Celtics Granted DPE

[Donoghus]

Per Shams:

Shams Charania
@ShamsCharania
·
3m
Sources: The Boston Celtics have been granted a $3.29 million Disabled Player Exception by the NBA for the loss of Danilo Gallinari. March 10 deadline for the Celtics to use the DPE.

[boscel33]

Ownership won't spend it....

[hpantazo]

So no chance of Galinari coming back late this season then.

[Celtics2021]

So no chance of Galinari coming back late this season then.

While that's been true since he tore his ACL in late August, the technical answer is that being granted a DPE means an NBA doctor has determined that Gallinari is substantially more likely than not to miss the rest of the season.  It's also permitted by rule for him to return.  Being granted the DPE really doesn't change much.

[Roy H.]

So no chance of Galinari coming back late this season then.

While that's been true since he tore his ACL in late August, the technical answer is that being granted a DPE means an NBA doctor has determined that Gallinari is substantially more likely than not to miss the rest of the season.  It's also permitted by rule for him to return.  Being granted the DPE really doesn't change much.

Remind me...  If we trade Gallo, the DPE disappears?  But if we use the DPE and then trade Gallo, it's okay?

[Celtics2021]

So no chance of Galinari coming back late this season then.

While that's been true since he tore his ACL in late August, the technical answer is that being granted a DPE means an NBA doctor has determined that Gallinari is substantially more likely than not to miss the rest of the season.  It's also permitted by rule for him to return.  Being granted the DPE really doesn't change much.

Remind me...  If we trade Gallo, the DPE disappears?  But if we use the DPE and then trade Gallo, it's okay?

Correct.

[Celtics2021]

As a reminder, the biggest advantage a DPE this small provides is in signing a free agent after the deadline, because the exception doesn’t pro-rate (or at least not until around March 1st — I forget).  Right not the difference between the DPE and the minimum salary for a 10-year player is quite small, only a couple hundred thousand.  However, by the time the February free agency period arrives, the difference would be a couple million dollars, and might be enough to sway a player to Boston if he’s getting minimum salary offers from other teams.

It has very limited use for acquiring someone via trade, due to the small number of players who a) are on a non-minimum deal, b) on expiring contracts with no options, and c) make less than $3.3 million.  The majority of these players will be late 1st round picks that had their 3rd or 4th year options declined.  The most interesting of these to me is Udoka Azbuike, but that’s not terribly interesting.

[Vermont Green]

As a reminder, the biggest advantage a DPE this small provides is in signing a free agent after the deadline, because the exception doesn’t pro-rate (or at least not until around March 1st — I forget).  Right not the difference between the DPE and the minimum salary for a 10-year player is quite small, only a couple hundred thousand.  However, by the time the February free agency period arrives, the difference would be a couple million dollars, and might be enough to sway a player to Boston if he’s getting minimum salary offers from other teams.

It has very limited use for acquiring someone via trade, due to the small number of players who a) are on a non-minimum deal, b) on expiring contracts with no options, and c) make less than $3.3 million.  The majority of these players will be late 1st round picks that had their 3rd or 4th year options declined.  The most interesting of these to me is Udoka Azbuike, but that’s not terribly interesting.

Great info but to be sure I am clear, if we were to sign say Favors today, 9 games into the season, he would make 73/82 of the min contract of $2,905,851 or about $2.6M or we can offer him the full $3.3M with the DPE?  And as the season tick on, that delta gets even more?  I agree that this isn't much use as a trade exemption, we have plenty of other larger ones but it seems it could be a nice asset in trying to get a Vet FA in.

[nickagneta]

Question, since the DPE is for a player that is more likely than not out for the season, and since Boston is heavily into the tax, if the DPE is used, is it included into the end of year salary against the tax? Because if so, using the DPE could cost the team upwards of $12 million total due to luxury tax implications.

[Celtics2021]

Question, since the DPE is for a player that is more likely than not out for the season, and since Boston is heavily into the tax, if the DPE is used, is it included into the end of year salary against the tax? Because if so, using the DPE could cost the team upwards of $12 million total due to luxury tax implications.

There is no tax break with the DPE.  That’s one reason you rarely see them used.

[Celtics2021]

As a reminder, the biggest advantage a DPE this small provides is in signing a free agent after the deadline, because the exception doesn’t pro-rate (or at least not until around March 1st — I forget).  Right not the difference between the DPE and the minimum salary for a 10-year player is quite small, only a couple hundred thousand.  However, by the time the February free agency period arrives, the difference would be a couple million dollars, and might be enough to sway a player to Boston if he’s getting minimum salary offers from other teams.

It has very limited use for acquiring someone via trade, due to the small number of players who a) are on a non-minimum deal, b) on expiring contracts with no options, and c) make less than $3.3 million.  The majority of these players will be late 1st round picks that had their 3rd or 4th year options declined.  The most interesting of these to me is Udoka Azbuike, but that’s not terribly interesting.

Great info but to be sure I am clear, if we were to sign say Favors today, 9 games into the season, he would make 73/82 of the min contract of $2,905,851 or about $2.6M or we can offer him the full $3.3M with the DPE?  And as the season tick on, that delta gets even more?  I agree that this isn't much use as a trade exemption, we have plenty of other larger ones but it seems it could be a nice asset in trying to get a Vet FA in.

Yes, that’s what I’m saying.  It most useful post deadline, when there are the most free agents and the DPE has the largest delta with the minimum salary.

[footey]

So no chance of Galinari coming back late this season then.

While that's been true since he tore his ACL in late August, the technical answer is that being granted a DPE means an NBA doctor has determined that Gallinari is substantially more likely than not to miss the rest of the season.  It's also permitted by rule for him to return.  Being granted the DPE really doesn't change much.

Remind me...  If we trade Gallo, the DPE disappears?  But if we use the DPE and then trade Gallo, it's okay?

Correct.

Dang you guys are good.

[nickagneta]

Question, since the DPE is for a player that is more likely than not out for the season, and since Boston is heavily into the tax, if the DPE is used, is it included into the end of year salary against the tax? Because if so, using the DPE could cost the team upwards of $12 million total due to luxury tax implications.

There is no tax break with the DPE.  That’s one reason you rarely see them used.

That's what I thought. So if they use the DPE, maybe it's best to salary dump Gallo after signing the player resulting in a net savings. Send a future 2nd rounder, some cash and Gallo out for a TPE after bringing in the DPE player makes sense.

[sgrogan]

So no chance of Galinari coming back late this season then.

While that's been true since he tore his ACL in late August, the technical answer is that being granted a DPE means an NBA doctor has determined that Gallinari is substantially more likely than not to miss the rest of the season.  It's also permitted by rule for him to return.  Being granted the DPE really doesn't change much.

Remind me...  If we trade Gallo, the DPE disappears?  But if we use the DPE and then trade Gallo, it's okay?

Correct.

Dang you guys are good.

What type of rights do we have to the signed player (not via trade)
We can sign to 120% if we are over the cap?
EDIT: Even via trade do we get bird rights if otherwise eligible?

[Celtics2021]

So no chance of Galinari coming back late this season then.

While that's been true since he tore his ACL in late August, the technical answer is that being granted a DPE means an NBA doctor has determined that Gallinari is substantially more likely than not to miss the rest of the season.  It's also permitted by rule for him to return.  Being granted the DPE really doesn't change much.

Remind me...  If we trade Gallo, the DPE disappears?  But if we use the DPE and then trade Gallo, it's okay?

Correct.

Dang you guys are good.

What type of rights do we have to the signed player (not via trade)
We can sign to 120% if we are over the cap?
EDIT: Even via trade do we get bird rights if otherwise eligible?

You mean next season?  Yes, for a player signed with the DPE we could offer him up to a 120% raise.  For a player acquired via trade, we would whatever free agent rights his original team would have had (which in this case would potentially limit it to whatever his declined rookie option was, given most of the DPE-eligible players out there).