ESPN's Chris Sheridan on the Magic's current situation

[ball junkie 277]

quote:

 

How Rashard's payday may growposted: Tuesday, July 3, 2007 | Print Entry

filed under: Orlando Magic, Seattle SuperSonics, Rashard Lewis

 

 

Rashard Lewis has almost 30 million reasons to hope the Orlando Magic and Seattle SuperSonics can work out a sign-and-trade deal before July 11.

 

 

Here's why.

 

 

Lewis' camp said they received a verbal commitment from the Magic on a maximum contract. For players with 7-to-9 years of service, a maximum contract equals 30 percent of the salary cap.

 

 

So let's say next season's cap is going to be $56 million (we won't know for sure until July 11). That means Lewis' starting salary in Year 1 of a five-year deal with the Magic would be $16.8 million. With the maximum allowable annual raises (8 percent of the first year's salary), the deal would be worth $97.44 million.

 

 

If, however, a sign-and-trade deal were to be worked out, the Sonics would sign Lewis (and then immediately trade him) to a maximum six-year deal with annual raises of 10.5 percent. That deal would be worth $127.26 million.

 

 

Do the math, and that's a $29.8 million difference that Lewis has riding on the outcome of this one.

 

 

Now let's take a look at a few of the Magic's options: It gets a little complicated, so try to bear with us ...

 

 

Currently, the Magic are committed to approximately $41.1 million in salaries for 2007-08, a number that could be reduced by about $2.5 million if they renounced their rights to Fran Vazquez and withdrew their qualifying offer to Travis Diener.

 

 

So if July 11 comes and they have not worked out a sign-and-trade with the Sonics, they would have to renounce their rights to free agents Grant Hill, Diener, Mario Kasun and Bo Outlaw, along with the rights to Vazquez, and waive James Augustine, in order to remove those players' cap holds and get their actual cap number down to $39.7 million. And if the cap is set at $56 million, they'd then have enough room to use toward Lewis' contract.

 

 

On Tuesday, Orlando withdrew its qualifying offer to Darko Milicic, making him an unrestricted free agent. The team still retains the right to go over the salary cap to re-sign him (commonly referred to in the NBA as Bird Rights) and could also work on a sign-and-trade with Seattle.

 

 

If the cap comes in below $55.4 million, they'd have to move another contract. A few of their movable pieces include Trevor Ariza ($3.1 million), Keith Bogans ($2.4 million), Keyon Dooling ($3.6 million) and J.J. Redick ($2 million).

 

 

If, however, the Sonics played ball on a sign-and-trade, the equation would change.

 

 

In a Sonics-Magic sign-and-trade, Orlando would have to clear $16.8 million in cap space to absorb Lewis' incoming contract (again, we're using the $56 million cap as our mathematical guide here).

 

 

Also, Lewis would immediately acquire base-year compensation status, which means Seattle could take back only a package within 125 percent of $9.35 million, which would be Lewis' base-year number.

 

 

One Seattle-Orlando deal that would work would be Hedo Turkoglu and Ariza, taking $9.5 million off their cap.

 

 

I spoke Monday and Tuesday with many of the people involved in this whole equation, and I was hearing Tuesday afternoon that there were a number of scenarios being discussed. Things will likely stay that way, too, for the next seven days as July 11 approaches.

 

 

Milicic has a lot of financial risk here, and I believed something would be worked out to his benefit before the Magic withdrew their qualifying offer.

 

 

Milicic had the power to scuttle the Lewis deal if he had told the Magic he was accepting their qualifying offer of $6.2 million for next season, which would leave Orlando with inadequate cap space to get Lewis.

 

 

But Darko did not play that card, which led me to believe that his agent, Marc Cornstein, was cooperating with Magic general manager Otis Smith to find the right landing spot for Darko, whether it's Orlando or elsewhere.

 

 

That helps explain this quote Cornstein gave to colleague Chad Ford: "I think it is unfortunate how dishonest and deceitful Otis Smith and the Orlando Magic have been in the process," Cornstein said. "However, I think it can be a good thing for Darko. I believe Darko is the most coveted free agent in the market now. We are excited to get a fresh start with a team that truly believes in him."

 

 

 

http://insider.espn.go.com/espn/blog/index?entryID=2925232&name=sheridan_chris

[ball junkie 277]

quote:

 

How Rashard's payday may growposted: Tuesday, July 3, 2007 | Print Entry

filed under: Orlando Magic, Seattle SuperSonics, Rashard Lewis

 

 

Rashard Lewis has almost 30 million reasons to hope the Orlando Magic and Seattle SuperSonics can work out a sign-and-trade deal before July 11.

 

 

Here's why.

 

 

Lewis' camp said they received a verbal commitment from the Magic on a maximum contract. For players with 7-to-9 years of service, a maximum contract equals 30 percent of the salary cap.

 

 

So let's say next season's cap is going to be $56 million (we won't know for sure until July 11). That means Lewis' starting salary in Year 1 of a five-year deal with the Magic would be $16.8 million. With the maximum allowable annual raises (8 percent of the first year's salary), the deal would be worth $97.44 million.

 

 

If, however, a sign-and-trade deal were to be worked out, the Sonics would sign Lewis (and then immediately trade him) to a maximum six-year deal with annual raises of 10.5 percent. That deal would be worth $127.26 million.

 

 

Do the math, and that's a $29.8 million difference that Lewis has riding on the outcome of this one.

 

 

Now let's take a look at a few of the Magic's options: It gets a little complicated, so try to bear with us ...

 

 

Currently, the Magic are committed to approximately $41.1 million in salaries for 2007-08, a number that could be reduced by about $2.5 million if they renounced their rights to Fran Vazquez and withdrew their qualifying offer to Travis Diener.

 

 

So if July 11 comes and they have not worked out a sign-and-trade with the Sonics, they would have to renounce their rights to free agents Grant Hill, Diener, Mario Kasun and Bo Outlaw, along with the rights to Vazquez, and waive James Augustine, in order to remove those players' cap holds and get their actual cap number down to $39.7 million. And if the cap is set at $56 million, they'd then have enough room to use toward Lewis' contract.

 

 

On Tuesday, Orlando withdrew its qualifying offer to Darko Milicic, making him an unrestricted free agent. The team still retains the right to go over the salary cap to re-sign him (commonly referred to in the NBA as Bird Rights) and could also work on a sign-and-trade with Seattle.

 

 

If the cap comes in below $55.4 million, they'd have to move another contract. A few of their movable pieces include Trevor Ariza ($3.1 million), Keith Bogans ($2.4 million), Keyon Dooling ($3.6 million) and J.J. Redick ($2 million).

 

 

If, however, the Sonics played ball on a sign-and-trade, the equation would change.

 

 

In a Sonics-Magic sign-and-trade, Orlando would have to clear $16.8 million in cap space to absorb Lewis' incoming contract (again, we're using the $56 million cap as our mathematical guide here).

 

 

Also, Lewis would immediately acquire base-year compensation status, which means Seattle could take back only a package within 125 percent of $9.35 million, which would be Lewis' base-year number.

 

 

One Seattle-Orlando deal that would work would be Hedo Turkoglu and Ariza, taking $9.5 million off their cap.

 

 

I spoke Monday and Tuesday with many of the people involved in this whole equation, and I was hearing Tuesday afternoon that there were a number of scenarios being discussed. Things will likely stay that way, too, for the next seven days as July 11 approaches.

 

 

Milicic has a lot of financial risk here, and I believed something would be worked out to his benefit before the Magic withdrew their qualifying offer.

 

 

Milicic had the power to scuttle the Lewis deal if he had told the Magic he was accepting their qualifying offer of $6.2 million for next season, which would leave Orlando with inadequate cap space to get Lewis.

 

 

But Darko did not play that card, which led me to believe that his agent, Marc Cornstein, was cooperating with Magic general manager Otis Smith to find the right landing spot for Darko, whether it's Orlando or elsewhere.

 

 

That helps explain this quote Cornstein gave to colleague Chad Ford: "I think it is unfortunate how dishonest and deceitful Otis Smith and the Orlando Magic have been in the process," Cornstein said. "However, I think it can be a good thing for Darko. I believe Darko is the most coveted free agent in the market now. We are excited to get a fresh start with a team that truly believes in him."

 

 

 

http://insider.espn.go.com/espn/blog/index?entryID=2925232&name=sheridan_chris

[spenny 0]

His agent is insane in the membrain. Plain and simple.

[Stone_Temple_Kiwi 0]

man that clears things up sooo much

 

man i can see where his agent is coming from now!!!...the magic just pretty much emailed cornstein saying "don't screw this up for us, i'm taking away yours chance to screw this up for us....he's more important than you, so we'll get him and then if we can we'll get you to" ....man i totally see where there coming from, i did'nt understand before why they renounced his right so early when nothing could be done for a week...but now i see!!!...wow the magic have been very disrespectful here!!!!...darko is very sadly and unfortunately gone!!!...GAHHHH!!!!

[SladeRider 0]

I still think Darko is still looking to get paid without proving himself.

 

It seems the Bulls have an interest in him now, I don't know if it's possible but a sign and trade with Darko for Noc would be good but I don't know if you can do two sign and trades.

 

If that happened, I'd more then happy because Noc isn't greedy and has proved he is worth between $7 - $8 million that Darko isn't.

[MagicFanBen 0]

quote:

lso, Lewis would immediately acquire base-year compensation status, which means Seattle could take back only a package within 125 percent of $9.35 million, which would be Lewis' base-year number.

 

I have been wondering all this time if MC was correct. So under this formula we would she a maximum of $9.35 million. Leaving the Magic with enough roon for Darko or whoever at almost $10 milion.

[jturner01 0]

What I want to know is how is that Otis calling this idiots bluff disrespectful?? He needs to Grow up. This guy is looking to get a huge payday on, Get this straight, POTENTIAL! It is a lot of potential, but come on $10 million?? You guys are complaining about paying $15 mil to someone who has made the all star team.

 

Basically what Otis is doing is telling the guy to show me your market value and we will more than likely match. This guy is just parading around stomping his feet because Otis did not just pay what he wants.

[ibonedteribell 0]

quote:

If the cap comes in below $55.4 million, they'd have to move another contract. A few of their movable pieces include Trevor Ariza ($3.1 million), Keith Bogans ($2.4 million), Keyon Dooling ($3.6 million) and J.J. Redick ($2 million).

Guys are you sure otis is in control? Ariza and JJ at risk???? What do you think?

[JJZ 0]

quote:

Originally posted by ibonedteribell:

quote:

If the cap comes in below $55.4 million, they'd have to move another contract. A few of their movable pieces include Trevor Ariza ($3.1 million), Keith Bogans ($2.4 million), Keyon Dooling ($3.6 million) and J.J. Redick ($2 million).

Guys are you sure otis is in control? Ariza and JJ at risk???? What do you think?

 

I think we may only be able to field a team of about 8 players + Ewing, without going over the salary cap. Way to go! Plenty of playing time for everyone.

[jturner01 0]

I hope that they have a good idea where the salary cap is going to come in. If not I will be bashing him with you guys.

[chosen12 75]

quote:

Originally posted by Stone_Temple_Kiwi:

man that clears things up sooo much

 

man i can see where his agent is coming from now!!!...the magic just pretty much emailed cornstein saying "don't screw this up for us, i'm taking away yours chance to screw this up for us....he's more important than you, so we'll get him and then if we can we'll get you to" ....man i totally see where there coming from, i did'nt understand before why they renounced his right so early when nothing could be done for a week...but now i see!!!...wow the magic have been very disrespectful here!!!!...darko is very sadly and unfortunately gone!!!...GAHHHH!!!!

 

 

 

The Magic appear disrespectful here? O.K. If something as simple as an e-mail can be a deal breaker during the course of negotiating Millions of $$$, then I would suggest you didn't have much of a deal or a relationship with this agent!

 

The intention of this agent could not be anymore transparent, he wanted to use the media to his advantage (that is o.k. as well) but that would place the longterm plans of the Magic in jeapordy! We love Darko, but you don't allow him or any other individual to hold your organization hostage, or permit them to ruin the future of your organization!

 

This was not an individual call, Otis must not allow any entity to think that the Magic are willing to be taken advantage of! Now remember.....If Darko signs that qualifying agreement, there is no deal for Lewis...PERIOD!!! If Otis appears to have some type of pre-arranged agreement with this overreacting agent, then everything to include future signings are called into question by the NBA front office, and contracts are placed on hold, or outright suspended, until further investagitions and review are conducted by the NBA front office! Just remeber Joe Smith and what happened to the T-Wolves a few years back!

 

Now also take into consideration that Corenstien represented Vasquez in 05, and was for a large part responsible for that misrepresentation...... this within itself should have placed him in a position of distrust by the Magic! He was part of that crap as well.....So do you trust him to operate honestly, and should he be trusted to help form the future of the Magic? I think his constant demand for $10 mil per answers that question, and he has not represented his client well....at all! Darko should fire him before his career get's further muddied by this clown! We want you back Darko, come on home man!

[jack daniel 999 27]

This FA season has been interesting so far...

 

As the suspense grows.