Draft Pick Penalty.
(1) As used in this Agreement, the following terms shall have the
following meanings:
(i) “Second Apron Team” means, for a Salary Cap Year, a Team
that, as of the start of the Team’s last Regular Season game
occurring within such Salary Cap Year, has an Apron Team
Salary for such Salary Cap Year that exceeds the Second
Apron Level for such Salary Cap Year.
196 Article VII
(ii) “Draft Pick Penalty” means, for a Team’s first round draft
pick, that such draft pick shall be the final draft pick in the
first round of the applicable NBA Draft (regardless of the
position in the first round of the Draft at which the Team
otherwise would have selected pursuant to NBA rules
governing the order of selection by Teams in the Draft);
provided, however, that, if multiple Teams’ first round draft
picks are each subject to a Draft Pick Penalty in respect of
the same NBA Draft, then the Teams with such first round
draft picks shall select in the inverse order of their winning
percentage for the Regular Season immediately preceding
such NBA Draft (with priority in selection among any such
Teams tied on a winning percentage basis established
pursuant to NBA rules governing the order of selection by
Teams in the Draft). For example, if Team A’s and Team
B’s first round draft picks in the 2032 NBA Draft are each
subject to a Draft Pick Penalty, and Team A finished with a
better winning percentage than Team B for the 2031-32
Regular Season, then Team A would make the final selection
in the first round of the 2032 NBA Draft and Team B would
make the immediately preceding selection.
(2) Beginning with the 2024-25 Salary Cap Year, if a Team is a
Second Apron Team for a Salary Cap Year, then:
(i) the Team shall be prohibited from trading (either
conditionally or unconditionally) its first round draft pick in
the first NBA Draft that occurs following the seventh
Season that follows the Season occurring within such Salary
Cap Year; and
(ii) with respect to the four (4) Salary Cap Years immediately
following such Salary Cap Year:
(A) If the Team is a Second Apron Team for two (2) or
more of such four (4) Salary Cap Years, then such
first round draft pick shall be subject to a Draft Pick
Penalty; and
(B) If the Team is a Second Apron Team for fewer than
two (2) of such four (4) Salary Cap Years, then, as of
the day following the last day of the Regular Season
encompassed by the third of such four (4) Salary Cap
Years in which the Team is not a Second Apron
Team, such Team shall be permitted to trade
(conditionally or unconditionally) such first round
draft pick. For clarity, such first round draft pick
shall not be subject to a Draft Pick Penalty.
Example: If Team A is a Second Apron Team for the 2024-25 Salary Cap
Year, then it would be prohibited from trading its 2032 first round draft pick
(i.e., its first round draft pick in the first NBA Draft that occurs following the
seventh Season that follows the Season occurring within such Salary Cap Year).
If Team A is also a Second Apron Team for the 2025-26 and 2028-29 Salary
Cap Years, then Team A’s 2032 first round draft pick would be subject to a
Draft Pick Penalty.
Example: If Team B is a Second Apron Team for the 2024-25 Salary Cap
Year, then it would be prohibited from trading its 2032 first round draft pick.
If Team B is not a Second Apron Team in the 2025-26, 2026-27, and
2027-28 Salary Cap Years, then Team B would be permitted to trade its 2032
first round draft pick as of the day following the last day of the 2027-28 Regular
Season (and such first round draft pick would not be subject to a Draft Pick
Penalty).
This is why I despise lawyers. What normal person can make sense of this BS?
Spoiler:
