Has this prohibition been removed?

[DBoys]

At one time, there was a NBA CBA or memo prohibition on the cap-circumventing move referred to as "ramping up the basis." In essesnce, it prevented a team from a series of trades by a team like the following:

Outgoing ..........Incoming
Player A $2M ......Player B $3M
Player B $3M ......Player C $4.5M
Player C $4.5M ....Player D $6.8M
Player D $6.8M ...Player E $10.3M

At the end of the day, that team has traded a $2M salary for one in excess of $10M. To keep that from being possible, allowing a team to skirt the limits of the trade rules, the NBA would look at the 2nd trade (and ensuing ones) in light of the limits of the 1st one, and would have killed trade 2 in that sequence.

But isn't that what MEM has just done, ramping up the basis to get Barnes when their original assets were not sufficient?

[Smitty731]

At one time, there was a NBA CBA or memo prohibition on the cap-circumventing move referred to as "ramping up the basis." In essesnce, it prevented a team from a series of trades by a team like the following:

Outgoing ..........Incoming
Player A $2M ......Player B $3M
Player B $3M ......Player C $4.5M
Player C $4.5M ....Player D $6.8M
Player D $6.8M ...Player E $10.3M

At the end of the day, that team has traded a $2M salary for one in excess of $10M. To keep that from being possible, allowing a team to skirt the limits of the trade rules, the NBA would look at the 2nd trade (and ensuing ones) in light of the limits of the 1st one, and would have killed trade 2 in that sequence.

But isn't that what MEM has just done, ramping up the basis to get Barnes when their original assets were not sufficient?

I think that was a memo. Which in reality, does a memo really have power? Not to quote the Pirates movies, but they seem more like "guidelines vs rules".

But you are right that is what happened with Memphis for sure.

[DBoys]

I think that was a memo. Which in reality, does a memo really have power?

Yes it does. The memos define or explain rules that are not subject to collective bargaining, and therefore not codified in the CBA. Many of the draft-related rules exist only there. I don't believe the Stepien rule is in the CBA, for example, and the "touch" rule on trades certainly isn't. Yet both are absolutely rules.

The rule I'm referencing definitely existed at one time. I thought it still was in effect, to prevent cap circumvention. But either MEM is pulling a fast one, or the rules have changed, it appears.

[Smitty731]

I think that was a memo. Which in reality, does a memo really have power?

Yes it does. The memos define or explain rules that are not subject to collective bargaining, and therefore not codified in the CBA. Many of the draft-related rules exist only there. I don't believe the Stepien rule is in the CBA, for example, and the "touch" rule on trades certainly isn't. Yet both are absolutely rules.

The rule I'm referencing definitely existed at one time. I thought it still was in effect, to prevent cap circumvention. But either MEM is pulling a fast one, or the rules have changed, it appears.

This also happened last year the series of transactions involving Scotty Hopson. They ultimately ended with the Pelicans acquiring Omer Asik. So, two years in a row, I guess it has changed, or the league is turning a blind eye.

Also, it isn't beyond comprehension that the league would make a mistake. Didn't they approve a couple of illegal contracts in the past few years. Also, I think Papanikolaou's deal was initially approved when it was illegal. It was only after another team pointed it out, that the terms were modified. My guess is that they miss things at times.

And what I meant on the rules vs. guidelines comment is that the league frowned upon signing a rookie, just to use his 120% of the Rookie Scale as salary matching in a trade, yet it happened. Same thing with the memo about "Don't say you are matching Offer Sheets no matter what" comment. Can these things actually be enforced? Or is the league just putting out there things they like and don't like.

And while the Stepian rule isn't in the CBA, I believe it is in the Operations Manual (or whatever it is actually called). Same with the "touch" rule.

[DBoys]

Also, it isn't beyond comprehension that the league would make a mistake. Didn't they approve a couple of illegal contracts in the past few years. Also, I think Papanikolaou's deal was initially approved when it was illegal. It was only after another team pointed it out, that the terms were modified. My guess is that they miss things at times.

The fact the NBA makes mistakes, or that teams make mistakes and may be forced to undo and/or redo trades, is why I raised this issue. At one time, this behavior was explicitly defined as "cap circumvention" by memo, and disallowed.

And what I meant on the rules vs. guidelines comment is that the league frowned upon signing a rookie, just to use his 120% of the Rookie Scale as salary matching in a trade, yet it happened.

I have never heard the NBA "frowned on" this. And it would make no sense for them to do so, since the CBA actually sets up the framework for the "sign-and-trade-a-draftee" process. If it wasn't allowed to add salary to a trade in this fashion, there would be no rules to follow when doing it.

I suspect what you saw was fans, out of the loop, claiming a restriction that isn't there, and then being mystified that the non-existing "restriction" was not enforced. I see that regularly..

Same thing with the memo about "Don't say you are matching Offer Sheets no matter what" comment. Can these things actually be enforced? Or is the league just putting out there things they like and don't like.

That is not what the memo said. The NBA did not create a rule. Instead, it was a warning of sorts, that the union had a problem with such behavior and you might put your team in the crosshairs of a union lawsuit if you make such statements, but what you choose is up to you. In fact, said memo made an explicit point that the league was taking no position on the cap-legality of such behavior.

And while the Stepian rule isn't in the CBA, I believe it is in the Operations Manual (or whatever it is actually called). Same with the "touch" rule.

They originated as Memos. Don't know if memos later get added to the By-Laws, or to some "book" containing all the governing memos, or whether the memos then get codified into some other doc, but that's just semantics. They were and are rules that originated as formal memos, regardless, until such point as they are negated. The memos create and define rules at times, and are a part of the NBA's governing paperwork.

[MarkDeeks]

I'd love to see such memo, if anyone's got it.

[DBoys]

I certainly don't have it, but it was referenced in a prior FAQ or two.

[Dunkenstein]

From Section 2 (A)(13) of the 2014-15 NBA Operations Manual.
"Trading of First Round Draft Choices. No team may sell its right to select a player in the first round of any NBA Draft for cash or its equivalent, or trade or exchange its right to select a player in the first round of any NBA Draft if the result of such trade or exchange would be to leave the team without first round picks in any two consecutive future NBA Drafts."

[Smitty731]

From Section 2 (A)(13) of the 2014-15 NBA Operations Manual.
"Trading of First Round Draft Choices. No team may sell its right to select a player in the first round of any NBA Draft for cash or its equivalent, or trade or exchange its right to select a player in the first round of any NBA Draft if the result of such trade or exchange would be to leave the team without first round picks in any two consecutive future NBA Drafts."

Do have a link to the Operations Manual? PC upgrade and lost mine.

[Dunkenstein]

Do have a link to the Operations Manual? PC upgrade and lost mine.

I don't know of one.

[Smitty731]

Do have a link to the Operations Manual? PC upgrade and lost mine.

I don't know of one.

Maybe it was the Bylaws and Constitution that I was thinking of. Operations Manual doesn't seem to be found online anywhere.