The Long Term Implications of the Matthews Match

[Hopper]

I don't think the numbers matter so much as you add the prorated bonus onto each year to determine the Cap Hit.

Offhand, I can't see where it makes much difference.

Two scenarios:

1. 35 million over 5 years, no front-loading: Average per year = $7 million

2. 35 million over 5 years, with $5 million paid in advance the first year. $30 left to pay, so average per year = $6 million (plus 1 for cap purposes = 7 million)

 

[billyshelby]

Offhand, I can't see where it makes much difference.

Two scenarios:

1. 35 million over 5 years, no front-loading: Average per year = $7 million

2. 35 million over 5 years, with $5 million paid in advance the first year. $30 left to pay, so average per year = $6 million (plus 1 for cap purposes = 7 million)

The difference is the Cap Hit specific to year. It averages the same. But practically speaking, it makes a slight difference. If he makes 7 every year (with no bonus), it's a Cap Hit of 7 every year. If he makes graduated salaries, his Cap Hit in Year 3, for example, when he's making 6.5 in salary, becomes a 7.5 Cap Hit with the bonus in the example. Similarly, his 6.7 becomes a 7.7. And 7.2 becomes 8.2. The numbers are fairly close, but what it means is divorcing from Wes is a little harder in later years because any team acquiring him absorbs the extra Cap Hit. By the same token, our Cap Hit in the last 3 years is higher than his salary.

 

[PrinceJL]

Isn't his first year salary 5.75? In any case, I'm pretty sure it was reported in the Trib his final 3 years were "approximately" 6, 6.5, and 7. But if I recall correctly, the Arenas provision limits his second year salary. Thus his contract, if structured to maximums, would look something like 5.7, 5.7, 6.2, 6.7, and 7.2. I don't think the numbers matter so much as you add the prorated bonus onto each year to determine the Cap Hit.

I'm torn too but does anyone have the yearly breakdown with his cap figures??

 

[Hopper]

it makes a slight difference

Yeah, that's why I said I couldn't see where it made "much" (as opposed to "any") difference. The differences seem minor, and probably not worth worryin about, but it seems to me like the effect would be the opposite of what you're claimin in the rest of this post.

And 7.2 becomes 8.2. The numbers are fairly close, but what it means is divorcing from Wes is a little harder in later years because any team acquiring him absorbs the extra Cap Hit. By the same token, our Cap Hit in the last 3 years is higher than his salary.

Our cap hit is "higher than his salary" in every year, if you exclude the front load "bonus" from his "salary." But the overall effect would seem to be to shift more of the cap hit to the early years, not the later years. In this case, using real numbers, 7.2 won't "become" 8.2, because the front-load is not $5 million, as we have been usin hypothetically.

 

[billyshelby]

Our cap hit is "higher than his salary" in every year, if you exclude the front load "bonus" from his "salary." But the overall effect would seem to be to shift more of the cap hit to the early years, not the later years. In this case, using real numbers, 7.2 won't "become" 8.2, because the front-load is not $5 million, as we have been usin hypothetically.

I'm not quite sure where we're missing one another. If Wes gets a 5 mil bonus, you add one million to each annual salary he makes as his Cap Figure. So there's no shifting going on. The "difference" is only that his Cap number gets fairly high in a graduated deal. It's not that much higher than his salary, but 8.2 is definitely more difficult to contend with than 7.2. I doubt it's a dealbreaker, either.

 

[Hopper]

I'm not quite sure where we're missing one another. If Wes gets a 5 mil bonus, you add one million to each annual salary he makes as his Cap Figure. So there's no shifting going on. The "difference" is only that his Cap number gets fairly high in a graduated deal. It's not that much higher than his salary, but 8.2 is definitely more difficult to contend with than 7.2. I doubt it's a dealbreaker, either.

Well, like I done said, 7.2 aint gunna become 8.2, but I don't know if that's where our thinkin differs, or not. Just think about it: With the ever-increasing raises, the last year must be substantially greater than $5.7 million for the AVERAGE cost to be 6.8 million a year (34/5). The more you can make that into a straight average, e.g., just 6.8 million each and every year, the more it (1) raises the earlier years while (2) lowering the later years. Averaging out a frontload bonus has the same effect, it's just not a complete averaging, that's all.

 

[billyshelby]

Well, like I done said, 7.2 aint gunna become 8.2, but I don't know if that's where our thinkin differs, or not. Just think about it: With the ever-increasing raises, the last year must be substantially greater than $5.7 million for the AVERAGE cost to be 6.8 million a year (34/5). The more you can make that into a straight average, e.g., just 6.8 million each and every year, the more it (1) raises the earlier years while (2) lowering the later years. Averaging out a frontload bonus has the same effect, it's just not a complete averaging, that's all.

I just read Coon and I see what you're saying. My understanding was the bonus was in addition to his salary and thus spread out pro-rated. Instead, the bonus is incorporated into his salary effectively reducing the Cap Hit in later years. Higher cash payout up front, lower Cap Hit backend. That would definitely be more of an enticement to the Jazz to match so long as they don't mind the upfront sticker. Doesn't change my opinion on whether they should match, but it might change theirs.

 

[BENTLEY]

Why not...slide CJ down to SG and start Hayward at SF to speed up his development. Sign Strange Brew to be your cheaper, off-the-bench energy guy. And bring in another FA as another bench wing player. I don't think Matthews won't be missed that much at all in Utah...while in Portland he will not get a lot of minutes and will eat up a roster spot and cap space.

I agree. Play CJ at SG. Give Hayward minutes now. Sign Brewer as 6th man. -- Actually, only play Brewer when AK rides the bench. And vice versa.