Memphis Grizzlies Sign Rudy Gay to 5 Year, $81.6 Million Extension

by djturtleface on Jul 1, 2010 3:16 PM CDT

Grizzlies fans have been waiting to see if owner Michael Heisley would actually pay to keep his core players together for several years now. With Rudy Gay, the oldest of Memphis's core players, entering free agency today, it seemed like we might be at least a couple weeks to have an answer.

But it didn't take long into the free agency period to prove Heisley's promise true, as Adrian Wojnarowski of Yahoo Sports reported:

Rudy Gay has agreed to a five-year, $81.6 million deal with Memphis, including a player option on fifth, his reps at Octagon confirmed to Y!

And while most fans will be relieved to see Heisley finally reinvesting in the Grizzlies, this contract is bound to be polarizing. The Grizzlies will be paying Gay, a player who has never even made an All-Star game, over $16 million a year on average.

By receiving this maximum deal, Gay has placed himself in a pay-scale well above the tier of players with numbers similar to himself, players like Andre Iguodala, LaMarcus Aldridge, and Danny Granger. Instead he'll be paid more like LeBron James, Brandon Roy, and Chris Paul.

The success of the Memphis Grizzlies franchise is no longer about Heisley putting his money where his mouth is.

After today it's all about if Rudy Gay can put his game where his money is.

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Well I suppose...

It’s officially “on like Donkey Kong” for the ‘Three Year Plan’ now.

Straight Outta Vancouver - The Memphis Grizzlies DO Still Exist

by djturtleface on Jul 1, 2010 3:40 PM CDT reply actions

Max deal,

when no one had offered him anything yet. Oof. Not the smartest biz decision IMHO. Of cousre, if Heisley was trying to send a message and give him a boost of confidence, I guess it’s good, but it is also going to prevent us from keeping all the other players on the roster 2-3 years down the line. Zbo is gonna want money, as will OJ after next season. What then?

by hueyproductions on Jul 1, 2010 4:24 PM CDT reply actions

It actually WAS a business decision...

It was really to prevent other teams from sending him the “toxic max offer,” which is still $86 million but basically frontloads the money and signing bonus so you’re paying him like $24 million, then $18, then back to normal ranges.

And, yeah, I’ll write more on who we’re keeping type scenarios later today or tomorrow. It gets interesting now…

Straight Outta Vancouver - The Memphis Grizzlies DO Still Exist

by djturtleface on Jul 1, 2010 4:48 PM CDT up reply actions

Sure, they didn't wanna get 'Milsapped'

…but Rudy ain’t a MAX player. I think the chances of anyone giving him a fat frontloaded would have been pretty low, IMHO.

That’s a lot of money to bid against yourself with…. should have let him to look for another offer and be disappointed….. and then signed him to a 5yr/60million……

$81mil/5yrs….absolutely NUTS

"I’m tired of hearing about money, money, money, money, money. I just want to play the game, drink Pepsi, wear Reebok." ~Shaq

by Max_in_Missouri on Jul 1, 2010 5:19 PM CDT up reply actions

i guarantee whoever doesn't get lebron would have given rudy that type of contract

nets or knicks would have been all over that trying to save face

"Albert hits good pitches hard and bad pitches even harder. And when he gets in the batter's box, if you pray, then you start praying. And if you don't pray, you think about starting."--Brian Bannister

That guy we gave a lot of money in the offseason to protect albert is dead to me...DEAD TO ME

by VolsnCards5 on Jul 1, 2010 5:54 PM CDT up reply actions

Yep, Heisley and Wallace are pretty shrewd when it comes to saving money...

I think they were running on some info that the Millsapp-ian contract offer was coming sooner rather than later (Clippers!), and that at best they were looking at matching the same deal they gave him (strikeout Knicks/Nets).

Straight Outta Vancouver - The Memphis Grizzlies DO Still Exist

by djturtleface on Jul 1, 2010 7:28 PM CDT up reply actions

How do you get to 24m?

I’m not a cap expert, but I have read through parts of the CBA. I’m having trouble arriving at the 24million figure you mention. Can you tell me how you get that figure?

On a five year deal, with bird raises (10.5%) and using the ‘25% of cap’ max ($14.025m/yr; cap will be ~56.1) — which is greater than the semi-defined max for a four year player of ~13.5m — the highest figure I get is $20.91m; but this is a figure Gay could only get from the Grizzlies. With these variables, the true five-year max for Gay would be at $86million (would be 83m using the 13.5m base)

The highest offer any other team could have put forward is between ~18.4m and 19.08m; which would put the roster — with Henry and Vasquez — at ~70m, or 2-3m in the tax. Over a five year deal, the total comes to between 79.3m and 82.3m.

I’m not a Grizzlies fan (Henry available now? probably not considering his cheap deal, right?), but what is Heisley really thinking here? Is he so tight on cash that he can’t risk the possibility of a luxury tax bill this year if Gay signed a front loaded offer sheet?

by StJ on Jul 1, 2010 11:56 PM CDT up reply actions

You can stack the deal with signing bonuses...

I think it’s something like instead of giving him the 10.5% bird raises, he gets a signing bonus of 80% of the first year salary.

So since his first year salary is would be just under $14 million in that scenario, he’d get a $10 million bonus for about $24 million total in the first year.

The $18 million after that I said isn’t quite right, though. It would fall back to about $14 for the rest of the contract and look something like: 24 + 14 + 14 +14 + 14 = 80

Straight Outta Vancouver - The Memphis Grizzlies DO Still Exist

by djturtleface on Jul 2, 2010 12:11 AM CDT up reply actions

Check the Paul Milsapp deal last season...

It’s a very rarely used tactic, but pretty terrifying since most owners aren’t used to signing bonuses like in MLB and NFL.

Also, it doesn’t count against your cap room as 24, 14, 14, 14, 14 — it goes on your salary cap as a normal deal. But I think it still does put you over the luxury tax.

Straight Outta Vancouver - The Memphis Grizzlies DO Still Exist

by djturtleface on Jul 2, 2010 12:13 AM CDT up reply actions

YIKES!!!RU kidding me?

When did Rudy chnage his name to Lebron or Kobe. This will be the worse contract in
all of basketball. WTF? This can not be real. $10-12M per based on his talent and performance. Wow I am shocked. No money left for any one else. Oh Well The The new name will be the Memphis Gays.

Set a record by getting banned for the 8th time!
After rehab I saw the light and promise to be kinder and gentler!
Probation is a very slippery slope!

by StinkyFingers on Jul 1, 2010 8:02 PM CDT reply actions

have you seen joe johnson's contract

or darko’s

That guy we gave a lot of money in the offseason to protect albert is dead to me...DEAD TO ME

by VolsnCards5 on Jul 1, 2010 8:21 PM CDT up reply actions

Like it....

….but dont like it. Randolph is gone for sure. Hope OJ stays. Dumb move if we let him go.

by Ryno G on Jul 2, 2010 12:16 AM CDT reply actions

I think we're on the same page...

I’m happy my favorite player will stay on my favorite team for 5 years, but I also think Z-Bo is about screwed, and am more than a little worried about OJ’s fate.

BUT! If the Z-Bo for Al Jefferson opportunity comes back, well, that would be an absolute coup. Imagine the core of O.J., Xavier, Gay, Jefferson, Gasol. That would be a team that could win a championship without a superstar in their primes…

Straight Outta Vancouver - The Memphis Grizzlies DO Still Exist

by djturtleface on Jul 2, 2010 12:30 AM CDT up reply actions