TPE question

[golfer2]

The Cavs and the Raptors both have TPE's of $14.5 million. I am not clear on how the details of how the TPE can be used.

Let's say that the Celtics agree to trade Ray Allen to the Cavs for the Cavs 2011 2nd round pick. The Cavs have to give Boston something, right? What could the Cavs give Boston besides a future draft pick?

The Cavs use part of their TPE to acquire Allen - legal according to the CBA FAQ, right?

From Boston's standpoint, they are over the cap ($58 million) - their team salary is $83 million. Their team salary after the trade would still be over the cap ($73 million).

According to Larry Coon's CBA FAQ (item #71):

"any trade which results in the team ending up over the salary cap requires an exception. This is true even if the team is moving downward in salary."

What exception would Boston be using to comply with the CBA?

Also, is it "legal" for the Cavs to get multiple players from Boston in this trade (say, Allen and Davis)?

[Three34]

The Cavs use part of their TPE to acquire Allen - legal according to the CBA FAQ, right?

Yes.

What exception would Boston be using to comply with the CBA?

The Trade Exception, whereby "trade exception" is meant simply to mean the vehicle that allows teams over the cap to make trades, and not to be confused with the more common usage of the phrase trade exception. It is unnecessarily confusing that two things should have the same name, but that's how it is.

Also, is it "legal" for the Cavs to get multiple players from Boston in this trade (say, Allen and Davis)?

If they have means to acquire them all, then yes.

[loserX]

Let's say that the Celtics agree to trade Ray Allen to the Cavs for the Cavs 2011 2nd round pick. The Cavs have to give Boston something, right? What could the Cavs give Boston besides a future draft pick?

In your example, you use a 2nd round pick...that would be legal and sufficient, no need to include anything else.

If you are talking about what the Cavs could include instead of the 2nd round pick, it could be a lot of things. Pick swap rights, under-contract player(s), any "held rights" to players overseas...any of those would be legal.

[golfer2]

Let's say that the Celtics agree to trade Ray Allen to the Cavs for the Cavs 2011 2nd round pick. The Cavs have to give Boston something, right? What could the Cavs give Boston besides a future draft pick?

In your example, you use a 2nd round pick...that would be legal and sufficient, no need to include anything else.

If you are talking about what the Cavs could include instead of the 2nd round pick, it could be a lot of things. Pick swap rights, under-contract player(s), any "held rights" to players overseas...any of those would be legal.

Thanks - yes, I was talking about what possibly the Cavs could include. How about just cash (up to $3 million)?

So, the Cavs could "trade" a player (or players) with less salary - say, Anthony Parker, for example, for Ray Allen - and the TPE would make the trade "OK".

Would Boston get a TPE out of the deal?

[Three34]

Yes and yes.

[JNichols42887]

Let's say that the Celtics agree to trade Ray Allen to the Cavs for the Cavs 2011 2nd round pick. The Cavs have to give Boston something, right? What could the Cavs give Boston besides a future draft pick?

In your example, you use a 2nd round pick...that would be legal and sufficient, no need to include anything else.

If you are talking about what the Cavs could include instead of the 2nd round pick, it could be a lot of things. Pick swap rights, under-contract player(s), any "held rights" to players overseas...any of those would be legal.

Thanks - yes, I was talking about what possibly the Cavs could include. How about just cash (up to $3 million)?

So, the Cavs could "trade" a player (or players) with less salary - say, Anthony Parker, for example, for Ray Allen - and the TPE would make the trade "OK".

Would Boston get a TPE out of the deal?

Cleveland couldn't trade Parker for Ray Allen. They can't combine the TPE with a player to match salaries. Also, they can't break down the trade into two smaller trades, because Boston can't absorb Antony Parker unless they have a TPE of their own (I'm not sure if they do).

So basically, Cleveland could use the TPE to acquire Allen, but not combine the TPE and Parker to acquire Allen.

Edit: It seems like Sham and I have different answers. According to Larry Coon's FAQ:

"Teams cannot combine a Traded Player exception with other exceptions (such as the Mid-Level exception or the 125% plus $100,000 margin from another trade) in order to trade for a more expensive player. For example, a team with a $1 million Traded Player exception cannot combine it with their $2 million player to trade for a $3 million player (see question number 75 for more information on combining exceptions). "

Am I interpreting that incorrectly? Could Cleveland trade Parker and a chunk of their exception for Allen?

Edit #2: Nevermind, I understand it now. Sham is right.

[JNichols42887]

Also, is it "legal" for the Cavs to get multiple players from Boston in this trade (say, Allen and Davis)?

Yes, as long as the combined salaries don't exceed the TPE + $100,000.

[DBoys]

"Cleveland couldn't trade Parker for Ray Allen. "
"is it "legal" for the Cavs to get multiple players from Boston in this trade (say, Allen and Davis)?"

I think this issue is being overthought, to the point of confusion. As I understand it, in such scenarios Boston's incoming salary limit would simply be Allen's x 125%, plus 100K.

[JNichols42887]

"Cleveland couldn't trade Parker for Ray Allen. "
"is it "legal" for the Cavs to get multiple players from Boston in this trade (say, Allen and Davis)?"

I think this issue is being overthought, to the point of confusion. As I understand it, in such scenarios Boston's incoming salary limit would simply be Allen's x 125%, plus 100K.

Right. I was confused at first, because I was stuck on combining exceptions. This is how I understand it...

Let's say Cleveland trades Anthony Parker (2.9) for Ray Allen (10.0). I would assume this would count as two separate trades for them, since they presumably can't combine Parker's 2.9 million salary plus 7.1 of their TPE to equal Allen's contract. Therefore, this would eat a full 10 million of their TPE in one trade (Ray Allen for nothing) but give them a 2.9 TPE from the second trade (Anthony Parker for nothing).

Is that correct?

[loserX]

"Cleveland couldn't trade Parker for Ray Allen. "
"is it "legal" for the Cavs to get multiple players from Boston in this trade (say, Allen and Davis)?"

I think this issue is being overthought, to the point of confusion. As I understand it, in such scenarios Boston's incoming salary limit would simply be Allen's x 125%, plus 100K.

Right. I was confused at first, because I was stuck on combining exceptions. This is how I understand it...

Let's say Cleveland trades Anthony Parker (2.9) for Ray Allen (10.0). I would assume this would count as two separate trades for them, since they presumably can't combine Parker's 2.9 million salary plus 7.1 of their TPE to equal Allen's contract. Therefore, this would eat a full 10 million of their TPE in one trade (Ray Allen for nothing) but give them a 2.9 TPE from the second trade (Anthony Parker for nothing).

Is that correct?

Yes. Boston trades Allen to Cleveland; Cleveland uses TPE equivalent to Allen's contract, and Boston gains a TPE in the same amount.

Then Cleveland trades Parker to Boston; Boston uses part of the TPE generated by the Allen trade immediately precedent to take Parker.

Cleveland winds up with a TPE equal to Parker's salary, Boston ends up with a TPE equal to the difference between Allen's salary and Parker's (since that amount is "unused").