Creative Ways of Buying out Foyle/long term cap-management

Foyle's contract pays 8.9 million this year, 9.8 million next year. There is a 10.5 million team option after that.

In the event of a buyout, the sum total of the buyout is divided over the remaining years of the deal, and applied to the salary cap evenly.

The Warriors have less of a salary cap crunch in 2009-2010 then they do in 2008-09. This is because Monta and Bean's new contracts first hit in 2008-2009, and by 2009-10, Foyle is gone, and Baron is gone (pending an extension). Now undoubtedly, if the W's can squeak under the Lux Tax in 08-09 after signing Biedrins and Monta, they'll make it in 09-10. I believe using that fact can help the Warriors buy out Foyle.

The Warriors could begin by "picking up" Foyle's team option for 2010-11. Immediately after doing so, they can buy out all three years from Foyle for around 19 million.

This is a win-win. Foyle gets the full value of the next two years in the buyout. He does not get the value of the third year-the only reason the W's picked it up was so that the buyout could be spread out over THREE years, rather than two. In this solution, the cap hit from foyle would be 6.3 million for each of the next three years, rather than 9 million this year, 10 million next year. The Salary cap relief is the Warrior's benefit. Foyle should be willing to accept a buyout for full value of the two years- he knows the Warriors aren't seriously going to pick up the third year, so he wouldn't demand the buyout for the third year as well. Getting his 19 million up front is also more valuable to him than getting it over two years, because money in hand actually has more economic value than money to be paid later (because Foyle can make interest on next years' 10 million starting right away).

This shaves 4 million from the critical 2008-2009 season, helping fit the two new contracts for Beans and Monta in. It also frees 3 million this season, which gives us more options right now...

Another major idea I have is to extend Monta or Biedrins right now, and pull some of their salary into this season. For example- Monta is only making 770,000 this season. Suppose his future contract extension is going to be 5 years, 35 million. I made this up completely, it's just an example. Rather than paying his 770000 this season, and then 35 million over the next 5, they should just pay him 36 million over the next 6 seasons, starting now.

This would make Monta average 6 million a season for the next 6 seasons, starting right now. We have the cap room for that right now. Extending him later would result in 770,000 this year, but then a 7 million a year hit over the 5 years after that. In other words, incorporating Monta's next year into his extension allows the W's to spread his cap hit more. Remember, all the numbers regarding Monta's extension are made up-I don't really know what it will take to resign him. Still, I would think that Monta won't object to this because he would get money up front, without losing any value on his extension. If the warriors were really daring, they could even front-load Monta's contract, and use every bit of space we have this year. That would give us lots of flexibility later. In fact, when Baron is off the books, we could resign him for less (there's no way he should be paid what he is until he stays healthy), and go for a second star, or we can go after a bigtime superstar (hopefully better than Rashard Lewis lol) with all the space.

After all these moves, Ellis and Beans would be the long term cornerstones, with SJax, Al, and Baron around for the next two years. After two years, the Warriors would have more flexibility to keep Baron or whatever, and after three years, Foyle's Buyout would come off the books.

This was pretty long, but I think it gives one good strategy for the next three years. This strategy does leave this coming year in some limbo because we don't add another piece for next year, but it leaves the Warriors in good position for the next 5, and gives us room to make real runs at the championship with cap room over the next 5. What would you guys do? Is spreading the Foyle buyout over 3 a bad idea? Is signing Monta now and paying him more this year bad?

This FanPost is a submission from a member of the mighty Golden State of Mind community. While we're all here to throw up that W, these words do not necessarily reflect the views of the GSoM Crew. Still, chances are the preceding post is Unstoppable Baby!

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