Amnesty Question (Gilbert Arenas)

[brandon3000]

In amnesty clause scenarios, say when someone picks up Arenas, do they give him a new deal or just assume responsibility for his old contract? Would he be getting paid by Orlando and the new team? I was wondering how this works

 

[viiheaven]

Depends on the waiver/bid process. Hypothetically, if say the Clippers were to pick him up after bidding $5 million, they'd assume $5 mill of his $65 mil contract. Magic would be on the hook for the remaining $60 mil.

 

[big j 33]

I believe he gets a new deal and Orlando pays the difference between his old contract and his new one.

But he's still removed from Orlando's cap.

I think.

 

[hankmoody]

He gets paid his entire contract, no matter what, sans a buyout. It was guaranteed at signing, it's guaranteed now. Amnesty is all about who pays what portion and how the contract affects each team's salary cap. Magic will pay a portion but not take any hit on the cap while team X pays the rest, which will be the winning bid during the process, and takes that hit. This is my understanding of the clause.

 

[brandon3000]

thanks guys!

 

[ashleythetall]

Originally Posted by HankMoody

He gets paid his entire contract, no matter what, sans a buyout. It was guaranteed at signing, it's guaranteed now. Amnesty is all about who pays what portion and how the contract affects each team's salary cap. Magic will pay a portion but not take any hit on the cap while team X pays the rest, which will be the winning bid during the process, and takes that hit. This is my understanding of the clause.

what happens if no one picks him up? contract falls through and he doesnt get paid?

 

[Air273]

not matter what he gets paid in full from his current contract, if a team bids they pay what the winning bid is and the magic pay the rest....if no one bids the magic pay the full contract and if he signs a new contact he gets even more money(but doesnt save any money to the magic)...he might be able to double dip

 

[pmatic]

Gilbert's owed $19 million this season (actually it's less since there's only 66 games but whatever).

Let's say a team bids and wins him for $5 million this season. Well that team would pay $5 million and the other $14 million would come from the Magic. The winning team would also assume the length of the rest of his contract. So, it would essentially be a 3 year-$15 million contract between Gilbert and his new team. He can't be traded until July 1 either.

 

[rudemiester]

That's stupid, imo. If any players deserve non-guaranteed contracts it's these post huge contract, lazy, unmotivated NBA players. Damn shame how dudes like him steal money.

 

[damnthosejs]

That's stupid, imo. If any players deserve non-guaranteed contracts it's these post huge contract, lazy, unmotivated NBA players. Damn shame how dudes like him steal money.

You might just pass out by looking at Baseball contracts vs performance after signing

But Gil needs to be banished from the league for playing like a turd for the past 3 season (sans injuries).