What you MUST know about JJ & the extension

[mrhonline]

The four year, $60Mish deal Sund offered JJ would have looked something like this:

Year 1: $12.96M

Year 2: $14.32M

Year 3: $15.68M

Year 4: $17.04M

So why would Joe Johnson turn that down?

Because if the Hawks offer the same deal to him next summer with one exception - adding a fifth year - Joe stands to benefit significantly.

How? His fifth-year salary in that structure would be $18.40M. If any other team tops that $78.4M deal, Joe would stand to make even more in the fifth year of that deal.

You can look at Ray Allen's deal for a comparison, but the bottom line for Joe is a pretty fat bottom line. There is simply NO WAY that Joe would make $18M+ in 2014-15 if he was a free agent. He'd be lucky to get half of that in a three-year deal (see Finley, Michael) at that stage in his career.

We have until February to throw out crazy trade scenarios, but the reality is that Joe's decision has far more to do with maximizing his wallet size than it does with any interest or disinterest in the Hawks. (Personally, I think he stays in Atlanta for a 5 yr., $80Mish deal. I also hope the Hawks get him to structure the deal without raises - paying him more upfront).

[Buzzard]

The four year, $60Mish deal Sund offered JJ would have looked something like this:

Year 1: $12.96M

Year 2: $14.32M

Year 3: $15.68M

Year 4: $17.04M

So why would Joe Johnson turn that down?

Because if the Hawks offer the same deal to him next summer with one exception - adding a fifth year - Joe stands to benefit significantly.

How? His fifth-year salary in that structure would be $18.40M. If any other team tops that $78.4M deal, Joe would stand to make even more in the fifth year of that deal.

You can look at Ray Allen's deal for a comparison, but the bottom line for Joe is a pretty fat bottom line. There is simply NO WAY that Joe would make $18M+ in 2014-15 if he was a free agent. He'd be lucky to get half of that in a three-year deal (see Finley, Michael) at that stage in his career.

We have until February to throw out crazy trade scenarios, but the reality is that Joe's decision has far more to do with maximizing his wallet size than it does with any interest or disinterest in the Hawks. (Personally, I think he stays in Atlanta for a 5 yr., $80Mish deal. I also hope the Hawks get him to structure the deal without raises - paying him more upfront).

Thanks and I do understand why he did it. Money and his last big payoff; only real problem I have is it puts us (our team) in a precarious situation at best. See how it plays out is all any of us can do...makes being a fan so interesting lol

[MaceCase]

Yikes, posted a similar thought in another thread just without figures. Seems I picked the wrong 24 hours to be without a computer, been pretty busy around here.

[coachx]

The salary could be constructed in several different ways. I personally do not like escalating contracts for a play about to enter his 30's (especially with Horford needing an extension in 2 seasons and Smooves contract escalating as well). A front loaded contracted may be better though it may hurt the first season or two. I'd rather pay JJ $18 mill at 29 years old and $12.96 mill at 33, then the other way around. Or we could divide that $78.4 mill evenly over 5 years giving JJ $15.68 mill each year of he new contract.............Heck make it an even $80 mill over 5 years so he gets an even $16 mill each season. That extra 0.32 mill a year is just peanuts as far as cap space goes but it sounds alot better.

[mrhonline]

Yikes, posted a similar thought in another thread just without figures. Seems I picked the wrong 24 hours to be without a computer, been pretty busy around here.

I was about to post a link to this thread in response to your comments in the other one. Good thing I re-read my own thread.

[crimedog]

Informative and well written post mrh. Thanks for puttin it up.

[DrReality]

This could be a good thing or a bad thing for us. Lot of factors to consider, but the pressure is on JJ to perform in his contract year . . . . . and if he does that is a good thing for us. And we can give him what he's worth. If not . . . . . trade him or sign him for less.

[hawksrule9]

4 Year 60 Million seems a little low to me. I was thinking 4 Year 70 Million or 5 Year 75 Million. Joe will sign though.