Ken Berger says Early read on Pacers' appetite for matching Roy Hibbert's offer sheet with Portland stands at 50-50, according to a source.
Did anyone post this? i found it on Realgm http://forums.realgm.com/boards/viewtopic.php?f=28&t=1191428&start=420
i assumed its gonna be the full front loaded nonsense (signing bonus and upfront payment) makes them pay like 18 million right away
It's 8.5M right away. 17M first year (with the signing bonus and half payable before Oct 15), then 12M, 12.5M, 13M.
probably something to do with outyears being 2+ million cheaper than normal. They aren't paying much tax (if at all) this year, but in 3 years if they keep everyone, it'll start being expensive.
Granger and West.... One comes off the books next offseason, the other comes off the following year. But.... With the hard cap tightening up, I can see Indy preferring to pay less in the future, so the front-loading probably works to Indy's advantage.
To make sure I'm not leading anyone astray, the cap hit will be the same whether they have a bonus or not at ~14.7M. But they'll only actually be giving out 13M cash, so in effect it's like they found an extra 2M in their pockets for tax money.
For the price of Hibbert, you could have Kaman and Brand. If you were Indy's owner who would you choose? They are better overall with the latter.
If I understand correctly, both the cap hit and the actual total spending is the same, it's just that in the front-loaded scenario, they spend the cash sooner. So yes, they spend $2 million less in the later years, but only because they already paid that $2M upfront. It's not like finding an extra $2 million in your pocket at all. It's like having $2 million less in your pocket, but having $2 million less in bills to pay also. barfo
I wouldn't say "less bills"...it's like if you buy a 6-pack on payday, when you have some cash, versus trying to find 10 bucks to spare when you just paid all your bills. In a season when they won't pay tax, they pay 4M more in salary outlays than expected. In 2 seasons where they will pay tax, they save 2M each. I guess a better way to say it is that it keeps the cash outlay from spiking too high? Keeps it closer to the mean? Less deviation? Any business majors?
My spreadsheet. Max contract, max signing bonus, max upfront. Max toxicity. Assuming 58M cap. I could make a different one for a different cap number if you want.
You can't "front-load" a max contract, by definition. It starts at the max salary (12.9M @ 58M cap #) and has maximum (4.5%) increases. You can't get any more money each year, unless there's a signing bonus, which is capped at 10% and cannot use the raises. Story actually pointed that rule out...and that if you get a signing bonus you technically don't get "max" anymore, you get ~500k less. So for instance, Lin got a "back-loaded" contract. 5M, 5M, 9M, 9M. A few years ago Hinrich got a "front-loaded" one, that went 11,10,9,8. But neither of those were "max" contracts. Hibbert cannot physically get more in one year or another than the max (aside from the previous "signing bonus" rule--and even then it's taken from the other max years).
