Amare Extension looming (Tribune)

[thegrahamcrackr]

Another article

Stoudemire says extension should be done soon

By Jerry Brown, Tribune
September 22, 2005
Back in the Valley working out to prepare for the season, Amaré Stoudemire said he will sign a five-year, $72.6 million contract extension with the Phoenix Suns before the team begins training camp on Oct. 4.

“The Suns deal should be done here pretty soon,'' Stoudemire said. “We're just going over the paperwork and we should finish it here shortly.''

Stoudemire's deal will look very much like the maximum extension signed by Houston center Yao Ming — the No. 1 pick of the 2002 NBA draft — this summer. After making $2.59 million this season and completing his rookie contract, Stoudemire's contract will soar to $12 million in 2006-07 and he will earn an annual raise of $1.26 million — the maximum allowed by the NBA's new collective bargaining agreement — in each of the next four seasons, ending with a $17.04 million deal in 2010-11.

It was not immediately known if the new deal has an “out-clause'' that would allow Stoudemire to void the deal after three seasons (following the 2008-09 season), but Suns chairman Jerry Colangelo has said most maximum contract extensions do include such clauses.

Stoudemire said he is pleased with the changes the Suns have made in the offseason, and that the additions would make up for the losses of major contributors like Joe Johnson, Quentin Richardson and Steven Hunter,
“I'm very impressed with guys like Kurt Thomas, Brian Grant and Raja Bell and the other additions,'' he said. “I think we can be better. We'll be much better defensively, and we still have our offensive game. I've been working on my perimeter game, trying to become an all-around basketball player. That's my goal.''


WEALTHY TO THE MAX
Here is how the five-year, $72.6 million contract extension for Amaré Stoudemire — almost identical to the one signed by Houston's Yao Ming earlier this summer — breaks down, after Stoudemire completes his rookie contract by earning $2.6 million this season:

Year Salary
2006-07 $12 million
2007-08 $13.26 million
2008-09 $$14.52 million
2009-10 $15.78 million
2010-2011 $17.040 million

 

[elindholm]

Just out of curiosity, why would Stoudemire's salary figures be "almost" idential to Yao's, instead of, you know, actually identical?

 

[Diamondback Jay]

Another article

Thank God!

Good times are here to come.

 

[scotsman13]

Just out of curiosity, why would Stoudemire's salary figures be "almost" idential to Yao's, instead of, you know, actually identical?

because their may be some contact insentives that the suns would want put on the contact that may not be on yoa's. i.e. if you make the first team all nba team you get a bonus for 500k this maybe on amare contact because it isnt something that he has done yet while yoa may get if you make the all nba team (1,2, or 3) you get that 500k because he hasnt made the team before it is a not likey bonus and count differantly on the contact (at least as far as the old cba).

 

[fordronken]

Can you have incentives on a max contract? Wouldn't that mean that you're getting paid more than a max contract if you met them, or conversely, less if you didn't. That seems silly.

It may just be the writer trying to sound smart, or there could be other incentives using things like the private plane, or some other perks that could be allowed in the CBA. Out clauses are key as well.

 

[elindholm]

The numbers reported by the media wouldn't include such bonuses. Also, as scotsman said (I think -- heard of punctuation?), the rule is (or used to be) that the bonus has to be considered "unlikely" or else it is counts as part of the salary for CBA purposes. It's pretty hard to imagine any incentive that the league would consider an "unlikely" goal for Stoudemire at this point.

My guess is the writer was just lazy and doesn't understand where max-contract amounts come from.

 

[SweetD]

Just out of curiosity, why would Stoudemire's salary figures be "almost" idential to Yao's, instead of, you know, actually identical?

Because Yao's rookie salary is more than Amare's since they were drafted at different slots. So Yao can gets a higher base to increase off of.

Yao - 5.59 Million next year
Amare - 2.58 Million

 

[reader]

The numbers reported by the media wouldn't include such bonuses. Also, as scotsman said (I think -- heard of punctuation?), the rule is (or used to be) that the bonus has to be considered "unlikely" or else it is counts as part of the salary for CBA purposes. It's pretty hard to imagine any incentive that the league would consider an "unlikely" goal for Stoudemire at this point.

I did not know that the bonus had to be considered, "unlikely". Amare really should have one, even though he is on the radar for that award. I do remember reading that Nash did not have an MVP bonus in his contract. I am sure that after Nash won MVP, everyone who plays BB will now have a gigantic bonus clause, because, hey, anyone can win it.

 

[elindholm]

Because Yao's rookie salary is more than Amare's since they were drafted at different slots. So Yao can gets a higher base to increase off of.

No, maximum extensions for rookie-contract players are set as a percentage of the salary cap.

 

[thegrahamcrackr]

Also, as scotsman said (I think -- heard of punctuation?), the rule is (or used to be) that the bonus has to be considered "unlikely" or else it is counts as part of the salary for CBA purposes.

That is part of how incentives work. However, a team may not use incentives to increase the contract value above the maximum allowed.

You can make incentives worth 25% of the total contract value. Also, to close other loopholes all incentives, likely or not, are included in teh first year cap hit.

 

[thegrahamcrackr]

Because Yao's rookie salary is more than Amare's since they were drafted at different slots. So Yao can gets a higher base to increase off of.

No, maximum extensions for rookie-contract players are set as a percentage of the salary cap.

To expand the only way a max deal isn't defined by a percentage of the salary cap is if the players salary last year was more than the maximum allowed. At that point he can sign for 105% his last year salary.

 

[Yuma]

Because Yao's rookie salary is more than Amare's since they were drafted at different slots. So Yao can gets a higher base to increase off of.

Yao - 5.59 Million next year
Amare - 2.58 Million

EXACTLY!

 

[Yuma]

This is almost verbatim an article they printed months ago. Even the Amare quote about them just going over the paperwork is similar. This thing seems like it's taking forever. I imagine the Suns want it doen close to the start of the season so they can parlay the publicity into the upcoming season.

 

[SweetD]

This is almost verbatim an article they printed months ago. Even the Amare quote about them just going over the paperwork is similar. This thing seems like it's taking forever. I imagine the Suns want it doen close to the start of the season so they can parlay the publicity into the upcoming season.

The single game tickets haven't gone on sale yet. I am sure we will see something right around that time frame.

 

[devilalum]

I'll come back and celebrate when the contract is signed, sealed and delivered.

 

[elindholm]

I'll come back and celebrate when the contract is signed, sealed and delivered.

And when he goes the next four years without being traded, right?

 

[devilalum]

I'll come back and celebrate when the contract is signed, sealed and delivered.

And when he goes the next four years without being traded, right?

 

[elindholm]

From our earlier discussion:

If you're obsessed with doomsday scenarios about Stoudemire leaving, the inspiration being that Johnson was traded, then it really doesn't matter whether Stoudemire is extended or not. Either way, according to your earlier analysis, he can force his way off the team. And since the unlikelihood of his doing so hasn't mattered to you before, why should it now?

I was just tying things together.

 

[devilalum]

From our earlier discussion:

If you're obsessed with doomsday scenarios about Stoudemire leaving, the inspiration being that Johnson was traded, then it really doesn't matter whether Stoudemire is extended or not. Either way, according to your earlier analysis, he can force his way off the team. And since the unlikelihood of his doing so hasn't mattered to you before, why should it now?

I was just tying things together.

Sure I am still worried that he will leave but I would be perfectly fine with him extended for 5 years. My fear has always been that he would not sign and force either a trade or just wait and become a free agent.

I'm a pessimist not a masochist.