Trying to understand legalities of salary matching for a trade between 2 over the cap teams

Alonzo_Morning · Post #1 » by **Alonzo_Morning** » Fri Jan 15, 2021 2:38 pm

The Larry Coon CBA FAQ isn't making it any clearer for me, nor is other literature.

We'll just keep it at a one for one player trade for simplicity sake (eg. Ingram for Simmons)

What exactly is considered a legal trade between Team A and B salary wise?

Post #2 » by **Scoot McGroot** » Thu Feb 25, 2021 3:35 pm

Alonzo_Morning wrote:The Larry Coon CBA FAQ isn't making it any clearer for me, nor is other literature.

We'll just keep it at a one for one player trade for simplicity sake (eg. Ingram for Simmons)

What exactly is considered a legal trade between Team A and B salary wise?

What part are you not understanding, specifically?

Each respective team has to make the deal work per the CBA from their own side. Philly is a luxury tax team, and would remain so after a potential Simmons/Ingram swap, so they can only take back up to 125% of the salary they send out, but can take back any amount less than they send out (this is how TPE’s are created). New Orleans is currently $2m or so under the tax, so, as long as they would end any potential trade UNDER the tax, they would be held to the non-taxpayer rules. Sending out Ingram and his $27m would allow them to take back up to 125% of his salary plus $100k, or just around $34m. However, this would put them over the tax, which would have effectively the same requirements in this particular case. Each team can arrange any trade in any structure (using TPE’s, DPE’s, etc) that best suits their needs, so long as it would meet all CBA legal requirements in so doing.