Today, former Houston Rockets guard, Matt Maloney signed with the Chicago Bulls, terms of the deal were not disclosed. <a href="http://www.foxsports.com/wires/pages/38/spt108538.sml">Maloney signs with Bulls</a> What does this mean as far as our contractual agreement with him go? Do we still pay for him?
Unless the Rockets have negotiated some kind of buy-out of his contract, we will continue to pay his salary minus the veteran minimum for his level of experience which will be paid by the Bulls. Terms were not disclosed but you can rest assured the Bulls are paying the minimum. I only wonder if it was for the year or longer... I'm betting for the year.
Actually, the above explanation is not true. The Rockets chose to waive a few players with guaranteed contracts still in effect (Matt, McClean, Augmon, etc.). This action triggered a few issues within the new collective bargaining agreement. As provided in the CBA, once the players clear the initial 48 hour waiver period and are not claimed by a different team, then the contracts are considered fulfilled (i.e. they can not be put back into effect - by the Rockets or anyone else), and the Rockets are then liable for the entire contract amounts that remain to be paid. Furthermore, the team has no further claim of 'rights' to the player for playing purposes. The player is then able to sign with any team as an unrestricted free agent and this would involve a new, completely separate contract. So a theoretical overlap or 'double pay' can and does exist. This is limited as follows: The new collective bargaining agreement allows for a 'set off' by the team that owes money on a waived contract. (No money actually changes hands between franchises or 'team paybacks'.) Rather, what the CBA allows for is if the waived player plays professional basketball (NBA or elsewhere) during any of the remaining years on the waived contract, the player can make up to a certain ceiling level (the specific veteran minimum) and keep that money without affecting the payout of the waived contract. For every dollar earned over this minimum, the original team can claim a 'set off' and reduce the amount owed by 50 cents. -Paul.
Incidentally, Matt's contract with the Bulls is for just 1 year, but is for more than his veteran minumum. -Paul.
Paul [if it's really you (yeah, I know you're thinking "Let's not go through that again!")] It really is nice to see you back on the BBS, haven't seen you around for a while. It makes me apprecative that you still nose around even though baby brother doesn't. Once again, good to see you & best of luck to you and your family. -Turbo
