Randolph Signs a 4yrs/$71M Extension ($66M Guaranteed) Yet Becomes $82M Richer

18 Apr

Z-Bo driving on McDyess in Sundays 101-98 Game 1 win.

By Chris McCoy

This deal is great timing by the Grizzlies, as morale is high after they won game 1 of their current playoff series against the top seeded Spurs – their first playoff win in franchise history! No one’s going to complain right now if you pay your best player big money. Which is exactly what Randolph wanted… BIG MONEY.

In November, I told you about Randolph wanting Pau Gasol money, and we all enjoyed a good laugh. Pau by the way is locked into a 3yr/$64.7M deal – slightly over $21.5M/year. Well Randolph, who averaged 20.1 ppg (21st in the NBA) and 12.2 rbg (3rd in the NBA), comes out of this deal the one laughing.

Although Randolph’s new contract, which is for $71M – $66M guaranteed plus $1.3M in incentives/year – he will get paid an extra $10.2M during the life of this contract, and another $15M the following three years. How is that possible? Well when Randolph was much younger, and more of a problem child, he signed a 6yr/$84M extension with the Portland Trailblazers where $25.2M of that deal was deferred to the six years beginning with 2012.

This deal worked for two reasons, while the money was on the books and counted against the salary cap, if the Trailblazers could trade that contract (which they did – in fact he was traded three times), they’d never actually have to pay Zach that $25M, and it worked for Randolph as he was still very immature and this in effect made him more fiscally responsible: $59M now and $25M you won’t be able to touch for 8-14 years.

So now instead of averaging $17.75M/year for the next four years, his accounts will actually get get $20.3M richer, as he’s coming into money he already earned. In essence, Randolph’s $17.75M is a lot closer to Pau’s $21.5M than it looks on paper. And with the value of contracts expected to decrease in the next CBA, Randolph just came up majorly, and off the books is now one of the top 5 paid players in the NBA. In fact, only two players made more than $20M this year: Kobe Bryant and Rashard Lewis.

Laugh all the way to the bank big fella!

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One Response to “Randolph Signs a 4yrs/$71M Extension ($66M Guaranteed) Yet Becomes $82M Richer”

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    […] locked up their point guard, their small forward and their power foward… hopefully they have enough bread left to match offers for their center. What’s amazing about […]

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