Trade Exceptions

[el loco]

Can they be used to trade for draft picks?

[Three34]

They don't need to be. Unsigned draft picks have a trade value of $0. This is how come you see so many of those "______ traded the rights to ________ for a future second rounder and cash" type deals on draft nights.

[el loco]

Makes sense, but can they be? It might be something to entice the other team into dealing their pick.

[Three34]

It doesn't sound like you know what a trade exception is. A trade exception is a vehicle for facilitating trades. It's not something that can be given away. If you've got one, you can either use it, or let it expire. But you can't give them to someone else.

[Dunkenstein]

The only way you could use a trade exception to get a pick is if a contract was traded along with the pick. As an example, if Team A had a trade exception and wanted Team B's pick. Team B could send its pick and a player it wanted to get off its cap to Team A using Team A's trade exception as the vehicle to facilitate the trade.

[FGump]

I think the question is, Can you trade a Trade Exception to another team who might want to use it?

And the answer is No.

Just like an MLE or BAE, a TPE is a "use it or lose it" provision that lets a team exceed the cap for a particular purpose. It can be used in its entirety or in pieces, like the MLE and BAE. But it isn't a commodity and it can't be traded.

[el loco]

It doesn't sound like you know what a trade exception is. A trade exception is a vehicle for facilitating trades. It's not something that can be given away. If you've got one, you can either use it, or let it expire. But you can't give them to someone else.

This question was actually posed on another board, and I do understand what a trade exception is normally used for, but I wasn't sure if it could be used as money given in such a situation. I kinda sorta expected the answer you gave in advance. On draft night, like you mentioned team A sells their pick to team B. I was asking if a trade exception could be used in this manner. Say team B in the above scenario had a 6 million dollar TPE and they traded 3 million of it to Team A giving team A relief for giving up their pick the same way money changes hands with picks (future considerations).

I think Dunkenstein explained it the way I was expecting the answer to be explained, so basically the answer is yes and no like everything else in the CBA there is a way around it

Thank you guys for taking the time to answer and answer quickly

[el loco]

I think the question is, Can you trade a Trade Exception to another team who might want to use it?

And the answer is No.

Just like an MLE or BAE, a TPE is a "use it or lose it" provision that lets a team exceed the cap for a particular purpose. It can be used in its entirety or in pieces, like the MLE and BAE. But it isn't a commodity and it can't be traded.

That's what I was asking, and it's the answer I thought I would see/hear, and like Dunkenstein pointed out there is a way around it.

[FGump]

On draft night, like you mentioned team A sells their pick to team B. I was asking if a trade exception could be used in this manner.

If you are asking if a TPE could be sold for cash in the manner a pick is sold for cash, the answer is No. It is not a commodity.

But you might be rewarded by a team if you USED it to take a contract from them without giving one back; a team might reward you with a pick and/or cash if you took salary away they didn't want.

Say team B in the above scenario had a 6 million dollar TPE and they traded 3 million of it to Team A giving team A relief for giving up their pick the same way money changes hands with picks (future considerations).

TPEs are not traded. They are used.

Team B could USE some or all of their TPE in that deal above. But when Team B uses some or all of theirs, Team A may or may not end up with some sort of a new TPE - it just depends on the specifics of the deal.