The TPE

[TNMagicFan]

We have all been trying to figure out just how the TPE is used. A poster at ozone got the answer from Larry Coon

I emailed directly to Larry Coon and he sent me back this answer...

A TPE is never "traded" -- it's never conveyed from one team to another. If one is generated, then the team has a year to consume it (which they don't have to do all at once). The media does people a disservice by continuing to report it as one team sending their TPE to another team.

So this should clear it all up I think

[cwas2882]

So then our sign and trade with Dooling generated us a TPE?

[TNMagicFan]

So then our sign and trade with Dooling generated us a TPE?

it seems so

[eyriq]

lol, how does that clear anything up? Does that just mean we can absorb a contract from another team and they'll generate their own TPE? Seemingly just an issue of semantics to me...

Man, there is really not much to talk about right now is there??? (Completely a personal rant, I think the post was very informative).

[Cigamodnalro]

Yes, that is correct. Because of the discrepancy between Dooling's contract and the cash considerations we received in exchange, a new TPE was issued for the Magic. The Nets, in executing such a deal, lost/effectively used their TPE. The trade exception that we were issued expires a year from the day of the trade; it does not have the same expiration date as the TPE that the Nets had.

[TNMagicFan]

lol, how does that clear anything up? Does that just mean we can absorb a contract from another team and they'll generate their own TPE? Seemingly just an issue of semantics to me...

We traded Keyon to the Nets and the Nets sent nothing in return thus generating a TPE equal to Keyons first year salary with the Nets minus the cash considerations we recieved. The Nets used their TPE to absorb Keyons salary .
I could be wrong but I think thats how it works

[DrunkOnMystery]

lol, how does that clear anything up? Does that just mean we can absorb a contract from another team and they'll generate their own TPE? Seemingly just an issue of semantics to me...

We traded Keyon to the Nets and the Nets sent nothing in return thus generating a TPE equal to Keyons first year salary with the Nets minus the cash considerations we recieved. The Nets used their TPE to absorb Keyons salary .
I could be wrong but I think thats how it works

That's correct, except that cash considerations have zero value CAP wise, so the TPE will equal Keyon's full first year salary, with cash considerations being an additional item.