Trade Exception How does work, and which NBA teams can use it?
At first glance, the Boston Celtics will have a difficult time returning to the NBA Finals next season. They will most likely become a team that needs to pay the luxury tax, which means they have lost the space to sign contracts above the mid-level exception of $6.3 million. All of their main rotations next season are under contract.
So what can Celtics President of Basketball Operations Brad Stevens do as the main team-building leader? Stevens There are also some cards that can be played in the form of trading player exceptions, usually referred to as TPEs (for ease of understanding, the translator will hereafter refer to them as "trade exceptions").
Boston has been a fan of the trade exception in recent seasons, and the team's salary cap flexibility has allowed them to make impactful moves without raw cap space. The Celtics are one example of these trade exceptions allowing competitors to maintain flexibility. With more than two-thirds of the league's teams hitting the salary cap this summer, the trade exception is like a secret staircase for these teams striving to reach NBA glory.
So how exactly are they used, and which teams can take advantage of them this summer?
In the NBA, trades cannot be made with a completely balanced salary situation. Therefore, if a team sends more salary, the difference becomes a trade exception under the collective bargaining agreement. Teams can absorb future player salary into trade exceptions in future deals, bypassing any limitations on the salary cap edge.
NBA official website reporter Steve Ochiburner compared the trade exception to a gift card. The metaphor means that trade exceptions can "buy" players' salaries, but trade exceptions also expire one year after the original trade that created them.
Here is a recent example: Boston completed a sign-and-trade deal with the New York Knicks on July 18 last summer, sending Evan Fournier and a second-round pick to New York in exchange. cash. Since Boston gave away Fournier 's salary and only received part of the cash back, it created a transaction exception. The US data website Spotrac estimated the value at about $17.1 million. The Celtics can now acquire a player (or players) using the trade exception until July 18.
looks like a smart move, right? Yes, it is, but the trade exception doesn't just exist to break the rules and consequences of the collective bargaining agreement. Here are some important takeaways from Eric Pinks:
- Teams can't pile up trade exceptions. For example, if the Celtics wanted to trade for LeBron James , they couldn't combine all of their various exceptions into one super trade exception to absorb his salary. Each player salary can only correspond to one transaction exception.
- The trade exception does not replace the hard salary cap (luxury tax line). This will particularly impact the Celtics, as they are approaching the hard salary cap and could potentially make the Fournier trade exception, for example, less valuable than it should be.
While this is not a rule or a given, a team looking to acquire a trade exception may have to trade additional pieces to create it. The Knicks won't simply let Boston get a trade exception, so they plan to get an extra draft pick. Similarly, when Boston sent Gordon Hayward to the Charlotte Hornets, a huge $28.5 million trade exception was created, and Charlotte also received two second-round picks from the Celtics. right.
Sometimes, transaction exceptions are a natural by-product of a transaction. In other cases, they are valuable.Dozens of trade exceptions are scattered across the league, but most are contracts that are too small to absorb any players.
The following are teams with trade exceptions worth more than $5 million (data from Spotrac website), which can theoretically acquire a rotation player.
Boston Celtics
We’ve already discussed the Celtics, but going back to the Fournier trade exception, it’s unlikely they’ll use the full $17.1 million in space (Matt John detailed it on Heavy.com ). It could still add a rotation player with the ability to shoot on the move, thickness at center, and scoring ability off the bench. The Celtics also have a trade exception valued at $6.9 million (from the trade of Juan Hernangomez to San Antonio) and $5.9 million (from the trade of Dennis Schroder to Houston).
Boston used this method last summer. They sent Tristan Thompson to get Kris Dunn in a three-way trade with the Sacramento Kings and Atlanta Hawks . The Celtics used a $5 million trade exception to absorb Dunn's salary, which resulted in a larger trade exception from Thompson, which they later used to absorb Daniel Theis salary. This is an example of one of their clever ways of dealing with the rules of the system. But again, when you hit the luxury tax line, your options become limited.
Brooklyn Nets
The Nets have two solid trade exceptions to work with. One of them was obtained during the sensational departure of James Harden. Brooklyn also has a $6.3 million trade exception from the trade of DeAndre Jordan to the Pistons.
Brooklyn has some time to use the Harden TPE, which will expire in February 2023. But the Jordan trade exception will expire on August 19.
It's obvious that Brooklyn's roster situation is constantly changing with rumors surrounding Kyrie Irving and Kevin Durant . If the Nets renew Irving , they will likely exceed the hard salary cap and will not be able to maximize the use of these trade exceptions. Sean Marks and the front office salary cap management team have their work cut out for them in customizing the package.
Chicago Bulls
Chicago has a trade exception that came from when they sent Daniel Theis to the Rockets, worth $5 million. This trade exception is unlikely to become a meaningful asset, but if bull wants to use it, they have until July 7th to do so.
Dallas Mavericks
In the process of trading Josh Richardson to Boston last year, Dallas received a trade exception worth just under $10.9 million. This special case may become a useful tool for Lone Ranger , but it will officially expire today! The Mavericks are on the verge of becoming a hard salary cap team, so unless things change within minutes of writing this, this trade exception won't result in a player being acquired.
Detroit Pistons
According to ESPN's Bobby Marks, Detroit will trade Jerami Grant to the Portland Trail Blazers , with a short-term trade exception of 9.2 million. However, Marks reported that the Kemba Walker salary received in the draft night operation (which also acquired Jaylen Duren) will be absorbed into this trade exception before the buyout. For the Pistons, it's some quick ploy to land the exciting talent lottery in Duren.
Indiana Pacers
Here's an interesting example. The Pacers have two notable trade exceptions: one from the $10.5 million trade exception that brought Jeremy Lamb to Sacramento, and one from the deal that brought Doug McD Mote was traded to San Antonio for a $7.3 million trade exception. Indiana is expected to be a rare team with huge salary space this offseason, and Indiana, as a team that will not rebuild, can use these trade exceptions in a variety of ways.
Perhaps Indiana sees an opportunity to add two rotation players to the roster and make a push for the playoffs . The playoffs seem unlikely with the current 2022-23 roster, but you never know, and Indiana does have a reputation for being a tough competitor.
Or maybe the Pacers have a long-term plan and use these trade exceptions to acquire players with junk contracts, along with draft picks and young players. This is a way for the Pacers to stack up their draft pick pool without sacrificing flexibility. The McDermott trading exception will expire on July 7, and the Lamb trading exception will expire in February 2023. I expect at least one to be used, if not both.
Los Angeles Clippers
The Clippers are another team over the hard salary cap. But they do have two trade exceptions that deserve attention. One of the exceptions worth $9.7 million was the deal between Serge Ibaka in February this year. Another trade exception worth $8.3 million came from the trade of Rajon Rondo to the Memphis Grizzlies. Again, I'm skeptical that these two trade exceptions will be used, but as a playoff contender who won't hit free agency for a while, they're worth mentioning.
New Orleans Pelicans
The Pelicans received a $17 million trade exception in the trade that sent Steven Adams to the Grizzlies last offseason. They've almost been rewarded in harvesting Larry Nance Jr. . New Orleans absorbed Nance's $10.7 million salary into the trade exception in the trade that acquired him last season. Still, they have roughly $6.4 million left, which they could use to add another player.
Portland Trail Blazers
In the process of obtaining Jerami Grant's 20 million salary, Portland maximized the use of his big trade exception obtained in the CJ-McCollum transaction. Trailblazer still has a $6.9 million deal exception available. They are expected to maintain some cap space, which could be an additional opportunity for them to take advantage of.
Toronto Raptors
Raptors There are some smaller trade exceptions, the most noteworthy of which is a $5.2 million trade exception from the Goran Dragic trade. Toronto is already over the salary cap, but will likely squeeze in one more player within the luxury tax line.
Utah Jazz
Traded Joe Ingles to Portland to give Utah a $9.7 million trade exception. Considering they need to find a spark after another disappointing playoff appearance, the Jazz should find a way to use this exception, ideally with a perimeter defender who can provide Rudy Gobert support or A frontcourt player.
Washington Wizards
Washington has three trade exceptions worth between $3 million and $6 million. While they can't stack up, and the Wizards can use the $5.2 million trade exception (received in the trade of Montrezl Harrell to Charlotte) to add some depth at guard or wing.As long as Bradley Beal is around, this team will be looking for opportunities in the playoffs, and these trade exceptions can help them get there.
