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Thread: Back loaded contracts

  1. #1

    Back loaded contracts

    I know we don't have a lot of cap space this summer and I know Dell usually front load most contracts. So couldn't we cheat the system like the Rockets did with Asik and just have a back loaded contract.

  2. #2
    Sadly this isn't football. So it doesn't work the same. We can't employ the Loomis strategy. For two reasons. One is BB contracts are fully guaranteed meaning whatever the terms are, they fully count against the cap. The other reason is you can only have a pay increase per year of a certain % meaning you can't pay a player 1M this year then 7 next.

    As far as the Asik contract goes it was never the cap hit that was the poison pill, the cap hit was always the same. It was his actual amount that had to be given to him. We could poison pill all the contracts we want but it wouldn't help us.

    I'm on the fence as to whether I'd want non guaranteed contracts or not. There's enough talent that the NFL is pretty equal. Anything that would allow the select few teams to just sign a ton of players, make a run and then get out of their contracts early would be bad for the NBA.

  3. #3
    Quote Originally Posted by 504ByrdGang View Post
    I know we don't have a lot of cap space this summer and I know Dell usually front load most contracts. So couldn't we cheat the system like the Rockets did with Asik and just have a back loaded contract.
    The CBA specifies exactly how much you are able to raise contracts, and for the most part you are limited 4.5% and 7.5% raises. The "poison pill" contract the Rockets used to get Asik and Lin really isn't intended to be back loaded, it's origin is in helping teams with limited cap space keep 2nd rounders that blow up. Backloading is an unintended consequence, and for cap purposes the contract is only backloaded if you match the offer and keep your player. There is no similar mechanism where a team could back load a deal themselves. The closest you have is front loading with a signing bonus in a year you have cap space like the Thunder did with Nick Collison.

    Also, we really have nowhere to back load a contract too. In 2 years AD is going to jump from $5.5 million to $18ish. Loomis is doing what he's doing with the Saints on a credit card. When Brees retires, there may be a few painful years where we have to tear it down before we can build it back up unless the cap keeps rising. Backloading is generally a "mortgage the future" move and the Pelicans window with a 21 year old SuperStar doesn't line up with that strategy.
    Last edited by BP225; 04-08-2014 at 08:05 AM.

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