Can Bima or one of the other cap gurus clarify this? I know we are not over the cap, but I am confused about the TE rule. It seems that is says if a team under the cap absorbs salary it generates a TE. So, will we get a TE out of the Lowry deal that could be used if we subsequently go over the cap? I ask because it could hypothetically be another "asset" in a DHoward trade. We make a series of trades, end up over the cap, use the TE to take on one of the contracts they want to dump like QRich.
Traded Player Exception: If a team trades away a player with a higher salary than the player they acquire in return (we'll call this initial deal "Trade #1"), they receive what is called a Traded Player Exception, also known colloquially as a "Trade Exception". Teams with a trade exception have up to a year in which they can acquire more salary in other trades (Trade #2, #3, etc.) than they send away, as long as the gulf in salaries for Trade #2, #3, etc. are less than or equal to the difference in salary for Trade #1. This exception is particularly useful when teams trade draft picks straight-up for a player; since draft picks have no salary value, often the only way to get salaries to match is to use a trade exception, which allows trades to be made despite unbalanced salaries. It is also useful to compensate teams for losing free agents as they can do a sign and trade of that free agent to acquire a trade exception that can be used later. Note this exception is for single player trades only, though additional cash and draft picks can be part of the trade.
I'm pretty sure we traded Lowry for Forbes + the pick so since Forbes's 1.5MM salary is within $5MM of Lowry's salary I think we do NOT get a TPE
Bima broke this down in the trade lowry trade thread... he says its possible but we would have to do a bunch of things in a certain order....
OK I found that post. Basically he isn't sure at this point. http://bbs.clutchfans.net/showpost.php?p=6992907&postcount=884 Edit: So basically Bima thinks the only way you get the TE is if you are over the cap when you make the deal.
I believe it can be worked this way. 1. We trade Camby for all the NY guys (except the minimum salaries) and Forbes. 2. We then sign the Asik and Lin offer sheets. 3. We then trade for the minimum salary guys using the minimum salary rule. 4. We are then slightly over the cap so we trade Lowry to TO for no salary, giving us a $5.75 million TPE. However, look for this to change today. I would suspect there's at least one more deal on the table to be finalized today. Possibly more.
yeah you found it before i could... basically yeah he doesnt know yet, and isnt sure, but says it is possible...
seems pretty much like bima lined it out... but yea i also would suggest that i wouldnt count on it... i see other things happening today... i think morey is worried about other things before a trade exception, but it could be a nice fallback... but it does depend on asik and lin signing...
A TPE of that amount is definitely an asset to have. if we trade for Dwight on the same day the Camby and Lowry trades are made, we could wind up with around a $12 million TPE. Don't forget the 150% rule for under $9.8.
TE's are very valuable and if it can be generated I hope Morey does it. The Lakers just acquired Nash with the TE.
Nice effort, jopatmc. (FYI, my analysis was before the Rockets made the Camby S&T deal and took on Douglas's $2.1M salary.) However, assuming that the Bulls do not match the offer sheet for Asik, I think the Rockets will not have the cap room to both (a) acquire a $5.75M Lowry TPE and (b) retain the rights to Courtney Lee to use in a S&T deal. That said, if the Asik offer sheet is matched, it is conceivable that the Rockets could have both (a) and (b).
So have you confirmed that the Rockets have to be over the cap in order to acquire a TPE? Thanks for all your answers Bima. Even if you are a bully. Spoiler For those who might get upset, no, I don't think Bima is a bully. He got called that yesterday by someone else. It amused me. Such a thug.
justxyank, Let me simplify this for you. When you trade away more salary for less back, one of two things always happens: (1) you get a TPE = to diff in salaries, or (2) you get added cap room because you are under the cap. Sure there are new CBA complexities for when you are just barely under the cap ... but my point is it doesn't really matter if we get a TPE or, because when you don't get one it means you get more cap room...they are both good, and imo, cap room is more valuable because you can use it on free agents...more flexibility. bottomline: since the proposed trade brings in less salary, we will either get a TPE or added cap room.
Any TPE that is generated would essentially need to be waived in order to subsequently create additional cap room. So, in order to maximize the value of both cap room and a TPE, the Rockets would need to first clear cap space, THEN make the offer sheets and/or do anything else that requires the use of cap space, and THEN once most/all of the Rockets' cap space has been used, make the Lowry trade for a TPE.
I've never thought this way. Just make the trade first to generate maximum cap room...you don't need the TPE, right? example for illustration (numbers inaccurate): 1. Rockets have $10m in cap room 2. Rockets renounce $4m in salary...now have $14m in room 3. Team trades Lowry for $5m less back. Now is $19m under the cap. 4. Team then puts out two offer sheets adding up to $14m,,,goes unmatched. Team has $5m left in cap room scenario two 1. Same as #1 above 2. Same as #2 above 3. Same as #4 above, but now all cap room is spent (as in your example that I quoted) 4. Same as #3 above, team trades Lowry for $5m less back... now team has a TPE of $5m versus the $5m of cap room above. aren't they the same? How can scenario two get you more money?
HP, I think the difference lies on when we end up with no cap room, scenario one give no cap room and no TE, and scenario two could potentially give us no cap room and a $5M TE?
TPE cant be combined with a player for trade purposes, correct? if still true, then cap space is superior since it can be used with a player in trade.
If we get a 5.75m TPE then we can use it to take back Jason Richardson salary in a deal with Orlando. I still don't understand why Morey take Forbes from Toronto in the Lowry deal. He is just another bench guy which we have plenty but he used up another roster spot and 1.5m cap room.
