OKC Thunder signed Nick Collison to a multi-year extension using what might be one of the most creative salary cap maneuvers in recent memory. In the process, the Thunder used up all of their (~$6.5M) salary cap room this season, taking them out of the running to facilitate trades between/with over-the-cap teams (including the Rockets) using that cap space. http://espn.go.com/blog/truehoop/post/_/id/22025/inside-collisons-unique-contract-extension To an amateur capologist like me, this is like p*rn! :grin:
I've seen some sketchy reporting on this -- particularly with the headlines. It's really a $17m 4yr extension (probably reasonable value) with $6.5m shifted to this yrs existing contract. Some are reporting it at $11m -- which includes only what he gets going forward....Clever move none the less...
Clips, Cavs, Wolves, and Kings is all that are left with over $3 million of clearance. Bulls, Nets, Wizards are all too close to $58 million to be a difference maker taking on salary. These four teams are the guys we are looking at if we decide to dump Jared to get under the lux tax.
Kings ($14.2M) and Wolves ($11.8M) are the biggest "cap room" players. The Clippers ($4.5M) are also a potential player to a smaller extent. The Cavs ($14.5M) and the Raptors ($12.2M remaining) also have huge trade exceptions that are almost like having cap room.
What a great move by the Thunder. This is going to really help them out in the next few years when Durant and Westbrook's salaries go up. This signing bonus works out nicely for Collison, especially if there is a work stoppage next season.
I'm thinking its something that's been tossed around in some contract negotiations before, but most players and agents are too uncomfortable in getting all the money up front to waste, and so little on the back end to replenish. If its a guaranteed contract, might as well get all the guarantees spread out more evenly. Still shrewd nonetheless to get somebody to do it.
I think the players and agents would rather get most money upfront! They can always ration it themselves if that's a concern. This just happens to work here because OK was under the cap, had no other use for the cap space, and the bonus did not put them over. If they were over, the bonus would be spread over the term of the contract for cap purposes regardless of when it was paid. It's just a unique situation that benefited the team (though cap mgmt) and the player (by getting paid upfront without risks of lockouts or cba changes).
