$10 mill trade exception

[gking]

So now that the trade deadline has passed, do we have to wait until the draft to make a draft day trade with our $10 mill trade exception? Or can trades resume once the playoffs are finished. I'd love the Warriors to trade the exception for a higher first round pick. It would be nice to find a team with a fairly high first round pick, salary cap issues and doesn't really need any more young talent to swing a deal with. Maybe a team like Phoenix, who gets Atlanta's pick, would be someone to go after. Maybe the Knicks? I guess we should wait and see what record we finish with and what pick we get.

[Mylie10]

I'm guessing now that based on everything that hasn't happened is that the upper brass has said don't use it. Let it expire.

I doubt it was ever offered for anyone.

[Chris Porter's Hair]

You cannot trade a trade exception. So, for example, you cannot trade a trade exception for a pick.

[bill curley II]

I think the OP meant take on a contract with a pick for the TE (e.g. talking about Phx shedding contracts or NY and their horrendous cap situation).

[gking]

You cannot trade a trade exception. So, for example, you cannot trade a trade exception for a pick.

You can for a single player. I've heard that talked about over and over on KNBR. Now, straight up for a pick you may be right.

[gking]

Yeah sounds like most likely will just expire.

[Chris Porter's Hair]

-= original quote snipped =-

You can for a single player. I've heard that talked about over and over on KNBR. Now, straight up for a pick you may be right.

This is also inaccurate, and is based on either:
a) a faulty interpretation of what they were saying on KNBR
b) at least as likely, the fact that most of the media doesn't seem to understand how this stuff works, and propogates misinformation.

You can read Larry Coon's FAQ to learn how this actually works, but the short "close enough" summary is this:

If you want to make a trade, and you are over the cap, then the salaries you are receiving must be relatively close to the salaries you are trading away. Normally, if this is not the case, the trade cannot occur. If, on the other hand, you have a trade exception, then you may be able to take a player or players despite this limitation; hence the name "exception".

This dodges the issue of how the heck you get an exception in the first place. If you trade a player without taking back commensurate salary, and you are over the cap, then a traded player exception is created for your team. Sort of an IOU that lets you take that salary back in another trade for up to a year. This is why we have one now; we traded away Richardson's large contract, and did not take back a correspondingly large contract. This was only possible because Charlotte was under the cap, and when the trade occurred, it created an exception for us.

People often become confused and think you trade trade exceptions, because often when one team uses a traded player exception, it creates a corresponding exception for the other team. So for example if Sacramento traded us Artest for a 2nd round pick, it would use up a good hunk of our trade exception. It would not *give* our exception to Sacramento, but it would simultaneously create a brand new exception for Sacramento (since they gave up a player without getting corresponding salary back).

Understanding that explains why you can't trade an exception for a pick; it isn't a tradeable asset, it is just an exception to the rules that normally apply when making a trade. As was posted here, the similar thing we *could* do for instance is trade a 2nd round pick for an expensive player (that fit within our exception) and a 1st round pick. For example. We could do this because the player would use up our exception, and the other team making such a trade would get a new exception created on their behalf, assuming they were over the cap.

Other common points of confusion and misinformation:
- You cannot "package" an exception with players. You can't "trade a $10m exception" and a $10m player for a $20m player.
- You can, however, break up an exception into pieces. If we have a $10m exception, and trade a 2nd round pick for a $5m player, we would still have a $5m exception.

[CupcakeNoFillin]

So we're just likely to let it expire??

DAMN, so it was basically just a Jason Richardson for Brandan Wright swap.

Like someone said in another thread. We should have just spent that 10 Million TPE on a huge expiring contract, kept Adonal Foyle, and if we did those two things we probably would have Pau Gasol on the team right now.

[Hopper15]

So we're just likely to let it expire??

DAMN, so it was basically just a Jason Richardson for Brandan Wright swap. .

I'm kind of disappointed that they didn't use it for an expiring that could help now, being as they're like 6-8M under the tax.

You can't look at it like JRich for BW. If JRich is still here, Monta (or Andris) would be gone next year. So, it's really Monta and BW for JRich. In three years, this is going to look genius.

[mistatwo mayn]

Vote Elton Brand next season....

Really... there was no real position to use TE except for a Pau Gasol

[floppymoose]

I'm kind of disappointed that they didn't use it for an expiring that could help now, being as they're like 6-8M under the tax.

Teams that have an expiring that can help now want something in return, like a pick. The only time this isn't the case is if they are over the lux tax and trying to get under the line.

I don't think the Warriors want to give up a pick for a rental, and I can't think of any players who fit the description who would make the difference between their current team being over the cap.

[floppymoose]

You can't look at it like JRich for BW. If JRich is still here, Monta (or Andris) would be gone next year. So, it's really Monta and BW for JRich. In three years, this is going to look genius.

In three years??? It looked like genius on the day of the trade! This from a JRich fan.

[Hopper15]

Me, too. It'll look obvious in three years. When it happened, most fans thought it was a bad deal for us.

[acidicality]

when it happened, it was just hard for a lot of warrior fans (me included) to stomach because j-rich was the fan favorite and had done a lot to the franchise. however, after the initial shock that he was gone, it was very evident that the trade was a GREAT move that allows us to re-sign Monta/Andris to good contracts. Sucks that J-Rich was the casualty but it was genius. And if Brandan Wright turns out to be a star, we'll just look like thieves on this trade.

[Twinkie defense]

Still plenty of time to use it!

[Carl_Monday]

Still plenty of time to use it!

It's a total catch-22 though. The blatantly obvious number one priority this offseason is to re-sign Beans and Ellis (duh!). If the lux tax threshold is a de facto hard cap for this club, those contracts need to be established first before any other salary is considered. But those contract numbers can't be established until mid-July, while the TPE expires at the end of June. I just don't see the Warriors trading their 1st rounder for a Gooden/Wilcox type player on draft day when it could potentially totally screw up the number one priority of the offseason. I'm really disappointed that it wasn't used at all, and even getting one 1st rounder from Phoenix for taking on Kurt Thomas would've been well worth it, and it would've been worthwhile for Phoenix too.

Say bye bye to that TPE.

[turk3d]

So we're just likely to let it expire??

DAMN, so it was basically just a Jason Richardson for Brandan Wright swap.

Like someone said in another thread. We should have just spent that 10 Million TPE on a huge expiring contract, kept Adonal Foyle, and if we did those two things we probably would have Pau Gasol on the team right now.

This TPE is going to save us $10 Mil in salary this season (no lux) but more importantly if we do not use it to acquire another player gives us $10 Mil (actually $12 Mil if you go by what Jason will be making next year) to use for signing AB and Monta next year which we wouldn't have otherwise (not to mention the additional two years of Jason we'd be committed to at $13 and $14 Mil respectively).

[ILOVEIT]

Wilcox was the move to make with it...If not him....then I guess Warriors have it to use in the Summer....

By next year Richardson for Brandon will look like a GREAT trade.... Let's hope so anyway

[turk3d]

Perhaps the greatest thing about that trade (which I don't think has been mentioned in this thread) is that it paved the way for Monta to move into J-Rich's starting spot. If J-Rich was still here, I doubt Monta wouldn't have developed into the player that he's become and his emerging star status.

[Sleepy51]

Perhaps the greatest thing about that trade (which I don't think has been mentioned in this thread) is that it paved the way for Monta to move into J-Rich's starting spot. If J-Rich was still here, I doubt Monta wouldn't have developed into the player that he's become and his emerging star status.

That's actually a very good point. As much as I knew and am happy to be proven right that Monta is indeed becomming a capable point guard, I think the team complexion and his development would have been very different if Jason were still here. Monta would be a 2nd string PG instead of a starter in a 2 pg offense. Comming off the bench, Monta wouldn't have as good weapons around him to feel confident in distributing to.

But, in the first unit, everything is easier with more options on the floor. If Nellie hadn't been forced into giving him the freedom to score 1st, he might have continued to resist and be uncomfortable growing into the role. Because he has been freed to score, teams have to fear his offense, the floor opens up very differently for his distributing option. He is now clearly seeing the play farther ahead, and understanding how defenses will react to his attacks specifically because his scoring threat has to be respected.

In a weird way, he may be becomming a better PG faster because he wasn't shoehorned into the role.