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Could the Cavs sign Shaquille to a one-year partially unguaranteed (all but $3 million unguaranteed) contract extension before July 1 and then use that contract to bring in a marquee free agent in a S&T? The Cavs could trade Shaq + $3 million cash to a team (e.g., the Suns) and get back Amare. If Shaq had no intent to resign with the Cavs eventually then he probably would have no interest in agreeing to the deal except for the quick $3 million pay day. The Suns could waive Shaq thereafter. Shaq might even accept the MLE from the Cavs after that (not pre-agreed to do so of course).

Even if all that technically worked under the CBA I suspect the league would come in with its "too cute to be true" non-technical challenge to arrangements that circumvent the cap to shut it down but in that case what would they shut down? Would it suspect the contract itself was suspect and not approve the contract or might it require the Cavs could not trade Shaq that season (which would seem unprecedented). They might prohibit Shaq from resigning with the Cavs but that would hardly be a defeat for all parties involved since Shaq has $3 million in his pocket and can sign elsewhere.

A free agent who signs with his prior team pursuant to a S&T must be offered a contract of three years, with the first year fully protected for lack of skill.

Free agents who are not signed pursuant to a S&T cannot be traded until three months after signing a contract or December 15th of that season, whichever is later.

It's all part of the trade rules (Art VII, Sec 8).

answerthink wrote:A free agent who signs with his prior team pursuant to a S&T must be offered a contract of three years, with the first year fully protected for lack of skill.

Free agents who are not signed pursuant to a S&T cannot be traded until three months after signing a contract or December 15th of that season, whichever is later.

It's all part of the trade rules (Art VII, Sec 8).

So agreeing to an extension of an existing contract is equivalent to signing a contract for these purposes?

The rules above apply to a player who signs a contract as a free agent.

There is a different set of rules which applies to extensions. First, the player would need to be eligible for the extension. Contracts for fewer than four seasons may not be extended. Longer contracts can be extended under certain circumstances, as described in Larry Coon’s FAQ. If eligible, a player and his team may extend a contract pursuant to an agreement between his team and another team. However, no such agreement may be made during the period from the last day of the last regular season covered by the contract through the following June 30.