Howard Eskin reports Sixers will frontload Smoove

[NJHAWK]

He said on WIP radio today that they are going to get real creative to make it as hard as possible to resign Smoove and will frontload the 1st year big time. Does anyone know if we match a deal that is frontloaded how that would hit us on the luxury tax. Is the luxury tax # of each player taken from the average of their deal or the actual salary they get that year?

[Johnnybravo4]

All they are trying to do is make us overpay so that they can sign the player they really want in Childress.

[exodus]

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All they are trying to do is make us overpay so that they can sign the player they really want in Childress.

I am not sure if Philly can frontload a deal since they have only $11 million in cap space.

[Cwell]

SMoove doesn't have to sign anything.He's from Atlanta and he can tell Atlanta the numbers offered and we can give him the same except structered differently.

[Packfill]

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SMoove doesn't have to sign anything.He's from Atlanta and he can tell Atlanta the numbers offered and we can give him the same except structered differently.

The only thing is that current dollars are better then future dollars.

[Diesel]

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SMoove doesn't have to sign anything.He's from Atlanta and he can tell Atlanta the numbers offered and we can give him the same except structered differently.

The only thing is that current dollars are better then future dollars.

In basketball, the money is guaranteed. Therefore, it doesn't matter.

[Admin]

It does matter because with money in hand he can invest it and get money back on it immediately.

[NJHAWK]

I am not sure if Philly can frontload a deal since they have only $11 million in cap space.

Im not sure the frontloading affects the cap because the cap hit is an average of the entire deal. Its the luxury tax Im not sure about.

[AHF]

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SMoove doesn't have to sign anything.He's from Atlanta and he can tell Atlanta the numbers offered and we can give him the same except structered differently.

The only thing is that current dollars are better then future dollars.

In basketball, the money is guaranteed. Therefore, it doesn't matter.

I think he is saying that current dollars are better because $1.00 today is worth more than $1.00 in the future even if both are guaranteed. That is why the lottery pays out less money if you take it today and more money if you take it over time - the true value of $1,000,000 today is signficantly more than $1,000,000 in 2012.

[Guest]

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All they are trying to do is make us overpay so that they can sign the player they really want in Childress.

I am not sure if Philly can frontload a deal since they have only $11 million in cap space.

Yes they can, frontloading is essentially giving a signing bonus. Capwise, it does not matter that they only have $11 million that just means his starting salary can be that with 8% raises for 5 years. That gives you the total value of the contract and 20% of that can be given upfront as the signing bonus. So the bonus is paid, and then he has a base salary for each year. Capwise, the signing bonus is broken up into fifths and evenly distributed over each year of the contract.

Like I said in another post, a frontloaded contract is definitely a possibility but I don't think our ownership will balk. If they do balk, then that will tell us that the legal battle is going to get interesting.

[exodus]

Thanks. I wasn't sure.

I really don't see the logic of Philly going after Smith so hard though.

[Packfill]

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SMoove doesn't have to sign anything.He's from Atlanta and he can tell Atlanta the numbers offered and we can give him the same except structered differently.

The only thing is that current dollars are better then future dollars.

In basketball, the money is guaranteed. Therefore, it doesn't matter.

I think he is saying that current dollars are better because $1.00 today is worth more than $1.00 in the future even if both are guaranteed. That is why the lottery pays out less money if you take it today and more money if you take it over time - the true value of $1,000,000 today is signficantly more than $1,000,000 in 2012.

Exactly. You get the benefits of the higher salary before inflationary forces impact the value of those dollars and you also can invest those additional dollars and earn interest of of those investments/savings earlier.

[Diesel]

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All they are trying to do is make us overpay so that they can sign the player they really want in Childress.

I am not sure if Philly can frontload a deal since they have only $11 million in cap space.

The 76ers are sitting at 34.6.

If the Cap is set to 56, they have 22 Million to spend on FAs.

My hope is that somebody signs AI to an offer sheet before they can get their frontloaded sheet Smoove's way.

[Guest]

You are forgetting about capholds. They don't have anywhere close to $22 million under the cap. Unless you are assuming they renounce Iguodala and Louis Williams, which would be crazy.

[Diesel]

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You are forgetting about capholds. They don't have anywhere close to $22 million under the cap. Unless you are assuming they renounce Iguodala and Louis Williams, which would be crazy.

What is it with the cap holds?

My thinking is for AI = 5.1 million and for Williams = what 2 million or so?

7 million... Let's say 8...

They still have roughly 13-14 million to throw at Smoove.

[Guest]

Iguodala's caphold is roughly $9 million. Look at MrH's post about Phillys cap situation to get all the details.

If you assume the cap is at $58 million then they have roughly $11 million to throw. However, we still have a while until the numbers are released so as of right now we do not know the exact amount Philly has. All we can do is give an educated guess at what it is.

Edit: This is the link for the MrH post.

[DJ_Money]

We frontloaded Joe, so in reality, the money that we're not paying him now can be applied to a frontloaded deal for Josh.

A frontloaded deal for Josh might be a wise move anyhow, when you consider massive extensions for Joe and Al looming in 2-3 years.

[BusBoyIsBack]

I hate them right now. Leave Josh Smith the heck alone!

[Swish]

I feel you man; screw the Sixers.

This is kind of ironic, it kind of scares me; but not really- I hit random on NBA Live, and fantasy draft; I came out with the Sixers and picked JS....eek.

Also, thanks to NJHAWK for keeping us informed!

[jezmund]

To a lesser extent we frontloaded Speedy, too.