Garuba and Real Madrid have reached a buyout agreement

Is this guy going to be better than Joey Dorsey?

 

Dorsey was waaaaay more limited and mentally behind than this prospect.

 

Does the CBA allow tilman to give Real Madrid $3 million in giftcards? They do not have cash value according to the cards.

Or maybe just give them the Joe's Crabshack in Pearland and call it even.

This would save Garuba tons of money.

 

Were his earnings with Real Madrid reported somewhere? $3M a year or more would have put him amongst the highest reported Euroleague salaries, which I doubt he got as an 18 years old.

 

Buyouts are often much higher than annual salaries, which makes exits from European clubs much harder. Not sure what he made but it was almost certainly less than 3M Euros.

 

He's Andres Iniésta with a basketball

 

Some quick bookkeeping on the contract and buyout (to the best of my ability, I'm not BimaThug).

Signing bonuses are normally disallowed in rookie contracts, with the one notable exception when it is used to fund an international buyout. The tricky thing here is that any amount provided by the signing team above $775k is counted against the team's salary, and for a rookie scale contract, the team salary charge cannot exceed 120% of the rookie scale amount in any year of the contract.

Rookies can be paid anywhere between 80 - 120% of the scale amount; for Garuba as the #23 pick in 2021, his range is between $1.569M - $2.353M. What the Rockets technically can do is to designate Garuba's base salary at 80% of scale, while then offering him a signing bonus equivalent to the difference between the floor and cap (40% of scale).

Signing bonuses are only spread across seasons with guaranteed money (not option years), so the total bonus that the Rockets are allowed to offer Garuba in this way is $784,440 x 2 (guaranteed years) + $775,000 (excluded international player payment amount) = $2,318,880.

Assuming the buyout is €3M ($3.55M), he needs to work out a payment plan for the remaining ~$1.2M. If they split that evenly over the 2 guaranteed contract years, then his gross pay per year is going to be about ~$1M per year. Obviously taxes are going to take a big bite out of that, but he's still going to be making above the NBA minimum in Y1, and double what Jalen Green was making in the G-League last year. So all the ruckus about playing for free is a bit overstated. He's going to be fine.

Information was taken from Larry Coon's excellent CBA FAQ.

 

If he makes it to Las Vegas he is going to have a killer case of jetlag...Tokyo to Madrid (15 hours 30 minutes) Madrid to Las Vegas (15 Hours 12 minutes)

Whew!

 

Dorsey had a pretty decent career in various Euro leagues after he wasn't too successful in the NBA. But, Garuba can't be too much worse. lol.

 

@HI Mana

nice breakdown , and at least he’s got no state tax .

of course , you’re no bima so it all could have been bullshit

 

I figured it'd be worked out, but was getting worried due the amount of the buyout, thankfully they will let him do payments, now Stone needs to get Garuba signed, would love to see him play some SL ball.

 

Are you still thinking these "jokes" are funny?

 

He was contracted until 2024. The $3 million covers the two remaining years, maybe three. I can’t see the actual contract.

He was likely making $250k or so a year. His buyout will cost him $2.2 million. He will be making $6 million or so in the first 3 years with the Rockets, making his annual salary with the Rockets closer to $1.27 million after his buyout. I wouldn’t be surprised if we sign him for the full 120% of slot to make up for this.

What really sucks is the Real Madrid gets to hose players for more than their salary for their buyout. Like I said, I don’t have his contact in front of me, though, so I’m just guessing. I doubt he was getting paid $1.5 million a year in the Euroleague.

 

Its our Lu Dort

 

I think you meant Casemiro

 

If he does, he'd be right.

 

Yes they are Mr. Cranky Pants. Let us have fun about our miserly owner after the worst season in franchise history.

 

Yeah, I was reading this is turning into a strategy for Euro league teams to generate more income for the team - pay the players relatively little compared to their buyout and hope a player turns good enough that the NBA money essentially pays for part of your roster/operating expenses. I get it from the Euro team's perspective but it still feels a bit dirty to capitalize on young player's natural growth.

....maybe the lesson here is Tillman needs to buy a Spanish team and sign all the young Spanish kids and hope a few make it to the NBA so it pays for part of payroll.

....and THAT is how you do an original Fertita joke, @Sep11ie

 

Garuba, Bahama, come on pretty mama...

 

Garuba cant pay Real Madrid with tax free dollars. Depending on whether he got a discount on the total amount, he will be paying a massive amount of his take home to his old team (his share is ~$2.75mm, some are here conflating Euros and Dollars).

Assume after paying his agent and taxes, he keeps half of his salary (it’s probably less if he has to pay taxes to Spain and the US). That means his ~$11mm contract over four years will net him less than $3mm total after he pays taxes and Real. I hope for his sake he is awesome and is able to make that back in endorsements/his next contract.