons for their superstar. So rule out KG right now even though Kevin McHale might be the worst GM in basketball.

You have to give something(s) up to get something in return. Big trades are never an easy process to complete.

A little bonus coverage to follow. This is the list of Pistons and their agents as best as I could discover. You will see some of these agent names in the news over the offseason so I have listed other players they also represent.

Player - Agent (other players represented by same agent)

Chauncey Billups - Andy Miller (Antonio McDyess, Kevin Garnett, Carlos Delfino)

Rip Hamilton - Leon Rose (LeBron James, Allen Iverson, Luol Deng)

Tayshaun Prince - Bill Duffy (Yao Ming, Steve Nash, Mike James)

Rasheed Wallace - Bill Strickland (Brevin Knight, Malik Allen)

Chris Webber - Aaron Goodwin (Dwight Howard, Gary Payton, Jamal Crawford)

Antonio McDyess - Andy Miller (Chauncey Billups, Kevin Garnett, Carlos Delfino)

Ronald “Flip” Murray - Thad Foucher (Eddie Griffin)

Lindsey Hunter - Mark Bartelstein (Ronald Dupree, Ron Artest, Antoine Walker)

Carlos Delfino - Andy Miller (Antonio McDyess, Kevin Garnett, Chauncey Billups)

Jason Maxiell - Richard Katz (Daniel Horton, Jose Berea, Vladimir Radmanovic)

Dale Davis - Chubby Wells (none known)

Nazr Mohammed - Mike Higgins (Louis Amundson, Marcus Banks, Tony Allen)

Amir Johnson - Arn Tellum (Ben Wallace, Tracy McGrady, Jermaine O’Neal)

Will Blalock - Charles Bonsignore (near as I can tell, he’s a real estate agent in Ventura, California)

Ronald Dupree - Mark Bartelstein (Lindsey Hunter, Ron Artest, Antoine Walker)
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Old 06-03-2007, 03:36 PM
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Re: [HVC] 2006/7 End of Season Contracts Review

Thanks, Roscoe, for the info. That makes the whole discussion on Pistons future easy since we know what's what.
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Old 06-03-2007, 06:26 PM
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Re: [HVC] 2006/7 End of Season Contracts Review

Great info scoe...where do you find the time? Thanks
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Old 06-03-2007, 07:14 PM
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Re: [HVC] 2006/7 End of Season Contracts Review

good work.
Quote:
Trades must be very close dollar to dollar and please keep in mind that no other GM wants lesser players from the Pistons for their superstar. So rule out KG right now even though Kevin McHale might be the worst GM in basketball.
words to post by.

While we can't rule out league flotsam like Bonzi Wells, I can only hope that Joe already has.
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Old 06-03-2007, 09:12 PM
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Re: [HVC] 2006/7 End of Season Contracts Review

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Originally Posted by detteam View Post
Great info scoe...where do you find the time? Thanks
Honestly right now, I have a million other things to take care of.

I make time for PF because I know you guys appreciate and make use of it.

Also, when crastinator reads this stuff, she wins arguments at the bar. So I like to make her look good.
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Old 06-03-2007, 09:36 PM
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Re: [HVC] 2006/7 End of Season Contracts Review

Wow, AWESOME STUFF!!

Very thorough, well laid out and easy to read.
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Old 06-04-2007, 12:02 AM
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Re: [HVC] 2006/7 End of Season Contracts Review

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Originally Posted by jammertime View Post
Wow, AWESOME STUFF!!

Very thorough, well laid out and easy to read.
Excellent .

I'll be using this as a reference this summer. You should have called it "Contracts for Dummies".

I'm a bit overwhelmed today trying to pick out the posts I want to read,scan, and skip, but this was definitely worth the look.
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Old 06-04-2007, 09:10 AM
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Re: [HVC] 2006/7 End of Season Contracts Review

How much can another team offer Amir? Is there a limit? I guess about 5.5 million ???

Thanks oh wise ones.

Any idea on what is rumored to be going Portland's way in the possible Zack deal?

They don't need Sheed as they have Aldridge (The closest thing to Sheed 2.0) and Oden...


Never mind on the Amir thing I guess.

Quote:
37. What is the "Gilbert Arenas" provision?

With the previous CBA it was sometimes possible to sign restricted free agents to offer sheets their original teams couldn't match. This happened when a player was an Early Bird or Non-Bird free agent (see question number 19) and the team didn't have enough cap room to match a sufficiently large offer. For example, Gilbert Arenas was Golden State's second round draft pick in 2001, and became an Early Bird free agent in 2003. Golden State therefore could only match an offer sheet (or sign Arenas themselves) for up to the average salary (see question number 24), which was about $4.9 million. Washington signed Arenas to an offer sheet with a starting salary of about $8.5 million, which Golden State was powerless to match.

This loophole was addressed in the current CBA (although not closed completely -- see below). Teams are now limited in the salary they can offer in an offer sheet to a restricted free agent with one or two years in the league. The first-year salary in the offer sheet cannot be greater than the average salary (see question number 24). Limiting the first year salary in this way guarantees that the player's original team will be able to match the offer sheet by using the Early Bird exception (if applicable -- see question number 19), or Mid-Level exception (provided they haven't used it already).

The second year salary in such an offer sheet is limited to the standard 8% raise. The third year salary can jump considerably -- it is allowed to be as high as it would have been had the first year salary not been limited by this rule to the average salary. Raises (and decreases) after the third season are limited to 6.9% of the salary in the third season. The offer sheet can only contain the large jump in the third season if it provides the maximum salary allowed in the first two seasons. In addition, the offer must be guaranteed and cannot contain bonuses of any kind.

If the raise in the third season exceeds the standard raise (8% of the salary in the first season of the contract), then they place an additional restriction on the team. In order to determine the size of the offer the team can make, they don't fit just the first year salary under the cap. Instead, they must fit the average salary in the entire contract under the cap. So a team $8 million under the cap is limited to offering a total of $24 million over three years, $32 million over four years, or $40 million over five years. If the offer sheet does not contain a third-season raise larger than 8% of the first-season salary, then they only have to fit the first year salary under the cap.

Putting this all together, if a team is $11 million under the cap, wants to submit a five year offer sheet, and wants to provide a large raise in the third season, they can offer a total of $55 million. If the average salary is $5 million, then the second year salary will be $5.4 million (8% raise). This leaves $44.6 million to be distributed over the final three seasons. With 6.9% raises in years four and five, the entire contract looks like this:

Season
Salary
Notes
1
$5.0 million
Average salary amount
2
$5.4 million
8% raise over season 1
3
$13.907 million
This is the amount that yields $44.6 million over the
final three seasons with 6.9% raises*
4
$14.867 million
Raise is 6.9% of season 3 salary
5
$15.826 million
Raise is 6.9% of season 3 salary
Total
$55 million
Average is $11 million, which equals the team's cap room

* If you want to know how I got that exact amount, (for a five year offer) you solve for (5R - 2.08A) / 3.207. R is the room the team has under the cap. A is the average salary amount (e.g., $5 million). The 2.08 represents the salary in the first two seasons (100% of the average, plus 108% of the average). The 3.207 represents the salary in the last three seasons, using 6.9% raises: 1.0 + 1.069 + 1.138 = 3.207. Similarly, for a four year offer you would solve for (4R - 2.08A) / 2.069.

For the team making this offer, this contract would count for $11.0 million (i.e., the average salary in the contract) of team salary in each of the five seasons if they sign the player. If the player's prior team matches the offer and keeps the player, then the actual salary in each season counts as team salary. The player's original team is allowed to use any available exception (e.g., the Mid-Level or the Early-Bird) to match the offer.

Since a team must fit the average salary from the entire contract under the cap in order to offer the large third-season raise, a team must have some amount of cap room above the average salary amount in order to effectively utilize this provision. For example, suppose the average salary amount is $5 million, and a team with $5.1 million of cap room wants to provide a five year offer sheet. If they want to offer a larger-than-normal third-year raise, then their cap room will be determined by the contract's average salary, so the total contract must pay $25.5 million or less. If they offer $5 million and $5.4 million in the first two seasons, then that leaves just $15.1 million for the final three seasons -- so there must be a decrease in salary in the final three seasons. A team in this situation is better off providing the standard 8% raise in the third season, which does not trigger the cap room requirement based on averaging. In this example, a five year offer starting at $5 million with 8% raises would total $29.0 million.

As I said above, the loophole was addressed with this rule, but not closed completely. This is because this provision is primarily intended to protect teams from losing their successful second round picks, who are Early-Bird free agents after two years. There are several situations where a team still might be unable to match an offer sheet:
  • If the player is a Non-Bird free agent and the team already used their Mid-Level exception to sign another player.
  • If the player is a Non-Bird or Early Bird free agent with three years in the league (this rule applies only to players with one or two years in the league).
  • If a team has two Non-Bird free agents with one or two years in the league. They can use the Mid-Level exception to keep one of them, but would lose the other.
This provision also ensures that second round picks can't cash in with a maximum salary sooner than first round picks can.
NBA Salary Cap FAQ

Last edited by st8ofmind : 06-04-2007 at 09:18 AM.
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Old 06-04-2007, 09:41 AM
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Re: [HVC] 2006/7 End of Season Contracts Review

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Originally Posted by st8ofmind View Post
How much can another team offer Amir? Is there a limit?

Thanks oh wise ones.
Here is a sample scenario.

Detroit makes a qualifying offer to Amir, this makes him a restricted free agent (we get last right of refusal now).

Amir can take the 1 year qualifying offer and become unrestricted the next season, or he can negotiate a longer/better contract right now with either Detroit or another team.

Let's say his agent gets an offer from Memphis. The offer cannot be for more than the Mid-level Exception (which is set at the average player salary). Because Amir is an Early Bird Free Agent, we can offer him the average salary as well. So it is no problem to match any incoming offer because they are capped to an amount we can match regardless of our own salary cap position.

That's the quick dirty and simple.

If Amir was worth a 5 year $55 million contract (say like a Mehmet Okur), then we could still match, but take a big cap hit in the later years as the year 3~5 salaries get HUGE.

hth
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Old 06-04-2007, 10:10 AM
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Re: [HVC] 2006/7 End of Season Contracts Review

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Originally Posted by roscoe36 View Post
Here is a sample scenario.

Detroit makes a qualifying offer to Amir, this makes him a restricted free agent (we get last right of refusal now).

Amir can take the 1 year qualifying offer and become unrestricted the next season, or he can negotiate a longer/better contract right now with either Detroit or another team.

Let's say his agent gets an offer from Memphis. The offer cannot be for more than the Mid-level Exception (which is set at the average player salary). Because Amir is an Early Bird Free Agent, we can offer him the average salary as well. So it is no problem to match any incoming offer because they are capped to an amount we can match regardless of our own salary cap position.

That's the quick dirty and simple.

If Amir was worth a 5 year $55 million contract (say like a Mehmet Okur), then we could still match, but take a big cap hit in the later years as the year 3~5 salaries get HUGE.

hth
And the MLE will be like 5.5 Mill, right?

The pistons can offer him a new deal somewhere between those 2 'extremes' also as a 'qualifying offer' also? Right?

Man I hope we don't get "Jon Koncak'd" with Amir... (not implying Amir is not uber talented unlike Koncak.)

Last edited by st8ofmind : 06-04-2007 at 10:11 AM.
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