May 30, 2008 6:50 PM

Iverson ponders contract situation

CHRIS TOMASSON ON THE NUGGETS

How low will Allen Iverson go?
Don't expect Iverson to be doing the limbo. But the more flexibility he is willing to show the Nuggets, the more his chances seem to be of signing a multi-year deal with them.
Iverson, who turns 33 on June 7, long has said he wants to finish his career in Denver. Now is his chance to enhance that chance.
Iverson's personal manager Gary Moore, told the Rocky Mountain News on Friday that, in recent discussions with Denver brass, the Nuggets "seem to be very willing'' to offer Iverson a multi-year contract if he were to opt out of his contract by the June 20 deadline.
Iverson is due $20.84 million next season. If he were to opt out, he would become an unrestricted free agent July 1.
But nobody expects Iverson to opt out unless the plan is to sign a new deal with the Nuggets. On the open market, Iverson wouldn't figure to get anything near $20 million for next season.
Let's say Iverson doesn't opt out of his contract and becomes a free agent July 1, 2009. As a 34-year-old guard, Iverson might not even be able to get half his 2008-09 salary in 2009-10.
With that in mind, Iverson could agree to take a pay cut next season in order to get more years on his contract. But how much would Iverson have to give up in order to get additional years out of the Nuggets?
Due to being deep into the luxury tax, there is an extra advantage to the Nuggets if Iverson would agree to take less money next season. Let's say Iverson is willing to take a $5 million pay cut. The Nuggets would save $10 million next season when one considers the dollar-for-dollar luxury tax.
But the Nuggets obviously would have to make up for Iverson taking a cut by giving him extra years. Would they be willing to sign him for $15 million in 2009-10?
And what about 2010-11, when Iverson is 35? It's hard to project how much he will have slowed down by then. Maybe the Nuggets could offer a contract for that season that is not fully guaranteed.
There is recent precedent for a star player opting out of his contract, and taking an immediate pay cut in order to get more security for the long haul. New Jersey forward Vince Carter agreed last summer to take less money for 2007-08 in exchange for additional contract years.
Carter was due $16.4 million, but opted out of the final year of his deal and signed a five-year contract starting at $13 million. The last year of the contract is a team option nobody expects the Nets will end up invoking.
But the big difference is Carter signed his new deal at 30 ½. That's 2 ½ years younger than when Iverson is potentially eyeing a similar move.
The most years Iverson could command on a new deal is three. That's because a four-year deal would carry into when Iverson is 36. Salary-cap rules change if a player signs a deal beyond a 36th birthday, meaning Denver would take a huge financial hit if they signed Iverson to any deal beyond three years. There's no way the Nuggets would offer any such contract.
Nevertheless, some observers don't believe it makes sense for the Nuggets to sign Iverson to any sort of multi-year deal. After all, if Iverson sticks with his original contract, the Nuggets potentially could clear more than $20 million off their bloated payroll at the end of next season.
And Iverson, if he stuck with his original deal, could be quite a trade piece in the months leading up to next February's trade deadline. Teams likely would be lining up, offering draft choices and prospects, for a chance to clear $20 million off the cap thanks to an expiring contract.
But let's see what happens as Iverson ponders what to do by June 20. How low might Iverson be willing to go with next season's contract number?

Posted by Chris Tomasson at 6:50 PM | Comments (3)