Gallo & his partial guarantee for 2022-23

[mrhonline]

Danilo has only $5M of $21.5M guaranteed for the final year of his contract. The Hawks will have to decide on whether they want to fully guarantee his contract before the start of 2022 free agency (but after the draft). 

I see four options:

1. Fully guarantee his 2022 contract in late June, expecting to keep him and pay the luxury tax.
2. Fully guarantee his 2022 contract in late June, expecting to trade him.
3. Waive him in late June, leaving an empty $5M on the books.
4. Trade him at the deadline.

#1 seems unlikely to me unless the Hawks exceed last season's results.

For #2, a lot will depend on his early season play, but I think it's unlikely that many teams will want him at $21.5M as a 34 year old.

Regarding #3, I think it's unlikely the Hawks can afford to have that $5M sitting on the books when they will already be close to the luxury tax.

I'm personally thinking we might see a Gallo trade in February, but I'm curious what others think.

[sturt]

2 hours ago, mrhonline said:

Regarding #3, I think it's unlikely the Hawks can afford to have that $5M sitting on the books when they will already be close to the luxury tax.

I'm personally thinking we might see a Gallo trade in February, but I'm curious what others think.

Put me down for #3.

Assuming he's approximately as valuable this season as last, I believe there will be extra timidity to let go of such an important piece in a season when there's a realistic opportunity to make the NBA Finals. Think you deal with next season after this season is over... in the pursuit of being pound-wise rather than penny-foolish, so to speak.

[thecampster]

17 hours ago, mrhonline said:

Danilo has only $5M of $21.5M guaranteed for the final year of his contract. The Hawks will have to decide on whether they want to fully guarantee his contract before the start of 2022 free agency (but after the draft). 

I see four options:

1. Fully guarantee his 2022 contract in late June, expecting to keep him and pay the luxury tax.
2. Fully guarantee his 2022 contract in late June, expecting to trade him.
3. Waive him in late June, leaving an empty $5M on the books.
4. Trade him at the deadline.

#1 seems unlikely to me unless the Hawks exceed last season's results.

For #2, a lot will depend on his early season play, but I think it's unlikely that many teams will want him at $21.5M as a 34 year old.

Regarding #3, I think it's unlikely the Hawks can afford to have that $5M sitting on the books when they will already be close to the luxury tax.

I'm personally thinking we might see a Gallo trade in February, but I'm curious what others think.

I've covered this a few times. Its a balance between if we seem like contenders or pretenders.  If pretenders, he's dumped to a contender at the deadline and Jalen is allowed to develop. If contenders and he's contributing at a high level, we hold him until the end of the season and move him in the off-season.

I have a caveat, much depend on Okafor and Jalen. If those 2 seem capable of producing right out of the shoot, Gallo could be moved for a full expiring before the season starts. Either way, I don't see a future with Gallo on the team this time next year. There is no way to sign everyone without it.

[frosgrim]

I think Gallo represents a contract that allows us to get into a high-priced, "super-star" vet.  Gallo's partial guarantee is valuable to a rebuilding team as they can get picks, a young player, and a low-cost dead money on the books.  I have no idea who Schlenk is looking at though.  Most of the guys that seem to be available don't move the needle that much for the Hawks.  But, I think TS has some moves in mind that we have no idea of what those are. 

[Spud2nique]

4. We will trade him in February. (Having said that I hope I’m wrong because it will signify something not going smoothly).

Hoping nothing happens till after we get the Larry O’Brien. 

[niremetal]

I think it's 3.

Remember, the fact that his contract is guaranteed for $5M doesn't mean that $5M would actually be on our books. Instead, Gallo would become a free agent, and his cap hit for the Hawks would be partially reduced by whatever another team signs him for:

Quote

 

If another team signs a player who has cleared waivers, the player's original team is allowed to reduce the amount of money it still owes the player (and lower its team salary) by a commensurate amount. This is called the right of set-off. This is true if the player signs with any professional team -- it does not have to be an NBA team. The amount the original team gets to set off is limited to one-half the difference between the player's new salary and the minimum salary for a one-year veteran during the season in which the player is waived (if the player is a rookie, then the rookie minimum is used instead).

For example, suppose a fifth-year player is waived with one guaranteed season remaining on his contract for $5 million. If this player signs a $2 million contract with another team for the 2017-18 season, his original team gets to set off $2 million minus $1,312,611 (the minimum salary for a one-year veteran in 2017-18), divided by two, or $343,694. The team is still responsible for paying $4,656,306 of the original $5 million. Note that between his prior team and new team the player will earn a combined $6,656,306, which was more than he earned prior to being waived.

 

 

So realistically, unless Gallo suffers a bad enough injury or regresses to the point that no team is willing to give him at least the taxpayer MLE ($5.9M this season and likely a fair bit more next season), going with option 3 means his cap hit will be a good bit less than $5M.

Edited September 20, 2021 by niremetal

[niremetal]

12 minutes ago, niremetal said:

I think it's 3.

Remember, the fact that his contract is guaranteed for $5M doesn't mean that $5M would actually be on our books. Instead, Gallo would become a free agent, and his cap hit for the Hawks would be partially reduced by whatever another team signs him for:

So realistically, unless Gallo suffers a bad enough injury or regresses to the point that no team is willing to give him at least the taxpayer MLE ($5.9M this season and likely a fair bit more next season), going with option 3 means his cap hit will be a good bit less than $5M.

My caveat is that if Gallo's contract is needed to acquire a star, we obviously could/should move him before the deadline. But I'd imagine that if we do that, Clint, JC, or Bogi might be more likely than Gallo to be the key salary-matching piece.

[Final_quest]

My primary hope has been that we to trade him for a suddenly available star player.  He is salary filler to make the deal work.  

[JayBirdHawk]

IF the Hawks a winning going away with Gallo contributing he's here thru the end of the season with an offseason trade more likely.

IF he or the team is struggling or if Jalen Johnson 'shows' something he may be moved at the deadline to a team looking to reduce their tax bill in 2022.

When he was signed, my first question was what were the terms of the last year of his deal - it was a blessing to see it was not fully guaranteed.