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[Welp] "Llull Untouchable" 2021 Contract extension upped buyout to $13.5m

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by heypartner, Oct 5, 2016.

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  1. Deuce

    Deuce Context & Nuance

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    I don't think so. If Morey is interested in a prospect, he talks about them. Same with Gentile. But not so much with some of the other rights held prospects.
     
    #21 Deuce, Oct 5, 2016
  2. finsraider

    finsraider Member

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    Unless there's something about the contract we don't know, I'd say this makes him pretty much untouchable. A $13.5 million buyout means two years of the MLE before tax, and more like 3 years after tax.
     
    #22 finsraider, Oct 5, 2016
  3. Deuce

    Deuce Context & Nuance

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    What we do know is that Morey is still interested and is not giving off any indications of "untouchable."
     
    #23 Deuce, Oct 5, 2016
  4. ROXTXIA

    ROXTXIA Member

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    Is a player allowed to stretch a buyout over the course of the contract? That is, 5 year contract, $2,700,000 toward the buyout each season?

    Awfully steep, and would require a big contract considering taxes are involved, too. Just wondering.
     
    #24 ROXTXIA, Oct 5, 2016
  5. J Sizzle

    J Sizzle Member

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    Stop worrying about this dude. He's not coming.
     
    #25 J Sizzle, Oct 5, 2016
  6. JJWhat?

    JJWhat? Member

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    Rockets can only pay 500k, other 13 million need to come from Llull's pocket. He didn't come here for free, he aint coming when it costs him 13 million to do it.
     
    #26 JJWhat?, Oct 5, 2016
  7. RasaqBoi

    RasaqBoi Member

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    Average point guards make 8 to 12 a year.

    Leslie Alexander takes 30 less strip club visits and does the buyout. Sauces
     
    #27 RasaqBoi, Oct 5, 2016
  8. JayZ750

    JayZ750 Member

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    Yeah, Llull isn't coming. And even worse, isn't worth anything as an "asset" other than a throw-in.

    Unless the contract has something silly like the buyout going from $13 million one season down to under $4 million the next, for example.

    More than anything, Llull has had plenty of chances now to come over, and get paid more than he is currently, even all netted out. Not only has he not done it, he's done the reverse, signing long extensions with huge buyout increases. So even if feasible, it doesn't sound like he wants to come anyway.

    Let's forget about this dude.
     
    #28 JayZ750, Oct 5, 2016
    heypartner likes this.
  9. ROXTXIA

    ROXTXIA Member

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    That's what she said.
     
    #29 ROXTXIA, Oct 5, 2016
    vinsensual and basso like this.
  10. heypartner

    heypartner Member

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    Yes.

    Teams can pay $650k towards a buyout free from any Salary Cap rules. But anything above that is treated like a signing bonus, is limited to 15% of total compensation, and must fit under the cap, but can be spread over the length of guaranteed portion of the contract. And these numbers only apply to guaranteed salary (adjust all the math if any years are partially guaranteed)

    Here's some numbers:
    • $13.5m - $650k (team payment) = $12.850m buyout subject to Signing Bonus
    • Signing Bonuses are limited to 15% of total compensation for the contract
    • Thus, total contract must be for $86m at minimum
    • Llull's take-home pay is Gross Salary - taxes - yearly buyout payments
    So,
    • Rockets have to sign Llull to a $86m contract fully-guaranteed
    • The prorated payments count against our team salary each year
    • Llull won't see nearly the full $86m amount, since the yearly payments come after-tax
    Note: Team Option years are allowed in the $86m minimum salary, but since they are not guaranteed, payments are increased per year to fit into the guaranteed yrs of the contract ... further increasing team salary each year, and further eating into Llull actual take-home pay.
     
    #30 heypartner, Oct 5, 2016
    Last edited: Oct 5, 2016
    RasaqBoi, malakas and zeeshan2 like this.
  11. True Rocket

    True Rocket Member

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    He's to scared of the best basketball players in the world. He could've been our starting PG years ago if he was good enough.
     
    #31 True Rocket, Oct 5, 2016
  12. heypartner

    heypartner Member

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    So, we can all sit around and talk about the financial gymnastics of whether it works for the Rockets to use a Signing Bonus limited to 15% of total compensation, and Llull losing all that money after-taxes (wasting cap space for Rockets), but we always have to come back to the main question:

    Why would Llull create such an obstacle to Morey pursuing him by signing such a huge buyout amount (3x more than expected)? The timing of July 6th signing when we still had $10m in caproom left after Gordon and Anderson, tends to suggest Madrid upped their offer (with a major poison pill), and Morey and/or Llull gave in -- possibly for good.
     
    #32 heypartner, Oct 5, 2016
  13. Fantasma Negro

    Fantasma Negro Member

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    We don't have the cap space to accommodate his situation. With ownership of his draft right we can sign him to a five year deal, if its 86 mil then he' takes home 4 million the first year and 17 mil a year for the remainder of the contract. The rockets don't have a lot of expiring contracts, at first glance they have exactly 0, so we'll have to wait til 2021 lol
     
    #33 Fantasma Negro, Oct 5, 2016
  14. J.R.

    J.R. Member

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    Llull C.
     
    #34 J.R., Oct 5, 2016
    burnshroom and Deuce like this.
  15. DaDakota

    DaDakota Balance wins
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    He is done as an asset.

    DD
     
    #35 DaDakota, Oct 5, 2016
  16. coachbadlee

    coachbadlee Member

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    So can we get rid of the Llull threads for good now?
    Probably not. Sadly some of you will still believe there is a chance he comes over.
     
    #36 coachbadlee, Oct 5, 2016
  17. SamFisher

    SamFisher Member

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    I was lllulled into not giving a damn about llull a long time ago.

    Now he getting past his prime and frankly was never really that impressive against NBA competition anyway. Who cares?

    I mean even DaDakota has dropped the "asset" label for him. Even Donte Greene once got that label. It's over, llull, it's over.
     
    #37 SamFisher, Oct 5, 2016
  18. Chilly_Pete

    Chilly_Pete Member

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    Llullz.
     
    #38 Chilly_Pete, Oct 5, 2016
  19. Deuce

    Deuce Context & Nuance

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    That 10M was going to go to Harden. The only way that extra cap room was not going to go to Harden was if they needed it for a star player like Horford.

    Once the Rockets knew they weren't getting Horford, they changed course with their FA plans which shifted that extra money over to Harden.

    Morey's current behavior isn't one that is worried about obstacles.

     
    #39 Deuce, Oct 5, 2016
    mikol13, malakas and heypartner like this.
  20. DaDakota

    DaDakota Balance wins
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    You guys should check out my reply...

    :)

    DD
     
    #40 DaDakota, Oct 5, 2016
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