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[CBA Circumvention Article] Question(s) for Bima or any attorney that can decipher legal docs

Discussion in 'NBA Dish' started by basketballholic, Jun 11, 2013.

  1. Shroopy2

    Shroopy2 Member

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    I was NOT SURE the outline of his suggestion. Just wanted it clarified.

    This here is what I THOUGHT it was. Though it seems a bit like he's just trying to get the answer he wants to hear. (Or doesnt want it to be illegal circumvention). But gotta even understand the hypothetical first before answering it or defending it.

    He said:
    "trade multiple of our current power forwards and our 2014 first round draft pick for a 2013 lottery pick"
    - That reads like its PFs + 2014 1st rd pk for a 2013 1st rd pick RIGHT THERE. Which says Houston IMMEDIATELY GETS A 2013 pick and they HAVE NO 2014 cuz it got TRADED to OTHER team.

    then later he said:
    "send us the player that they drafted in the lottery of 2013 that is on their roster unsigned for our 2014 first rounder"
    - But the way he said it, its like they already SENT their 2014 1st rd pk the FIRST time. So how are Rockets sending 2014 1st rounders they dont have in possession? And its the Rockets who actually got the 2013 pick lol

    But they way you presented it puts it together. The Rockets are saying take our tractor and weedeater for your lawnmower. But you will get your lawnmower back later, just give us another weedeater or something close later, but the tractor is yours.

    And no I have little clue if something like that qualifies as circumvention, though I'm kinda curious myself. Early responses strongly suggest it is. On the REAL LIFE tone apart from the rules, it does seem a lot of moving parts.
     
  2. pcheung08

    pcheung08 Member

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    Let me see if I can clarify what he exactly wants:

    1. He wants the Rockets to sign a 2013 lottery pick.
    2. He also wants the Rockets to sign DH12.

    Therefore, he suggested if the Rockets, with the help of other team (team X), can make a deal:

    1. Trade the PFs to team X for nothing that created enough cap space to sign DH12 which would be Trob+Tjones + 2014 pick for nothing.

    2. Team X selects the lottery pick player that the Rockets want at draft night.

    3. Sign DH12.

    4. Team X trades the lottery pick player to the the Rockets for nothing.

    5. Rockets will be above the cap and qualify for room MLE.

    Mission accomplished, but he wants to know whether these steps considered as circumvention.

    If I am wrong, apologize for all parties involved. :)
     
  3. Fair Dinkum

    Fair Dinkum Member

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    Hi shroopy2,

    The scenario i posted was what basketballholic and i originally were discussing on the garm last week. Basically, he is really hot on this 2013 draftee named cody zeller (heck he could be cody zeller for all i know). He's trying to find ways we can draft him without taking the cap hit and ruining our chances to sign Dwight.

    I shouldnt have used his old scenario because it seems he has come up with different scenarios to get a 2013 first rounder that doesn't count against our cap until after we sign dwight. I've given up trying to follow his circumvention scenarios. I think when it boils down to it, the league wont allow it cause the flood gates will open. Moreover, what team is going to help us circumvent league salary cap rules so we can sign dwight howard and this cody zeller kid.
     
  4. heypartner

    heypartner Member

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    Dude, I had you answer those two questions of mine in order to see if you would describe circumvention by yourself....which is exactly what you did.

    here...

    Waiting until after signing Howard to "Extract a [2013] lottery pick back for DMo and TRob" who were presumably traded in June, would be a future trade arranged under the table.

    That is circumvention. The league has complete authority to block that trade.
     
    #44 heypartner, Jun 12, 2013
    Last edited: Jun 12, 2013
  5. lakersuck

    lakersuck Member

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    You can't split a trade into two parts so that you can sign a player before you take the cap hit from your half of the trade. That's crystal clear circumvention.

    What you're saying is that we should trade players for a draft pick but not receive that draft pick until after we sign Dwight so that that pick doesn't take up cap room yet. There's no chance in hell the league would allow that. Furthermore, almost no teams with enough cap room to take DMO and TRob for nothing would trade a lottery pick for those two and help us net Dwight.
     
  6. justtxyank

    justtxyank Member

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    Question: If I do this maneuverer to circumvent the cap impacts is that circumvention?
     
  7. heypartner

    heypartner Member

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    Question: If I don't sign Howard, is it OK if I ask for TRob and DMo back, because I'll need some PFs, afterall. Or do I still have to consummate the Cody Zeller part of the trade at that point?
     
  8. xiki

    xiki Member

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    Do you see any scenario that the Rox deal Asik for assets and enough additional cap room to potentially sign Howard outright? (This could include a high enough pick for a stash (Saric?) or Waiters and the two 2s or or or any good asset including the cap space?)

    Thanks, BT.
     
  9. Shroopy2

    Shroopy2 Member

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    I see. So its a bit of cleverly disguised Cody Zeller In 2013 Campaign.

    Apart from that - now talking IN REAL LIFE terms, not about the rules:

    • Keep in mind IF the Rockets acquire Howard, their DRAFT pick will BE LOW. And the other team will KNOW THAT.

      Meaning IF the other team values the DRAFT pick as much as the players, the other team helping Houston get Howard will be working DIRECTLY AGAINST THEMSELVES. They're enabling their own future pick to be suckier by helping Howard.

      (Rough Ex: Houston in total deals 2014 #26-32 pk + Robinson/R White for 2013 pk #8.) The other team would have be VERY high on Robinson and other players they're getting back. Or they would have to be VERY LOW on the 2013 available draft pool.

    • Its possible to have that. The other team MIGHT think Robinson and/or Motiejunas-whoever are equal or better to whoever's at #8. (Rockets did trade #8 Rudy Gay + Stromile Swift for Shane Battier) but would have to be really lucky an under the cap team with a good lottery pick would want that. Plus the other team would be adding a little to THEIR payroll for the chance at Robinson + Royce White salary dump

    • Then maybe Houston doesnt even want to do so much gutting of their own PFs. Its not like Omer Asik + Greg Smith is a PF tandem thats a good fit by Howard.

      (Then would YOU give up Cody Zeller for Robinson & Royce White?)

    • All in all, the OTHER TEAM would have to LOVE Robinson + Motiejunas + T Jones + Royce White to even make it happen. Because their draft pick from Rockets is gonna be poopoo. Is THAT enough FOR THEM to try to circumvent rules and get in trouble for?
    No wonder he doesnt want to talk trades and just the rules. Because its convoluted long shots to BEGIN with even BEFORE considering the legalities. But will credit the creativeness
     
  10. BimaThug

    BimaThug Resident Capologist
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    I'm sure there are several scenarios in which that might happen, but I cannot think of them now and do not have access to the information necessary to know if the Rockets (or the other team) would agree to such trades.

    I know this thread has devolved into a "basketballholic-bashing thread", but the guy is VERY creative with his ideas. He's given me food for thought on multiple occasions.

    Most notably, he was the first on this BBS (to my knowledge) to run the numbers on the Aaron Brooks signing and to "put 2 and 2 together" on a possible connection to the Thomas Robinson trade. While that may simply be a coincidence--and I doubt anyone could ever prove that the two transactions were linked--I've got to give him credit for pointing this out.

    Even with his flaws, basketballholic is an asset to the BBS. I may get ticked at him from time to time, but the guy is very smart and creative and knows his CBA stuff for the most part.
     
    1 person likes this.
  11. TheFreak

    TheFreak Member

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    Thread reported to the authorities.

    [​IMG]
     
  12. Shroopy2

    Shroopy2 Member

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    Right. Its an interesting topic or I wouldnt be talking in it. I'm not bashing him (don't even "know him").

    The only thing I was critical of was him not clarifying his hypothetical to make it easy after I asked him, and so I had to do it on my own lol. Thats just cuz he maybe got ahead of himself. (I know people personally who do that, not a big deal). Though, he asked if 2-part "future deals" are legal. But the WAY he MENTIONED the deal - made it look like an immediate STRAIGHT SWAP. He coulda made the "separate" contingent part look more apparent. But its all clear now

    But I don't know the rules - If the deal works, what do I care. Since it'd be HELPING the team get a lottery pick and an MLE and max player lol.
     
  13. BimaThug

    BimaThug Resident Capologist
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    No worries. I wasn't trying to criticize you. It was more of a defense of him as an overall quality member of the ClutchFans community, despite the criticism he's received from many (including myself).

    I happen to think the proposal could be deemed a circumvention of the CBA by the league office, mostly because the league's authority is RIDICULOUSLY broad in this regard. Go back and look at Hi Mana's posts in the thread, as I think he nailed why the proposal probably wouldn't work.
     
  14. LosPollosHermanos

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    Bima is nothing but a thug. Not sure why you want his help.








































    :grin:
    j/k
     
  15. basketballholic

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    I redid the trades. Any comment on that being circumvention? There's several ways to change it up and still be in the form that provides us with the most flexibility moving forward.

    Sure seems like the"broad" interpretation of what circumvention is devolves into the league determining what is an even value trade and what isn't. And if that is the case then I would think team front offices and owners would have not agreed to the cba.
     
  16. basketballholic

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    By the way, the reason I started this thread was for people to be able to ask "is it legal" questions in light of the Circumvention Article and get a response from a legal expert who can read the document and interpret it correctly. I really do not want to discuss my rationale for making a particular trade so some other yahoo who thinks they know more than me can tell me how to do the trade or trades a different way. The purpose and intent of the thread is to lay out scenarios and find out if they are circumvention or not.

    By the way, when it comes to Daryl, I am absolutely sure he is never going to get into trouble for circumvention. I am absolutely sure that if there is anything questionable about a series of trades that he calls up the league and runs scenarios by them to find out the legality of possible future moves. He's not going to take the chance of having a trade or series of trades unwound and then penalized by the league. He's smarter than that.

    That's essentially what I am wanting from this thread, the ability to propose a trade or series of trades similar to what he would do with the league office and have a contract attorney (wink wink) evaluate them in light of Article XIII and tell us where they would be circumventing.

    So, it's not about any particular trade, just a style of trade.

    For instance, I could have framed it up thustly. Suppose Phoenix wants to create enough room to sign Dwight. So they waive their non-guaranteeds. And they find that.....Charlotte is agreeable to taking on Gortat and a lottery-protected first round pick the next available year along with swapping places with Phoenix this year, pick 4 for pick 5, and Charlotte sends next year's second rounder to Phoenix as long as Phoenix sends them ... $6 million to cover most of Gortat's deal. Got it? Phoenix gets the 4th pick, Charlotte gets the 5th pick, Charlotte gets a future lottery-protected pick from Phoenix and Charlotte gets $6 million to pay for Gortat's salary and Charlotte also gives Phoenix a 2014 second rounder.

    Phoenix can't give Charlotte $6 million. That would be ILLEGAL and disallowed by the league because the maximum cash that can be included in a trade is $3 million!! The trade would be rejected outright if it was called in. And if Phoenix changed the trade to give Charlotte $3 million and then had some private citizen give Charlotte $3 million under the table that would constitute CIRCUMVENTION!!

    So, Phoenix and Charlotte break the trade up into 2 separate transactions in order to be able to get Charlotte the entire $6 million.

    First trade on June 30th...Phoenix sends $3 million and their 2013 first round pick (#5) and Marcin Gortat to Charlotte for Charlotte's 2014 second rounder. They then sign Dwight sometime in July. Then after signing Dwight they trade $3 million in cash and a lottery protected future first round pick for pick #4 in the 2013 draft, the player that Charlotte drafted that is unsigned.

    now.....all those trades are "legal". They all meet the trade criteria in the cba. they can't be kicked out because they don't. The only thing that can stop them from going down is "circumvention of the cba". So is it circumvention? And if it is .... why? Because another team over the cap could come along and offer Charlotte $3 million and a future lottery-protected draft pick and if Charlotte accepted the trade how would the league deem it circumvention?

    You see, draft picks have no value in trade. That's the league rule. So if they are going to disallow an unsigned draft pick to be traded for cash and a future pick because it is circumvention for one team to do it......then doesn't it make sense that it would be circumvention for any team at or over the cap to make a trade where it trades cash and a future draft pick for an unsigned first round pick?????? Do you see the rub here????

    If circumvention is trading away players into other team's cap space for nothing so you have the ability to sign a free agent...then it should be spelled out in the trade rules that it is illegal. I know this...the league isn't going to be able to arbitrarily say one trade is circumvention and the exact same style trade done by somebody else is not circumvention. That would throw the owners and front offices into "lock out" mode. It's simply not going to happen. The reason why the lockout drug on and took away half the season was so that owners in all markets could get some degree of fairness in relation to attaining free agents and the top players being able to call their own shots and just move to the major markets. That's what the lockout was all about. More restrictive trade rules on teams over the cap and in the luxury tax. And lower guaranteed dollars for max players switching teams in free agency. I think most of the issues of fairness, circumvention, etc. are covered in the very plain language of contract dos and don'ts and trade rules. So, I suppose one of the things I'm gonna have to do myself is pull up the verbage of circumvention from 2005 and compare it to 2011 to see what actually changed there. IF the league all of a sudden has much "broader" powers to rule on circumvention then it should show up in the differences in the language of the 2 contracts. I am smart enough to be able to tell differences in words.


    Frankly, I would like to see a thread created or a forum created called an "is it legal" forum....where posters can pose legit questions but only certain select members can respond regarding legality of transactions. I wish you would take the time to do that Bima, and perhaps appoint another person or two to help you with responses so most of the stuff could be sorted out and you would only be left with the tough ones. And the threads would not be convoluted up so much with every tom, dick, and harry giving their extremely limited knowledge-base opinions that don't amount to a hill of beans.
     
  17. xiki

    xiki Member

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    OK, thanks.
     
  18. basketballholic

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    Portland will gladly take Asik for #10. But we ain't doin it. We're not trading Asik...at least not right now. Perhaps at the trade deadline or after next season or possibly if Dwight wants Paul. But just to clear cap to sign Dwight? Nope.
     
  19. basketballholic

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    Here's the 2005 Article XIII link:
    http://www.nbpa.org/sites/nbpa.org/files/ARTICLE XIII.pdf

    Here's the 2011 Article XIII link:
    http://www.ipmall.info/hosted_resources/SportsEntLaw_Institute/2011NBA_NBPA_CBA(final version).pdf

    You'll have to scroll down to page 269 in the second link to read the Article.

    The differences in the language are minor. In section 1 they have added "Tax" to "Escrow". The rest of the differences have to do with fine amounts. In most cases team fines have been raised 20% to 50% and player fines have been raised 50% and higher.

    But as far as what is covered and defined as Circumvention in the Article, they are essentially the same. Read it for yourself.
     
  20. justtxyank

    justtxyank Member

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    Just want to point out that I wasn't bashing basketballholic. Seems like a good dude. Was just having fun with him in the thread.
     

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