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"Poison Pill" Contracts
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  1. FoulWeatherFan
    FoulWeatherFan
    Posts: 126

    Posted 08/02/2012 3:14 PM

    These are ridiculous! I just read the actual wording, http://www.cbafaq.com, and the contract that Houston used to sign Asik and Lin is simply a way for teams to steal mid-level talent from other teams. Everyone knows that there is a huge hike in the third year of the contract so it looks like this 5mil, 5mil, 12mil, 13mil. What I didn't know is that the team who signs the offer sheet has the salary rounded. So on the books it comes out to 9mil each year. The other team, if they match, has the actual contract on their books. So only the matching team has to deal with the "poison pill" effect. I kept wondering why Houston would want to pay so much in luxury tax, but this way they don't have to.
    I am a fan of close games.
  1. cmeese47
    cmeese47
    Posts: 2308

    Posted 08/02/2012 3:25 PM

    Yep these deals are put into to place to prevent teams without cap room from signing lots of rookies to two year contracts in order to resign them cheaply. I like the contracts 2 years cheap 1-2 years expensive. Good for both teams.
    I am a fan of Getting Defensive Players This Summer.
  1. cmeese47
    cmeese47
    Posts: 2308

    Posted 08/02/2012 3:25 PM

    Yep these deals are put into to place to prevent teams without cap room from signing lots of rookies to two year contracts in order to resign them cheaply. I like the contracts 2 years cheap 1-2 years expensive. Good for both teams.
    I am a fan of Getting Defensive Players This Summer.
  1. FoulWeatherFan
    FoulWeatherFan
    Posts: 126

    Posted 08/02/2012 4:36 PM

    But it really hurts the team if the decide to keep the player. They should be able to round the contracts on their books as well. So for Lins contract in the 4th year, if it is entirely in the Luxury Tax it will cost Houston 18mil. But if NY had matched, the same year of the same contract would cost them 27mil.
    I am a fan of close games.
  1. cmeese47
    cmeese47
    Posts: 2308

    Posted 08/02/2012 4:47 PM

    Signing Lin would not have hurt anyone his merchandise will make enough money to cover any ridiculous contract he signed. 

    Asik on the other hand would have been harder to justify 15 million for no matter how great his rebounding and defense are
    I am a fan of Getting Defensive Players This Summer.
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