TPE question

[The Penguin]

How do TPE's work with teams trading players to get under the cap? If team X is right at the cap line and trades a $10 million player to team Y for a future 2nd pick, does team X get a $10 mil TPE along with the $10 mil salary space? Could a team trade a $10 mil player for nothing, pick up $10 mil of cap room, sign a $10 mil FA and then trade a $10 mil TPE from the original player?

[giberish]

TPE's count against the salary cap.

In order to usefully use cap space, teams renounce TPE's so that they aren't counting against their cap space. If a team is $1M over the cap and trades away a $10M player they can either have a $10M TPE (while being over the cap) or have $9M in cap room (renouncing the TPE). If a team that's already $8M under the cap trades away a $10M player for nothing then they'd just get cap space as there's never a situation where it's better to have $8M in cap room and a separate $10M TPE than to just have $18M in cap space.

TPE's don't count against the luxury tax line, nor the hard cap (where applicable).

[The Penguin]

TPE's count against the salary cap.

In order to usefully use cap space, teams renounce TPE's so that they aren't counting against their cap space. If a team is $1M over the cap and trades away a $10M player they can either have a $10M TPE (while being over the cap) or have $9M in cap room (renouncing the TPE). If a team that's already $8M under the cap trades away a $10M player for nothing then they'd just get cap space as there's never a situation where it's better to have $8M in cap room and a separate $10M TPE than to just have $18M in cap space.

TPE's don't count against the luxury tax line, nor the hard cap (where applicable).

Makes sense. Thank you for the clarification.

[statsman]

TPE's don't count against the luxury tax line, nor the hard cap (where applicable).

So, if a team over the cap is making a trade, and that team needs to determine which trade rule is applicable (150% + $100K, +$5M, 125% + $100K), are the TPEs ignored? I would assume most all other cap holds apply.

[Smitty731]

TPE's count against the salary cap.

In order to usefully use cap space, teams renounce TPE's so that they aren't counting against their cap space. If a team is $1M over the cap and trades away a $10M player they can either have a $10M TPE (while being over the cap) or have $9M in cap room (renouncing the TPE). If a team that's already $8M under the cap trades away a $10M player for nothing then they'd just get cap space as there's never a situation where it's better to have $8M in cap room and a separate $10M TPE than to just have $18M in cap space.

TPE's don't count against the luxury tax line, nor the hard cap (where applicable).

And to add to this, if you drop low enough below the cap that even when adding the TPE (or any other exception besides the Room Exception) in to your Team Salary, you still don't meet or exceed the Cap, you lose the TPE entirely. And you don't get it back if you are then in a different situation later.

[supaflash]

Can you use the TPE to sign over the cap? IE Team is 5 mil below and has a 3 mil TPE, can they sign a player for 8?

[giberish]

Can you use the TPE to sign over the cap? IE Team is 5 mil below and has a 3 mil TPE, can they sign a player for 8?

No, not in the way you're thinking.

TPE's count against the cap. So if a team's salary is $5M below the cap and they have a $3M TPE then they've only got $2M in cap room -> though what happens is that the TPE just goes away and they're $5M below the cap.

If a team was $8M below in salary but had a $3M TPE causing them to be $5M below the cap then they could renounce the TPE (this may even happen automatically) to give them $8M in cap room.