Jason Terry traded to the Rockets

The rockets would have to be under the cap and absorb terry into cap room in order for the trade to generate a tpe for Sacramento.

 

Mmmmmmm, No to all the Motie trades. Needs to be something better than those to ship him out.

And Memphis has no use for Terry at all. They're under the luxury tax. Only thing Terry does is take up a roster spot and get them a couple million dollars further away from the luxury tax. For what? He doesn't have as much value in trade as Prince does nor does he have on-court value like Prince does. Memphis won't do it.

 

This is false. Read up on TPE's.

 

How would the rockets absorb Jason terry if not using cap space or trading for him with salaries?

 

If that were to happen then wouldn't it have to be two transactions? If so, that only works if we use the Lin TPE to absorb Terry since we are over the cap. That doesn't make sense either.

 

Trades are arranged from each team's perspective. Here you go:

http://www.cbafaq.com/salarycap.htm#Q83

83. What is the Traded Player exception?

As described in question number 82, exceptions are the mechanisms that allow teams to sign players or make trades that leave them above the salary cap. Any trade which leaves the team over the salary cap requires an exception -- even if the team is moving downward in salary. For example, if the salary cap is $60 million, a team has a team salary of $65 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 is decreasing by $1 million as a result of the trade, the fact that they would finish over the salary cap ($64 million) means that an exception is required.

The Traded Player exception is the primary means by which teams over the cap complete 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 fall into two categories: simultaneous and non-simultaneous. As its name suggests, a simultaneous trade takes place all at once. Teams can trade players together and acquire considerably more salary than they trade away in a simultaneous trade. Simultaneous trades are described in question number 84. A non-simultaneous trade may take up to a year to complete, but the team can only trade away one player, and its team salary can increase by no more than $100,000 as a result of the trade. Non-simultaneous trades are described in question number 85.

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 separate trades, one simultaneous and the other non-simultaneous (completing a trade they made months earlier).

 

Read the post above.

 

This is where I'm not following. I don't see how the rockets could be absorbing 5million in salary without using cap space, Lin exception or the salary matching the players they sent out.

 

Read above.

 

It still has to follow the rules of nba trades though.

 

And it does.


From the Rockets perspective...to acquire Terry they've got to absorb him into the Lin TPE OR they've got to send out at least $3,833,542 in outgoing salary. That would be the 150% + $100,000 rule described here:

http://www.cbafaq.com/salarycap.htm#Q84

Gee and either Powell or Hopson is more than enough salary to send out to acquire Terry and keep the Lin TPE intact for future use.

From the Rox perspective it is a simultaneous trade: Gee and Powell or Hopson for Terry and the picks.
From the Kings perspective it is a non-simultaneous trade: Gee and Powell absorbed into their existing TPE's and then Terry traded out for no incoming salary...thereby CREATING a $5.8 million TPE.

 

I did. It doesn't answer my question. We are sending salary back. If that salary is absorbed into an existing TPE then Sac can't get double credit for it and create another TPE. On our end, if we aren't using the outgoing contracts to match salary then we need capspace to absorb Terry, which we don't have. And I don't see Morey using the Lin TPE so the Kings can have another one.

The two sides have to balance out in either scenario, and your scenarios appear to give the Kings a double benefit. Can you list any examples of trades that allowed such a thing?

 

If they send out contracts Sac can't use them twice (absorbing them into an existing TPE and creating another). They can't get a double benefit of those contracts.

 

Right, the kings are taking salary back for the trade.

You are misunderstanding non simultaneous trades.

 

lol

BB explained it again and after he reads it should become clear.

 

Who is bb.

 

The trade still has to meet nba rules for both teams no matter how they structure it. The kings can't structure it that way because it would not meet nba rules to trade terry to the rockets for no salary.

 

No, I'm not. I'm sorry you don't understand it. All you guys asking these questions needs to read cbafaq.com.

 

It meets all the rules for the Kings to structure the trade the way I suggested. I just copied and pasted the section of cbafaq.com that addresses your question.

 

Read cbafaq.com sections 82 to 89.