The Miami Heat have dumped the contract of Roger Mason Jr. at the Feb. 20 trade deadline, in a move that saves owner Micky Arison $1.05 million and opens up a roster spot to utilize either on a current free agent or on a player to be waived over the next 10 days.
The Heat will send Mason Jr. to the Sacramento Kings, who are expected to immediately waive him. They’ll also send $786,095 in cash to complete the deal.
While that amount of cash may seem random, it actually isn’t.
Mason Jr. is a 10-year N.B.A. veteran. He is playing under a one-year contract. He is earning $1,399,507, the minimum salary for a player with his tenure. However, he is only required to be paid $884,293 of that amount, equal to the minimum salary for a two-year N.B.A. veteran. The league will reimburse the rest at the end of the season. Therefore, he really only costs the smaller amount, and only the smaller amount is included in team salary for cap and tax purposes. They do this so teams won’t shy away from signing older veterans simply because they are more expensive than younger veterans.
As for the mechanics of how the reimbursement works, he is to be paid his full prorated salary of $8,232.39 per day (equal to his $1,399,507 salary divided by the 170 days in the regular season), until the total reaches $884,293. At that point, he continues to get paid his fully prorated salary but the league reimburses the rest. With the regular season having started on Oct. 29, he earned that much by Feb. 13, 2014. Since that time, his services have essentially been free of charge for the Heat.
However, since the contract has now been traded, the reimbursement will get allocated to the respective teams based on the number of days accrued with each team. Therefore, while the Kings will be responsible for the $452,782 remaining on his contract for the 55 days left in the regular season, they will actually only owe $286,095 after accounting for the reimbursement.
The Heat essentially covered his remaining salary obligations for the Kings, and then topped it off with a $500,000 profit, which serves as the only impetus for Sacramento to make the deal.
In order to send something back, which is required in all trades, the Kings will return the Heat a 2015 second-round pick which is protected for selections 31-49 and 56-60. If the pick ultimately falls within either of its protected ranges and is therefore not conveyed, then Sacramento’s obligation to Miami will be extinguished. This essentially means that the Heat will only get the pick if it lands between pick numbers 50 and 55.
While this range may seem random, it actually isn’t.
The Kings intended to provide enough protection on the pick to ensure that it will never be received. Such trades are commonplace in the N.B.A., and are typically accomplished by trading away a second-round pick on condition that it lands within the last five of the draft. However, the Kings have previously traded the pick to the Boston Celtics with that condition. So, now, the Celtics will receive the pick if it is among the last five, the Heat will receive the pick if it is among the previous five, and the Kings will retain the pick if it is among the first twenty of the second round, as is likely.