first off wrote:can one of you (bigs or bada) explain the buy out thing? I don't get it, so he's on Dallas roster right? so they don't pay him? or do we have to pay that buy out money to the NBA as a penalty or something?
So as you know, ALL contracts in the NBA are guaranteed. There is no restructuring or waiving of a player to save money in the NBA like in the NFL.
Adonal was guaranteed to get his entire contract no matter what the Warriors did. However, if both parties agree, a team can "buy out" a contract.
What happens is the team places the player on waivers. If he clears waivers, then both sides negotiate a buy out amount.
These are just approx numbers because I dont feel like looking it all up, but in Adonals case, he was owed about $20 million over 2 years. He agreed to a buy out of around $15 million. This saves the Warriors $5 million and in turn, Adonal is released from his contract and is free to sign elsewhere.
As far as the salary cap charge to the Warriors, the amount charged is spread over the live of the original contract porportionate to the original contract.
For example, if Adonal had two year left at a total of $20 million and say was getting 9 in year 1 and 11 in year 2. That means he was getting 45% of the money owed in year 1 and 55% in year two. So if they agreed to pay out a total of $15 million, then the warriors cap charge would be as follows:
year 1: $6,750,000 (45%)
year 2: $8,250,000 (55%)
Again, these are made up numbers but you get the point.
One other note, the cap charge is different from the way the money is actually paid out to Adonal. That is a completely different negotiation. The Warriors could have paid him the full 15 million in one lump sum or paid him once a year for 20 years.... payment structure does not matter as the cap charge is ALWAYS spread over the life of the original contract.