Pacers Forever wrote: Scoot McGroot wrote:
Wizop wrote:I'm not sure what value another trade exemption would be. we need to lower payroll a bit, not find a legal way to increase it.
It would be good for one full year, so through the draft and start of next year’s free agency. It would simply be a tool to make salary matching somewhat easier, and a useful tool to have in trades. Having TPE’s is better than not having TPE’s, nearly no matter what.
We may need to lower payroll right now, but that doesn’t mean we’ll always need to lower payroll. If we make a midseason deal, TPE’s help.
Scoot If I understand right we can get a TPE when we trade a player ? Or would trigger that ? A difference in salary going out and not coming back in ?
Scoot can you please explain what the TPE does once acquired ? Maybe an example real or fake would enlighten me to how in the future they work to the Pacers advantage. Thanks
Good question, PF. Yeah, a TPE is created when a team makes a trade and receives less salary back than they send out. It’s also called a “non-simultaneous trade”. Basically, it allows a team up to a year to “complete a trade”. So, in this case, if we S&T Doug to San Antonio, we would create a TPE equal to Doug’s trade outgoing trade salary (probably $7.3m due to base year compensation rules, which is a whole other thing
) plus $100k, for a total of $7.433m TPE if we didn’t take back anyone from SA. Now, the thing about a TPE is that it’s an asset, and it can last for up to a year. They’re consumed by absorbing salary, and created. You cannot add a $7.43m TPE to, say, Lamb, and get back someone making up $17.93m. A TPE stands on its own in that way. However, its an asset that can be nurtured, utilized, and grown, to be larger in the future. Say we deal Jeremy later in the year for someone that makes $7.25m. Now, that could be used to just match Jeremy, like normal, in a trade. OR, we could use up our Doug TPE to absorb that $7.25m player, and then technically we’d be trading Jeremy into nothing, and create a new, larger TPE of $10.6m that would exist for a full calendar year from when a trade might happen. Hypothetically, say next offseason, we trade a big man for two guys, one that makes about $10.5m, and another that makes about $3m. In theory, we could use the Jeremy TPE to absorb that $10.5m guy, and then trade Myles (hypothetically for this example) and only “take back” the $3m player, and create a $15m TPE that would then have another year before it expires. Now, even if you’re over the cap (but not near the tax), you’d normally just have the MLE to sign a player, but by growing this asset, you’d be able to then ALSO have a $15m TPE to use to add to the roster.
TPE’s can be used in a couple different ways. It can be used to trade for a player that fits solely into the TPE. It can’t be used to straight sign a player, but you could work with the incumbent team to receive a player INTO the TPE via S&T. A TPE can also be used to claim a player off of waivers that would fit into that TPE size completely.
So, it may not help us immediately. It may not help us this season, but it’s essentially a very low cost asset that we may be able to grow and eventually REALLY help us out down the road.