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Why The Raptors Might Not Want to Take Back A TPE In A Bosh Deal

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  • #16
    Quixotic wrote: View Post
    I need to make a long-winded clarification on this (not just for you but anyone else who may still be confused), and hopefully it won't make it even more convoluted. =)

    TPE, or traded player exception, is used to refer to two different things. Usually, when we say "let's S&T Bosh for a TPE", we're referring to the trade exception credit (non-simultaneous trade aspect of TPE) that the team gets for taking back less salary in a 1-for-N trade (N being any number of players). TPE is actually the mechanism that oversees any and all trades by teams over the cap. Any time a cap team makes a simultaneous trade, it can take back no more than 125% +$100k of the salaries they are trading away (there is no limit on how little you take back, however).

    I usually call this the trade salary matching rule or simply the 125% +$100k rule so it's less confusing, but this falls under the simultaneous trade aspect of TPE. Thus, to say TPE is simply a way for a cap team to make an unbalanced trade isn't exactly correct. It's how a cap team makes ANY trade. Without this exception, no cap team can make trades, not for less, more, or even equal salary. We don't hear about it because it happens so commonly there's no reason to mention using the TPE to make the trade.

    The goal of the non-simultaneous aspect of TPE, however, is to allow cap teams to maintain their cap flexibility when they trade ONE player away for less salary. I don't have the exact numbers off-hand (and to make the example easier I'm going to round like crazy), but let's say Toronto had a payroll/cap number of $66 mil last year and $17 mil of that is Bosh's cap hold. Let's also say the salary cap for 2010-2011 is $56 mil (won't be determined until July 7th). If Bosh walks or is traded for only draft picks (no salary), then with Bosh's $17 mil completely off the books, we are down to $49 mil, or just $7 mil in cap space (which is why, as a lot of people tend to wonder, we can't simply replace Bosh with another max FA) and no MLE. By trading Bosh by himself (you can still trade Bosh and Turkoglu together, for example, and still get a TPE but it has to be possible to divide the paperwork into two separate 1-for-N trades), the TPE allows us to essentially complete the Bosh trade on a later date as if it was one big trade and not lose the use of the amount above the salary cap. The TPE credit granted is equal to 100% +$100k of the traded player's salary (instead of 125% +$100k of a simultaneous trade).



    There's no need to differentiate the duration of the TPE credit between non-simultaneous and simultaneous here because you simply do not get a TPE credit in a simultaneous trade. For example, Banks and Evans for a player with 80% of their salary is a simultaneous trade because it cannot be separated into two 1-for-N trades. Also, Bosh for Amare is also necessarily a simultaneous trade (even though it fits 1-for-N) because Amare's salary exceeds the 100% +$100k limit of a non-simultaneous trade. Even if you don't intend to "complete the trade" on a later date, if you trade Bosh for less than 100% +$100k of his salary, it's still deemed a non-simultaneous trade and you WILL get a TPE credit.

    And yes, like other people have already mentioned in this thread, while the TPE credit counts when determining whether you are above the cap (and thus, whether you will have the MLE available), it does not count as payroll for the purpose of the luxury tax. Thus, the only potential downside in a S&T are the contract obligations you receive in return, or the contract you trade for using the TPE credit, but never, ever, the TPE credit itself.
    Sorry. I wasn't listening. Can you repeat that?
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    • #17
      Tim W. wrote: View Post
      Sorry. I wasn't listening. Can you repeat that?
      I'm going to cry if I have to type that all over again!

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      • #18
        NBA Free Agent Rumors: Letting Chris Bosh Walk is an Option for Toronto Raptors
        by Os Kavcar Contributor
        Written on July 04, 2010

        Are you turned off by the way Bosh acts lately?

        Bryan Colangelo should be coming dangerously close to shooting down the circus we came to know as 2010 free agency period. Well Bryan, it is about time...

        Between tweets, dinners, covert meetings, people popping out of nowhere to pass out unfounded rumors, and worse yet, possible tempering, I don't think we would be able to look back after 10 years and find anything to be proud of.

        Toronto Raptors fans were initially shocked to hear that the front office might be fine with getting nothing in return for their franchise player. I am sure their first response did include at least one swear word.

        But if one carefully weighs the options and visualizes the possible outcomes, it should be fairly obvious to anyone with average vision why the Toronto Raptors front office has every right to think about standing up for themselves...........

        Believe me when I say this, that most of the fans already prefer getting nothing in return for Chris Bosh rather than getting someone to hinder those guys' development. If nothing else, they are tired of overpaid and underachieving players stealing minutes from young talents.

        Last but not the least, Bryan Colangelo is refusing to be pushover. He is aggressive and assertive and basically saying, "If we don't get something of value in return, we will not just get something to get something."

        He is also letting Chris Bosh know that if he wants the extra year and $30 million, he better start working with the team and help them to create a value of his departure.

        Toronto Raptors fans! Today, you should be proud of your general manager and stand by him. If anything, you will walk away with your dignity and self-respect.
        http://ht.ly/17ZKEQ
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