Hornets CBA FAQ Part One: Eric Gordon, Anthony Davis, and CP3

By:
Published: June 24, 2012

We answer several questions regarding the Hornets options with Eric Gordon, look at Anthony Davis’s rookie contract, and talk about max deals for CP3 and Deron Williams

Larry Coon does a fantastic job covering the CBA, but we understand that it is a little daunting to go through the entire thing. I see a lot of misinformation passed around by Hornets fans on some particular topics, and I figured we can have one place where we can set it all straight. With that in mind, we have collected the most common questions from Hornets fans on the new CBA, on how it specifically effects our players and/or Demps’ options. Without further adieu:

Q: Okay, can somebody just explain the amnesty to me in laymen’s terms?

A: The amnesty provision allows you to completely wipe a player’s contract off your salary cap. The owner of the team still has to pay the player, but that number will not count towards the $58 million  salary cap or the $70 million luxury tax. It can be used one time per team, and it can only be used on a guy who was on the roster with his current contract before the lockout. So…

  • No, the Hornets can not trade for a guy and then amnesty him.
  • No, they can not sign Eric Gordon to a big contract this summer and amnesty him in the future if he keeps getting hurt
  • Yes, the Hornets can still use the amnesty on one player and one player only- Jarrett Jack, who has one year on his deal at a little over 5 million. Not very likely.

Q: So, Eric Gordon is a restricted free agent this summer. In what ways does this new CBA effect him?

A: First we have to talk about his cap hold, which will be 9.6 million dollars- despite the fact that his qualifying offer is only 5.1 million. That cap hold will remain until Gordon either signs the QO, or a new contract. In the event that he signs with another team, the Hornets will have three days to match the offer. The maximum offers Gordon can get are:

  • 4 Years, 55.2 million dollars from another team [12.922, 13.504, 14.085, 14.667]
  • 4 Years, 57.5 million dollars from us  [12.922, 13.891, 14.861, 15.830]
  • 5 Years, 74.3 million dollars from us [5th year = 16.8]

His maximum salary stars off at 12.922 million for next season, and other teams can increase that salary by 4.5% every year, while the Hornets can increase it by 7.5%. Also, the Hornets are the only team that can offer him a fifth year.

Two other things to bear in mind are that Gordon did not qualify for the larger maximum salary deal for players with his number of years of NBA experience, as Derrick Rose has. Also, the maximum salary for a player depends on the salary cap as well as years under an NBA contract (regardless of playing time). The salary cap has a floor set for next season equal to the cap for last season, but the cap can increase. That information will come available in a couple of weeks. If the cap goes up 3%, the maximum salaries increase 3%, for example, since maximum salaries are a percentage of the cap. Any change in the cap will simply mean the Hornets will be slightly less affected by offering Gordon a max as long as they are willing to spend well above the cap, which most teams do. This is because the fixed deals the team have will not increase at this rate, but the effect is small.

Q: How would a sign-and-trade work with Eric Gordon if the Hornets wanted to go that route?

A: First, and foremost, this can not happen until after July 1st, so Gordon (and every other restricted FA for that matter) can not be put into any trades on draft night. After July 1st, Gordon would have to find a team and if that team wanted to offer Gordon a contract that the Hornets didn’t want to match or if Gordon told the Hornets he would just sign the QO and leave next year if not traded, then the Hornets could work out a sign and trade. If the team was a non-luxury tax team, the Hornets could take back as much as 17.9 million dollars in player salary or as little as nothing if the team had 12.922 million in cap space.

If the team they were trading him to was a luxury tax team, the Hornets would have to take back between 10.3 and 16.5 million dollars in salary. Also, if another team does sign Gordon to an offer sheet and the Hornets match, the Hornets can not ever trade Gordon to the team he signed the sheet with, and if they want to trade Gordon in the next year, he must approve the trade.

Q: Since Gordon gets injured all the time, can the Hornets give him a lower base salary with performance (games played) bonuses?

A: The Hornets can not put an incentive bonus for number of games played per the CBA, but they can be creative and give performance bonuses that can have the same effect. They can structure the contract so that up to 15% of it is earned by reaching certain benchmarks, but games played can not be one of those benchmarks since teams have sat players in the past so they would not reach that benchmark.

Q: What if the Hornets wanted to go after Deron Williams this year or CP3 next year? How much cap room would we need to have to give them a max contract?

A: The max salary for either of those players will start at 105% of their previous years salary. For Deron Williams, that would mean 17.2 million. Chris Paul’s would start a little higher, meaning the Hornets would have to get 18.7 million under next year to throw a max deal at him. Compare that to restricted guys coming off of rookie deals like Serge Ibaka and James Harden, who would only count for 12.922 million their first year.

Q: What will Anthony Davis’s salary look like over the course of his rookie contract?

A: Assuming the Hornets start him off at 120% of the scale, these are his cap numbers:

  • 2012-13: 5,144,280
  • 2013-14: 5,375,760
  • 2014-15: 5,607,240
  • 2015-16: 7,065,123
  • 2016-17: 9,184,660 Qualifying offer; 17.6 million dollar cap hold

Throw Questions at us in the comments section and we will make sure to address them in Part Two of this series. 

74 comments
Andrew Denenea
Andrew Denenea

Q: Would Justin Hamilton from LSU be a Good pick at 46 if we get a guard/wing at 10? My Thoughts He can rebound, block shots, decent mid-range game and has an NBA body. The LSU part may make him a fan favorite I kind of see him as a spencer hawes. But I do go to LSU so maybe I'm bias.

BIGBREED
BIGBREED

@ Throne It's amazing how EJ isn't good/healthy enough to sign with the Hornets but it would be Great for him to sign with Portland to form a "Great 1-2 Punch" with LaMarcus Aldridge in Rip City! You have found every reason on earth why the Hornets shouldn't resign him, even questioning his talents by saying IYO he's not a Top 25 NBA talent. But he's elite enough to form a "Great" tandom in another city/franchise!? Lmao..... #Fake

berlin-hornets
berlin-hornets

Great article (again). Also thanks for the other site-recommendations. I just love my hornets stuff. As I see it, it would be most prudent to wait what other team offer Gordon and than just match it, right? That way there is a minimal chance we overpay him too much. I am in favor of keeping him next to Davis as a great pick'n roll / pop partner. Offensively and defensively they could be great (fingers crossed EG doesnt hurt another part of his body). What are realistic center possibilities out there? Do we wait for Ibaka next year?

Josh
Josh

Hey, I know that this website and the affiliate (hornetsreport) and atthehive are good. Is there any other good Hornets website?

Ben
Ben

Anyone else notice that article on dell demps at the coffee shop with the guys twitter isn't there anymore. Also if you go to his twitter, @betterhlf, his tweets are protected so you can't see them. I guess someone high up on the hornets saw it and demanded it be removed. Dang maybe I should be a reporter on this site. How does that sound mike?

mazonmafia
mazonmafia

Question- what are the penalties for going over the cap limit? Going over the luxury limit? Seems like the teams that win swallow the extra price tag to get there(ie heat lakers celtics macs etc.) also how likely is it that our small market team spends 60 or 65 million to add that extra difference maker?

Chuck
Chuck

Also, out of curiosity, not saying we would but could the Hornets and Pacers work out a dual sign-and-trade of Gordon for Hibbert? Or, if that's not allowed, is it against league rules to make a "covert" agreement that the Hornets sign Hibbert and the Pacers sign Gordon, and the other team doesn't match for either one? That's probably colluding to keep salaries lower, right?

Chuck
Chuck

General question about the Amnesty clause that doesn't apply to the Hornets anymore, but I couldn't quite understand from Larry Coon's FAQ (probably need it dumbed down a little): Player has 2 years, 20 million @ 10 mil per year, fully guaranteed remaining on contract. Team amnesties him. No waiver claim is put on him by any team. Does the team owe him $10 mil (the upcoming year's salary) or $20 mil (total remaining on the contract)?

QueenBee
QueenBee

Skynet? That sounds silly. I hope that crap doesn't catch on.

gatorcatcher1978
gatorcatcher1978

Why is no one mentioning Roy Hibbert as someone the Hornets should go after? If we sign Dragic or Sessions at PG and Hibbert at C, I see a starting five that is difficult to match up with.

Gary Walker
Gary Walker

Even though deron expressed this morning that his top two choices were Dallas and new Jersey. Does anyone think with our aggressive gm and massive cap space, that we could still get him?

da ThRONe
da ThRONe

I think people are over looking Portland as a potential player for Gordon. They had a ton of expiring contracts this year and will need to build around LaMarcus. LA/EG would be a great 1 2 punch for them. And they have the insanely rich owner to pay for a winning squad.

da ThRONe
da ThRONe

You are so wrong I do know where to start. I've never once questioned his potential to be a special player never. What has been my stance is we shouldn't give him anything near max dollars for several reasons. The main one being his health issues. Just because I don't think he's a top 25 player right now has no bearing on where I'll have him ranked by the end of next year or by no means is it me saying he can't get there(not that he's far off IMO anyways). As far as finding reasons I've had the same 3 reasons since the question has been posed what to do with EJ. Once again for an individual that holds himself in such high regards you seriously struggle to comperhend much of anything. Love, like, dislike or hate my opinions. I'm consistent and I'll admit when I'm wrong. Grow up person.

Jason Calmes
Jason Calmes

I read both of those. As far as forums go, I look at Hornets Talk at Tiger Droppings. I also look at the nola sports krewe. They have a very local take on things, and that is their purpose. It's a little more serious of an affair. I read Everett's occasional post at http://hornetswisdom.blogspot.com/ http://hornetshype.com/wp/ is a place to see random posts of varying pitch very occasionally. They vary from well-thought-out legal posts to editorials. The frequency has dropped. Bee Ball Blog seems to be no more. Then their is Jim Eichenhofer's blog. He has good access, but he has a number of duties with the team, so the frequency is low. He has good access and is a good writer. http://neworleanshornetsblog.blogspot.com/ Then there are the local news outlets, TP included, all the tv stations, nola sports, etc. If someone knows more, as I may have forgotten some, let me know. I think the above are the only Hornets dedicated one. If you have want to see a piece about something, drop a note in the comments and we may be able to accommodate. At the Hive is the best of the places listed for analysis. Jim for access. One I forgot. brazilianhornet.wordpress.com is in Portuguese. Google translate can be used to translate entire webpages, which is how I read it.

Ben
Ben

My sources included josh

Josh
Josh

Hey, I'm the one that texted you those two things. I think that you should give me some credit.

Jason Calmes
Jason Calmes

That will come shortly, I'm sure. The short is: The penalties for exceeding the cap is more procedural. Certain kinds of flexibility in terms of acquiring players is replaced by a less flexibly set of methods. For example, rather than just tossing a check to a player to attract them, you have work withing a set of cap exceptions (the exceptions are why it's a soft cap). The penalities for exceed the tax are procedural and financial. The exceptions are reduced compared to a team that is only over the cap instead of both the cap and the tax, and the team has to pay money into a pool for a certain kind of revenue sharing for certain other teams. The rules for this are written down, complex, but are being phased in, coming in to full effect next offseason.

gatorcatcher1978
gatorcatcher1978

Why on Earth would the Hornets give up Gordon for Hibbert when we have the cap room to have both? Also, if we give up Gordon, who will score points for us? Belineli? lol. Sign and trade Gordon for Danny Granger is a much more promising deal. Never give up your only scorer for a post man.

Jason Calmes
Jason Calmes

Team owes him everything. Also, for the readers generally, we can amnesty Jack and only Jack, and only this contract. If he re-ups, that contract can't be amnestied.

kempleton
kempleton

Skynet! What is it? Defense network, terminator, destroyer of mankind? Why don't we just call the kid with his name? Anthony Davis! Why are we trying to impose a nickname to AD anyways? Just to be able to replace unibrow? :) Stop using unibrow and that's it. Let him earn a nickname with his play in the NBA! Maybe he will be more than defense and he will earn something more than Skynet!? Who knows? Some UK fans called him Spiderman! How about that??

Ron
Ron

Because Indy wants badly to keep Hibbert?

gatorcatcher1978
gatorcatcher1978

And, to add to my comment, I don't want CP3 back. He's already proven that his allegiance is with his ego and his pocket book, not with his team mates. Also, when is the last time a great PG won a championship? Hibbbert would anchor us in the middle (along with a versatile Anthony Davis at PF), signing Dragic would give us dishes, 3's and defense at PG (w/o trying to be the "star"), signing Gordon will give us our scoring, and drafting Perry Jones III would give us that tall athletic SF we'd need to create mismatches. Do that, and we'll be teaching Benson boogie lessons.

BIGBREED
BIGBREED

Once again Lil Throne you're clueless and flapping your mouth with the wrong info! Tom Benson was never cheap as the Saints owner. The only thing that Tom Benson was quilty of was being clueless about running a football team. Tom Benson put all of his trust in Jim Finks, who ran the Saints whole operations from top to bottom. Jim Finks was very old school in his beliefs of paying players the salaries that were rising in the free agency era! Jim Finks was the reason for the loses of Hebert, Morton Anderson, and other ugly contract signing hold outs/cuts in Saints history! The only thing Benson did was supply the money. Tom Benson did even know why the offense practiced in white and the defense practice in a different color of black, causing Tom Benson to start fussing at his first day of practice as the New Owner, saying he wanted the team to be all in one color! AGAIN, Tom Benson never made a decision on paying his players, it was Jim Finks! As for now, Today in 2012 Tom Benson has learned a lot and he is more envolved with the Saints as a owner than in the 80-90's, Benson still allows his team of front office personal of Rita, Loomis and others run the team with daily updated with him Dailey, having the Saints ranked in the Top 10 as the highest paid/salary cap team in 2000! Before The Sean Payton era(Top 5), Tom Benson paid his players with big contracts, unfortunately with the silliness on Ditka/Kuharich and Haslett, those clowns just paid the wrong people those big contracts! *Get your info correct joker and stop babbling false-truths! FYI After Jim Finks, the Saints have been in the upper half as the highest paid in the NFL! *We just paid the wrong players*

Nithenz
Nithenz

Swarm&sting is other, i think it was an australian guy, havent check it in a while.

Josh
Josh

Thanks a bunch!!!

diehard hornet from brazil
diehard hornet from brazil

the blog isn't mine, even tough I have already written a few pieces to them... but thanks anyway for reading it! we discuss about the hornets in a daily basis! I'll follow the instructions!

diehard hornet from brazil
diehard hornet from brazil

jason, there are many foreign hornets fans, and i'd like to write for hornets247, maybe telling how we feel and see things away from the big easy... there's also a blog about the hornets here in Brazil , brazilianhornet.wordpress.com.... any chance?

Ben
Ben

I never knew y'all didnt get paid. Well you all do a very good job. I got fed up waiting for espn to write an article on the hornets before my friend recommended this site. And y'all are much more knowledgeable about the hornets than the paid so call experts

Ben
Ben

Thanks

Ben
Ben

And can josh be my assistant

Ben
Ben

Does this mean I get a job offer?

Soundwave
Soundwave

Just a guess here, but I would think that the new CBA gave teams 2 years to make the adjustments and if they can't then they are hit.

mazonmafia
mazonmafia

Thanks! Looking forward to the article. Maybe in the new article you can also answer whether there are different penalties/rules for teams that are already locked up for $75mil like the heat before the new cba was in place. I'm kind of a geek and love reading about the ins and outs of the cba. :-)

jmbell
jmbell

NOOOO!!!! Not McGee. Please. Spare us all. He hasn't figured it out yet. Yes, he's got talent, and hustle; but he's got little-to-no basketball IQ. Why not Hibbert or Brook Lopez? Just not McGee. And besides, all these guys are RFA's. Their teams expect them to be future stars so they probably won't just let them walk away without a fight. I bet if these guys leave, they're extremely overpaid.

Gary Walker
Gary Walker

Michael, no worries on that haha. Deron is 99.9% chance of going to either Brooklyn or Dallas. But just keeping a little hope. I'm a patient fan, but I definitely wouldn't mind a run at a championship this year. Haha. Here is my realistic line up for next season, tell me what you think: PG: jack SG: Gordon SF: Aminu PF: Davis C: McGee. I really see us going after someone like lillard to learn from jack and play somewhat of a sixth man role. Then go after JaVale McGee in the free agency. But in a perfect world, I see us drafting Tyler Seller for center and then getting d-will to come on down to nola.

Michael McNamara
Michael McNamara

I am afraid to say "No chance at D-Will" because Ryan and I said that in the podcast, and a reader almost had a meltdown. Called us too mature and rational!

da ThRONe
da ThRONe

Almost forgot who I was dealing with. All make sure I only engage with people who are on my level from a maturity stand point.

BIGBREED
BIGBREED

What you read was a reflection of a his growth from being a clueless owner to one of the NFL's Best. The Saints didn't have a training facility dude! Their old training grouds were near LP&L's Field of electrical power lines on David Drive, where they lifted weights in metal trailors! Yes, it was a disgrace for any Professional Franchise but it was a slap in the face to Louisiana bcuz EVERTHING was tide down to the state under corrupt politics. Until in recent years Tom Benson has started to seperate himself from the traditional way of doing things here in the State Of Louisiana, by trying to get the governments hands off of the Professional Teams operations here in the state. And citizens here in Louisiana fussed a bout Benson wanting to own his own stock/lease in the teams facilities. *Dude get your facts straight before you speak of Louisiana Topics/anything in life. Until then, shut up Please! #FalseTruths

da ThRONe
da ThRONe

I read story's of guys ice bathing in garbage cans and other things. If that's not being cheap not sure what is.

Gary Walker
Gary Walker

Yeah, very true. Im really looking for dell demps to put a foot in Benson's a**, tell him what the team really needs, then the 80 year old owner will foot the bill. Oh and make no mistake, David stern is our savior. Kept us in nola for two years with plenty of cities such as Seattle and believe it or not Birmingham trying to get us away from nola. Oh and also, in hindsight, the cp3 trade was perfect. Got the best up and coming shooting guard in the league and a guy who I think can develop into a high quality small forward in aminu. If we would've went with lakers, yes we would've gotten the likes of dragic and scola but we also would've ended up with a crazy Lamar odom. I really like where we are right now. Benson's got the cash. Demps will make him spend it.

da ThRONe
da ThRONe

Some of you either aren't Saints fans, didn't do much reading about Benson in the past, or have short/selective memories. Benson was very cheap at times with the Saints. Not to say it's a given Benson will low ball this team but likes not act like he's been Mr. Wonderful his whole times as the owner.

jjmartin
jjmartin

He actually does have a history of being cheap. Guy wanted to move the Saints to San Antonio and lives in Texas. Don't get some crazy idea that he is the savior of New Orleans. No class.

NOH Domination
NOH Domination

Is that your Stephen A. Smith impersonation QueenBee? Haha

QueenBee
QueenBee

Benson doesn't have a history of being cheap. Stop that. Just because you don't want the Hornets to keep Gordon. Stop that. LOL.

da ThRONe
da ThRONe

Who has a history of being cheap. While they have a guy who's top 5 in the world in wealth. My comment wasn't to make a Benson vs. Allen discussion. Just adding another team with the cap space and most likely desire to throw a max deal Gordon's way.

Jason Calmes
Jason Calmes

Those two guys . . . write here. Edit: looks like they are up again with new guys. Way to go, fan-sided.

Jason Calmes
Jason Calmes

There's always a chance. See the instructions above about submitting samples. We will not be looking at all until the season draws near, if then. And yes, your blog is one to read and should be on the list I had above. I will add it.

Jason Calmes
Jason Calmes

And thanks to you. Nice to read / hear / whatever. We try to be the tops, especially in areas where other places are lacking. It's easy to get box scores, etc. from other sites. We try to bring in stuff that just won't make it in the paper (my articles would almost never be published in a paper, at least in the form they appear here). Same of more mass-market consumerism. We're a place for those Hornets super-consumers, a term I've appropriated recently in talks about the site.

Jason Calmes
Jason Calmes

I'm glad you took my reply as serious. I know you two are horsing around, but, yeah, I get paid my job. I do this because I care and I like it sometimes. At first I was just interseted in learning more about current events, got to doing the news, then got into the ownership and labor stuff, kind of becoming the expert in all that and other boring stuff (in case you haven't noticed). The main things is want to and to be able write to pieces at least weekly when necessary (daily in my case for over a year) with absolutely no compensation other than knowing you are doing a good thing. It takes a certain mix of talent and stupidity. The question is, are you that stupid?

Jason Calmes
Jason Calmes

Jobs include pay. This is a job for no one. If you are interested in writing, I suggest you contact the editover via the @Hornets247 twitter and submit some samples. When we make changes, and we regularly do, that will be one source of looking for writers.

Jason Calmes
Jason Calmes

You want, you got it. Mike, make it happen! (It's very easy when I get to just sign Mike up to write stuff.)

Jason Calmes
Jason Calmes

A Benson series is in the works. Talk it up now, but just know the opportunity will arise. Right not, the focus is elsewhere. We are going to cover it all.

Trackbacks

  1. [...] years. He’s widely expected to be seeking a near-max deal this summer.  According to our Hornets CBA FAQ, there are three he could potentially [...]

  2. [...] provided the basis of our CBA FAQ Part One, CBA FAQ Part Two, and CBA FAQ Part Three, and likely any future [...]