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Thread: Trade Exceptions, Who's Got'em?

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    Raptors Republic Rookie robito's Avatar
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    Default Trade Exceptions, Who's Got'em?

    Recently I've been fantasizing about ways to bring Darren Collison to Toronto, and I've realized the only real option we'll have to get him here would be to use a trade exception. New Orleans is over the luxury tax, and they're desperately trying to get under, and would use Collison as bait for teams to take on some of their bad contracts (i.e. Okafor, Posey). We could offer a package including our expiring contracts to New Orleans, but they would have to arrange buyouts with Banks and Evans, which might be undesirable for a small market team in a bad economy. A trade exception would allow us to take on the contract of Okafor while New Orleans would get under the tax.

    Now the hard part. How do we secure a trade exception and who has them? I really don't know much about the details here, but I've heard rumblings about Miami having a large trade exception at their disposal? Perhaps in a Bosh S&T we could get their trade exception and use it to acquire Okafor and Collison?

    If anybody else has any knowledge on how a trade exception works, and where we could feasibly acquire one, maybe you could pass that knowledge on to the rest of us.

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    You guys are great, I just mentioned this on the thread talking about the MLE and boom, a TPE thread is created. This is called quality customer service.

    Ok onto the thread topic I'm not as high on Okafour really bad work ethic has disappointed everywhere he went and playedplus long oversized contract. Collison is nice but not worth the baggae.
    Here are some scenarios I want to inquire about. Assume we have a $17M-$20M, who would be most interested in a S&T for that TPE? Hypotheically would GSW be interested Bidrens and Monte? Would we be able to get someone like Rudy gay with the TPE and how? If we promise him money more than Mempphis would give him could he force them into a deal using our TPE? Another player is Haywood how would TPE benefit us if say we would ever think of acquiring a defensive minded centre? Especially with a team that is not afaird of paying tax like Dallas? Could we entice Amare with a S&T how would TPE help?
    In a nutshell who are the teams that would be interested in dealing with us and wh do we (realistically) expect to net out of this?

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    Quote robito wrote: View Post
    Recently I've been fantasizing about ways to bring Darren Collison to Toronto, and I've realized the only real option we'll have to get him here would be to use a trade exception. New Orleans is over the luxury tax, and they're desperately trying to get under, and would use Collison as bait for teams to take on some of their bad contracts (i.e. Okafor, Posey). We could offer a package including our expiring contracts to New Orleans, but they would have to arrange buyouts with Banks and Evans, which might be undesirable for a small market team in a bad economy. A trade exception would allow us to take on the contract of Okafor while New Orleans would get under the tax.

    Now the hard part. How do we secure a trade exception and who has them? I really don't know much about the details here, but I've heard rumblings about Miami having a large trade exception at their disposal? Perhaps in a Bosh S&T we could get their trade exception and use it to acquire Okafor and Collison?

    If anybody else has any knowledge on how a trade exception works, and where we could feasibly acquire one, maybe you could pass that knowledge on to the rest of us.
    This is how a TPE is created:

    For some background, a team over the cap can only take on 125% of the outgoing contracts plus $100k. Thus, to take in $12.6 mil in salary, that team must send out at least $10 mil in salary. However, in a non-simultaneous trade (how TPEs are created), the 125% plus $100k above becomes only 100% plus $100k. Remember this last part; it will come in handy below.

    Team A trades player with $10 mil salary to Team B for two players worth $2.5 mil each (Team B is of course below the cap sufficiently to take on the extra $5 mil in salary). Because Team A only trades 1 player, they are allowed to make this a non-simultaneous trade (compare: if Team A traded two players worth $5 mil each, it cannot be a non-simultaneous trade even though the numbers are the same). Because a non-simultaneous trade has a 100% plus $100k limit (from above), you can technically take back $5.1 mil (the difference between salaries plus the $100k), and this becomes a TPE worth $5.1 mil that you can use to complete the trade up until the end of the year -- up through 11:59 pm of June 30th -- or trade to someone else.

    Because anything that happens with Bosh will come on or after July 8th, there won't be any TPEs to acquire from another team (all the ones from this year will have expired), but we can still create new ones by trading a player to a team able to take the difference in salary. An example would be trading Bosh and Turkoglu to Miami in two separate deals, which would net us two TPEs worth $16.67 mil and $9.90 mil each. I don't know if New Orleans would find TPEs attractive, but they would certainly be more attractive than sending Turkoglu + expirings since it saves them the entire amount this year. Mind you, TPEs cannot be combined to take on a contract bigger than each one individually.
    Last edited by Quixotic; Sun Jun 27th, 2010 at 11:40 PM.

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    Quote thomas1 wrote: View Post
    Here are some scenarios I want to inquire about. Assume we have a $17M-$20M, who would be most interested in a S&T for that TPE? Hypotheically would GSW be interested Bidrens and Monte? Would we be able to get someone like Rudy gay with the TPE and how? If we promise him money more than Mempphis would give him could he force them into a deal using our TPE? Another player is Haywood how would TPE benefit us if say we would ever think of acquiring a defensive minded centre? Especially with a team that is not afaird of paying tax like Dallas? Could we entice Amare with a S&T how would TPE help?
    In a nutshell who are the teams that would be interested in dealing with us and wh do we (realistically) expect to net out of this?
    I can't guess at what teams want to trade for TPEs or whether Golden State would trade Biedrins and Ellis for TPEs (this is something for GMs who make phone calls, not us armchair GMs), but as for Gay, we can't promise him more money unless we trade some people like Turkoglu away, since we effectively have no cap room (there is a scenario without trades in which we would end up with some cap room, but it would involve Bosh leaving the team for nothing and us not signing a single FA, including Amir, so let's just ignore that for now).

    However, if say Miami trades a draft pick to us for Bosh, we'd have a $16.67 mil TPE (as you suggested above) to offer Memphis. We still cannot offer more money because a TPE is only used for trades and not free agent signings, but technically Memphis could do a S&T with us for our TPE. That would require Gay to actually want to play for us though, and to not have signed anywhere by that time (doubtful). Also, I think Gay can't have signed an offer sheet either, because if Memphis matches, it would simply create a contract with them.

    Haywood is a FA IIRC, so the only way the TPE would help there is if Dallas wanted a TPE rather than simply letting Haywood walk. I don't know whether Dallas has Haywood's Bird rights so if they don't, it wouldn't be very helpful to us at all since Dallas would have to use part of their MLE to sign Haywood (unless Haywood signs for the minimum). Either way, I think Dallas wants to keep Haywood, but all the examples above should help you to see how it might or might not work with some team's Bird rights FA, non-Bird rights FA or simply RFA. Rinse and repeat for the other FAs you mentioned (it really doesn't do much good wondering about each one separately =P).
    Last edited by Quixotic; Sun Jun 27th, 2010 at 11:42 PM.

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