Hoops Rumors Originals

Hoops Rumors Glossary: Traded Player Exception

While relying on ESPN.com’s Trade Machine may be the simplest way to verify whether or not a trade will work under NBA rules, it’s worth examining the primary tool in the league’s Collective Bargaining Agreement that determines a trade’s viability — the traded player exception.

Teams with the cap room necessary to make a trade work don’t need to abide by the traded player exception rules. However, if a team makes a deal that will leave its total salary more than $100K above the salary cap, the club can use a traded player exception to ensure the trade is legal under CBA guidelines.

There are two different types of traded player exceptions used in NBA deals. One applies to simultaneous trades, while the other applies to non-simultaneous deals. In a simultaneous trade, a team can send out one or more players and can acquire more salary than it gives up. In a non-simultaneous trade, only a single player can be dealt, and the team has a year to take back the equivalent of that player’s salary, plus $100K.

Let’s look into each scenario in greater detail….

Simultaneous:

In a simultaneous trade, different rules applies to taxpaying and non-taxpaying clubs. A non-taxpaying team can trade one or more players and take back….

  • 175% of the outgoing salary (plus $100K), for any amount up to $6,533,333.
  • The outgoing salary plus $5MM, for any amount between $6,533,333 and $19,600,000.
  • 125% of the outgoing salary (plus $100K), for any amount above $19,600,000.

Here’s a recent example of these rules in effect:

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2018 Free Agent Stock Watch: Washington Wizards

The Wizards made the bold decision to commit max money to three organization grown players long-term and will permanently have their hands full managing their finances as a result. In order to make the strategy work, they’ll need to be responsible with where they spend the rest of their budget.

While the club already projects to dip into the luxury tax this season and next (with over $29MM in guaranteed money tied up in Marcin Gortat and Ian Mahinmi in 2018/19 alone), they’ll get a chance to practice financial restraint this summer with a handful of free agents that they can afford to part ways with if they feel the need to.

Tim Frazier, PG, 27 (Down) – Signed to a two-year, $4.1MM deal in 2016
One season removed from a fantastic stint as a spot starter in New Orleans in 2016/17, Frazier hasn’t had much of an impact since coming over in a draft day trade last June. The Wizards were in need of a reliable backup point guard when they targeted Frazier but seem to have grown comfortable with the idea of Tomas Satoransky handling backup point guard duties in John Wall‘s absence. For that reason, Frazier will probably have to choose between rounding out the club’s rotation as a third-string playmaker or look elsewhere.

Sheldon Mac, SG, 25 (Down) – Signed to a two-year, $1.8MM deal in 2016
A torn Achilles has rendered Mac unable to suit up in 2017/18. He’ll hit restricted free agency in the summer but don’t expect any suitors until he can prove that he’s healthy enough to battle for a rotation spot. That’ll likely have to happen in the G League.

Chris McCullough, PF, 23 (Down) – Signed to a three-year, $3,8MM deal in 2015
The Wizards, to this point, have shown little interested in working McCullough into their rotation. The 23-year-old showed some flashes of promise during his rookie campaign with the Nets in 2015/16 but then again many fringe NBA players have looked half-decent in Brooklyn’s lineup the last few years. If all goes well, McCullough will find another squad to break training camp with next fall. It’s hard to say whether or not there will be much more beyond that.

Jodie Meeks, SG, 30 (Up) – Signed to a two-year, $6.7MM deal in 2017
After several years of struggling to stay on the court, Meeks has shown that he can contribute modestly off the bench. While his player option for 2018/19 comes in at a rather cheap $3.5MM for a player with his experience, don’t be surprised if the veteran elects to return. There may be a team out there willing to give the career .417 three-point shooter more than that on the open market but an argument can be made that Meeks could benefit more in the long run from simply focusing on staying healthy and relevant where he is, while worrying about free agency in 2019.

Mike Scott, PF, 29 (Up) – Signed to a one-year, $1.7MM deal in 2017
The Wizards got a key rotation piece for dirt cheap over the summer and the forward has done nothing but raise his stock over the course of the season. Expect teams to take an interest in the veteran role player with impressive efficiency numbers and the ability to put points on the board. Washington would likely be happy to retain him but will be limited in what they can offer him.

Jason Smith, C, 32 (Down) – Signed to a three-year, $15.7MM deal in 2016
Smith hit free agency at the perfect time back in 2016. This summer, in contrast, teams won’t be so willing to cough up significant money for career reserves with forgettable portfolios. Smith’s stints with the Magic, Knicks and Pelicans hardly justified the contract he signed two summers ago but he’s done even less since arriving in Washington. For that reason, expect him to accept his $5.5MM player option.

Photo courtesy of USA Today Sports Images.

Players Who Are Ineligible To Be Traded At Deadline

At the start of any NBA season, there’s generally a long list of players who can’t be traded. Most of those players signed new contracts during the offseason and subsequently don’t become trade-eligible until at least December 15. Offseason signees who meet certain criteria don’t have their trade restrictions lift until January 15.

Now that both of those dates are behind us, the list of players who are still ineligible to be traded has shrunk considerably. However, there are still several guys around the NBA who won’t have to worry about hearing their names pop up in trade rumors this week, since they can’t be dealt.

Here’s a breakdown of the players who aren’t eligible to be traded at this Thursday’s deadline:

Designated Veteran Extension recipients:

The Designated Veteran Extension, a super-max deal introduced in the NBA’s new Collective Bargaining Agreement, made its debut during the 2017/18 league year, and the four players listed above were the first stars to receive the new form of extension. Once a player signs a Designated Veteran Extension, he’s ineligible to be traded for one year, which means that Curry (July 6), Harden (July 7), Wall (July 26), and Westbrook (September 29) can’t be traded for a while — not that they would have been anyway.

Veteran contract extension recipients:

Aldridge, Covington, Powell, and Richardson didn’t get Designated Veteran Extensions, but they did all sign veteran contract extensions that exceeded the very restrictive limits of an extend-and-trade transaction. As such, they can’t be traded for six months after signing their new deals. All four players signed their extensions between September 18 and November 17, meaning their trade windows won’t open until after the regular season.

Recently signed players:

The NBA’s trade eligibility rules dictate that a player who signs with a team as a free agent can’t be traded for three months or until December 15, whichever comes later. That’s why most players who sign in July aren’t trade-eligible until December 15. For players who sign after September 15 though, that three-month restriction applies.

In the case of the players listed above, their deals were signed sometime after November 8. That means their three-month restriction won’t lift in time for the February 8 trade deadline.

As for Gray and Okafor, marked with asterisks, they’re simply on 10-day contracts, making them ineligible to be moved.

Note: This list doesn’t include players with the ability to veto trades or players on two-way contracts.

Four Common Misconceptions About NBA Trades

The NBA’s Collective Bargaining Agreement is a complex and often confusing document outlining the rules related to player contracts, trades, the salary cap, and much more. These rules are convoluted enough that we introduced a Hoops Rumors Glossary dedicated to unpacking a number of CBA intricacies and breaking them down in simpler terms.

While our readers are far more familiar than the average NBA fan with the terms and rules found in our glossary, we still see a few of the same trade-related questions and misconceptions surface in the comment sections of our articles or in the replies to our tweets. So, with the February 8 trade deadline right around the corner, we wanted to address a few of those misconceptions, ensuring that you have an even clearer sense of what sort of deals can and can’t be made this week.

Let’s dive right in…

Misconception #1: A player can’t be traded twice in a row.

There are a number of rules in the CBA that limit a team’s ability to reacquire a player after trading him. For instance, the Bucks weren’t able to re-sign Greg Monroe after the Suns bought him out last week, since Milwaukee traded Monroe to Phoenix earlier this season. The Celtics currently aren’t able to reacquire Avery Bradley in a trade, since they dealt him to Detroit at the start of the 2017/18 league year.

However, even though the Celtics and Pistons can’t currently acquire Bradley from the Clippers, the veteran guard is eligible to be traded again this week. The CBA only prevents the Clips from aggregating Bradley’s salary with another player’s salary in a trade for two months after acquiring him.

What exactly does that mean? Well, Bradley is currently earning $8,808,989. So if the Clippers want to acquire a player earning $20MM by packaging Bradley with Austin Rivers (whose salary is $11,825,000), they wouldn’t be able to do so, since Bradley’s salary would have to be aggregated with Rivers’ to match that $20MM cap figure. But if the Clips simply want to acquire a player earning $9MM, sending out Bradley on his own would be fine, since his salary isn’t been aggregated with another player’s salary in that scenario.

This doesn’t mean that Bradley has to be the only outgoing piece in any trade involving him. For instance, if the Clippers wanted to trade Bradley and DeAndre Jordan ($22,642,350) for a player earning $25MM, that would be okay. Jordan’s salary on its own is large enough to “match” a player earning $25MM, so Bradley’s salary doesn’t need to be aggregated with Jordan’s, even though it’d be a two-for-one deal.

Misconception #2: Injured players can’t be traded.

This misconception may be rooted in the NBA 2K video game series, which has historically prevented users from trading injured players. Despite existing in the game, this rule doesn’t exist in the real NBA.

Players involved in a trade generally must pass physical examinations with their new teams before a trade is made official, and there are certain situations in which this becomes problematic. At the 2016 trade deadline, for example, a three-team trade fell apart when the Pistons voided the agreement over the results of Donatas Motiejunas‘ physical.

More recently, the Cavaliers‘ concerns over Isaiah Thomas‘ physical last August delayed the completion of their blockbuster trade with the Celtics by a week, with Boston ultimately sending another draft pick to Cleveland to help ease the Cavs’ concerns.

In each of those cases though, the problem wasn’t that a player involved in the deal had health concerns — it was that one team was caught off guard by the extent of those health concerns. If an injured player needs to be included in a deadline deal for salary-matching purposes, there’s no rule stopping that. The team acquiring that injured player just needs to be on board — and willing to waive the requirement that the player must pass his physical.

Misconception #3: A team can agree to pay a player’s salary when trading him away.

In an MLB trade, a team can trade a player with, say, $25MM left on his contract and agree to pay most or all of that salary. That flexibility makes it a little easy for teams to dump overpaid players from their roster, and a club’s willingness – or lack thereof – to pay a traded player’s salary will often have an impact on what kind of return the club gets for its player. Pay that entire $25MM in remaining salary, and maybe you’ll get a good prospect or two in exchange.

NBA trades don’t provide this same kind of financial flexibility. A team can include cash in a trade, but there are annual limits on how much can be sent or received in trades, and that money isn’t technically applied specifically to a player’s salary.

There are ways to get around this rule in certain cases. A July 2017 trade between the Heat and Mavericks is a good case study. In the deal, Dallas acquired Josh McRoberts ($6,021,175 cap hit), $5.1MM in cash, and a future second-round pick from Miami in exchange for A.J. Hammons ($1,312,611 cap hit). The Heat desperately needed a little more cap room to finalize agreements with Dion Waiters, James Johnson, and Kelly Olynyk, and since cash included a trade doesn’t count toward either team’s cap, the McRoberts/Hammons swap allowed Miami to clear $4,708,564 in cap room, the difference between the two players’ salaries.

By including $5.1MM in cash in the deal, the Heat covered that difference, adding a little extra money in for good measure. So while the move cost the Mavs some cap room, they came out ahead from a spending perspective, and even picked up a second-round pick in the process.

The Heat essentially agreed to pay McRoberts’ salary in that deal, but it was a somewhat unique scenario, and it also shows how limited a team’s ability to sweeten the pot with cash can be. Because $5.1MM is the maximum amount a team can trade or receive this year, the Heat immediately became ineligible to include cash in another deal until next July. Additionally, while that annual limit allowed Miami to cover a modest expiring contract like McRoberts’, it wouldn’t help the Knicks much as they try to trade Joakim Noah.

In addition to still being owed the prorated portion of this year’s $17,765,000 salary, Noah has nearly $38MM left on his deal over the following two years. New York can’t offer to cover a significant portion of that remaining salary in order to dump Noah. The most the Knicks could attach in cash would be this season’s limit, $5.1MM.

Misconception #4: Teams can’t trade away first-round picks in consecutive years.

The Ted Stepien Rule, which we described in an updated glossary entry last month, is another complicated rule that is often misinterpreted. The rule prevents a team from leaving itself without first-round picks in back-to-back future seasons. However, a team can still trade its first-round pick every year, if it so desires.

Consider the Wizards. A year ago, Washington traded its 2017 first-round pick in a deadline deal for Bojan Bogdanovic. Does that mean the Wizards can’t trade their 2018 first-rounder? Nope. As soon as the 2017 draft passed, that 2018 first-rounder once again became trade-eligible, since Washington still has its 2019 pick. Trading the 2018 first-round selection now wouldn’t leave the team without first-rounders in consecutive future seasons, so it doesn’t violate the Stepien rule.

The rule also technically does allow a team to trade away its own first-round picks in consecutive future seasons as long as the team has acquired at least one first-round pick from another club in either of those two years. For instance, the Cavaliers have already traded away their 2019 first-rounder, but they could still trade away their 2018 first-round pick, since they’re owed the Nets‘ first-rounder in 2018. The Stepien rule would only block Cleveland from trading both of its 2018 first-rounders without securing another first-round pick for ’18 or ’19 in the process.

Are there other common misconceptions about NBA trade rules that we’re leaving out? Let us know in the comment section!

Weekly Mailbag: 1/29/18 – 2/4/18

We have an opportunity for you to hit us up with your questions in this, our weekly mailbag feature. Have a question regarding player movement, the salary cap or the NBA draft? Drop us a line at HoopsRumorsMailbag@Gmail.com.

Who would be a better fit for the Thunder, Jonathon Simmons or Avery Bradley? — Duhhkari Sanchez, via Twitter

Bradley is almost a perfect replacement for Andre Roberson, who is out for the season with a ruptured left patellar tendon. Bradley has been an elite wing defender for years and is a better 3-point shooter than Roberson. He has an $8.8MM contract that expires after this season, so he won’t require a long-term financial commitment. The obstacle in the way of any deal is the Thunder’s lack of resources. They can’t offer a first-round pick until at least 2022 and they don’t have enough young players with small contracts to interest the Clippers. They’ve been reluctant to part with Terrance Ferguson, but that will probably be the price to obtain Bradley. Simmons may not be an option, depending on whether Orlando’s front office wants to do a complete overhaul. He is averaging 13.7 points per game and has an affordable contract at $6MM for next season and a non-guaranteed $5.7MM for 2019/20.

Which player is the most realistic option for the Bucks: Malik Monk, Tyreke Evans or Avery Bradley? — Kyle Wagner, via Twitter

The Bucks are focused on winning right away, so Monk isn’t an option. The word out of Charlotte is that he needs significant improvement, especially on defense, before being ready to play regular minutes. Evans and Bradley would both be nice additions, but they will come at a high cost with so many teams being interested. The Grizzlies and Clippers will each be seeking first-round draft picks, and Milwaukee sent this year’s first-rounder (with protections) to Phoenix in the Eric Bledsoe deal. The priority in Milwaukee seems to be finding another center, so don’t expect Evans or Bradley to be heading north.

Phoenix GM Ryan McDonough said he is ready to advance the timeline and swing big with all assets for a young star to grow with Devin Booker and T.J. Warren. Is an Anthony Davis or a similar young star realistic? Please say yes. — Nathan Dylong, via Twitter

It looks like Suns fans are the latest to join the waiting party for Anthony Davis. However, Davis reportedly loves being in New Orleans and there’s almost no incentive for the Pelicans to trade him. He’s still just 24 years old and is signed through the 2019/20 season, with a $28.75MM player option for 2020/21. That salary may be a bargain for his level of production, especially in light of some of the super max deals signed over the past two seasons. Davis is the heart of the Pelicans and the best player in franchise history. Trading him would mark the beginning of another long rebuilding process for an organization that hasn’t enjoyed much success. A lot of stars change teams in the NBA every season, so there will be plenty of opportunities for the Suns to grab one, but don’t count on getting Davis out of New Orleans.

Hoops Rumors Originals: 1/27/18 – 2/3/18

Every week, the Hoops Rumors writing team creates original content to complement our news feed. Below are the original segments and features from the past week:

  • Two substantial trades occurred this week, and Luke Adams delivered an in-depth analytical salary cap analysis of both the Blake Griffin trade and the Nikola Mirotic trade.
  • As part of our Community Shootaround series, we focused on the following questions:
  • In his Weekly Mailbag, Arthur Hill answered readers’ questions on a potential – and now completed – Pelicans‘ trade for Mirotic, and potential trades for Tyreke Evans and Aaron Gordon.
  • We took a look at the two teams remaining below the 2017/18 salary floor – the Mavericks and the Bulls.
  • Our 2018 Free Agent Stock Watch focused on the Bulls.
  • Luke Adams also dove into a deep analysis of the 2017/18 disabled player exceptions granted so far this season.
  • With the trade deadline now less than a week away, we identified several players in the Pacific division who could be on the move.

Seven Pacific Trade Candidates To Watch

The NBA trade deadline is less than one week away, and there’s no shortage of players around the league who could change teams. With that in mind, we’re taking a closer look at some of those top trade candidates, breaking them down by division.

While our focus will be primarily on teams expected to be sellers at the deadline, our lists may also include some players on contenders who could be used as trade chips when those teams look to make upgrades.

So far, we’ve covered the Southeast, Southwest, Atlantic, Northwest, and Central. We’re wrapping things up today by examining the Pacific Division, so let’s dive in and identify seven players who could be on the move on or before February 8…

  1. DeAndre Jordan verticalDeAndre Jordan, C (Clippers): It’s a virtual lock that no trade completed between now and next Thursday will feature a bigger name than Blake Griffin, who was dealt to Detroit on Monday. Still, his former frontcourt partner in Los Angeles is no slouch — Jordan has an All-Star appearance and three All-NBA nods on his résumé. The numbers that Jordan has posted this season suggest he’s not the same dominant rim protector he has been in past years. For instance, his 1.0 BPG average is his lowest mark since 2009/10, back when he was playing nearly half the minutes he is now. Still, the 29-year-old remains an elite rebounder and is leading the NBA in field goal percentage for a sixth consecutive year. He could be a game-changing addition for a team in need of a center. The only roadblock will be his contract situation, as his $24MM+ player option for 2018/19 raises some questions. Will he be a rental, opting out this summer in search of a max deal? Or will a dearth of teams with cap room prompt him to exercise that $24MM option? Uncertainty about Jordan’s looming decision could influence what a team is willing to offer for him.
  2. Lou Williams, SG (Clippers): While Jordan’s contract situation is somewhat tricky, potential suitors for Williams know exactly what they’re getting, as Lou Will’s $7MM cap hit is very team-friendly, and his contract will simply expire this summer. That means he’ll probably be a rental, but any team acquiring him would also land his Bird rights, creating some flexibility to re-sign him in the offseason. Even if he only spends a few months with a new team, Williams is worth investing in. He’s putting up career-high numbers nearly across the board, averaging 23.5 PPG and 5.2 APG to go along with a .443/.390/.895 shooting line. If the Clippers are looking to move some multiyear money, they could look to attach a player like Wesley Johnson, Austin Rivers, or even Danilo Gallinari to Williams in a trade.
  3. George Hill, PG (Kings): Hill put up some of the best numbers of his career in 2016/17, but his age (31) and injury history prevented him from landing a mega-deal as a free agent. Even so, the $40MM in guaranteed money that Hill received this past offseason – including a $20MM cap hit for 2017/18 – may stand in the way of the Kings completing a deal. The Cavaliers still look to me like the best fit for the veteran point guard, but Kevin Love‘s hand injury complicates matters, since suddenly Channing Frye and his expiring contract don’t look so expendable for Cleveland — Sacramento would likely be unwilling to take back more than one expensive multiyear contract in exchange for Hill.
  4. Jordan Clarkson, G (Lakers): If the Lakers truly want to land two maximum-salary free agents this offseason, they’ll almost certainly have to trade Clarkson and his $12.5MM annual salary by July. It might make more sense to hang onto him until the summer to see if their ambitious free agency plan is realistic, but if the Lakers get an appealing offer for the veteran guard now, they probably won’t wait. For Rob Pelinka and Magic Johnson, an “appealing” offer may include an expiring contract and a draft pick, though it seems unlikely that any team covets Clarkson to that extent. Given his relatively modest production (14.7 PPG, 3.3 APG, .316 3PT%), he’s probably overpriced, with a guaranteed contract that runs through 2019/20.
  5. Julius Randle, PF (Lakers): The seventh overall pick in the 2014 draft, Randle is still just 23 years old, and has played some of his best ball in recent weeks. Since entering the Lakers‘ starting lineup on December 29, Randle is averaging 16.3 PPG and 9.2 RPG with a .554 FG% in 17 games. It seems as if the former Kentucky standout should be a part of Los Angeles’ long-term plans, but that may only happen if the club doesn’t land its top free agent targets. Randle will be a restricted free agent this summer, and it would make some sense for the Lakers to keep him around — his qualifying offer could simply be renounced if they secure commitments from a top free agent or two. If they don’t get those commitments, Randle would be a great Plan B. Still, if L.A. wants to avoid the risk of losing the fourth-year big man for nothing in the offseason, an opportunistic team – perhaps the Mavericks? – could swoop in and make a play for him at the deadline, securing his Bird rights and the right of first refusal before he reaches the RFA market.
  6. Alex Len, C (Suns): After buying out Greg Monroe, there’s no real urgency for the Suns to trade Len or Tyson Chandler, who figure to split time at center going forward. Still, a case can be made for moving either player — Len is on an expiring contract and the 35-year-old Chandler probably won’t be a part of Phoenix’s next playoff team. Of the two, Len looks to me like the more viable trade candidate. Chandler’s veteran presence is valued in the Suns’ locker room, and his pricey multiyear contract will be difficult to move. Len, on the other hand, is just 24 years old, and is having the best season of his five-year NBA career, with 8.5 PPG, 8.1 RPG, and a .558 FG%. If the Suns don’t expect him to be part of the team’s long-term plans, they should shop him. The only problem? Len would lose his Bird rights if he’s dealt, which gives him veto rights. So even if Phoenix gets an offer it likes, the club may not be able to complete a deal.
  7. Patrick McCaw, SG (Warriors): The Warriors envisioned McCaw as eventually slotting into an Andre Iguodala-type role with the franchise, but he’s struggling through an up-and-down sophomore season, averaging just 3.9 PPG and knocking down 25% of his three-point attempts. He’s only 22 years old, so Golden State isn’t giving up on him yet, but if the team has any concerns about its bench production this season, dangling McCaw in trade talks would make sense, as Tim Kawakami of The Athletic suggested this week. The second-year shooting guard is eligible for restricted free agency this offseason, but shouldn’t get too expensive, based on this year’s performance. For a team that believes in his potential, acquiring him now and securing the right of first refusal for his free agency could be worthwhile.

Here are a few more potential Pacific trade candidates to monitor:

  • Avery Bradley, G (Clippers): The Clippers can’t aggregate Bradley’s salary with another player’s salary in a trade after acquiring him this week, but he’s trade-eligible. We’ll see if the Clips view him as a long-term piece.
  • Larry Nance Jr., PF (Lakers): Nance is a surprising trade candidate, but ESPN’s Adrian Wojnarowski reported last month that his name has come up in the Lakers‘ discussions. Of course, the club would rather move Luol Deng or Brook Lopez, but their unwieldy contracts will make that very challenging.
  • The rest of the Kings’ veterans: Hill has been involved in the most trade rumors, but for the right offer, the rebuilding Kings would also be willing to move Zach Randolph, Kosta Koufos, Vince Carter, or Garrett Temple.
  • Skal Labissiere, PF (Kings): In addition to shopping their veterans, the Kings reportedly made Labissiere and Malachi Richardson available. I’d be a little surprised if Sacramento trades either player.

Photo courtesy of USA Today Sports Images.

Cap Details On Nikola Mirotic Trade

The Nikola Mirotic trade consummated on Thursday by the Bulls and Pelicans wasn’t a blockbuster like the Blake Griffin deal completed by the Pistons and Clippers earlier this week. Still, there were a number of complicated moving parts in the Mirotic swap, so it’s worth taking a closer look at the salary cap machinations involved in the deal, as we did earlier this week with the Griffin trade.

Let’s jump in…

The trade exceptions:Nikola Mirotic vertical

One confusing aspect of the NBA’s salary cap is the fact that a team can function as an “over-the-cap” club despite its player salaries not exceeding this season’s $99MM cap. For instance, if a club with $80MM in player salaries also has $20MM in unrenounced exceptions (mid-level, bi-annual, traded player, etc.) and/or cap holds, that team is considered to be over the cap. Those exceptions could be renounced at any time if the club wants to use its potential cap room, but until that’s absolutely necessary, functioning as an over-the-cap team can help a franchise maximize its options.

The Bulls are in this boat this season. Despite heading into Thursday with just over $83MM in team salary on their books, the total value of their exceptions has kept them over the cap. One of those exceptions was an $11.457,398 traded player exception initially acquired in last June’s Jimmy Butler trade. Originally worth $15,311,329, the TPE was used in September to take on Quincy Pondexter, and then was used again on Thursday to acquire Omer Asik, whose cap hit is $10,595,505. After being used twice, it’s now worth less than $1MM and almost certainly won’t be used again.

The other two incoming players for Chicago were on one-year, minimum salary contracts, meaning the team could use the minimum salary exception to acquire them. Having utilized various exceptions to take on all three incoming players in the swap, the Bulls didn’t need Mirotic’s $12.5MM cap charge for salary-matching purposes. Since they essentially traded Mirotic for “nothing,” they’ll get a new trade exception worth $12,500,000, and will have up to a year to use it.

[RELATED: Outstanding NBA Traded Player Exceptions]

Of course, the Bulls could create more than $12.5MM in cap room by renouncing that new TPE and their other exceptions, but there’s no reason to do so at this point. If Chicago wants to use its cap room at any time – either to absorb a big contract in a trade or to sign a player in free agency – it will have to renounce those exceptions, including that big new one.

As for the Pelicans, their side of the deal is simpler. They swapped Asik’s salary for Mirotic’s, then sent the minimum salary contracts of Tony Allen and Jameer Nelson out for no return. As such, they’ll create two very modest exceptions worth Allen’s and Nelson’s cap hits — $1,471,382 and $1,429,818, respectively.

Read more

2017/18 NBA Disabled Player Exceptions

Last month, we published an updated glossary entry outlining how the NBA’s disabled player exception functions. As we explain in that article, the disabled player exception can be granted when a team has a player go down with an injury deemed to be season-ending. The exception gives the club some additional spending flexibility, functioning almost as a cross between a traded player exception and a mid-level exception.

We go into more detail on how exactly disabled player exceptions work in the glossary entry linked above, and in a piece from earlier in the season on the Celtics’ DPE. Essentially, a DPE gives a team the opportunity to add an injury replacement by either signing a player to a one-year contract or trading for a player in the final year of his contract.

Because the rules related to disable player exceptions are somewhat restrictive, and the exceptions themselves often aren’t worth a lot, they often simply expire (this year’s deadline is March 12). According to ESPN’s Bobby Marks, only about one in four teams granted DPEs since 2007 have used them.

However, the Celtics are one team well positioned to take advantage of their DPE this season — it’s worth the maximum allowable amount ($8.4MM), the Celtics aren’t close to the tax line, they have an open roster spot, and they have a collection of extra draft picks that could be used to accommodate a trade.

While Boston may be the team most likely to use its DPE this season, there are several other clubs that have those exceptions available. Here’s a breakdown:

(Note: List updated on 2-9-18)

Teams that have been granted disabled player exceptions:

As noted above, the Celtics are the best bet to use their disabled player exception, and not just because it’s worth the most (and can therefore accommodate a wider range of potential trade targets). Even if teams like the Clippers or Pelicans identify a modestly-paid player worth acquiring, they’re unlikely to use their DPEs because of how close they are to the luxury tax line and hard cap, respectively.

Teams ineligible for disabled player exceptions:

The Grizzlies, Pelicans, and Thunder had the misfortune of having their key players ruled out for the season after the January 15 application deadline. Since they can no longer apply for a DPE, they’ll have to make do with any remaining exceptions they have. As for the Suns, a DPE to replace Knight would have been worth about $6.8MM, but Phoenix remains nearly $9MM below the cap, rendering that exception unnecessary.

2018 Free Agent Stock Watch: Chicago Bulls

After navigating the drama of last season and coming out in a solid position, the Bulls will need to do everything they can to keep the momentum of their rebuild rolling.

The club has shown glimpses of being a competent squad at times this season, with a number of intriguing assets already on the roster. However, nobody would bat an eye if the Bulls end up bottoming out with a solid pick in the lottery.

Much of Chicago’s long-term success will come down to the eventual growth of players like Lauri Markkanen and Kris Dunn, but don’t think that the forthcoming free agency period won’t represent its own opportunities for progress.

Zach LaVine, SG, 23 (Up) – Signed to a four-year, $9.6MM deal in 2014
It’s hard to believe that LaVine is still so young considering how long he’s been in the league. This summer he’ll hit the market as a restricted free agent following a torn ACL that sidelined him for parts of each of the past two seasons. That’s good news and bad news for Chicago. Like the rest of us, the Bulls are intrigued by LaVine’s ceiling and an abbreviated campaign isn’t enough to base such an important long-term decision on. That said, other teams will have even less to base a substantial offer on. Given the uncertainty around his health and even his ability to be a primary offensive weapon, it’s hard to imagine the Bulls offering a max contract but they’ve got enough cap flexibility to make him their highest-paid player in 2018/19 and beyond, assuming they like what they see out of him down the stretch.

Nikola Mirotic, PF, 27 (Up) – Signed to a two-year, $25MM deal in 2017Nikola Mirotic vertical
It’s hard to imagine that Mirotic will still be in a Bulls uniform come next summer considering that earlier today it seemed all but certain he would be traded to the Pelicans. Nonetheless, Mirotic’s contract situation will be similar wherever he lands up — his $12.5MM team option for 2018/19 is a bargain. Mirotic has shown that he’s capable of having a major impact on his ball club and any team that brings him on ahead of the February 8 trade deadline would be wise to lock him in at the discount. The open-ended contract buffs his value as a trade chip for Chicago but at the end of the day he’s a stretch four with no major red flags. That’s worth $12.5MM.

David Nwaba, SG, 25 (Up) – Signed to a two-year, $1.4MM deal in 2017
The Bulls are rebuilding their roster from the ground up, so players like Nwaba hold appeal even if they don’t necessarily scream team cornerstone. Nwaba is a respected perimeter defender that gels well with other, more offensively inclined weapons on the roster. There may be a few teams interested in poaching him for the intangibles that he brings to the court, just as Jonathon Simmons had suitors last summer, but a dearth of league-wide cap space may keep things in check. My guess is that the Bulls would be happy to cut Nwaba a check similar to Simmons’ (~$6MM per) so long as it’s on a short-term deal.

Quincy Pondexter, SF, 30 (Down) – Signed to a four-year, $14MM deal in 2014
It’s impressive enough that Pondexter is back on the court after his years-long battle with injuries and illness. This year, his first with the Bulls after coming over in a salary clearing trade from the Pelicans, is the last of a four-year contract extension that’s basically felt like 12. It’s hard to envision Pondexter back in Chicago once the deal expires, but he could stick around the league if he can prove to other teams that he’s healthy enough to play the role of veteran gunner. He’s certainly earned the opportunity, at least.

Photo courtesy of USA Today Sports Images.