The rules of the NBA’s collective bargaining agreement are fascinating to a certain segment of NBA fans, so with that in mind, we bring you this financial quirk involving J.R. Smith.
The reigning Sixth Man of the Year signed a three-year deal worth just under $18 million to remain with the Knicks a few weeks back, and using the rules (potentially) to his advantage, has already been paid out at least half of the entire value of his contract.
From Frank Isola of the New York Daily News (via HoopsHype):
A league source confirmed that J.R. Smith has already been paid $8.974 million of the $17 million contract he signed three weeks ago. Smith agreed to a two-year deal worth $11 million with a player option for a third season. Five days after agreeing to a new contract, Smith had knee surgery that, according to the club, will sideline him up to four months.
This doesn’t affect the Knicks’ cap figure in any way, and theoretically (if Smith invests the money wisely) it would be beneficial to the player to get paid out as much as possible immediately to begin to earn interest on those otherwise future dollars.
Mark Deeks, who runs the comprehensive NBA salary site ShamSports.com, explained how this fits within the league’s rules a few days back.
Smith did NOT get 80% of his contract paid up front. That’s not allowed. What IS allowed, however, is having 50% of your base salary given..
…to you as an advance prior to November 15th of the relevant season (no more than 25% before October 1st.) This is what Smith has done.
It’s a smart decision, provided Smith does something productive with all of that up-front cash.
Preseason is only just getting underway and there’s already a potentially serious injury to report. In the game between the Hornets and Magic on Saturday night, Michael Kidd-Gilchrist was taken to the locker room after suffering a right shoulder injury. The Hornets announced that he was then taken to an Orlando-area hospital for follow-up x-rays:
We likely won’t know more about the extent of his injury until tomorrow, but if it was serious, that would be a major loss for the Hornets. Kidd-Gilchrist is their best perimeter defender and an important piece if they hope to compete for a playoff spot this year.
CHICAGO — Derrick Rose is nearing a return to practice with the Bulls. After undergoing surgery on Wednesday to repair a fractured left orbital suffered in practice on Tuesday, Rose’s recovery is going as expected and he’s expected to rejoin the team on Wednesday.
“The follow-up [exam] went very well,” Bulls coach Fred Hoiberg said after practice on Saturday. “They’ve advised him to continue to let that site heal, and they think the best way for him to do that is to stay at home at this time. We plan on him being back on Wednesday morning.”
Rose won’t be able to participate in practice for another week after that — Hoiberg said the previously announced two-week timetable for returning to basketball activities remains on schedule — but with a radically different offense, there’s a lot to learn, and just being around the team to watch practices and learn the new play sets is important.
“We’re going to actually get over there and watch some film with him today,” Hoiberg said. “Because again, like we talked about [Friday], we’ve added new sets, new things, so we’ll get him caught up by a couple of coaches going over and seeing him at his house.”
The two-week timetable puts Rose’s return to basketball activity around next Wednesday, October 14. From there, it will be a matter of getting him back into game shape before Hoiberg is comfortable playing him in games.
Hoiberg said earlier this week that he is optimistic Rose will be able to play when the Bulls kick off the regular season at home on October 27 against the Cleveland Cavaliers.