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Trade exception question??
Posted by: Anthony Hansen on June 12th, 2012
The author's views are entirely his or her own and may not reflect the views of the Utah Jazz.Can a trade exception be used to trade for a draft pick straight up…Ex. 9.0 Million trade exception traded for a 2012 Draft pick??
Do we have any Trade exceptions left?
Replies: 8
Views: 506
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8 Responses
Im not sure exactly how that works with picks. … I wouldnt mind making some magic happen with New Orleans who is rumored to have interest in dealing their #10 pick in a deal if someone picks up Okafor or Ariza with the package. I like it. Ariza is due 7.7M on one more year of contract and we could pick up Lilliard or Marshell at # 10. another rumor that Damien Lilliard is scheduled for a jazz workout and his stock is flying.
NO.Each exemption(Lakers have three) must be used for a player only.Cannot be used for picks. After the player is picked it can be used. If the exemption is eight Million nd the players contract is for ten million then another player has to be thrown in.(Larry Coon Hoopsworld.)
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.
Per Wiki.
“The easiest way to describe it, since it’s the Christmas season,” O’Connor said, “(is) we were given a gift certificate for Memo’s salary to spend.”
The Jazz have until Dec. 22, 2012, to decide how to use that $10.8 million gift card.
The benefit is that Utah can trade for a player (or players) up to that amount without shipping off any of their own guys.
Also important is that trade exceptions (all exceptions really) help teams accrue players once they’re above the salary cap, which currently is $58 million.
Full article. http://www.deseretnews.com/article/700209664/Utah-Jazz-Making-sense-of-trade-exception.html
Im still thinking that “trade exeption” is the dumbiest way to make money.
soo dumbiest.
To USE your trade exception, you have to have a trade partner willing to give you a player for nothing in return.
This is teams wanting to reduce salary (which may start to pressure some teams now that the harsh new luxury tax terms of the new CBA will start kicking in after next year), teams with highly paid, not as good players behind a younger, lesser paid, good rookie (example: a $14M Al Jefferson when you have an up-and-coming $5M Kevin Love on a rookie contract).
So its not just like you can get just anyone. You’re probably going to get a slightly overpaid, pretty decent player out of a trade exception. The most likely thing though, is you get nothing, as the grand majority of trade exceptions just expire.
Really not so dumb.The Hawks have too much salary already dished out between just a few players.Enter Marvin Williams who soon will be due for an extention. They can’t because too much money is already promised. They could trade him but then they would bring back close to equal value. They might not want to lose him but by taking a trade exeption from the Jazz for eight to ten Million they could wipe that salary off the books. His salary would then be added to the Jazz books. After next season if he does not show his worth they can let him become a free agent.
haha my ’sooo dumbiest’ response was to Guido (I thought dumbiest was a great word is all), not a reference to using our trade exception. If we can use it to pick up a decent player, I’m all for it. Be it from Hawks, Charlotte, whoever.