darknezx

How do teams clear cap in offseason? Aren't salaries supposed to match and there's no expiring contract? If so then how on earth are the Cavs gonna pull this one out?

MightyReds2020

...by trading players to teams under the salary cap for picks. Like Wagner to Atlanta for future picks just for an example.

darknezx

But I thought that both teams had to be under the cap else the assigned player exception would be invoked? Regardless of whether the team is moving up or down? Or is it because this is the offseason?

Storyteller

No, each team's viability for making a trade is considered independent of the other. If both teams have either cap room or exceptions big enough to make a trade, it's legal.

This makes 3 possibilities for trades:

1) Both teams are under the cap and each have enough cap room to absorb the player(s) they receive in trade.


2) One team has enough cap room to accept the player(s) it receives in trade. The other team would be over the cap after the trade is done, but has an exception (assigned player, trade exception, etc.) large enough to facilitate the deal.

Example - Utah traded a 2nd round pick to Sacramento for Keon Clark and two 2nd round picks. Utah was under the cap and had enough cap space to take Clark. Sacramento used the Assigned Player Exception to make the deal, which brought them a trade exception of about $5 million.


3) Both teams would be over the cap after the trade is done, but both have an exception large enough to facilitate the deal.

Example - Both Orlando and Houston used the Assigned Player Exception to facilitate their recent deal involving T-Mac and Steve Francis.

darknezx

But what do the Kings get in return? I thought draft picks had no value? If so what did the kings get in return for Keon Clark's salary, since they're over the cap?

Storyteller

Well, draft picks have "value", they just count as $0 for matching purposes in trades. Coincidentally, cash also counts as $0 for matching purposes in trades. But getting cash clearly has "value" to a team.

You might be making this too hard. The assigned player exception (as the FAQ points out) says that a team must take back less than 115%+$100,000 of what they give out.

In Sacramento's situation, they gave Clark (counted as $5 million for trade purposes) and two second round picks (each counted as $0 for trade purposes), so they had to take back less than $5.875 million.

They took back a draft pick which counted as $0 for trade purposes. Since $0 is less than $5.875, the trade works using the assigned player exception. It also means that Sacramento received a trade exception (which can only be given when the assigned player exception is used).

So, what did Sacramento get out of the deal? A draft pick and a sizeable trade exception. They also got $5 million in cap relief.

darknezx

Ah thanks alot, you really made my day after all the hair loss.