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Fillmoe
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Magic Might Waive Christie26th June, 2005 - 4:04 am
Orlando Sentinel - The Orlando Magic are looking at a huge luxury tax payment and they might waive disgruntled guard Doug Christie's $8.2 million salary to save millions of dollars in payments.
"According to Scott Herring, the Magic's director of basketball administration, Orlando's payroll is estimated at around $72 million, well over the projected luxury-tax threshold of about $54 million."
For every dollar the Magic are over the thresold, they must pay a dollar-for-dollar penalty would be about $18 milllion.
However, if they waive Christie, the Magic would only have to make $8 million in payments rather than the $18 million.
Christie's expiring contract was considered a valuable asset this offseason but with no revenue from a new arena pouring in, this could very well happen.
"It's certainly an option," Herring said. "We'd look at it."
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The New York Knicks probably will use the option to cut Houston (owed $39 million over the next two seasons), and the Dallas Mavericks could waive Finley (owed $51 million the next three years) to get the tax relief.
The mechanism does not create salary-cap room, and the club that waived the player still would have to pay his remaining salary. Teams can waive only one player.
The amnesty provision offers teams the ability to free up a roster spot, but it also allows the player to "double-dip," Herring said.
Orlando could not re-sign the player it released, but any other team could sign him for, say, the veteran's minimum or the mid-level exception to the salary cap.
The Magic, who rank among the top 10 in NBA payrolls, could sign either the oft-injured Houston, 34, or the slumping Finley, 32. A contender looking to add one valuable piece could benefit greatly.
"You can create some free agents in the player pool," Herring said.
Christie, 35, also fits the description of a player who could be affected once the CBA officially is approved.
He is coming off ankle surgery and became disgruntled with the organization after being traded to the Magic from the Sacramento Kings.
Players such as Houston and Finley, who have years remaining on maximum contracts, or players who have struggled with injuries or poor play could be jettisoned.[/font]
source: http://realgm.com/src_wiretap_archives/36365/20050626/magic_might_waive_christie/
"According to Scott Herring, the Magic's director of basketball administration, Orlando's payroll is estimated at around $72 million, well over the projected luxury-tax threshold of about $54 million."
For every dollar the Magic are over the thresold, they must pay a dollar-for-dollar penalty would be about $18 milllion.
However, if they waive Christie, the Magic would only have to make $8 million in payments rather than the $18 million.
Christie's expiring contract was considered a valuable asset this offseason but with no revenue from a new arena pouring in, this could very well happen.
"It's certainly an option," Herring said. "We'd look at it."
[font=Arial, Helvetica]
The New York Knicks probably will use the option to cut Houston (owed $39 million over the next two seasons), and the Dallas Mavericks could waive Finley (owed $51 million the next three years) to get the tax relief.
The mechanism does not create salary-cap room, and the club that waived the player still would have to pay his remaining salary. Teams can waive only one player.
The amnesty provision offers teams the ability to free up a roster spot, but it also allows the player to "double-dip," Herring said.
Orlando could not re-sign the player it released, but any other team could sign him for, say, the veteran's minimum or the mid-level exception to the salary cap.
The Magic, who rank among the top 10 in NBA payrolls, could sign either the oft-injured Houston, 34, or the slumping Finley, 32. A contender looking to add one valuable piece could benefit greatly.
"You can create some free agents in the player pool," Herring said.
Christie, 35, also fits the description of a player who could be affected once the CBA officially is approved.
He is coming off ankle surgery and became disgruntled with the organization after being traded to the Magic from the Sacramento Kings.
Players such as Houston and Finley, who have years remaining on maximum contracts, or players who have struggled with injuries or poor play could be jettisoned.[/font]
source: http://realgm.com/src_wiretap_archives/36365/20050626/magic_might_waive_christie/
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