Why only 3 years max in an extension?

[FGump]

The rule applies to any player who figures to be a free agent -- as the question by arenas809 denotes -- whether by virtue of an ending contract or a contract that may end based upon the exercise or non-exercise of an option or ETO.

While the question was asked of a somewhat narrow group of players, your answer was a much more general declaration ("The "extend-and-trade" concept is not allowed until July") without specificity as to its limits. Those limits needed to be stated imo.

It also should be noted that such a prohibition only applies in absolute terms to players who cannot have another year left on their contract. The mere presence of an ETO or non-exercised option does not close the door entirely ...in that those with an ETO or a non-exercised option can always be extend-and-traded with the mutual cooperation of player and team by simultaneously (within the extend-and-trade) declining the ETO or exercising the option in question to lock in that future year ...which means that, although completely unlikely, marquee players like Lebron, Wade, Bosh, Nowitzki, etc could at any time be extend-and-traded if the parties all so desired and took the proper actions.

[answerthink]

Mine was a direct answer to a direct question.

Since you seem eager for me to cover every possible scenario, I will do so…

Any player who has more than one season remaining on his contract (and qualifies for an extension) can be extended-and-traded at any time during which trades are permissible. Any player who is in the final season of his contract (and qualifies for an extension) can be extended-and-traded at any time prior to the trade deadline.

No player and his team can amend a contract (including by entering into an extension) pursuant to a subsequent trade of the contract after the end of the regular season if that player figures to be a free agent, whether by virtue of an ending contract or a contract that may end based upon the exercise or non-exercise of an option or ETO.

As you describe, there are a few additional points to consider.

A player with a contract that may end based upon the non-exercise of an option cannot technically be extended-and-traded after the end of the regular season. However, if the player (in the event of a player option) or the team (in the event of a team option) exercises the option, the player’s contract would no longer be considered an ending contract, and he would then be eligible for an extend-and-trade (if, of course, he also qualifies for an extension).

A player with a contract that may end based upon the exercise of an ETO cannot be extended-and-traded after the end of the regular season. Unlike with an option, the only way for a contract with an ETO to no longer be considered an ending contract is by running out the clock on the ETO (i.e., by waiting until the following season) or by amending the contract to eliminate the ETO. But, as mentioned above, a contract that may end based upon the exercise of an ETO cannot be amended after the end of the regular season pursuant to a subsequent trade of the contract.

There are other possible variations, but these basic rules should apply to them all.