HEDO TO BE BOUGHT OUT

[Miller4Prez66 545]

Trading to get Hedo back was the worst mistake that the Magic ever did, Hedo was never the same player after getting paid.

 

Fixed.

[BN 44]

Fixed.

 

Essentially what happened

[MakDaRealist 15]

Thankful for his contributions but glad the end is near. I'm guessing a buyout will run us less then the 6mil rate of outright releasing him?

[MAGICmanSAM 6]

I was at this game. Loudest I ever heard the arena.

 

http://www.youtube.com/watch?v=RPpo0NyBeLA

[OrLanDoMaGic2K16 0]

Magic were likely to make this offseason were buying out the remainder of Harrington and Turkoglu's contracts, saving the team nearly $9 million in salary and freeing up two roster spots for the team's young players and acquisitions.

 

I hope this happens real soon... :bigparty:

[OrLanDoMaGic2K16 0]

Thankful for his contributions but glad the end is near. I'm guessing a buyout will run us less then the 6mil rate of outright releasing him?

Exactly 6 mil

http://www.orlandomagicdaily.com/2013-articles/july/al-harrington-hedo-turkoglu-071413.html

[MakDaRealist 15]

Exactly 6 mil

http://www.orlandomagicdaily.com/2013-articles/july/al-harrington-hedo-turkoglu-071413.html

 

Please excuse me, I'm not the brightest tool in the shed but what would be the point of negotiating a buyout if it doesn't come less then the release rate of 6mil?

[30Assists 342]

Please excuse me, I'm not the brightest tool in the shed but what would be the point of negotiating a buyout if it doesn't come less then the release rate of 6mil?

I'm not real in the know on this kind of stuff, but I'm guessing the savings is both in roster spots and salary cap relief moving forward. We pay him $6mil and and we don't have that $6mil counting against the cap.

[MakDaRealist 15]

I'm not real in the know on this kind of stuff, but I'm guessing the savings is both in roster spots and salary cap relief moving forward. We pay him $6mil and and we don't have that $6mil counting against the cap.

 

I meant to say sharpest btw. Is that what the difference is, a buyout doesn't count against the cap? If true then I see why the buyout can be important, it gives us more cap space

[jmmagicfan 302]

I meant to say sharpest btw. Is that what the difference is, a buyout doesn't count against the cap? If true then I see why the buyout can be important, it gives us more cap space

 

I believe that the buyout amount does still count toward the salary cap and the luxury tax line, but the savings is direct. So for example, if Hedo stays he gets $12M, but by doing the buyout we only pay him $6M - not only do we save the $6M, but also any applicable luxury tax. With Harrington it is less, as he is due about $6.5M and his buyout is about half of that. I don't believe that we would be in luxury tax territory next season anyway, but saving $9M is still good. If they only buyout one, I would rather see Hedo go, and keep Al.

[MakDaRealist 15]

I believe that the buyout amount does still count toward the salary cap and the luxury tax line, but the savings is direct. So for example, if Hedo stays he gets $12M, but by doing the buyout we only pay him $6M - not only do we save the $6M, but also any applicable luxury tax. With Harrington it is less, as he is due about $6.5M and his buyout is about half of that. I don't believe that we would be in luxury tax territory next season anyway, but saving $9M is still good. If they only buyout one, I would rather see Hedo go, and keep Al.

 

It was my understanding that because Hedos contract is only partially guaranteed we can release him and only be responsible for the 6mil. If that's the case, then what would be the point of a buyout OR is the buyout the only way we can get rid of a partially guaranteed contract?

[OrLanDoMaGic2K16 0]

Please excuse me, I'm not the brightest tool in the shed but what would be the point of negotiating a buyout if it doesn't come less then the release rate of 6mil?

To my understanding its possible for Hedo to agree to a Lower buyout than $6mill , just so we can release him and he has a chance to make another teams roster and a chance to play. Main advantage to us would be their salaries coming off the books (Hedo & Al) but mainly making it possible to free up 2 roster spots for us and hopefully giving us a chance to use our Trade Exception.