Questions about Trades, Salary Cap, and TPE

[Blazersfan12]

The questions may have been asked before, but I did my best to search before posting. Please direct me to previous posts if they have indeed been answered.

When trades happen after the season ends and before July 1, which year's salary is used in salary cap calculations?

For example, John Salmons was traded from TOR to ATL for Lou Williams on Jun 30, 2014, after the 2013-14 season had ended, but before the new salary cap year started on July 1.

Salmons salary: $7,583,000 for 2013-14, $7,000,000 for 2014-15
Williams salary: $5,225,000 for 2013-14, $5,450,000 for 2014-15

Does TOR take on Salmons or Williams salary for 2013-14?

All the sites I've seen have Salmons' salary on TOR for 2013-14, but that doesn't seem to agree with #14 in Larry Coon's CBA Faq "Salaries for completed contracts (such as 10-day contracts) are included in team salaries for the remainder of that salary cap year (through June 30)."

A similar question: When trades happen after the season ends and before July 1, which year's salary is used in TPE calculations?

Most sites report that TOR has a $2,358,000 trade exception, which is the difference between 2013-14 salaries of the two players.

But there are sites saying that TOR should get a $2.133 mil trade exception for John Salmons, which is the difference between 2013-14 salary for Salmons and 2014-15 salary for Williams.

Thanks a lot.

[DBoys]

"When trades happen after the season ends and before July 1, which year's salary is used in salary cap calculations? "

Trade rules and limits are per team cap limits and salaries in season in which they occur. Always. If there is no future year salary, then the player can't be traded even though in the May-June period after games have ended. New season starts 7/1.

[Blazersfan12]

Thanks a lot DBoys.

The new season starts Jul 1, so the Salmons/Williams trade happened in the 2013-14 season.

According to the CBA Faq, teams take on the salary of players they acquire in midseason.

Does "midseason" refer only to the time when games are played? Or the time from Jul 1 to Jun 30?

If Jun 30 is still "midseason," then I think that TOR took on Williams' salary for 2013-14.

For anyone who read this post, what's your take on this?

Cheers

[DBoys]

Thanks a lot DBoys.

The new season starts Jul 1, so the Salmons/Williams trade happened in the 2013-14 season.

According to the CBA Faq, teams take on the salary of players they acquire in midseason.

Does "midseason" refer only to the time when games are played? Or the time from Jul 1 to Jun 30?

If Jun 30 is still "midseason," then I think that TOR took on Williams' salary for 2013-14.

For anyone who read this post, what's your take on this?

Cheers

June 30 would clearly be after-season, ie after all the games have been played. A trade made on June 30, 2014 would not have either team paying a penny of the salary for that 2013-14 season of the player they just acquired, and that makes sense as they would have gotten no service from that just-acquired player for the 2013-14 season.

Yes the NBA terminology is confusing, as they have two separate meanings for the word "season."

While my use of the word season is consistent with how the NBA and CBA use it (ie, there are two different meanings for the same word), if you want me to amend my answer where it makes more sense to you, here we go:

Trade rules and limits are per team cap limits and salaries in The NBA Year in which they occur. Always. If there is no future year salary, then the player can't be traded in the May-June period after the season has been played. Each NBA Year starts 7/1.

[Smitty731]

DBoys has it spot on. The Salmons' deal was in the last league year.

And I can confirm that the NBA has the Raptors with a TPE of $2,358,000.00 for John Salmons' that expires on 6/30/15. That is one year from when the deal was made. Any site saying different is incorrect.

[Blazersfan12]

Ok could you see if these statements are correct? Thanks

The salaries used for matching league rules (max incoming salary is 150% of outgoing salary + $100,000) are from the 2013-14 season (last league year).

However, only the 2014-15 salaries will change on the teams' books, because the trade happened after all games had ended.

ie. Salmons is on TOR's books for 2013-14, but ATL's books for 2014-15. Williams is on ATL's books for 2013-14, but TOR's books for 2014-15.

[Smitty731]

Basically, Toronto had Williams and Atlanta had Salmons for 1 day of 2013-2014, since the deal occurred on 6/30/14, as far as the Cap hits go. Once the league year rolls, all the salary information rolls with it. So, it never had any impact, beyond the ability to actually make the trade itself, which was obviously legal an approved.

For actual salary, since games had all been played, all the dollars were paid by the previous club.

To put it more simply, your statements are mostly correct. It really is semantics on Cap hit vs. actual salary paid at that point.

[hookshot199]

Someone on the Philly board asked an interesting question.Can a team back out of a trade once it's been announced? Case in point: Can Sacramento back out of their salary dump trade with the Sixers since before it becomes official on July 9? And if so, are there penalties?

[Smitty731]

Someone on the Philly board asked an interesting question.Can a team back out of a trade once it's been announced? Case in point: Can Sacramento back out of their salary dump trade with the Sixers since before it becomes official on July 9? And if so, are there penalties?

Neither team has actually announced the trade, because it would be illegal to do so. You can't officially agree to much during the Moratorium period. You are mostly limited to signing Rookies and Waiver Claims.

So, basically, yes Sacramento can back out without any sort of penalty. But to do so would make the organization look horrible and doubtful that other teams would be quite as willing to deal with them the next time.