Giants Contract Buyout

[Flash]

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).      

[Paul S.]

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).

[Colby]

$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

[shooter47]

$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.

[Colby]

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.

[shooter47]

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

[Colby]

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.

[rcankosy]

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.

[Colby]

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.

[rcankosy]

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.