Chandler Parsons And The Rare Instance Of The Deliberate Overpayment
June 5th, 2014

(originally published elsewhere) After they picked him 38th in the 2011 draft, the Houston Rockets signed second round pick Chandler Parsons to a four year contract, one that paid slightly but not significantly above the minimum salary. Giving three year contracts to early second round picks, or late second round picks that you really like, or undrafted players you really thought were going to be second round picks and are happy to get a chance at signing, is a trend that developed some years ago and continues to this day. It requires either cap space or a chunk of the mid-level exception to do it – the Minimum Salary Exception, the device which allows teams over the salary cap to sign players to the minimum salary, or trade for those who already are, is limited to two years in length. Nevertheless, teams quite regularly do this so as to lock up potential young pieces for three years, partly to give them ample opportunity to develop and partly to gain full Bird rights in preparation for any future contract. Four year minimum salary contracts, or four year near-minimum salary contracts, are a logical extension of that. It, too, is not especially new – Bill Walker and the undrafted Quinton Ross come to mind as two players to have received this treatment prior to Parsons, and they certainly were not the only two. Lance Stephenson did so the year before Parsons, and his four year deal expires this summer, as the Pacers are all too aware of. Parsons’s contract contains a slight difference to those others mentioned. Specifically, the final year of Parsons’s contract (2014/15) is both subject to a team option and an unguaranteed portion. This, too, is not unique – Gustavo Ayon was in the same situation last summer, Jamario Moon a better known recipient a […]

Posted by at 1:34 AM