Wizards Considering Buying Out Arenas

[Karma]

Report: Wizards Ready To Dump Arenas, Will Consider Buyout
More Wizards News


May 23, 2010 10:47 AM EST
Former Washington Times reporter John Mitchell, who writes for TheGrio.com, indicates the Wizards are committed to removing Gilbert Arenas from the roster before next season.

According to a source, the team will "definitely consider buying out" Arenas' contract if he cannot be traded.

The Wizards will select John Wall with the first overall pick and, according to two league sources with knowledge of the team's future plans, will do everything in their power to make sure that Wall is never in the same locker room as Arenas.

One source with intimate knowledge of the team's plans says that Ernie Grunfeld does not want Arenas anywhere near Wall.

Grunfeld and Arenas used to share a strong relationship but they have barely spoken over the last two months.

Link

 

[InBoobieWeTrust]

Won't happen.

That would literally be throwing away 80+ million dollars for no production. I know EG isn't the best GM...but he's no Isiah Thomas.

 

[Otsego Mar]

I'd take a chance on him for the MLE.

 

[Mdog1]

Wow that's a strong statement. I thought a buyout had to be one seasons worth? If that is the case Arenas will not accept that and I would not blame him.

 

[Zog]

Wow that's a strong statement. I thought a buyout had to be one seasons worth? If that is the case Arenas will not accept that and I would not blame him.

I think it can be for as many seasons as you want. If they agree to a $50M buyout, then the $50M is divided by the amount of years left on the contract and then each of those years has that much cap hold. So if he has 5 years left and the buyout is $50M, the Wizards have 5 years of $10M cap hold.

I could be wrong, but IIRC that is what the cox.net page said.

 

[bcort]

Wow that's a strong statement. I thought a buyout had to be one seasons worth? If that is the case Arenas will not accept that and I would not blame him.

It's not one season's worth. I believe (IIRC) that the total amount of the buyout (whatever amount is decided) is divided by the number of years left with raises like the contract had.

As an example, let's say Player A and Team B agree to a buyout of 8.6 million that had 4 years left on the contract with 5% raises .


Paid year 1: 2 mil
year 2: 2.1 mil
year 3: 2.2 mil
year 4: 2.3 mil

Total: 8.6 mil

The amount paid each year is also the amount that counts against the cap.

 

[bcort]

I think it can be for as many seasons as you want. If they agree to a $50M buyout, then the $50M is divided by the amount of years left on the contract and then each of those years has that much cap hold. So if he has 5 years left and the buyout is $50M, the Wizards have 5 years of $10M cap hold.

I could be wrong, but IIRC that is what the cox.net page said.

Correct but the buyout also has raises. I'm pretty sure but too lazy to look it up. Either way, we're close enough.

Looked it up:

62. How do buy-outs affect a team's salary cap?

The agreed-upon buy-out amount (see question number 61) is included in the team salary instead of the salary called for in the contract. If the player had more than one season left on his contract, then the buy-out money is distributed among those seasons in proportion to the original salary. For example, say a player had three seasons remaining on his contract, with salaries of $10 million, $11 million and $12 million. The player and team agree to a buyout of $15 million. The $15 million is therefore charged to the team salary over the three seasons. Since the original contract had $33 million left to be paid, and $10 million is 30.3% of $33 million, 30.3% of the $15 million buyout, or $4.545 million, is included in the team salary in the first season following the buyout. Likewise, 33.33% of $15 million, or $5 million, is included in the team salary in the second season, and 36.36% of $15 million, or $5.455 million, is included in the team salary in the third season.

The distribution of the buy-out money is a matter of individual negotiation. Changing the number of years in which the money is paid does not change the number of years in which the team's team salary is charged. In the above example in which the player's contract is bought out with three seasons remaining, the buyout amount is always charged to the team salary over three seasons. It does not matter if the player is actually paid in a lump sum or over 20 years (a spread provision).

 

[Zog]

As for signing him for the MLE... if we could trade Mo and some other pieces for a star big man then I'd definitely consider it. For instance, if we could make some sort of trade with Mo, JJ, Kid Congo, as the talent for Bosh and add salaries on either side to make it work, and could keep AV and sign Arenas, we'd have Jamison to try to turn into a SG and a pretty thin bench, but our starting five would be legit.

Arenas/SG for Jamison/LBJ/Bosh/AV with I guess Parker and Moon, Boobie maybe, Telfair maybe, perhaps Hedo if we had to take him to get Bosh.

 

[Mdog1]

Ok guys I believe you, I just thought it had to be one year.

 

[ncf135]

Won't happen.

That would literally be throwing away 80+ million dollars for no production. I know EG isn't the best GM...but he's no Isiah Thomas.

You really think that don't you?

They already throwed away 80+ millions. Arenas is done. Now the best thing for them is to buy him out and move on.

 

[Brandname]

If somehow this happens, you're doing the organization a disservice by not at least looking into him and working out with him a couple times.

I mean, I hate Arenas as much as the next guy, but he has shouldered the offensive load for a team, and he knows how to come through when the pressure is on (I know the 2 FTs thing, but he's had many good moments as well. Lebron has also had his shaky moments.).

I'm not saying I'm 100% for getting him or anything (I'd probably be against it), but if we're looking for guys who can step up if Lebron isn't getting it done, how can we not at least take a look at getting Arenas on the cheap? His current contract? GTFO. But if he gets a buy-out and will sign cheap somewhere, I don't see how you can not take a look.

 

[TAS]

A Delonte & Arenas backcourt >>>>>>>>>

 

[Cavalierfan]

Unless he agrees to leave millions on the table, it's probably smarter to do with him what Indiana did with Tinsley and NYK did with Marbury...."Here's your paycheck. Stay the hell away from the team until we can find someone willing to take on your contract."

 

[RonG]

I do not see Arenas leaving any money on the table, not only that but I bet the players union puts a ton of pressure on Arenas to not take a penny less, this is not a presidence they would want to see, much like a player like LBJ takeing the mle as a discount to allow his team to sign more players.