Sorry guys, Carmelo Anthony did not get $62 million in advance
August 16th, 2014

(originally posted elsewhere) For the most part, NBA players are paid on the first and fifteenth of every month, with a standard of 24 paydays per calendar year. Players earning more than the minimum can agree to 12 payments over six months or 36 payments over eighteen months, yet the norm is the norm. There is room for some further deviation from these standards. Players can receive both advances on their salary, and receive loans from their teams. There is not, however, room for the amount of deviation that is currently being reported in the case of Carmelo Anthony. It is being reported in several places around the web, most notably (and I believe initially) the Wall Street Journal, that Melo received 50% of his new $124,064,681 contract in one up front payment. Admittedly, it is not so much expressly stated as it is implied that this is the case, but whichever it is, the idea it spawned that he will or might have already gotten $62 million is wrong. The confusion comes from a misunderstanding about how, when and to what degree NBA contracts can be advanced, a confusion I hope to clarify here. The first and most important point to make is that salary for a future season can never ever be advanced. NBA seasons begin on July 1st and end on June 30th, so if it is October 6th 2014 and you want an advance on your 2015/16 salary, you are begrudgingly going to have to wait until July 1st 2015 to get so much as a piece of it. This rule alone is enough to show that the idea that Melo received a full 50% of the full life of the contract up front is false. There is, however, a reason the story exists, for the […]

Posted by at 1:22 AM

Jusuf Nurkic revisited
August 7th, 2014

This post from yesterday talks about how Nuggets draftee Jusuf Nurkic was set to receive less than 120% of the rookie scale, the customary amount. And in doing so, it was mentioned that he would be the highest first round pick to ever do so. Not quite. It turns out this is a misreporting on my part. Nurkic will receive less than the salary of the 120% rookie scale amount, but he will count on the cap for the 120% amount. Nurkic’s buyout with Cedevita was for larger than the amount NBA teams can pay cap-exempt ($600,000 this season), and while teams are eligible to pay more than that amount in an international player’s buyout, they must do so by putting any amount greater than that paid into the cap hit in the form of a signing bonus. This is not especially to do in a rookie scale contract, with its fixed parameters, but it is doable if sufficiently small. The figures listed for Nurkic were an even $350,000 smaller than what the full rookie scale would have been, and that is the extra amount of buyout Denver paid, charged as a signing bonus. These rules were known to me, of course, and the practice is not uncommon. Bismack Biyombo, Andrea Bargnani and several others have been in this same situation, getting less than the full 120% in actual salary yet counting against the cap as the full 120% (and to anyone other than the people signing and receiving the cheques, i.e. us team building fans, only the cap number matters). Nevertheless, it was understood in the instance that the figures given were the actual cap hits and thus included the buyout signing bonus. It was counter checked and passed both tests. And yet now the opposite is said to […]

Posted by at 12:26 AM