Renouncing Exceptions / Extension Questions

[JNichols42887]

Hi all. I have four questions, two on exceptions, and two on extensions:

1. Can a team renounce part of trade exception? Let's say they have 6 mil MLE and 6 mil TPE. Cap is 50, and they're at 40. Can they renounce all of MLE and 4 mil of TPE? This would leave them with 8 mil in cap space (50 - (40 + (6-4))) and 2 mil TPE. Or, could they use 2 mil of TPE, leaving them with 42 in salary, and THEN renounce both exceptions? In other words, once you've used part of an exception, can you renounce the rest of it?

2. Can you renounce one exception but not another, or is it an all-or-nothing sort of deal? Let's say a team's cap number is $35, plus a $6 mil MLE and a $15 mil trade exception. Since the TPE can't be used to sign free agents, can they renounce that and use the $9 mil cap space they would create, while keeping the MLE? Or would the problem be that if they created that $9 mil cap space the MLE would go away too?

3. Larry Coon's FAQ mentions maximum raises and lengths for extensions, but are there minimums? Can a $15 mil player get a $5 mil extension for 1 year?

4. Can you extend a player for 1 year with an almost entirely non-guaranteed contract, giving you an asset similar to Erick Dampier's? I saw a question like this posted earlier on this board, but I didn't understand the answer. Couldn't the Cavs have extended Shaq for one more year with a mostly non-guaranteed contract, thus giving them a huge asset that they could waive if they couldn't find a trade partner?

Thanks a bunch.

[loserX]

Hi all. I have four questions, two on exceptions, and two on extensions:

1. Can a team renounce part of trade exception? Let's say they have 6 mil MLE and 6 mil TPE. Cap is 50, and they're at 40. Can they renounce all of MLE and 4 mil of TPE? This would leave them with 8 mil in cap space (50 - (40 + (6-4))) and 2 mil TPE. Or, could they use 2 mil of TPE, leaving them with 42 in salary, and THEN renounce both exceptions? In other words, once you've used part of an exception, can you renounce the rest of it?

I think the second case is okay, wherein they "use" part of the TPE, then renounce the unused portion. I'm pretty sure you can't renounce part of a TPE first and then keep the rest for later, nor would it benefit you.

2. Can you renounce one exception but not another, or is it an all-or-nothing sort of deal? Let's say a team's cap number is $35, plus a $6 mil MLE and a $15 mil trade exception. Since the TPE can't be used to sign free agents, can they renounce that and use the $9 mil cap space they would create, while keeping the MLE? Or would the problem be that if they created that $9 mil cap space the MLE would go away too?

Cap figure = salary commitments + capholds + exceptions (MLE + BAE (if available) + TPEs)

You can renounce any or all of those except the salary commitments. If the sum of the remaining items still leaves you under the cap, any other exceptions disappear.

But as in your first example, an over-the-cap team could always use part of the TPE, then renounce the rest of it along with their capholds or other exceptions.

I leave the other questions to smarter people.

[JNichols42887]

Ok, I think I got resolutions to all of the questions.

#1 and #2 don't matter, because whether you renounce part of one exception or all of one but not another, you end up with the same available money regardless of if you use cap space or exceptions. For example, in #1, I suggested using $2 mil of the trade exception then renouncing the remainder along with the MLE, leaving you with

$40 mil previous team salary
$2 mil player
$8 mil cap room

But if you renounce both, you simply have

$40 mil previous team salary
$10 mil cap room, which can be split among a $2 mil and $8 mil player anyways

So basically, a stupid question.

As for questions #3 and #4, Larry Coon answered those for me in a Hoopsworld chat. You can give a 1-year extension with mostly unguaranteed money. And extensions can contain significant paycuts, as evidenced by KG's extension in Boston.

I have some other questions, but I will leave those for a separate thread...

[mysticbb]

As for questions #3 and #4, Larry Coon answered those for me in a Hoopsworld chat. You can give a 1-year extension with mostly unguaranteed money. And extensions can contain significant paycuts, as evidenced by KG's extension in Boston.

Regarding #4, a player has trade restrictions and can't be traded until Dec 15, 2010, if he is signed to such a contract. In a S&T the contract must at least have 3 years from which the first year has to be fully guaranteed. Thus it isn't possible to create a Dampier-like contract in this summer and use him before the trading deadline in February in such a fashion. But a team could create one for the next summer, but how many players would agree to such a deal, especially when you take the size of that contract into account. And no team will heavily overpay for a player just to have a trade chip next summer.

[JNichols42887]

As for questions #3 and #4, Larry Coon answered those for me in a Hoopsworld chat. You can give a 1-year extension with mostly unguaranteed money. And extensions can contain significant paycuts, as evidenced by KG's extension in Boston.

Regarding #4, a player has trade restrictions and can't be traded until Dec 15, 2010, if he is signed to such a contract. In a S&T the contract must at least have 3 years from which the first year has to be fully guaranteed. Thus it isn't possible to create a Dampier-like contract in this summer and use him before the trading deadline in February in such a fashion. But a team could create one for the next summer, but how many players would agree to such a deal, especially when you take the size of that contract into account. And no team will heavily overpay for a player just to have a trade chip next summer.

Right, it was the option of creating the trade chip for the next summer that most interested me. And I agree, it's unlikely the player would take such a deal. However, I wonder if there aren't any players who are pretty much guaranteed to make the minimum following a large veteran contract, and wouldn't mind the extra $1 or $2 million they'd get from being waived, in addition to whatever minimum contract they sign.

[mysticbb]

I bet you can find such players, especially those who didn't earn that much money in the career so far. Heck, I would do it, if a GM is asking me for being a trade chip next summer.