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As we watch teams filling up their rosters, and coming closer and closer to the lux or salary cap, more emphasis will be put upon the usefulness of our Traded Player Exceptions. If we get close to finishing our rosters and have room under the lux, I could see them being traded for a decent player that puts a team over the lux.

Here's a quick and dirty "what you need to know" about TPE's. TPE's are created when a trade is not balanced financially, and in effect, are one-year credits that can be used elsewhere to balance at rade financially. TPE's cannot be combined. TPE's are not the same as contracts, and can only bring back a player up to the value of the TPE's -- they can't be over by 125% + $100,000 like a contract. The player that costs significantly less than the TPE will only chop off that bit from the TPE .. for instance, MIN could trade the Blount TPE for a $1 mil player, and it would create a new $1.8 mil TPE for MIN.

Here are MIN's:

$0.6 mil September 29th (Hassell)
$2.8 mil October 24th (Blount)
$1.44 mil February 21st (G. Green)
(there were no TPE's created in the recent OJ Mayo/Kevin Low trade).

One of the most valuable uses a TPE has is to trade it to a team that is over the lux. Quick-and-dirty again, the lux works this way: To try to maintain a competitive economic balance, the NBA sets a luxury threshold, and for every dollar a team is over that threshhold, they need to send an additional dollar to the NBA's lux pot. At the end of the season, every team that is under the lux gets to keep a 1/30th share of pot. As you can see, being just over the lux can be doubly painful -- not only do you lose an additional dollar, but you miss out on your share (about $2-$3 mil).

Teams that are close often maneuver to make this threshold, and usually there are only a handful of teams that spend over the lux. Right now, there are more teams than ever that are over the lux:

Boston
Cleveland
Dallas
Denver
LA Lakers
New York
Phoenix
Portland

.. and a few others may be over the lux after they fill their rosters.

These are the teams that benefit the most from trading for a TPE, particularly if they are very close to the threshold.

The trade picture will become clearer over the next few weeks as each team's roster and salary structure this year becomes more defined. Of course, this also means our own roster and salary structure, and we'd have to decide if it is just easier to let these TPE's expire (like most do), and benefit personally from the savings and potentially having more money available in 2009 or 2010 free agency (if we didn't simply trade a TPE for an expiring). However, early comparison of our TPE's are possible right now:

The $0.6 mil Hassell TPE is very small, and will most likely not be used. First round players have contracts that are too big for its use, and why sign a second rounder if you're just going to trade him for a TPE? Maybe the only reason might be a simultaneous trade for a team that didn't want to add too much money. For example, suppose NJN trades Vince Carter, and their lux-conscious owner wanted to do a deal with us, and offered Sean Williams and Maurice Ager for McCants. Glen Taylor might say, "I like Williams, but three guaranteed years of both is a little expensive, and surely that's why you're doing the trade, so I'll say "no."" NJN may counter by saying, "What if we offered CDR for your TPE?"

The TPE can't be combined in a deal, but it can be used in a seperate, simultaneous deal.

Blount's $2.8 mil is much much easier to visualize our team trading. At that salary level, many young players could be traded that make under $2.8. We'd have to have the cap room to do it of course, and the player we got back would have to be worth the salary. The key though, is that for a team over the lux, the player isn't worth TWICE his salary (or maybe more, if it can squeeze a team under the threshold to get their share of the lux pie too!).

POR is in a roster crunch for both roster size and for minutes, and they are over the lux as well (though their owner probably doesn't care). Sarver very clearly showed his concern for the lux last season, and PHO picked Robin Lopez at #15, that won't help hiom right away. He's right at the edge of the lux too, so trading maybe the TPE and the BOS 2009 #1 would potentially save him $5-$6 mil this year. HOU might be bumping up against the cap, and Donte Green may be a decent prospect. Same goes for JJ Hickson in CLE, who is over the lux and may want a vet in the roster spot.

I'd also point out this doesn't have to be 2008 rookies. Cedric Simmons isn't going to be helping CHI too much. MEM might be willing to move Lowry for the BOS pick and a TPE. Many more possibilities will arise as we watch free agency and trades fill rosters.

In portland, I think channing frye is going to see very little minutes with Oden, Aldridge, Pryzbilla and Diogu ahead of him. Could we trade a TPE for him or maybe Diogu (who is only 6'8, but if I remember right hand an insane wingspan and standing reach for his size similar to Brand).

Diogu and Frye are too expensive to fit. Here's a list of the players the Blazers have that are under $2.8 mil

Jarrett Jack 2,002,623
Rudy Fernandez 1,084,080
Sergio Rodriguez 874,000
Josh McRoberts 711,51
Brandon Rush 1,499,300
Nicolas Batum 867,200

Petteri Koponen 797,600
Joel Freeland 797,600

Also, note that when I list these guys, I'm not suggesting a straight-up trade here, without other assets changing hands. POR will likely try to combine some of these assets in a bigger trade. If they are unable, rather than simply cut them, they may try to make deals like: Jarrett Jack for $2 mil TPE + BOS 2009 1st. We could also use our TPE's as part of a simultaneous deal, like Joel Przybilla (3-yr) for Collins (exp), and Batum for a TPE. Of course, Diogu and Frye could be used as the other part of a simultaneous trade .. just not the part with the TPE's.

I'm all for trading for Koponen. that would be sweet and MnWi probably agrees (IIRC he was very high on Koponen)

Koponen and Batum would be cool at the right price, but nowhere near what PDX fans would want for them.

I wouldn't mind Greene from HOU either, but again would need to be at the right$$$.

Houston or Portland could've traded their picks on draft night. Portland BOUGHT a pick. They're not looking for money for talent right now.

Ya but Portland bought their pick prior to the draft in an effort to swing a deal to get a PG they wanted. They actually faired well and weren't forced to use the additional assets in order to get a PG they liked. The selection of Bayless makes Koponen even more expendable than he already was.

shrink wrote:
POR is in a roster crunch for both roster size and for minutes, and they are over the lux as well (though their owner probably doesn't care). Sarver very clearly showed his concern for the lux last season, and PHO picked Robin Lopez at #15, that won't help hiom right away. He's right at the edge of the lux too, so trading maybe the TPE and the BOS 2009 #1 would potentially save him $5-$6 mil this year. HOU might be bumping up against the cap, and Donte Green may be a decent prospect. Same goes for JJ Hickson in CLE, who is over the lux and may want a vet in the roster spot.

If you look at things historically Phoenix making a move to save on the luxury tax does make some sense. The TPE and Boston #1 for Robin Lopez would be great.

Rumor is Minny could take Booth($1.1M) and Carney($1.7M) using the Blount TE.

http://sports.espn.go.com/nba/news/story?id=3477424