Thursday, July 24, 2008

Details on Childress Contract, Cap Ramifications

Re-capping the work of Mr. Sekou Smith in today's AJC in which the relevant information was spread across two stories.

First, money:
Olympiakos offered three years and $32.5 million, which after taxes paid by the club becomes a net of salary of about $6.7 million a year for Childress.

The Hawks offered five years and $33 million, which after taxes paid by Childress becomes a net salary of about $3.4 million per year for Childress.
Next, the perks:
Olympiakos also pays for all of Childress' living expenses, including luxury accommodations, a car and driver and maid service.
Then, the opt-out clause:
Childress also has an annual opt-out clause in the contract that will allow him to weigh his NBA options, as a restricted free agent provided the Hawks tender a qualifying offer to him, every summer.
About that qualifying offer:
By retaining Childress' NBA rights there are salary-cap implications the Hawks have to contend with where he is concerned. Since his qualifying for the upcoming season was just $4.8 million, the Hawks don't even have the full mid-level exception to work with in finding his replacement.
I haven't yet learned whether or not the dollar figure of the qualifying offer changes from year to year.

Finally, the contract with Olympiakos does not include a buyout clause:
There is no buyout clause in the contract, meaning Childress won't have to negotiate a compensation package for Olympiakos if he were to return to the NBA before the end of the three year deal.
My guess is that the Hawks find a way screw up the paperwork necessary to submitting a valid qualifying offer for Childress at some point in the next two years and forfeit his rights completely.

Ballhype: hype it up!


CoCo said...

I say they won't even bother to wait to screw up the paperwork. They'll outright release him just to show you how extremely incompetent they are. ;)
Have you given any thought to who is going to fill out the roster. It's scary............

Bret LaGree said...

I'm guessing that yesterday was a good day to be Jeremy Richardson.

Anonymous said...

Ideally they would find some decent big center and the lineup would be


with Marvin moving to the bench and taking over Childress' role. Hell they could do worse than using Zaza at starting center.