Trading Non-Guaranteed Contracts?

NYG · Post #1 » by **NYG** » Wed May 8, 2019 2:47 am

1. If let’s say the Warriors traded Shaun Livingston in some deal to Chicago on draft night, would the resulting Traded Player Exception be for his full salary or just the guaranteed portion?

2. If the answer to 1 is the full salary, could the Warriors just send more cash to Chicago than Livingston’s guaranteed portion and a second round pick for their cap space losses?

DBoys · Post #2 » by **DBoys** » Wed May 8, 2019 2:53 pm

1 Just the guaranteed portion

2 The answer to 1 is NOT the full salary. Nevertheless ...During NBA year, each team can send and receive up to $5,243,000 max in total cash in trade. The reason can be whatever the teams want it to be, or for no real reason at all, and they don't have to explain or justify it. CHI has already received the max amount for 2018-19 year and couldn't take any cash in a draft night deal.

giberish · Post #3 » by **giberish** » Fri May 17, 2019 5:35 am

I've got a couple follow-up questions.

If GS really needed Livingston's matching salary to be the full $7.7M, could they guarantee the last season before a trade?

If GS guaranteed Livingston's last season, then traded him (say to Memphis with a 1st for Kyle Anderson). Then if Memphis agreed to a $3M buyout of Livingston's deal, that would still be legal? If it all happened too fast would the league void the trade or do something else as punishment for violating the spirit of the rules?

DBoys · Post #4 » by **DBoys** » Fri May 17, 2019 7:05 am

giberish wrote:I've got a couple follow-up questions.

If GS really needed Livingston's matching salary to be the full $7.7M, could they guarantee the last season before a trade?

If GS guaranteed Livingston's last season, then traded him (say to Memphis with a 1st for Kyle Anderson). Then if Memphis agreed to a $3M buyout of Livingston's deal, that would still be legal? If it all happened too fast would the league void the trade or do something else as punishment for violating the spirit of the rules?

1 Yes
2 Theoretically okay, but not a deal they would ever get done. Players have learned to wait it out, be willing to play, and get all the guaranteed money (or a tiny bit less, if he's willing to be generous in exchange for picking a different destination) rather than a small portion. In real life, SL gets to MEM and the Grizz will either keep him for 7.7M, or waive him for that amount or close to it.

giberish · Post #5 » by **giberish** » Fri May 17, 2019 2:28 pm

DBoys wrote:
giberish wrote:I've got a couple follow-up questions.

If GS really needed Livingston's matching salary to be the full $7.7M, could they guarantee the last season before a trade?

If GS guaranteed Livingston's last season, then traded him (say to Memphis with a 1st for Kyle Anderson). Then if Memphis agreed to a $3M buyout of Livingston's deal, that would still be legal? If it all happened too fast would the league void the trade or do something else as punishment for violating the spirit of the rules?

1 Yes
2 Theoretically okay, but not a deal they would ever get done. Players have learned to wait it out, be willing to play, and get all the guaranteed money (or a tiny bit less, if he's willing to be generous in exchange for picking a different destination) rather than a small portion. In real life, SL gets to MEM and the Grizz will either keep him for 7.7M, or waive him for that amount or close to it.

With 2 I was thinking about a wink and a nod sort of deal where Livingston goes along to get a $3M buyout rather then the $2M he was originally guaranteed. If nobody's stupid enough to write things down, could teams get away with that? (not that I'm suggesting GS do something shady).