The Amnesty Provision And the Orlando Magic – Will It Truly Help?

 

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In today’s edition of OTIS SMITH SPECULATION SPECTER, I take a look at the Amnesty Provision that will be included in the soon to be ratified CBA and what that provision means to the Orlando Magic.

am·nes·ty - an act of forgiveness for past offenses, especially to a class of persons as a whole.

Also known as, you owners are idiots and chose to sign your players to contracts that were significantly higher than anyone else in the league was willing to offer. Basically, it’s a cap lifeline being thrown to organizations. Fortunately for Magic fans, this handy provision will likely work to your advantage.  How much it will help though, may not be as much as originally thought.

What is it?

Via Larry Coon and ESPN -

“One player can be waived prior to the start of any season (only one player can be amnestied during the agreement, and contracts signed under the new CBA are not eligible). The salary of the waived player will not count toward the salary cap or luxury tax. Teams with cap room can submit competing offers to acquire an amnestied player (at a reduced rate) before he hits free agency and can sign with any team.”

“For example, if Cleveland uses its amnesty provision on Baron Davis, a team that is $5 million below the salary cap can submit a $5 million offer to acquire Davis’ contract. If that offer is the highest, the team acquires Davis and is responsible for $5 million of his salary — with Cleveland responsible for the balance. This happens before Davis becomes a free agent and can sign on his own with a team like Miami.”

Or sign with a team like Orlando. Basically this new competitive bidding process makes it highly unlikely that the Magic would be able to sign a player who would be amnestied from another team. If they do sign someone, he will probably end up being nothing more than an end of the roster addition. Or to put it bluntly, highly unlikely to find a rotation, impact player.

The big difference between the same clause that was included in 2005 is that back then there was no salary cap relief, only tax relief.

What happened in 2005?

With the limited relief that came in ’05, the league still saw 18 organizations take advantage of the provision. However, few big name players were included in the cuts (Allan Houston was not cut and the rule was nicknamed after him!) and 8 of the 18 players cut weren’t even on the active rosters (Baker, Robinson, Coleman, Miller, Bell, Person, Eisley and Mourning).  Players did not necessarily need to be on the roster for the clause to be used on them. They just needed to be on the team’s salary figure.

To continue reading the remainder of this article, click HERE.

Topics: Amnesty, Gilbert Arenas, Hedo Turkoglu, Orlando Magic

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