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Question about Trade Exceptions:

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by Niner, Jul 1, 2006.

  1. Niner

    Niner Member

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    Say we trade a player and our TE($4.2M) and we get Mike James, is that possible under the CBA, im unsure of the rule, thx in advance.
     
  2. rikesh316

    rikesh316 Member

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    Yes you can do this.
     
  3. Niner

    Niner Member

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    Thanks.
     
  4. Furious Jam

    Furious Jam Member
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    Yeah, I have a hard time groking the TE as well. Can we combine a scrub like Bowen and the TE in a sign & trade for Mike James? I know that the Raptors have no use for Bowen, but we could throw in a 1st rounder to make it worth their while. This way, couldn't we save the MLE to shop for a SG or PF?
     
  5. uchlha

    uchlha Member

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    basically u have the raptors sign MJ to a contract worth approximately 4.2m 1st year and u can use the TE to get MJ that way to save the MLE, you cannot package Rybo+ TE for MJ tho
     
  6. Furious Jam

    Furious Jam Member
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    If you can't combine the TE with another player, doesn't that limit you to trading for a guy who makes about what the TE is worth or less? I guess you can use it to pick up a guy where the other team is looking for cap relief or to save money, since they won't be getting another player back, just the TE. If that's true, you need to look at teams who would like to clear cap (ex: the Knicks) or teams that have money problems (ex: the Sonics).
     
  7. m_cable

    m_cable Member

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    You can't combine the TE with any other salaries. And it has to completely fit under the TE. So James' new starting salary would have to equal $4.2 million or less. Fat Chance.
     
  8. Furious Jam

    Furious Jam Member
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    Yeah, so I'm wondering who could we acquire at that rate? To me your targets are Rasual Butler or Lorenzen Wright. I think Wright would be the priority, given how thin we are at PF.
     
  9. rockbox

    rockbox Around before clutchcity.com

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    I don't think we can combine the TE with another person for James but the question I have is. Can you trade for someone at 125% of the TE like you can with a player which our trade exception more like the MLE or is the TE the max you can get.
     
  10. jopatmc

    jopatmc Member

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    The 125% doesn't apply to the trade exception but I believe under the new CBA that $100,000 does. So, if we have a $4.2 million TE, we should be able to trade for a player making up to $4.3 million.

    I wish someone would take that figure and add it up with the max annual increases like Toronto re-signing MJ to trade him to us so we can compare the difference in the money overall. $4.3 million with max increases vs. the MLE.
     
  11. ima_drummer2k

    ima_drummer2k Member

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    Good Lord, you practically have to have an accounting degree to be a basketball fan these days! :(

    Am I the only one who doesn't know what any of this crap means? :confused:
     
    #11 ima_drummer2k, Jul 2, 2006
    Last edited: Jul 2, 2006
  12. groovemachine

    groovemachine Member

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    :D I was just thinking the exact same thing.

    But couldn't the contract pay 4.2m the first year and then just pay him more the remaining years to equal what is market value is?

    I need to read a book on this so I can better understand!
     
  13. alexcapone

    alexcapone Member

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    Speaking of accounting/finance degrees...if this is possible you think theyd have to compensate for time value of money? Hah sorry I'm taking corporate finance right now..
     
  14. terse

    terse Member

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    So we can't combine a TE and a salary. That's fine.

    My question is, can we combine TEs? As I recall, we have two TEs worth a total of 5 to 6 million. Could we trade them both to the Knicks for Jerome James, who makes about $5.4m ? (Note: I don't want Jerome; he is just an example.)

    I seem to recall some discussion about this, but my head is too flu-stricken tonight to recall the outcome of that thread.
     
  15. jeremyang2002

    jeremyang2002 Member

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    No, you cant combine 2 TEs to acquire one contract.

    One TE for One contract.
     
  16. terse

    terse Member

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    Ah. Thanks.

    Trade exceptions are really hard to use. :(
     
  17. m_cable

    m_cable Member

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    You can give a guy raises, but there are limits on how much. 10% for your own free agents and 8% raises for someone else's free agent.

    And yes terse. TE's are hard to use. That's why you don't hear of any blockbuster deals featuring a TE. They're usually just part of the filler.
     
  18. Furious Jam

    Furious Jam Member
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    What about combining the TE with Juwan Howard and a 1st round pick to get Troy Murphy? Could that work? I know the Warriors would like to move him to get some cap space.
     
  19. Stevierebel

    Stevierebel Member

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    AS STATED ABOVE, you can't combine trade exceptions with players.
     
  20. m_cable

    m_cable Member

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    You can't combine the TE with anything, BUT Juwan and Murphy's salaries aren't that far apart (Murphy gets bigger raises and lasts longer, but right now they aren't that far apart). And when matching salaries you only have to get within 125% + 100K of the lower salary amount.

    So Juwan + Bowen for Murphy works capwise.
     

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