Salary Cap guru Larry Coon breaks down the KG numbers. This is very VALUABLE information indeed. More sports writers should look into this – as many proprosed deals wouldn’t even work under the CBA.
Just to put official numbers on the table, here’s where the numbers for a Garnett trade officially stand, now that it’s July 1.
Garnett’s salary is now $22,000,000. His 15% trade bonus is still $6,750,000.
For a team to acquire Garnett’s base salary, they would have to send away at least $17,520,000. This is without his bonus, for reasons I’ll explain below.
If Garnett is traded, his entire bonus would now count against the acquiring team’s 07-08 cap. So Garnett’s incoming salary would be $28,750,000 if he gets his entire bonus. To trade for Garnett’s base salary and his entire bonus, a team would need to send out $22,920,000. If they send out at least this much, then Garnett gets his entire bonus. Also, if this happens, then the trade can be made upon a mutual agreement among the teams, and does not require Garnett’s consent.
If a trade sends out at least $17,520,000 but less than $22,920,000, then Garnett would receive some, but not all of his trade bonus. For example, if a team sent out $19,000,000 in salary, then the most they could receive in trade is $23,850,000. Since Garnett’s base salary is $22,000,000, this means his trade bonus would be limited to $1,850,000. The teams could still make the trade under these circumstances, but it would require Garnett’s consent to waive the remaining $4,900,000 of his bonus. This is the only circumstance in which the player can waive his bonus. they couldn’t, for example, send out $23,000,000 in salary, and ask Garnett to waive all of his bonus. He has to get it under those circumstances.
A trade bonus, by the way, is paid by the receiving team, and is due in a lump sum within 30 days after the trade. So the team that trades for Garnett has to write a pretty big check right away.
So to summarize, if the trading team sends out:
— Less than $17,520,000: Trade is not legal.
— Exactly $17,520,000: Trade is legal, but only if Garnett consents to waive his entire bonus.
— More than $17,520,000, but less than $22,920,000: Trade is legal, but only if Garnett consents to waive a portion of his bonus. He must still be paid the remainder of his bonus by the receiving team within 30 days.
— At least $22,920,000, but not more than $27,600,000: Trade is legal. Garnett receives his entire bonus (paid by the receiving team within 30 days), and Garnett’s consent is not required.
— More than $27,600,000: Trade is not legal if all salary goes to Minnesota. A third team must be involved to absorb some of the salary.