Interesting TPE question

[Macedonianbull]

Lets say, a player right now has a $5 million totally non-guaranteed deal. His team somehow trades him to a team with cap space. Since his deal is non-guaranteed, does his original team receives a $5 million TPE?

Patrick Ewing Jr. situation ...

[FGump]

EDIT:

Misconstrued the hypothetical in your question, sorry.

If a team trades a $5M contract for 0, and they are operating over the cap, they get a $5M TPE

(PS - that was NOT the Ewing trade situation, so mentioning that as an analogy of your hypothetical was confusing)

[Macedonianbull]

... And therefore, if player X was 50% guaranteed on his deal at the time of the trade - his original team would receive a $2.5 million TPE. Is that right?

[FGump]

no

(and this still has no relevance to Ewing)

[LarryCoon]

... And therefore, if player X was 50% guaranteed on his deal at the time of the trade - his original team would receive a $2.5 million TPE. Is that right?

Whether or not it's guaranteed (or the amount of the guarantee) has nothing to do with the amount of the TPE. In a non-simultaneous trade, you have a year to replace the salary you trade away with 100% plus $100K of incoming salary. In your case, $5M is the salary you trade away, no matter how much of it is guaranteed. Non-guaranteed salary is therefore even more valuable as a trade commodity than ending salary, because the receiving team can divest themselves of it immediately (rather than at the end of the year).