The Atlanta Hawks acquired F Carmelo Anthony and a 2022 1st Round Pick (Protected 1-14) for G Dennis Schroder and F Mike Muscala. The trade was made with the understanding that the Hawks would then waive Anthony, allowing him to become a free agent.
Atlanta inherited Carmelo's $27.9M expiring contract, and they have indicated that they will waive and not stretch his contract. Likely after Carmelo clears the waivers, he will be resigned by another team (likely: Houston Rockets) to a projected 10+ Year of Service Veteran's Minimum contract of $2.39M for one year. In doing so, this will initiate a set-off payment that counts against the $27.9M Atlanta owes Carmelo.
The set-off payment is structured as follows:
New Contract, Pro-Rated - .5(1 YOS Vet. Minimum Contract, pro-rated) = Set Off Payment
10+ YOS Vet. Minimum (Full Season) - .5 * (1 YOS Vet. Minimum (Full Season)) = Carmelo Set Off
$2,939,887 - .5 ($1,349,383) = $522,252.00
Atlanta will reduce the $27.9M owed by that amount, lowering it to $27.4M owed. Likely, Atlanta will also agree to a buy-out with Carmelo, meaning he will leave X amount of his contract on the table to walk away. For example, if they agree to a buy out of $8M, Carmelo will then be only owed $19.4M by the Hawks, paid in full this season.
I'm Jake, a recent graduate of Duke University pursuing a career in collegiate or professional basketball operations.
Cap #s 2018 - 2019
Salary Cap: $101.869M
Lux. Tax: $123.733M
Tax Apron: $129.827M
Tax Floor: $91.682M
Room MLE: $4.45M