Millsap - The "Loan" Ranger?

[Ed O]

The real point is that NBA teams very rarely have to resort to loans to pay their own players. It may have happened before, but I can't recall hearing about it. If you know of an example, or several examples, I would love to see them.

Well, teams very rarely put $10m of money due a week into a contract... especially when that $10m is about a third of the total value of the contract on a multi-year deal.

Utah can get a loan, pay him, and then pay back the loan when they'd NORMALLY be making larger payments on a 4 year, $32m deal.

Ed O.

 

[PapaG]

First of all, I don't post on this board very often. I usually hang out at OLive, but may be switching here because the format is better. So, if the quotes are all messed up, I am trying to figure out how to use the tabs.

What I don't understand from Jazz fan's perspective is, how can they think this is a bad deal for Millsap. He is a starting quality PF in this league. He plays as good of defense as most PF's in this league. He is only going to be making between 7 and 8 mil a year. I hope they don't match, but I believe that they will. To me it's a no-brainer.

BTW - please quit posting links to their forums and comments. When I see so many fans arguing not to match Millsap's offer, I start to think just maybe they won't match and we will get him. The more I think that, the more I care. The more I care, the more disappointed I will be when they do match.

We have multiple posters here getting angry at Brandon Roy for wanting a max contract and more than 4 years. The fanatics that post on a message board are a fraction of the actual fanbase, and our opinions tend to be more extreme due in part to the lack of nuance this format allows us.

 

[PapaG]

I agree... I will go one step further and say I will be surprised--very surprised--if they don't match. But so what? The Blazers are trying, as you say. That's the key to me. Well... trying for the right players.

I'm more pleased by their pursuit of Millsap than I am of their pursuit for Hedo.

Ed O.

I am as well, solely because it makes either Millsap or LMA a much larger trade asset to get a real upgrade, depending on which direction the franchise wants to go. No need having both of them on the roster, though, at the price that LMA will demand.

 

[tlongII]

I'm pleased that the Blazers pursued Millsap, but they should have offered him more. Give him everything you got. That's the only way it would happen. Stupid deal otherwise.

 

[Shooter]

I'm pleased that the Blazers pursued Millsap, but they should have offered him more. Give him everything you got. That's the only way it would happen. Stupid deal otherwise.

I don't know about that. You've got to draw the line somewhere. The Blazers made a VERY generous offer, and if Utah matches it they just have to move on.

 

[Sinobas]

Well, teams very rarely put $10m of money due a week into a contract... especially when that $10m is about a third of the total value of the contract on a multi-year deal.

Utah can get a loan, pay him, and then pay back the loan when they'd NORMALLY be making larger payments on a 4 year, $32m deal.

Ed O.

Those payments would not be larger....I'm sure you understand the concept of interest.

 

[Ed O]

Those payments would not be larger....I'm sure you understand the concept of interest.

They would presumably do a short-term loan (perhaps by drawing on a line of credit) and then pay it off. I doubt they would carry that debt forward.

So, yes, the payments would almost certainly be smaller after this initial burst of activity including paying off the short-term debt and interest and fees associated with it.

Ed O.

 

[Denny Crane]

Those payments would not be larger....I'm sure you understand the concept of interest.

They would presumably do a short-term loan (perhaps by drawing on a line of credit) and then pay it off. I doubt they would carry that debt forward.

So, yes, the payments would almost certainly be smaller after this initial burst of activity including paying off the short-term debt and interest and fees associated with it.

Ed O.

A loan could well equalize the cash flow, but the sum of all the payments would be higher by the interest on the loan.

 

[Ed O]

A loan could well equalize the cash flow, but the sum of all the payments would be higher by the interest on the loan.

I know. I know how to do math, people.

I am talking about AFTER the initial bump, which includes
-- signing bonus
-- accelerated portion of first year salary
-- interest on line of credit to pay for portion of bonus/accelerated salary (I'm presuming that they wouldn't spread the payments out, but that they'd repay the LoC as soon as they were liquid enough to do so)

Once they get through that, it will be easy sailing. $22m over four years.

Ed O.