Re: Getting the FACTS Right!
posted at 5/17/2013 9:15 AM EDT
Some more facts,
The new collective bargaining agreement allows for players under contract under the old CBA to be released via the “Amnesty Provision.”
The benefit to using the Amnesty on Pierce is that his entire $15.3 million salary comes off the books. This is the ONLY scenario under which the entire $15.3 million is removed from the Celtics payroll. After Pierce is waived under the Amnesty Provision, he goes into a waiver-bidding process under which only teams with enough cap space to accommodate their bid on him can participate. The minimum bid for him is the minimum salary for a veteran of his length of service, which for Pierce is $1.4 million.
So in a nutshell, if a team has $1.4 million in cap space, they can make the minimum bid on Pierce and no more. If a team has $10 million in cap space, it can bid any amount under it’s cap for Pierce. He’d then go to the highest bidder, with the Celtics obligated to pay the difference between what the new team is paying him, and what his full contract is. He’ll still make $15.3 million next year if he’s released under the Amnesty Provision, it would just be a matter of how much of that the Celtics would have to pay.
The downside to the Amnesty Provision is the Celtics would be paying Pierce to play for someone else. And if some team uses $5 million of their cap space, the Celtics ownership group would be paying Paul Pierce $10 million to play basketball for another team.
If the Pierce amnesty is the ONLY move the Celtics make to shed salary, the Celtic would be at just under $60.7 million. That’s about $2 million OVER the cap, but well under the luxury tax.
Because they’d be over the cap but under the tax, the Celtics would have their full mid-level exception ($5.150 million) and the bi-annual exception ($2.016 million) to use on free-agents this offseason.
What does that all mean?
If the Celtics ONLY salary-shedding move this summer is using the amnesty on Paul Pierce, you clear $15.3 million off the books, but only maintain the ability to spend about $7 million on free agents… but you can spend NO MORE than $5.150 million on any one free agent. You CANNOT amnesty Pierce and use that $15.3 million to sign someone else. On top of that, the owners would still be spending millions to pay Paul Pierce to play for another team.
If the Celtics do decide to use the Amnesty Provision on Pierce, they’ll have ONE WEEK to do it: July 10-16. So if Pierce is still on the roster after July 16, they CANNOT use the Amnesty Provision on him.
Again, Paul Pierce is due a salary of $15.3 million next season. According to ShamSports, Pierce is guaranteed $5 million of that, and will be guaranteed ALL of that if he’s retained beyond June 30. So if Pierce is still on this roster on July 1, he’s going to get $15.3 million next season.
However, the Celtics could pay him the $5 million, release him before June 30, and he’d be a free agent on July 1. It’s important to note, any money paid to a player outside of the Amnesty Provision remains on the books. So waiving Pierce by paying him the guaranteed portion of his contract only clears about $10.3 million. That puts the Celtics in the same situation as they’d be in with the Amnesty, only with a little less room between the cap and the luxury tax. The Celtics would still only have their full mid-level exception ($5.150 million) and the bi-annual exception ($2.016 million) to use on free agents.
So… to recap…
- Amnesty: $15.3 million comes off the books, but C’s are still responsible for paying some portion of Pierce’s salary for him to play on another team.
- Waive: They $5 million stays on the books, but they’d clear $10.3 million.
- Trade: varies, but due to salary-matching rules, C’s savings would be minimal.
- Keep: Celtics face a higher tax hit if they can’t clear enough space to avoid it with other moves.
- Retirement: Only if Pierce decides his career is over and files proper paperwork will the C’s see the full $15.3 million off the books.
There are other what to do with players on this site that explains reasons things may happen.