Sign and Trades under the new CBA
Posted: Mon May 6, 2013 1:56 pm
I am seeing people make this error all over the place - and I am talking about people outside this forum including sportcasters and sports radio hosts.
Under the old CBA, a sign and trade was treated as though the player signed with his current team and was then traded. This allowed the player to BOTH get the hometown max (longer contract w. bigger raises) and play elsewhere.
Under the new CBA, a sign and trade is treated as though the player is signing with the new team. In a sign and trade, the contract can only be 4 years with 4.5% raises.
So the scenario that played out in Miami cannot be played out anymore.
If a player (like CP3 or Howard) wants to get the most money they can, they can ONLY do so by staying with the Clippers or Lakers.
Well...now that its stickied...lets make it authoritative...
http://www.cbafaq.com/salarycap.htm#Q89
89. Can a free agent be signed and immediately traded?
There is a rule that allows teams to re-sign their own free agents for trading purposes, called the sign-and-trade rule. Under this rule the player is re-signed and immediately traded to another team. This is done by adding a clause to the contract stipulating that the contract is null and void if the trade to the specific team is not completed within 48 hours. To qualify for a sign-and-trade, all of the following must be true:
The player must re-sign with his prior team -- a team cannot include another team's free agent in a sign-and-trade.
The player must finish the preceding season with that team (deals are no longer allowed that sign-and-trade players who are out of the league, such as the sign-and-trade that sent Keith Van Horn from Dallas to New Jersey as part of the Jason Kidd trade in 2008).
The player cannot be a restricted free agent who has signed an offer sheet with another team (see question number 43).
Starting in 2013-14, the team receiving the player cannot be above the "apron" ($4 million above the tax level) after the trade1, 2.
Starting in 2013-14, the team cannot receive a player in a sign-and-trade if they have used the Taxpayer Mid-Level exception (see question number 25) that season.1
The trade must be completed prior to the first game of the regular season (sign-and-trades are not allowed once the season begins).
The player cannot be signed using the Non-Taxpayer Mid-Level exception, the Taxpayer Mid-Level exception, or any exception that cannot be used to offer a three-year contract (see question number 25).
A sign-and-trade deal can be made with a free agent who has been renounced, as long as all the above criteria are met. Sign-and-trade contracts must be for at least three seasons (not including any option year) and no longer than four seasons. The first year of the contract must be fully guaranteed, but the remaining seasons can be non-guaranteed. The combination of a three-year minimum with a one-year guarantee ensures that the player's new team cannot acquire the player's Bird rights any sooner than if they had signed him directly (if they wanted to re-sign him in less than three years they would first have to waive him, and lose any Bird rights -- see question number 32).
The starting salary in a contract signed for a sign-and-trade may be any amount up to the player's maximum, however if the player meets the 5th Year 30% Max criteria (see question number 17) he cannot receive a salary greater than 25% of the cap. Raises are limited to 4.5%. The player may be considered to have a lower outgoing salary for trade purposes, which can complicate the trade (see question number 87).
If a sign-and-trade contract contains a signing bonus, then either team can pay it. By default the team that signs the player pays the signing bonus (as with any other contract), but since a sign-and-trade is in essence a contract with the receiving team, the teams can agree that the receiving team will pay it. Any portion that is paid by the signing team counts toward the team's annual limit for cash included in a trade (see question number 95), which in effect limits the portion of the signing bonus that can be paid by the signing team.
If a sign-and-trade contract contains a trade bonus, then the bonus is not earned upon the trade that accompanies the signing, but rather on the first subsequent trade. See question number 93 for more information on how long a team must wait before they can trade a player.
Under the old CBA, a sign and trade was treated as though the player signed with his current team and was then traded. This allowed the player to BOTH get the hometown max (longer contract w. bigger raises) and play elsewhere.
Under the new CBA, a sign and trade is treated as though the player is signing with the new team. In a sign and trade, the contract can only be 4 years with 4.5% raises.
So the scenario that played out in Miami cannot be played out anymore.
If a player (like CP3 or Howard) wants to get the most money they can, they can ONLY do so by staying with the Clippers or Lakers.
Well...now that its stickied...lets make it authoritative...
http://www.cbafaq.com/salarycap.htm#Q89
89. Can a free agent be signed and immediately traded?
There is a rule that allows teams to re-sign their own free agents for trading purposes, called the sign-and-trade rule. Under this rule the player is re-signed and immediately traded to another team. This is done by adding a clause to the contract stipulating that the contract is null and void if the trade to the specific team is not completed within 48 hours. To qualify for a sign-and-trade, all of the following must be true:
The player must re-sign with his prior team -- a team cannot include another team's free agent in a sign-and-trade.
The player must finish the preceding season with that team (deals are no longer allowed that sign-and-trade players who are out of the league, such as the sign-and-trade that sent Keith Van Horn from Dallas to New Jersey as part of the Jason Kidd trade in 2008).
The player cannot be a restricted free agent who has signed an offer sheet with another team (see question number 43).
Starting in 2013-14, the team receiving the player cannot be above the "apron" ($4 million above the tax level) after the trade1, 2.
Starting in 2013-14, the team cannot receive a player in a sign-and-trade if they have used the Taxpayer Mid-Level exception (see question number 25) that season.1
The trade must be completed prior to the first game of the regular season (sign-and-trades are not allowed once the season begins).
The player cannot be signed using the Non-Taxpayer Mid-Level exception, the Taxpayer Mid-Level exception, or any exception that cannot be used to offer a three-year contract (see question number 25).
A sign-and-trade deal can be made with a free agent who has been renounced, as long as all the above criteria are met. Sign-and-trade contracts must be for at least three seasons (not including any option year) and no longer than four seasons. The first year of the contract must be fully guaranteed, but the remaining seasons can be non-guaranteed. The combination of a three-year minimum with a one-year guarantee ensures that the player's new team cannot acquire the player's Bird rights any sooner than if they had signed him directly (if they wanted to re-sign him in less than three years they would first have to waive him, and lose any Bird rights -- see question number 32).
The starting salary in a contract signed for a sign-and-trade may be any amount up to the player's maximum, however if the player meets the 5th Year 30% Max criteria (see question number 17) he cannot receive a salary greater than 25% of the cap. Raises are limited to 4.5%. The player may be considered to have a lower outgoing salary for trade purposes, which can complicate the trade (see question number 87).
If a sign-and-trade contract contains a signing bonus, then either team can pay it. By default the team that signs the player pays the signing bonus (as with any other contract), but since a sign-and-trade is in essence a contract with the receiving team, the teams can agree that the receiving team will pay it. Any portion that is paid by the signing team counts toward the team's annual limit for cash included in a trade (see question number 95), which in effect limits the portion of the signing bonus that can be paid by the signing team.
If a sign-and-trade contract contains a trade bonus, then the bonus is not earned upon the trade that accompanies the signing, but rather on the first subsequent trade. See question number 93 for more information on how long a team must wait before they can trade a player.
