A Quick Note on Alonzo Gee’s Contract
Alonzo Gee was the recipient of multiple DNP-CDs this preseason. Yet he remains on the Spurs, even after surprise preseason standouts Curtis Jerrells and Marcus Cousin were traded and cut, respectively. Earlier this month, the Spurs intimated that, because of financial circumstances, the team was strongly leaning toward keeping 13 players, but this morning Mike Monroe reports the Spurs are happy to carry 14, for now at least.
What gives? Why is Alonzo Gee still on the team?
The obvious, and most crucial factor, is that Gee is a promising basketball player. Despite his underwhelming preseason, the Spurs see enough in him to further invest in his development. We could stop there.
But there are other considerations. Monroe reports that players under contract as of January 10 will become fully-guaranteed for the remainder of the season, which is true enough. Gee’s contract, however, is structured to include staggered guarantees (thanks, as always, to Bruno and Mark Deeks for this information). Gee’s $762,195 contract was guaranteed for 100,000 on July 1, and will become $200,000 guaranteed on November 25 and $300,000 guaranteed on December 20. Although these amounts are small with respect to typical NBA salaries, Gee is, in a sense, already paid for until November 24.
But the Spurs’ commitments to Gee aren’t exactly breaking the bank, which is the thing to bear in mind, with or without staggered guarantees.
Alonzo Gee’s D-League rights are held by the Austin Toros. If the Spurs eventually cut Gee (and he returns to the D-League), he would play for the Toros. If the Spurs keep Gee, they can simply allocate him to Austin once Toros training camp begins. Either way, the Spurs have a firm handle on Gee’s development, can guard themselves against losing him to another team, and all without any worries of Gee’s contract pushing them over the tax line.
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