Extensions for expiring trade targets? (General Question)

[Skybox]

Can a team acquiring a player negotiate and even sign a multi-year extension at the time of the trade?

For example, ORL trades -this summer -matching salary and pick(s) for Coby White (or Sexton or Simons or...), who is expiring with one more season under contract. Can ORL have him agree to and sign a multi-year deal at the time of the deal? It would have nothing to do with CHI, but ORL (in this example) would want some certainty that they could retain him beyond a one year "rental". I feel like this has been done with high-profile guys (J. Butler, Ingram...) but wasn't sure how it reads.

there are certainly situations where either the team or player or both would prefer to see how things go and maintain some freedom/leverage...but, if it was desired by both or a serious concern, could it get done?

Anyone know the rules?

[gswhoops]

Can a team acquiring a player negotiate and even sign a multi-year extension at the time of the trade?

For example, ORL trades -this summer -matching salary and pick(s) for Coby White (or Sexton or Simons or...), who is expiring with one more season under contract. Can ORL have him agree to and sign a multi-year deal at the time of the deal? It would have nothing to do with CHI, but ORL (in this example) would want some certainty that they could retain him beyond a one year "rental". I feel like this has been done with high-profile guys (J. Butler, Ingram...) but wasn't sure how it reads.

there are certainly situations where either the team or player or both would prefer to see how things go and maintain some freedom/leverage...but, if it was desired by both or a serious concern, could it get done?

Anyone know the rules?

I'm pretty sure this is exactly what we did with Butler, so I hope the answer is that it's legal...

[Skybox]

Seems like all of the guys I want are somewhat available (to varying degrees) and expiring and, imo, all should come in around $20m per on their next deal, regardless of their present over or underpay.

Simons
Sexton
Coby White
CJ McCollum
Austin Reaves
Jaden Ivey

[giberish]

If a player is eligible to sign an extension, than a trade and extend move is possible. I'm not sure on the exact rules but I believe that if a players current contract was too short they can't sign an extension. Extensions can only be signed 2 (or possibly 3?) years after a contract started.

[giberish]

If a player is eligible to sign an extension, than a trade and extend move is possible. I'm not sure on the exact rules but I believe that if a players current contract was too short they can't sign an extension. Extensions can only be signed 2 (or possibly 3?) years after a contract started.

[wadenation305]

Most players who's contract are extension eligible negotiate their contract with the team that is trading for them before the trade. The player is obviously very motivated to secure his money and the team anxious to make sure their investment can't just walk away after the trade. Unless the team traded for that player for cap purposes.

[Scoot McGroot]

It’s called an extend and trade.

http://www.cbafaq.com/salarycap.htm#Q95

95. Can a player be given an extension and traded at the same time?

Similar to a sign-and-trade arrangement (see question number 92), a team may sign an eligible player to an extension (see question number 58) and immediately trade him to another team. Such an "extend-and-trade" is limited to three seasons, which include any seasons remaining on the player's current contract1. The salary in the first season of the extension can have a 5% raise over the last season of the existing contract, and subsequent raises are limited to 5% of the salary in the first season of the extension. The 5% limit also applies to both likely and unlikely bonuses.

A player cannot be traded in an extend-and-trade after the season (for example, on draft day) in the last season of his contract, or in any season that might be the last season due to an option or ETO.

Since an extend-and-trade has greater limits than a regular extension (three seasons2 and 5% raises vs. four seasons2 and 8% raises) the rules restrict teams from extending and trading the player in separate transactions in order to circumvent these limits. If a team extends a player beyond the limits of an extend-and-trade (for example, if they sign a player to a four-year extension), they can't trade the player for six months. Conversely, a team cannot extend a player it receives in trade for six months, if the extension exceeds the limits of an extend-and-trade3.

Extend-and-trade transactions are rare. To date they have only been used for Kevin Garnett (traded from Minnesota to Boston in 2007) and Carmelo Anthony (traded from Denver to New York in 2011).

A rookie scale contract (see question number 47) can be extended and traded in an extend-and-trade transaction, although there is no benefit to doing so. A rookie scale extension can be signed immediately after the player is traded (such as with James Harden's trade to the Rockets in 2012), and a rookie scale extension (see question number 58) can be much larger than the extension allowed through an extend-and-trade.

1 The current season counts as one full year, even if the extension is signed as late as June 30. So if a contract is extended on June 30 with one full season remaining, only one new season can be added to the contract with an extend-and-trade.
2 Including the remaining seasons on the existing contract.
3 This does not apply to extensions of rookie scale contracts. For example, the Oklahoma City Thunder traded James Harden to the Houston Rockets on October 27, 2012, and the Rockets signed him to an extension four days later.

And there’s the changes under the newest CBA

Extend-and-Trades. Beginning in 2024-25, for Extensions entered into in
connection with an agreement to trade the Contract, (a) the maximum allowable
term of the Extension will be increased from a total of three years to a total of four
years, and (b) the maximum allowable Salary in year one of the extended term will be increased from 105% of the player’s prior Salary to 120% of the greater of the
player’s prior Salary and the Estimated Average Player Salary.