trade exception

[connerhenry43]

can someone explain to me exactly what a trade exception  is and why that seems to be so important in the rondo deal? Please pardon my stupidity, but I just do not fully grasp what it is.

[Chris22]

Traded Player Exception: If a team trades away a player with a higher salary than the player they acquire in return (we'll call this initial deal "Trade #1"), they receive what is called a Traded Player Exception, also known colloquially as a "Trade Exception". Teams with a trade exception have up to a year in which they can acquire more salary in other trades (Trade #2, #3, etc.) than they send away, as long as the gulf in salaries for Trade #2, #3, etc. are less than or equal to the difference in salary for Trade #1. This exception is particularly useful when teams trade draft picks straight-up for a player; since draft picks have no salary value, often the only way to get salaries to match is to use a trade exception, which allows trades to be made despite unbalanced salaries. It is also useful to compensate teams for losing free agents as they can do a sign and trade of that free agent to acquire a trade exception that can be used later. Note this exception is for single player trades only, though additional cash and draft picks can be part of the trade.

[Boris Badenov]

A trade exception allows a team that is over the salary cap to accept more salary in return than it has going out in trade. Up to the value of the exception.

Example: we used a TPE in the trade for Marcus Thornton. We acquired a guy making $8 million and sent out nothing but $8 in TPE dollars. We used another part of the same TPE to acquire Zeller and a Cleveland 1st.

This is valuable because when other teams want to dump salary they will look to us, and may offer sweeteners such as picks or prospects in return for taking on their garbage. We can also get involved in three-team trades more easily.

I've seen people talking about this TPE like it's a huge deal here, but I don't see it that way. It's more likely to be something that nets us a small positive return, IMO.

One thing I haven't seen any of the cap gurus discuss with this current TPE is whether we are less likely to use it because of luxury tax concerns. I still haven't sorted out how the Rondo deal leaves us cap-wise in 2015.

[D.o.s.]

Traded Player Exception: If a team trades away a player with a higher salary than the player they acquire in return (we'll call this initial deal "Trade #1"), they receive what is called a Traded Player Exception, also known colloquially as a "Trade Exception". Teams with a trade exception have up to a year in which they can acquire more salary in other trades (Trade #2, #3, etc.) than they send away, as long as the gulf in salaries for Trade #2, #3, etc. are less than or equal to the difference in salary for Trade #1. This exception is particularly useful when teams trade draft picks straight-up for a player; since draft picks have no salary value, often the only way to get salaries to match is to use a trade exception, which allows trades to be made despite unbalanced salaries. It is also useful to compensate teams for losing free agents as they can do a sign and trade of that free agent to acquire a trade exception that can be used later. Note this exception is for single player trades only, though additional cash and draft picks can be part of the trade.

No citation? Poor form.

Although I don't know if I'd cite Wikipedia in general, I certainly would if I plagiarized it.
http://en.wikipedia.org/wiki/NBA_salary_cap#Traded_Player_Exception

[connerhenry43]

thanks, guys, appreciate it. good info. I think this trade is a win for both teams

[Boris Badenov]

Traded Player Exception: If a team trades away a player with a higher salary than the player they acquire in return (we'll call this initial deal "Trade #1"), they receive what is called a Traded Player Exception, also known colloquially as a "Trade Exception". Teams with a trade exception have up to a year in which they can acquire more salary in other trades (Trade #2, #3, etc.) than they send away, as long as the gulf in salaries for Trade #2, #3, etc. are less than or equal to the difference in salary for Trade #1. This exception is particularly useful when teams trade draft picks straight-up for a player; since draft picks have no salary value, often the only way to get salaries to match is to use a trade exception, which allows trades to be made despite unbalanced salaries. It is also useful to compensate teams for losing free agents as they can do a sign and trade of that free agent to acquire a trade exception that can be used later. Note this exception is for single player trades only, though additional cash and draft picks can be part of the trade.

No citation? Poor form.

Although I don't know if I'd cite Wikipedia in general, I certainly would if I plagiarized it.
http://en.wikipedia.org/wiki/NBA_salary_cap#Traded_Player_Exception

Also I prefer my explanation, as that is written in the English language.

[blink]

Traded Player Exception: If a team trades away a player with a higher salary than the player they acquire in return (we'll call this initial deal "Trade #1"), they receive what is called a Traded Player Exception, also known colloquially as a "Trade Exception". Teams with a trade exception have up to a year in which they can acquire more salary in other trades (Trade #2, #3, etc.) than they send away, as long as the gulf in salaries for Trade #2, #3, etc. are less than or equal to the difference in salary for Trade #1. This exception is particularly useful when teams trade draft picks straight-up for a player; since draft picks have no salary value, often the only way to get salaries to match is to use a trade exception, which allows trades to be made despite unbalanced salaries. It is also useful to compensate teams for losing free agents as they can do a sign and trade of that free agent to acquire a trade exception that can be used later. Note this exception is for single player trades only, though additional cash and draft picks can be part of the trade.

No citation? Poor form.

Although I don't know if I'd cite Wikipedia in general, I certainly would if I plagiarized it.
http://en.wikipedia.org/wiki/NBA_salary_cap#Traded_Player_Exception

Also I prefer my explanation, as that is written in the English language.

me too