FanPost

Does the rumour of Peja's buyout...


suggest that the Raptors are about to use some of their TPE? 

I read/heard that the Raptors may work out a buyout with Peja.  When vet's with expirings are bought out, they typically do not really leave any money on the table.  What they usually figure out is how much they would get paid for the rest of the year if they signed for the veteran minimum somewhere else, and subtract that amount off of the total that the team owes them for the season.

So Peja could be signed by any team either under/over the cap/tax for the prorated amount of the 10+year veteran minimum of 1,352,181 per year.  So lets say the Raptors are able to get him to accept 65% offf of that amount.  Then the Raptors would have to pay him 849 thousand lessover the course of the year. 

The Raptors are currently just about 3.8 miilion under the luxury tax thresh-hold.  If they are planning on using more than that amount of the TPE in a deal, the 849 thousand savings from the Peja buyout would essentially double because you pay dollar for dollar on the amount you are over the tax.

Note: Peja could accept a buyout that pays him even less money (and saves the Raptors even more), but this is not usually the case.

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