Trade Exceptions and BYC Contracts

[timepiece33]

From what I understand NJ has a $3.8MM exception for Vince Carter and a $1.2MM exception for Ryan Anderson.   

Can someone please explain how NJ's trade exceptions could be used to help overcome 50% provision for Big Baby's BYC status?

[Jeff]

I'm interested in this as well.  Where's our capologist?

[Bulldog!]

It really does not help because Trade exceptions cannot be used to directly sign a free agent. Trade exemptions also cannot be combined with other exemptions (like a MLE or LLE). The only way that I can see it possibly helping, if it is used as part of a larger picture in a trade where the Celts just dump someone (TA or Scal) on NJ and get a trade exemption in return that they could use for Daniels. If this could happen, the Celts would probably be willing to take back less in talent from NJ in a Baby deal. However, this is extremely unlikely, since NJ already has 15 guaranteed contracts for this year. Taking back an extra player for their trade exemption would require them to waive some other players...not at all a cost effective move.

[Aeacus]

It really does not help because Trade exceptions cannot be used to directly sign a free agent. Trade exemptions also cannot be combined with other exemptions (like a MLE or LLE). The only way that I can see it possibly helping, if it is used as part of a larger picture in a trade where the Celts just dump someone (TA or Scal) on NJ and get a trade exemption in return that they could use for Daniels. If this could happen, the Celts would probably be willing to take back less in talent from NJ in a Baby deal. However, this is extremely unlikely, since NJ already has 15 guaranteed contracts for this year. Taking back an extra player for their trade exemption would require them to waive some other players...not at all a cost effective move.

Couldn't a trade exemption be used to avoid BYC problems in a sign and trade with BBD.  I thought they could be used in an unbalanced trade not just transfered to another team.  I don't think any of the sign & trade deals involve using the MLE or LLE of any teams (its all using bird rights), so that provision isn't a problem.  Just my very basic understanding/impression of them.

That being said I'd love to see what Roy Hobbes or any other capologist thinks about it.     

[Chris]

Well, I think the fact that NJ is a couple million below the cap makes this a bit of a moot point.  That makes it pretty easy for us to do a sign and trade with them, since we do not have to match salaries, as long as the amount of salary they are sending out is enough, that they will not be over the cap by taking on Davis.

So if the C's traded them Davis, signed for $4 million, then NJ could send back someone like Jarvis Hayes (who makes $2 million), and be done with it.  

But if they wanted to make a bigger deal (that required NJ to go over the cap), the TPE could come into play.  This is because Boston will only be able to count 50% of Davis' outgoing salary, while NJ would need to count 100% of it as incoming salary.  

So Boston could send Davis ($4 million X .5= $2 million outgoing salary) and then send Tony Allen ($2.5 million outgoing salary), who would be absorbed by the trade exception.  Meaning Boston has $4.5 million in outgoing salary, and can take on up to $5.725 million in salary (125% of 4.5 plus $100,000).

For NJ, they would only be counting Davis' $4 million in their incoming salary for matching purposes.  So they can send out $5.1 million in salary (say, Najera, and Boone).

[Brickowski]

A trade exception can be split between two players, but cannot be combined with other exceptions, such as the traded player exception (the rule that salaries have to match within 15%).

Think about trade exceptions this way:  teams have one year to complete trades.  Trade exceptions are the amount of salary that a team could have taken back in a trade, but didn't.  However, they still have a year to "complete" the trade by adding one or more players to use up the excess.  After a year, the trade is deemed complete and the exception goes away.