70. What is the Traded Player exception?
As described in question number 69, exceptions are the mechanisms that allow teams to function above the salary cap. Any trade which results in the team ending up over the salary cap requires an exception. This is true even if the team is moving downward in salary. For example, if the salary cap is $50 million, a team has a team salary of $55 million, and they want to trade a $5 million player for a $4 million player, they still have to use an exception. Even though their team salary would be decreasing by $1 million, the fact that they would still be over the salary cap ($54 million) means that an exception is required.
The Traded Player exception is the primary means used by teams over the cap for completing trades. It allows teams to make trades that leave them over the cap, but it places several restrictions on those trades. Trades using the Traded Player exception are classified into two categories: simultaneous and non-simultaneous. As its name suggests, a simultaneous trade takes place all at once. Teams can acquire up to 125% plus $100,000 of the salaries they are trading in a simultaneous trade. For example, a team trading a $5 million player in a simultaneous trade can receive one or more players whose salary is no more than 125% of $5 million, plus $100,000, or $6.35 million in return.
As described in question number 69, exceptions are the mechanisms that allow teams to function above the salary cap. Any trade which results in the team ending up over the salary cap requires an exception. This is true even if the team is moving downward in salary. For example, if the salary cap is $50 million, a team has a team salary of $55 million, and they want to trade a $5 million player for a $4 million player, they still have to use an exception. Even though their team salary would be decreasing by $1 million, the fact that they would still be over the salary cap ($54 million) means that an exception is required.
The Traded Player exception is the primary means used by teams over the cap for completing trades. It allows teams to make trades that leave them over the cap, but it places several restrictions on those trades. Trades using the Traded Player exception are classified into two categories: simultaneous and non-simultaneous. As its name suggests, a simultaneous trade takes place all at once. Teams can acquire up to 125% plus $100,000 of the salaries they are trading in a simultaneous trade. For example, a team trading a $5 million player in a simultaneous trade can receive one or more players whose salary is no more than 125% of $5 million, plus $100,000, or $6.35 million in return.
A non-simultaneous trade may take up to a year to complete, but the team can only trade away one player, and can receive no more than $100,000 more than the salary they trade away. Non-simultaneous trades are described in question number 71.
In short:
* A simultaneous trade gives the team more money but less time
* A non-simultaneous trade gives the team more time but less money.
It is important to view a trade from each team's perspective separately, rather than as a single, unified transaction. This is because the same trade may be organized differently according to each team's needs. For example, a trade might be classified as a simultaneous trade from one team's perspective, but from the other team's perspective it's actually broken into two trades, one simultaneous and the other non-simultaneous (completing a trade they made months earlier).
There are several restrictions on trades (either simultaneous or non-simultaneous) which are described in other questions in this FAQ. These include Base Year Compensation (question numbers 75, 76 and 77), sign-and-trade (question numbers 78, 79, 80 and 81), including cash in trades (question number 82), trading draft picks (question number 73), trade bonuses (question numbers 85 and 86), and no-trade provisions (question number 87). In addition, performance incentives can complicate trades (question number 63).
71. What is a non-simultaneous trade?
In some cases, teams have up to one year to acquire the replacement player(s) to complete a trade. These trades are considered non-simultaneous trades. In a non-simultaneous trade, a team can only acquire up to 100% plus $100,000 of the salary it gives up (as opposed to 125% plus $100,000 in a simultaneous trade). A trade in which more than one player is traded away can only be simultaneous; non-simultaneous trades are allowed only when a single player is traded away (although teams can sometimes find ways to configure multi-player trades as multiple single-player trades which are non-simultaneous).
In short:
* A simultaneous trade gives the team more money but less time
* A non-simultaneous trade gives the team more time but less money.
It is important to view a trade from each team's perspective separately, rather than as a single, unified transaction. This is because the same trade may be organized differently according to each team's needs. For example, a trade might be classified as a simultaneous trade from one team's perspective, but from the other team's perspective it's actually broken into two trades, one simultaneous and the other non-simultaneous (completing a trade they made months earlier).
There are several restrictions on trades (either simultaneous or non-simultaneous) which are described in other questions in this FAQ. These include Base Year Compensation (question numbers 75, 76 and 77), sign-and-trade (question numbers 78, 79, 80 and 81), including cash in trades (question number 82), trading draft picks (question number 73), trade bonuses (question numbers 85 and 86), and no-trade provisions (question number 87). In addition, performance incentives can complicate trades (question number 63).
71. What is a non-simultaneous trade?
In some cases, teams have up to one year to acquire the replacement player(s) to complete a trade. These trades are considered non-simultaneous trades. In a non-simultaneous trade, a team can only acquire up to 100% plus $100,000 of the salary it gives up (as opposed to 125% plus $100,000 in a simultaneous trade). A trade in which more than one player is traded away can only be simultaneous; non-simultaneous trades are allowed only when a single player is traded away (although teams can sometimes find ways to configure multi-player trades as multiple single-player trades which are non-simultaneous).
The Raptors current 2010-11 cap hold is $67.0 million. The expected cap for 2010-11 is now $56.1 million. In order for the Raptors to get below the cap they would have renounce their rights to Bosh. They could still do a sign and trade with him even if they renounced their rights to him. However, they could not then resign him.
This means that BC would have to basically give up the idea of signing Bosh and keeping him in order to get below the cap
If BC renounces the rights to Bosh the Raptors cap hold drops to $49.4 including Johnson's salary of the $3.6 million remains as part of the cap hold unless the Raptors renounce their rights to him which I seriously doubt that they will do because then they can not resign him even with the MLE.
34. Can the renouncement be renounced? In other words, can a team un-renounce a player and then sign him using a Bird exception?
Only in one specific circumstance -- when they renounce one or more of their players in order to create enough cap room to sign another team's restricted free agent, but the restricted free agent's original team matches the offer sheet and keeps him. If that happens, the team can rescind the renouncement. There are a couple exceptions to this -- they can't rescind a renouncement if doing so takes them from below the salary cap to above it; or if they are above the cap and rescinding the renouncement takes them farther above the cap than they were before the renouncement.
See question number 36 for more information on restricted free agency.
Only in one specific circumstance -- when they renounce one or more of their players in order to create enough cap room to sign another team's restricted free agent, but the restricted free agent's original team matches the offer sheet and keeps him. If that happens, the team can rescind the renouncement. There are a couple exceptions to this -- they can't rescind a renouncement if doing so takes them from below the salary cap to above it; or if they are above the cap and rescinding the renouncement takes them farther above the cap than they were before the renouncement.
See question number 36 for more information on restricted free agency.
This means that after the proposed trade with Philly unless the Raptors renounce their rights to Bosh they will be over the salary cap which will require that the difference in the salary that they are taking on is no more than 125% + $100,000 of the salary which they are giving up, which would not be the case here. Therefore I think that this trade as proposed would only work if the Raptors renounced their rights to both Bosh and Johnson.
So the Calderon and 14th pick for Brand and the 2nd pick will not work according to the cap rules unless the Raptors say buy out Evans or Banks and renounce their rights to them and they sign with another team or retire along with renouncing their rights to Bosh and Johnson.
If the Calderon plus the 14th pick for Brand and the 2nd pick won't work, all the more so replacing Calderon with Jack won't work because Jack makes less money and this trade would fall even more outside the 125% + $100,000 difference.
http://hoopshype.com/salaries/toronto.htm
http://members.cox.net/lmcoon/salarycap.htm#Q34
I want to give a shout out to Tim W and thank him for nudging me to go the CBA FAQ rules which refreshed my memory on the trading rules and even added some new knowledge as a result of putting together this post. Hat tip to Tim W.
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