Any cap experts here project what his max extension could be? Pros/Cons of Rudy signing an extension this year?
I think there are 2 weeks left so talks will probably get serious soon
So, here is my question. Gobert makes like $1.17 million in 2016 - 2017. I have read that others suggest he will make $75 - $90 for a 4 year contract? That's a total of about $19 - $22 million per year.
My question is... can we tear up the current contract ($1.17 million) and resign Gobert paying him more in 2016/2017 NOW but less in the next 4 years.
No salary boost until 2017. AKA... $80 million/4 year contract (low market value) plus $1.17 in 2016. Say:
2016 - $1.17
2017 - $19
2018 - $20
2019 - $21
2020 - $22
Total w/out extending now = $83.17
New contract in 2016 accessing a year more of extra pay for Gobert in exchange for future relief for the Jazz. Totals are similar, but annual is discounted. Say:
2016 - $16
2017 - $17
2018 - $18
2019 - $19
2020 - $21 million
Total income by Gobert by/2020 = $91 million
Why Gobert does this? He gets paid well NOW and for 4 total years guaranteed. Plus he makes upwards of $8 million more on a value contract. He gets to renegotiate his next contract in 2019 as opposed to 2020. If in 2020 he is playing well, he will be ready for an extension and will get another big contract (one that is not trading cap room as a bonus). Come 2020 he will be 30. If he waits to resign at the end of the season he will be 31 which will make teams afraid to commit big bucks to an 'old big'. I suspect he will leave money on the table due to age. So, long term, he gets a better contract at 30 then at 31 imho. So, if you carry it out, he will likely make more over his career by banking the extra $14 million in 2016 vs. waiting until 2017 to be paid a little more.
Why the Jazz does this? It gives us more flexibility in the future in exchange for getting closer to the cap in 2016. We are basically exchanging current flexibility (which we have in spades) for future flexibility (which way probably won't have if we want to keep the core). We are then leveraging our current cap space against future cap space that will not be there in the next year or two. We probably pay Gobert more, but it is spread out in a way that we have cap relief to put a better team on the court. Paying Gobert more now would give a player $14+ million more than we are currently contractually obligated to do in 2016, but it makes sense. We also probably don't use the DP player status that I have heard bounced around here a bit (although I still don't understand it as it goes in the NBA).
So, my two questions:
1. Can the Jazz tear up the current contract and renegotiate this way? If so, it makes lots of sense to me.
2. Why wouldn't Gobert do it? He would be making $1.17 to play the free agency market hoping to get more $$$... That I understand, but he leaves $14 million guaranteed on the table now to make possibly $5 - $6 more over the course of his next contract. Perhaps he expects to make Hassan Whiteside $$$, but he hasn't made the same impact as Whiteside (4 yr - $98 million).
Just for fun I will do the same numbers based on Hassan Whiteside's monster contract (4 years/$98 million) and raising Gobert a bit each year on the payment plan including 2016:
High market value matching Hassan Whiteside (4 years/$98 million + 1 year/$1.17 million).
2016 - $1.17
2017 - $24.5
2018 - $24.5
2019 - $24.5
2020 - $24.5
Total w/out extending now = $99.17
Jazz tear up current contract and pay in 2016, but at a 20% discounted rate annually. 4 years starting 2016/ $78 million). Say:
2016 - $18
2017 - $19
2018 - $20
2019 - $21
2020 - (expected $23)
Total = $78 million
Total income by Gobert by/2020 = $101 million
He makes more by us renegotiating his contract in 2016. Plus he gets more now that he can play with in 2016. It seems to me that this should be our current focus to shore up 2017 funds. We may even consider front loading the contract to leverage current salaries and future salaries even more. Say:
2016 - $22
2017 - $17
2018 - $17
2019 - $17
2020 - expected $21
Total income by Gobert by/2020 = $94 million
(Lower market value)
2016: $24
2017: $18
2018: $18
2019: $18
2020 - expected $23
Total income by Gobert by/2020 = $101 million
(Matching high market value - Whiteside)
It's an accounting trick that would save the Jazz $5 million+ per year to be able to keep Hood and Hayward both. Or Hood and Exum. Flexibility to keep who we want.
