The following came from another thread, but there are a lot of Melo threads, so I thought I'd respond here so as to not clog up the board:
ohhhh 15% = 10 Million more over two years just in kickers... Heck no!
I'm not sure if this is right.
According to Larry Coon, under question 98:
For contracts and extensions signed before the current CBA [2011] took effect, a trade bonus is paid by the team receiving the player. For contracts and extensions signed under the current CBA [2011], a trade bonus is paid by the team trading away the player.
So New York would actually have to pay Anthony the trade kicker?
And then there's also:
A trade bonus cannot cause a player's salary to exceed the maximum salary, based on his years of service, during the year of the trade
And Anthony took like $1m less than the max, but I would think the 15% kicker would still cause him to exceed the max, so only a portion of it would apply?
I'm sure our lover of salt can verify/clarify/explain though.
There are a few things here:
Firstly, the trade kicker only counts against what is remaining on the contract,
excluding unexercised option years. As of today, Melo is owed about $10.5 million this year, and $26.2 million next year. 15% of that is about $5.5 million, split evenly this year and next for cap hits of about $2.75 million each.
Secondly, while the Knicks are the team that would pay the trade kicker (and would be out $5.5 million), the Celtics still have to deal with the cap hit.
Thirdly, you are correct that the kicker could not carry Melo over the maximum salary, but it is the player's maximum salary in the year in that the kicker is activated. Melo is a 10+ player, and the max salary for him is $30.9 million this year, so the kicker would not be limited by this provision.
The kicker can be reduced, with Melo's consent), if the Celtics do not send enough salary to match the full amount of the cap hit including the kicker. Say, for instance, the teams agreed on Amir Johnson, Tyler Zeller, and picks for Melo. Amir and Zeller make an even $20 million combined this year, meaning that the most salary the Celtics could take back is $25.1 million. Accordingly, Melo could only have his cap number raised by $540,620 this season, and so his kicker would be reduced to $1,081,240, with $540,620 added to his cap number this year and next. Melo could reject such a reduction, in which case the trade would not work. But Melo cannot voluntarily waive any portion of the kicker except exactly what is needed to fit into a trade. (Note: I don't think Amir-Zeller for Melo makes any sense, but the numbers were nice and round, so I chose it for illustrative purposes.)
Any other questions, please let me know.