As many of you have said a buyout doesn't help the Rockets it's true because the insurance is covering 80% of every game tmac does sit out. Meaning the only way they would buy him out is if a buyout would be equal to how much they would save. Let's calculate that: Tmac's contract this year: $22.234 Million Tmac's pay: 283K per game Tmac's pay after insurance coverage: 56.6K Meaning Les has to pay so far if he decides to sit... 6 games played 283K per game = 1.7 million 75 games sat out 56.6K per game = 4.245 million Grand Total of paying tmac = 6 million this whole year. So the reason the Rockets are not buying tmac out is because I don't think Mcgrady would take that much of a pay cut. This is why Morey is so stingy on who he gets during trades. He is dealing with trading $22million worth of contract and while paying only 6 million for it. I'm not sure if anyone has broken it down like this but here it is. Sorry for repeating if someone already has.
Also forgot to mention. If tmac does turn out good for team traded to ... correct me if I'm wrong but he does have bird rights so that means a team could essentially sign 22million dollars worth of free agents and after sign him for however much they want to go over the cap(anything less than 22million).
Quoted from article For the rest of the season, the insurance policy could cover 80 percent of his per-game salary of $282,946. Even if McGrady returns to the lineup for one or more games this season, the insurance would still pay the Rockets for each additional missed game.
There's still ignorant posters that don't know insurance pays for tmacs salary and then have the balls to argue /facepalm and you wonder why a deal isn't going to go down, morey and Les only make moves to save money or be prude... What a disservice to the fans the biggest reason, i think, that tmac is not going to be traded and will sit on the bench all year is for monetary reasons not chemistry/contribution issues. This is proably why tmac is pissed
I am not sure if Insurance is covering it or not, you would think any insurance company would be wary of a deal where a healthy guy is sitting for monetary reasons. However, it may be a unique deal as the NBA probably pays huge fees to have that insurance, maybe it is a negotiated point. I think Bima had a quote that implied it was NOT being paid anymore, but honestly no one really knows...except maybe the Rockets, Tmac and the insurance company the rest of us are just reading the tea leaves. DD
need to edit^ it came out wrong. This is why Morey is so selective on who he gets during a trade. He has a $22 million contract while paying only $6 million for it.
Why do you think insurance is paying for McGrady when he's already shown he's capable of playing games? Insurance was paying 80% of his salary before he re-entered the Rockets lineup, and after he had missed 41 consecutive games. That amounts to just a tiny fraction of his whole salary. I don't know when the 41-game count started last year, but he probably wasn't insurance eligible until 10 or so games in to this season. So that would come to about 1/8th of his salary being covered by insurance. And I don't think whichever team trades for him will get any of that.
Oh it is not being paid? In that case please change title to: Confusion are we really paying Tmac real money .
here's a link where i was arguing with people about the same thing but i guess they couldnt come up with a rebuttal and stopped posting: link unless you have evidence to the contrary, please dont post that insurance isnt paying for tmac's salary. it's misleading to posters and just plain ignorant. just in case you missed it:
I know it doesn't sound that reasonable but that quote leads me to believe they could be collecting insurance money. It says even if he comes back for 1 or more games every game after the 41 consecutive games is 80% paid for.
Feigen wrote the following back in November: http://www.chron.com/disp/story.mpl/headline/sports/6731426.html [rquoter] A person with knowledge of NBA insurance policies said insurance has been paying McGrady’s salary since last season. The Rockets have said doctors chose Nov. 23 for McGrady’s MRI based on the time doctors believed he would need following the surgery and the team’s practice schedule. The Rockets have not had a full practice since Nov. 9, when general manager Daryl Morey said McGrady’s participation in practice was “off and on.” [/rquoter] He also wrote in response to a question on his blog: http://blogs.chron.com/nba/2010/02/rockets_119_warriors_97_rocket.html [rquoter] Quick question please: Does insurance still pay 80% of T McGrady's salary for every game he misses? (I don't think so. -- Jonathan) [/rquoter] It is not totally clear, and it is possible he is mistaken. But it really doesn't make sense to me that insurance would continue to be paying for McGrady's missed games when it is well known he isn't missing games due to injury.
Yeh it doesn't make sense for insurance to pay. That yahoo quote could possibly be the misleading quote.
how doesnt it make sense? the insurance policy has a certain clause in it that says if he misses 41 STRAIGHT games, any game he misses after that will be paid @ 80%. It was very clear that if he didnt miss those 41 straight games, then the insurance wouldnt cover 80% of tmac's salary. you can't just undo a policy that was agreed upon/signed by the insurance company and the rockets organization. the insurance company has to find some loophole or missing facts that the rockets organization failed to present prior to the policy being sign to void it.
Maybe if he has to miss games again due to the same injury, then insurance would continue to pick it up. But right now McGrady is basically healthy. The Rockets just don't think he's good enough to put in their rotation.
If the insurance company pays teams 80% for players who can play but are too rusty or are in the doghouse then the NYKs would be very smart to talk to our insurance agent. Even AIG wouldn't be so dumb to write a policy like that without some "fine print". Insurance policies usually cover injured players, not if a company sends you home because they don't like your attitude or you are messing up the chemistry.
the insurance company took a calculated risk when coming up with a policy for tmac/rockets organization. he had surgery and the average time table for that surgery/recovery time was long. longer than the actual time tmac took to recover. just because tmac came back earlier, doesnt mean the insurance company doesnt have to pay. they took the risk when making that policy. am i not making any sense here or talking gibberish?
