ProFSL: Pro Fantasy Sports Leagues
ProFSL Front Office => Franchise GM: Transactions => Franchise GM => MLB DYNASTY GM HOME => Franchise GM: Completed Transactions => Topic started by: Flash on August 06, 2012, 12:01:29 AM
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Giants drop and buyout the contract of:
C Paulino, Ronny, $1.5m (2013)
Salary obligation for 2012 & 2013 = $1.0m
Contract buyout: $2.0m x 1.1 = $2.2m, rounded up to $2.5m
This amount should equal the salary cap relief the Giants got when Wilson, Hughes, and Ramirez were dropped.
Additionally, in order to make sure this contract buyout is covered, the Giants also drop OF Justin Christian, $0.5m (P-n/a).
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Giants drop and buyout the contract of:
C Paulino, Ronny, $1.5m (2013)
Salary obligation for 2012 & 2013 = $1.0m
Contract buyout: $2.0m x 1.1 = $2.2m, rounded up to $2.5m
$1.5m x 2 = $3m x 1.1 = $3.3m rounded up to $3.5m total contract buyout. Do you still wish to buy out the contract?
This amount should equal the salary cap relief the Giants got when Wilson, Hughes, and Ramirez were dropped.
Additionally, in order to make sure this contract buyout is covered, the Giants also drop OF Justin Christian, $0.5m (P-n/a).
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$1.5m (2013) is cut first at 75/50% which is $1.125m and $750k, which totals $1.875m, multiply that by 1.1 and you have $2.063m which rounds up to $2.5m
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$1.5m (2013) is cut first at 75/50% which is $1.125m and $750k, which totals $1.875m, multiply that by 1.1 and you have $2.063m which rounds up to $2.5m
You can't cut the player and take the 75% and 50% cap hits and then buyout the contract. You either release the player or buyout the contract.
Contract Buyout
Money owed to a player released under contract may be financed through a contract buyout. This can be done by adding up the total remaining contract amount, multiplying it by 1.1 rounded up to the nearest $500k. This amount may be divided up any way you choose as long as the number of years is not more than what it was before AND that no salary owed in any year is more than an amount in a prior year. I will use some current examples to highlight the effects of the buyout and its 10% tax.
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The rules may need to be revised to be more clear. Note that the rule states the player is released. In order for the player to be released, their cap hits need to be adjusted accordingly. This is how all prior buy-outs have been handled.
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The rules may need to be revised to be more clear. Note that the rule states the player is released. In order for the player to be released, their cap hits need to be adjusted accordingly. This is how all prior buy-outs have been handled.
According to my research there has only been one contract buyout in FGM history so the rule hasn't really been used. Found here http://www.profsl.com/smf/index.php?topic=6252.msg28225#msg28225
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According to my research there has only been one contract buyout in FGM history so the rule hasn't really been used. Found here http://www.profsl.com/smf/index.php?topic=6252.msg28225#msg28225
Actually, the Chad Tracy example was a case in which the cap hits were no different since the player was $50k. The buyout has been used several other times.
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You can't release the player, and subsequently buyout the contract in the same cap year. To allow it would circumvent both the spirit of the rules and the rules by which you can release a player. You can only buyout the contract for a player who was released in a previous cap year.
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You can't release the player, and subsequently buyout the contract in the same cap year. To allow it would circumvent both the spirit of the rules and the rules by which you can release a player. You can only buyout the contract for a player who was released in a previous cap year.
The spirit of the rule was to condense all of a released player's liability into the current year. When has it been said that a player could only be bought out if they were released in a prior cap year? The language of the rules likely needs to be updated, but I see no problem with allowing a current drop to be turned into a buy-out. The GM has to pay much more just to buy-out the player and reduce future liability which is the pro and con to the clause.
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The spirit of the rule was to condense all of a released player's liability into the current year. When has it been said that a player could only be bought out if they were released in a prior cap year? The language of the rules likely needs to be updated, but I see no problem with allowing a current drop to be turned into a buy-out. The GM has to pay much more just to buy-out the player and reduce future liability which is the pro and con to the clause.
I believe that allowing both to happen in the same cap year over-complicates the process and might incentivize owners to buyout recently released contracts.
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Keep in mind that there are many things that the rules don't say, that we have traditionally avoided. For example, I avoided re-signing and dropping Dan Johnson for the 2nd time last year to get the benefit of reduced cap hits in future years even though it was not forbidden in the rules. The rules also theoretically allow owners to avoid signing free agents who they might have regretted winning the bid on by simply letting the 24 hours pass and then incurring the penalty for not clearing the cap space.
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Maybe establish a deadline to avoid abuse of the buyout? I would not see a problem if a team wants in June to release a crappy contract and buy it out that same year.
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"Money owed to a player released under contract may be financed through a contract buyout. This can be done by adding up the total remaining contract amount, multiplying it by 1.1 rounded up to the nearest $500k. This amount may be divided up any way you choose as long as the number of years is not more than what it was before AND that no salary owed in any year is more than an amount in a prior year."
Since the interpretation being given requires a 1.1% fee on the full contract, I don't see how buying out the remaining years of a contract circumvents the spirit of the rule. Granted, on a player like Ronny Paulino, with a small contract of $1.5m (2013), the fee is only an additional $0.5m, but I'm still required to pay $3.5m for a player who is basically worthless. If the contract was bigger, like say an even equally worthless player like Luke Hughes $2.0m (2014), I couldn't afford it. I think the point about others suddenly getting the incentive to buy out recently released contracts is a bit of a stretch, no disrespect to the Commish, since we are being required to buy out the full contract, not the reduced one AND pay the 1.1% fee on top of that.
Even though my team is a little more competitive this year, the Giants are still pretty crappy. Additionally, because of the uniqueness of this league, the Giants salary cap is going to be reduced in the years to come and if I don't save a few dollars here and there, my team will never compete because I'll have roster spots filled by deadbeats.
My early time in this league have put me in a bad position because I made trades with a Yahoo mentality instead of an FGM mindset. So I have to resort to seldom used things in the rules, like buyots, if I hope to compete. I'm not looking to circumvent anything or abuse the spirit of our league--that's why I did some checking with senior league members before proceeding. My buyout of Ronny Paulino's contract is within the rules as they are written and should be approved.
Buyout:
C Ronny Paulino, $3.5m (2012)
Current 2012 contract $1.5m + 2013 contract $1.5m + 1.1% fee $0.5m = $3.5m
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The rules do not specifically state that you can not release a player and then subsequently buyout his contract. Therefore, I will allow it. You have 2 options at this point.
1. Release the player
2. Release the player + buyout the contract
Let us know which option you are choosing, so we can treat the transaction accordingly.
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The rules do not specifically state that you can not release a player and then subsequently buyout his contract. Therefore, I will allow it. You have 2 options at this point.
1. Release the player
2. Release the player + buyout the contract
Let us know which option you are choosing, so we can treat the transaction accordingly.
Door #2, Release the player + buyout the contract
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:iatp:
Door #2, Release the player + buyout the contract