Interesting Details of Rondo's Contract

[celticmaestro]

According to Marc Spears' Twitter, Rajon Rondo will make $9 mill '10-11, $10 mill '11-12, $11 mill '12-13, $12 mil, '13-14, and $13 million '14-15, according to source (Link).

If this is true, then maybe Danny had it structured in a way that would give us more cap room in the next couple of seasons, as opposed to a straight up $11m each season. I don't know that much about cap room, but I can only assume the extra couple of million next season and $1m the season after could help us?

[fairweatherfan]

It could help us, but the escalation in salary is pretty standard - something like a 10% raise each year of the deal.  MLE contracts for example have the same raise built in.  I'm sure Roy or someone will be along with much more specific details, but this isn't unusual.

[Rondo_is_better]

It could help us, but the escalation in salary is pretty standard - something like a 10% raise each year of the deal.  MLE contracts for example have the same raise built in.  I'm sure Roy or someone will be along with much more specific details, but this isn't unusual.

mmhmm par for the course but you're right OP it does work out in our favor. Better to have that extra $1m or $2m now while the big three is still dominating.

[Chris]

This is pretty much the standard contract I think.  Generally they will escalate like this.  But it makes even more sense for the C's, since they are in the luxury tax right now, but may not be in 2-3 years (for all we know, there will be no more luxury tax with the new CBA). 

[the_Bird]

Even ignoring the luxury tax, it's slightly cheaper for owners to have more of the money on the back end of the contract (they holding onto more money today, which presumably is making interest somewhere).  The player gets "raises" each year, even though everything is guaranteed now.  There aren't very many contracts that are front loaded; I know Nochioni's deal pays at a declining rate, but that's very uncommon.

[Roy Hobbs]

This is pretty much the standard contract I think.  Generally they will escalate like this.  But it makes even more sense for the C's, since they are in the luxury tax right now, but may not be in 2-3 years (for all we know, there will be no more luxury tax with the new CBA). 

What Chris said.

Raises are capped at 10.5% of the value of the first year of the contract per year.  The Celts followed that structure, keeping salary down initially, with it incrementally raising.  This will give us a break on the luxury tax initially, and hopefully the later increases will be mitigated by increases in the salary cap.

One thing to be clear on:  regardless of how this deal was structured, we're not going to have cap room next season.

[xmuscularghandix]

This is pretty much the standard contract I think.  Generally they will escalate like this.  But it makes even more sense for the C's, since they are in the luxury tax right now, but may not be in 2-3 years (for all we know, there will be no more luxury tax with the new CBA). 

What Chris said.

Raises are capped at 10.5% of the value of the first year of the contract per year.  The Celts followed that structure, keeping salary down initially, with it incrementally raising.  This will give us a break on the luxury tax initially, and hopefully the later increases will be mitigated by increases in the salary cap.

One thing to be clear on:  regardless of how this deal was structured, we're not going to have cap room next season.

Roy Hobbs... does resigning Ray Allen this offseason count against our MLE, or does it have nothing to do with it becuase Ray's Bird rights allow him to sign over the cap?

OR does Sheeds contract take up the MLE for every year that we are still over the cap?

[Lucky17]

This is pretty much the standard contract I think.  Generally they will escalate like this.  But it makes even more sense for the C's, since they are in the luxury tax right now, but may not be in 2-3 years (for all we know, there will be no more luxury tax with the new CBA). 

What Chris said.

Raises are capped at 10.5% of the value of the first year of the contract per year.  The Celts followed that structure, keeping salary down initially, with it incrementally raising.  This will give us a break on the luxury tax initially, and hopefully the later increases will be mitigated by increases in the salary cap.

One thing to be clear on:  regardless of how this deal was structured, we're not going to have cap room next season.

Roy Hobbs... does resigning Ray Allen this offseason count against our MLE, or does it have nothing to do with it becuase Ray's Bird rights allow him to sign over the cap?

OR does Sheeds contract take up the MLE for every year that we are still over the cap?

I believe we hold Ray's Bird Rights, so we can resign him without using the MLE.

Sheed's contract has no bearing on future years' MLE availability. Daniels was signed with the LLE (or bi-annual exception), so we will not have that option next year.

[Roy Hobbs]

Roy Hobbs... does resigning Ray Allen this offseason count against our MLE, or does it have nothing to do with it becuase Ray's Bird rights allow him to sign over the cap?

OR does Sheeds contract take up the MLE for every year that we are still over the cap?

We have Ray's Bird rights, so we'll be able to re-sign him without dipping into the MLE.  The MLE renews every year, so Rasheed's deal wouldn't affect it.  The only way we wouldn't have it is if we were more than $7 million or so under the cap, which won't happen.

[xmuscularghandix]

Roy Hobbs... does resigning Ray Allen this offseason count against our MLE, or does it have nothing to do with it becuase Ray's Bird rights allow him to sign over the cap?

OR does Sheeds contract take up the MLE for every year that we are still over the cap?

We have Ray's Bird rights, so we'll be able to re-sign him without dipping into the MLE.  The MLE renews every year, so Rasheed's deal wouldn't affect it.  The only way we wouldn't have it is if we were more than $7 million or so under the cap, which won't happen.

What is the limit of our salary? I know we're over the cap... but whats the limit for the ACTUAL cap.

[Brickowski]

Roy Hobbs... does resigning Ray Allen this offseason count against our MLE, or does it have nothing to do with it becuase Ray's Bird rights allow him to sign over the cap?

OR does Sheeds contract take up the MLE for every year that we are still over the cap?

We have Ray's Bird rights, so we'll be able to re-sign him without dipping into the MLE.  The MLE renews every year, so Rasheed's deal wouldn't affect it.  The only way we wouldn't have it is if we were more than $7 million or so under the cap, which won't happen.

Yes,  but they'll have to use the MLE if they want to resign Marquis Daniels.

As for the "actual" cap, there isn't one.  You can have whatever payroll you want so long as you are willing to pay the luxury tax.  The luxury tax threshhold is roughly 70 million.

[Mr October]

This is pretty much the standard contract I think.  Generally they will escalate like this.  But it makes even more sense for the C's, since they are in the luxury tax right now, but may not be in 2-3 years (for all we know, there will be no more luxury tax with the new CBA). 

What Chris said.

Raises are capped at 10.5% of the value of the first year of the contract per year.  The Celts followed that structure, keeping salary down initially, with it incrementally raising.  This will give us a break on the luxury tax initially, and hopefully the later increases will be mitigated by increases in the salary cap.

One thing to be clear on:  regardless of how this deal was structured, we're not going to have cap room next season.

Roy Hobbs... does resigning Ray Allen this offseason count against our MLE, or does it have nothing to do with it becuase Ray's Bird rights allow him to sign over the cap?

OR does Sheeds contract take up the MLE for every year that we are still over the cap?

Ray nor Sheed will count against the MLE next summer. However if the C's resign their key free agents I HIGHLY doubt they will spend another MLE.

I bet the current salary of the overall team is as high as they are willing to go. Did you ever think the Celtics would have the 3rd highest payroll in the entire NBA?

We're living the dream right now.

[Brickowski]

I think they should spend another MLE to resign Daniels long term, assuming that Daniels continues to play well.

[xmuscularghandix]

This is pretty much the standard contract I think.  Generally they will escalate like this.  But it makes even more sense for the C's, since they are in the luxury tax right now, but may not be in 2-3 years (for all we know, there will be no more luxury tax with the new CBA). 

What Chris said.

Raises are capped at 10.5% of the value of the first year of the contract per year.  The Celts followed that structure, keeping salary down initially, with it incrementally raising.  This will give us a break on the luxury tax initially, and hopefully the later increases will be mitigated by increases in the salary cap.

One thing to be clear on:  regardless of how this deal was structured, we're not going to have cap room next season.

Roy Hobbs... does resigning Ray Allen this offseason count against our MLE, or does it have nothing to do with it becuase Ray's Bird rights allow him to sign over the cap?

OR does Sheeds contract take up the MLE for every year that we are still over the cap?

Ray nor Sheed will count against the MLE next summer. However if the C's resign their key free agents I HIGHLY doubt they will spend another MLE.

I bet the current salary of the overall team is as high as they are willing to go. Did you ever think the Celtics would have the 3rd highest payroll in the entire NBA?

We're living the dream right now.

I don't think it'd be going higher, If Ray stays it'll be for a paycut, and if Scal stays it'll be a HUGE paycut. Which basically leaves House to resign.

Plus if we win a championship Marquis is gone. So we're gonna have to use the MLE to fill the roster, unless Lester and Billy really step up and are looked at as rotation guys (which i think is actually pretty likely)

[Brickowski]

Plus if we win a championship Marquis is gone.
 

I wouldn't make that assumption at all. He very possibly could stay for the full MLE.