RealGM

Say there is a 3 team trade and team A wants to send $3M cash to team C, and team B also wants to send $3M cash to team C. Is that allowed?

Larry has the following under question #82:

http://members.cox.net/lmcoon/salarycap.htm#Q82

Players can be traded for cash, and cash can be included in trade packages. The amount of cash is limited to $3 million. The cash is NOT considered when matching salaries under the Traded Player exception.

In a sign-and-trade arrangement, if the contract contains a signing bonus, then any amount of this bonus paid by the signing team counts toward the $3 million limit (see question number 76).

Here's what the CBA says:

A Team shall not be permitted to receive in connection with any trade, directly or indirectly, more than $3 million in cash or other compensation, including cash or other compensation received as reimbursement for Compensation obligations to players who the Team is acquiring.

So it would appear that the limit is on what a team receives, not what a team sends out. It looks like, even in a 3 team trade, a single team can still only receive $3 million cash.

So Cal Blazer Fan wrote:Here's what the CBA says:

A Team shall not be permitted to receive in connection with any trade, directly or indirectly, more than $3 million in cash or other compensation, including cash or other compensation received as reimbursement for Compensation obligations to players who the Team is acquiring.

So it would appear that the limit is on what a team receives, not what a team sends out. It looks like, even in a 3 team trade, a single team can still only receive $3 million cash.

That makes sense, I suppose a deal could be broken into two deals, but then again that may be considered circumvention.

lakerfan10770 wrote:

So Cal Blazer Fan wrote:Here's what the CBA says:

A Team shall not be permitted to receive in connection with any trade, directly or indirectly, more than $3 million in cash or other compensation, including cash or other compensation received as reimbursement for Compensation obligations to players who the Team is acquiring.

So it would appear that the limit is on what a team receives, not what a team sends out. It looks like, even in a 3 team trade, a single team can still only receive $3 million cash.

That makes sense, I suppose a deal could be broken into two deals, but then again that may be considered circumvention.

Suppose you were able to turn the three-team trade into two separate and distinct two-team trades. In the first trade, team A sends player X and $3M to team C for player Y. Then the next day (or the next week) team B sends player Z and $3M to team C for player X. I would argue that that would be legal.

Dunkenstein wrote:Suppose you were able to turn the three-team trade into two separate and distinct two-team trades. In the first trade, team A sends player X and $3M to team C for player Y. Then the next day (or the next week) team B sends player Z and $3M to team C for player X. I would argue that that would be legal.

I was angling towards the Marion to Dallas talks, since a 4th team would likely be required to take on Stackhouse's partially guaranteed contract. My thought was:

Dallas sends Stackhouse, Bass, & cash for Marion
Toronto sends Marion & cash for Hedo
Orlando sends Hedo for Bass
Thunder sends conditional 2nd rounder for Stackhouse and cash (as much as possible).

Obviously a little far fetched being that there are 3 S&T's in the deal, but I thought if they could throw more than $1M ($3M cash - Stack's $2M buyout) at the Thunder to help facilitate it could work.