Anderson Varejao has agreed to a contract with the Golden State Warriors, according to Shams Charania of The Vertical.
Andy Varejao has reached agreement with the Golden State Warriors, league sources tell The Vertical.— Shams Charania (@ShamsCharania) February 22, 2016
Varejao was cut by the Portland Trail Blazers earlier this week after being acquired from the Cleveland Cavaliers along with a first round draft pick. Since Varejao's 2015-2016 and 2016-2017 contracts had guaranteed salary remaining, the Blazers will still pay Varejao the remainder of his $10 million contract this season. Portland also elected to apply the "stretch provision" to Varejao's 2016-2017 guaranteed salary, and consequently suffers a cap hit of about $2 million annually for the next five seasons, per Basketball Insiders.
Terms of Varejao's contract with the Warriors have not been released, but if he signed for more than the veteran minimum it may slightly reduce Portland's salary obligation to him for the remainder of this season, in accordance with the NBA's set-off provision. The Blazers, however, are below the salary floor so any savings this year will not have a significant tangible effect on the team's finances.
Going forward, Blazers fans should root hard for Varejao to succeed with the Warriors. If he can earn a substantial contract next season it will reduce his cap hit on the Blazers for the remaining years of his contract. Specifically, the Blazers will be spared a dollar amount equal to about half of Varejao's contract next season in excess of the veteran minimum.
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