Dec

12

Iverson To Sign Extension?

Posted by Stephen Rhodes under Main 

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If the comments from Denver Nuggets Allen Iverson and his manager mean anything, it sounds like A.I. wants to finish his career with the Nuggets. According to Benjamin Hochman of the Denver Post, there is interest on Iverson’s part to opt out of his current contract and then re-sign for another six years.

Iveson’s manager, Gary Moore, told the Post, “We love Denver. We love the opportunity of winning a championship here. We love everything about the Nuggets, from the organization to the fans.” If Iverson does choose to renegotiate, one catch - minor in my opinion - would be the NBA rule that affects contracts 4 or more years in length, which extend past a player’s 36th birthday. The rule, which is stated in the collective bargaining agreement, states the following: “Salary payable for seasons beginning after the player turns 36 is treated as deferred compensation in the seasons before the player turns 36 (and is therefore counted against the salary cap in those seasons).”

Iverson is currently earning $19 million this season and is scheduled to make $20 million next season, the final season of a 4-year deal worth $76.7 million. I have no clue what the Nuggets’ salary cap is, but the team is clearly better off with Carmelo and Iverson on the same team. But because Carmelo is younger, it may make financial sense to sign Iverson up - for 3 years, not 4. Otherwise you’re getting into deferred compensation issues that the Nuggets do not or are in no position to address.



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