clock menu more-arrow no yes mobile

Filed under:

Josh Smith Trade Rumor: Trade Kicker Impact

We've seen the rumors, and they keep blowing--very strongly.

Per Adrian Wojnarowski, he offers a simple, yet validating sentence to the possibility of Josh Smith getting dealt:

 The Atlanta Hawks are getting increased volume on calls for talented forward Josh Smith.

I'm sure.

NBA Vultures, wishing to unload their caboodle of reserves, would love to fleese Josh Smith and his productivity away from the Hawks.

But aside from the potential financial or otherwise reasons the Hawks have opened the door to trading Smoove, there is an extra in Smith's contract that, while not making a deal impossible, makes it slightly more complicated.

Smith has a 15% trade kicker built into his contract.

This means that if Smith gets dealt, he receives a bonus of 15 percent of the value of his remaining contract. So, as according to that Sham Sports link provided, this means Smith will be given approx 3.87M upon any deal involving him.

So while financially that's burdensome to whoever picks up the tab, let's look at the cap implications of dealing Smith with this clause in place.

The pay out is evenly divided into both remaining seasons, not pro-rated, per Larry Coon. So with Smith set to make 12.5M this season, 1/2 the 3.87M bonus, or 1.935M would be added to Smith's cap number in a trade.

The complication comes in because the Hawks (outgoing team) only count 12.5M in deal and can only take a max/min of 125% back, meaning salaries between 9.37M/15.63M. The team receiving Smith counts the full 14.43M toward them. This means at a max/min, the team trading for Smith has to deal salaries between 10.82M and 18.04M.

Which means the landing zone of salaries shrinks down to 10.82M and 15.63M if Smith is the only player from the Hawks in the deal. Not as impossible to deal as a Poison Pill Provision on extensions, which is 50% of contract value when applicable, rather than dealing with 15%, but narrows it a little bit.

That explained (unless I completely botched it, which is possible due to my stellar SEC education), I wouldn't expect that any deal involving Smith would be significantly hindered at all by this kicker, but you can bet whoever trades for Smith will be asked to pick up a good portion (max 3M) of the kicker fee.

That's how we roll in the ATL.