Using a Loan to buy out your contract

[ScalabrineStan]

Having read a thread on Hassan Whiteside and how underpaid he will be next year, wouldn't it make sense to borrow $1MM from a bank or other investor, buy out your contract, and then sign a much larger one? You could then immediately pay the loan back.

Am I missing a legal point here? This would make a lot of sense for a Hassan Whiteside or 2013 Chandler Parsons.

[brantonli]

A buyout requires the player and the team to agree to it. There is no way in hell the Heat will agree to buyout Whites ide, it's one of the best contracts in the NBA.

[Rose'sACL]

you can bet that if whiteside doesn't get injured, heat will themselves give him a good contract from next season itself.
if heat don't do that then he will definitely leave in 2016 even if heat offers him the max money. Heat has all the cards right now given that whiteside can't leave so it gives them leverage to get him to sign a long contract from next season itself.

[Joyner82reload]

LOL @ this garbage. Every top 5 pick would buy out their own contract and sign somewhere else for a much higher contract

[navy]

LOL @ this garbage. Every top 5 pick would buy out their own contract and sign somewhere else for a much higher contract

You're confused. Do you realize how much top 5 picks make over 4 years and how risky it would be for another team to pay a higher contract than that?

[coin24]

I'm sure Riley is looking after him
If he keeps playing well they'll sign him to a good deal next season

[Joyner82reload]

You're confused. Do you realize how much top 5 picks make over 4 years and how risky it would be for another team to pay a higher contract than that?

lolwat. Rookies get paid garbage salaries assuming they actually perform up to their expectations and aren't busts.

Anthony Davis made 4.5 million last season. if he were capable of buying out his contract, and signing a new one as a RFA, he would have immediately been signed to the max for 13~ million per year.

[Mr.Kite]

This thread is dumb

wiggins, lillard and even curry will buy out of their current deals instantaneously

[navy]

lolwat. Rookies get paid garbage salaries assuming they actually perform up to their expectations and aren't busts.

Anthony Davis made 4.5 million last season. if he were capable of buying out his contract, and signing a new one as a RFA, he would have immediately been signed to the max for 13~ million per year.

4.5 for one year. Now do all 4 and ask yourself who is giving a loan for that.

[ralph_i_el]

4.5 for one year. Now do all 4 and ask yourself who is giving a loan for that.

anybody would give you a loan for that if you were going to immediately turn around and sign a 4/$80m deal

[navy]

anybody would give you a loan for that if you were going to immediately turn around and sign a 4/$80m deal

lol, yes because people give out 18 million dollar loans like nothing. They would need a massive return to risk that kind of money.
Teams also sign rookies for 20 million dollar contracts?

[Joyner82reload]

lol, yes because people give out 18 million dollar loans like nothing. They would need a massive return to risk that kind of money.
Teams also sign rookies for 20 million dollar contracts?

Risk? What the hell are you talking about, risk? NBA contracts are guaranteed, there is no risk involved other than them being able to get a new contract. Which in most cases would be guaranteed, someone would IMMEDIATELY give Wiggins a 4 year 60 million dollar contract, which is the max for a RFA after his rookie deal.

That would literally be one of the easiest/most secure loans in the history of finance. Are you retarded?

And of course people give out 18 million loans regularly, but this isn't a regular circumstance. This isn't some random guy trying to start up a business out of thin air. This is a person that can guarantee ROI on that loan for the lender.

Hell Goldman Sachs for instance took out a 18 BILLION dollar loan last year

[Im so nba'd out]

There has to be some rule against this or someone would of done it already.

[outbreak]

lol, yes because people give out 18 million dollar loans like nothing. They would need a massive return to risk that kind of money.
Teams also sign rookies for 20 million dollar contracts?

Banks and financial groups give out much larger loans than 18 mill with more risk than an NBA player who would already have a deal lined up once bought out

[outbreak]

There has to be some rule against this or someone would of done it already.

there is. it was covered right away. a buyout has to be agreed upon by the team and the player. I don't even know if a player can buy out their own contract in an NBA deal unless they've specifically put that clause in there?