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Magic Still Owe Arenas $38 Million

Posted By Matt Serio On October 25, 2013 @ 1:43 PM In NBA | No Comments

Magic_Gilbert_Arenas_1 [1]The Magic are paying Gilbert Arenas until 2016 after the club and the former guard mutually agreed to effectively restructure the remainder of his mammoth $111-million contract when he was amnestied two years ago, NBA sources told the Sentinel.

Under the league’s one-time amnesty provision, Arenas’ salary does not count against the Magic’s salary cap and luxury tax, meaning it will not affect their future free-agent plans.

The Magic used the “stretch provision” under the new CBA to spread out amnesty payments to Arenas beginning in 2012-13 and over the remainder of the contract – in this case, over a total of four seasons. It’s a move beneficial to the team in that it’s easier on the overall budget.

In a 2010 trade that sent Rashard Lewis to Washington for Arenas, the Magic were believed to have inherited about $62 million of the six-year, $111-million contract that Arenas signed with the Wizards in 2008.

Source: Brian Schmitz, OrlandoSentinel.com [2]


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[1] Image: http://www.sportstalkflorida.com/wp-content/uploads/2011/10/Magic_Gilbert_Arenas_1.jpg

[2] OrlandoSentinel.com: http://www.orlandosentinel.com/sports/os-mbb-schmitzs-take-magic-gilbert-arenas-2016-20131023,0,373419.post

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