Details of Lamar Odom's New Contract

by Josh Tucker on Jul 31, 2009 2:51 PM PDT in Editorial

In case you were wondering, here is how Lamar Odom's new contract with the Los Angeles Lakers breaks down:

$25 Million over the first 3 years
$27 Million total if Lakers don't pick up 4th year option
$33 Million total if Lakers do picup up 4th year option

That fourth year is a team option, meaning that when that time comes, it will be up to Lakers management to decide if they want to keep Lamar Odom for that final year, or not. If they pick up the option, Lamar will be a Laker for that fourth year as well. If not, he becomes a free agent, explores the market, negotiaties with the Lakers and other teams, etc. You know the drill.

If the Lakers decide not to pick up Odom's fourth year option, they will still owe him $2 million in that fourth year, effecively bumping him up to $27 million for three years (even though that last $2 million won't be paid out until the fourth year). Here, then, is how it breaks down in terms of per-year salary:

$8.33 Million per year over first 3 years
$9 Million per year (total average) if Lakers don't pick up 4th year option
$8.25 Million per year (total average) if Lakers do pick up 4th year option

The bottom line: That fourth year represents a trade-off between salary and commitment. Odom is willing to take a little less per year if he gets a longer commitment, but if the Lakers decide to shorten that commitment, he winds up making more per annum.

It's like a sale at your local department store: "cheaper" and "better value" aren't necessarily the same thing. You may get a better value on the clothes you buy, but because you're motivated to take advantage of the sale, you may still end up paying more than you would have otherwise. Thus, your shopping trip was not "cheaper," but it was a "better value." That's what this is: the Lakers have the option of choosing between cost and value.

In the end, I think it's a good position to be in for both Odom and the team. So while it was quite a process, the end result is a contract that everyone can be happy about — including the fans, who should want to see Odom get as much he deserves, but without financially handicapping the team.

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Sun Yue has been waived

Lakers 2009 Road to Redemption: TREVOR, DEREK, LAMAR, PAU & KOBE.
Play the game of which Lakers reminds you of: TA - TI, Shannon Brown - Chris Brown, Pau Gasol - Jesus, Machine - Luis Scola/Russell Brand, PJ with mustache and beard - Colonel Sanders.

by PeanutButterSpread on Jul 31, 2009 3:43 PM PDT reply actions

NOOOOOOOOOOOOOOO

"This is not a game for boys. This is a game for men." - Phil Jackson

by Gils_Keloids on Jul 31, 2009 5:20 PM PDT up reply actions

lmao

I dont want to be the next Michael Jordan, I only want to be Kobe Bryant.

by PURPLE AND GOLD FOR LIFE on Jul 31, 2009 9:00 PM PDT up reply actions

THIS ISNT A LAUGHING MATTER! WE ARE SCREWEDD!!!! lets hope boston doesn’t sign him they are in the market for a pg.

by robi s on Aug 1, 2009 1:29 PM PDT up reply actions

Why God WHYYYYYY?!?

by DexterFishmore on Jul 31, 2009 6:14 PM PDT up reply actions

There goes our chance to repeat.

by intuitive on Jul 31, 2009 8:11 PM PDT up reply actions

LOL YA'LL CRAZY

Bye Sun Yue it was nice watching you play, hopefully someone will sign you

There are basic Fundamentals that are needed to move forward in this game. Always keep your guard up at all times to avoid being caught in a trap. Overcome the fouls that will be commited against you REBOUND AND PRESS ON. ADJUST to the LimeLight: ALL-STAR PLAYERS ARE ALWAYS THE CENTER OF ATTENTION. Know what your role is and play your position. Find a game plan and execute it. REMEMBER YOU ONLY GET OUT OF THE GAME WHAT YOU PUT INTO IT.

by BrittneyM on Jul 31, 2009 10:13 PM PDT up reply actions

Who?

I dont want to be the next Michael Jordan, I only want to be Kobe Bryant.

by PURPLE AND GOLD FOR LIFE on Jul 31, 2009 9:02 PM PDT up reply actions

Are you certain every year of the first three years is the same wage?

I find that hard to believe myself. I would hope the Lakers would try to pay him less in the first year, given the luxury tax implications. A free agent with Bird rights is eligible to receive raises of up to 10.5% of the base year compensation, so they could start him in the $7.6m range and scale it up over the three years. That would save about $1.5m next season in salary and luxury tax, if they did it that way, as opposed to dividing $25m evenly over the three years. It would make sense for them to do it this way when you consider the three expiring contracts, totaling roughly $10m, coming off the books after the 2009-10 season.

by Darkemans on Jul 31, 2009 4:06 PM PDT reply actions

Er, make that roughly $12m in expiring contracts. Forgot Ammo made that much.

by Darkemans on Jul 31, 2009 4:10 PM PDT up reply actions

:)

by intuitive on Jul 31, 2009 8:16 PM PDT reply actions

Thats right Lamar

sign right there and right here with the Lakers, great pic, this pic sums up the off-season for me.

by BrittneyM on Jul 31, 2009 10:14 PM PDT up reply actions

Intuitive

You are on top of things.

by wondahbap on Aug 1, 2009 5:52 AM PDT up reply actions

Mitch sure looks happy!

by lazNirv on Aug 1, 2009 12:24 PM PDT up reply actions

4 peat. Kobe is going to have 7

by jv52yankees on Aug 1, 2009 10:06 AM PDT reply actions

"Marc J. Spears and Adrian Wojnarowski of Yahoo! Sports are reporting that the NBA will release the league’s entire regular-season schedule to the public at 1 p.m. EDT on Tuesday, Aug. 4."

by intuitive on Aug 1, 2009 12:56 PM PDT reply actions

sweet, its weird how now we only play certain west coast teams 3 times a year. I hope portland, SA, and MEMPHIS are on that list for us!

by robi s on Aug 1, 2009 1:31 PM PDT up reply actions

The word in NBA circles is that Los Angeles Lakers assistant coach Kurt Rambis will be the next Timberwolves coach and Mychal Thompson, the former Gophers star and Lakers teammate of Rambis’ who now is a radio broadcaster for the Lakers, has made a strong recommendation. “I talked to David [Kahn] personally and told him you have to go after a guy like Rambis who knows what it takes to win in this league,” Thompson said. “He would take the job if it was offered to him. I know that. He would be a great teacher to guys like Al Jefferson and Kevin Love.” … Thompson’s youngest son, 18-year-old Trayce, just signed with the White Sox after being drafted in the second round of the baseball draft. A 6-4, 200-pound outfielder, Trayce Thompson had committed to UCLA, but after getting a $625,000 bonus, he reported to Bristol of the rookie Appalachian League this past week. Thompson’s other sons play college basketball: Mychel is a junior at Pepperdine and Klay is a sophomore at Washington State.

http://www.fannation.com/truth_and_rumors/view/112751

by intuitive on Aug 2, 2009 1:02 PM PDT reply actions

lame…. o well I wish you all the best KR. He deserves to be a head coach after all these years. I think Brian Shaw is gonna be our next coach once Phil is gone anway.

by robi s on Aug 2, 2009 2:43 PM PDT up reply actions