“Consideration In Trades And Trade Structure” – a league instruction manual
July 11th, 2014
At the end of the July Moratorium each year, the league sends out a memo containing all of the findings from the audit it conducted during it. That audit is what the moratorium period is for – the moratorium is one long end-of-season book-keep in which it crunches all the numbers related to revenue, BRI, escrow, tax and the like, and makes determinations on both the past and the future. That memo generally filters through to the mainstream media – it has to, because it contains all the things that will make the league work next year, such as the salary cap numbers and exact size of the luxury tax threshold. It also contains things such as the latest projection of the season after next ($66.3 million salary cap, $80.7 million luxury tax threshold) and the sizes of next year’s exceptions. This year, however, the league sent out a second memo. Entitled “Consideration in Trades and Trade Structure”, it is a reminder and/or clarifier to teams about some of the specifics of what they can and cannot do in trades. Seemingly, they felt this was necessary Considering the presence of this memo suggests that some teams do not entirely understand the rules (or, perhaps, have been intent on pushing them back a bit), it is self-evidently the case that those of us outside of the league will not fully know them either. So, here goes. The memo is divided into two parts. The first part of the memo deals with what constitutes ‘consideration’ in trades, and is itself split into two parts. Part two of this first section concerns consideration in trades for non-playing personnel. Seemingly, in light of recent de facto coaching trades (whereby a team receives compensation for letting a non-playing member of staff out of their contract […]
The Louis Williams/Lucas Nogueira Trade
June 28th, 2014
(originally published elsewhere) In a trade agreed to last night, and perhaps already to have been made official by the time this sentence is finished, the Toronto Raptors agreed to trade John Salmons and his partially guaranteed contract to the Atlanta Hawks in exchange for Louis Williams and the draft rights to Lucas Nogueira. Toronto were previously on the cusp of trading Salmons to Memphis on draft night, along with the #37 pick, in exchange for Tayshaun Prince and the #22, the theory being that they intended to draft Canadian guard Tyler Ennis with their #20 pick and then taking young project Bruno Caboclo at #22. But when Ennis was taken 18th by Phoenix, the plan was scuppered, and the deal pulled. The Raptors would instead choose to wait for a better spot in which to use Salmons’s valuable unguaranteed contract. And they have now found it. Nogueira, the #16 pick in the 2013 draft, had been shopped by Atlanta in recent times. Despite averaging a very solid 6.3 points, 4.1 rebounds and 1.6 blocks in only 16 minutes per game of Spanish ACB league option last season, the Hawks seemed to have other priorities, and have used those once-valued rights merely to dump some salary. Perhaps prompted to by Nogueira’s ongoing tendinitis problems – which are worryingly recurrent and severe for a 21 year old center whose game is largely based on his athleticism – Atlanta soured on this potential piece for the future in order to prioritise their present. They are not trading for John Salmons the player under any circumstance. Salmons has declined significantly, and despite a big minutes yield for the Raptors last season, he was mostly ineffective, shooting 36% on his way to a 7.6 PER. Nevertheless, his contract, which calls for a $7 million […]
The Jeremy Pargo trade was a salary dump
July 26th, 2012
Whatever you may feel about Jeremy Pargo – personally, I’m quite shocked at how poor his rookie season was and firmly believe he could do considerably better given a faster paced team with better spacing – it is only important to know that in today’s trade featuring him, he was merely a salary. So too was D.J. Kennedy. In trading Pargo, his $1 million guaranteed 2012/13 salary and a second-round pick for Kennedy (whose minimum salary of $762,195 is fully unguaranteed), Memphis does a salary dump and nothing else. Even the $1 million TPE they open up in doing so (created as Kennedy’s salary is absorbable via the minimum salary exception) is of little use, being so small. The Grizzlies are trying to dodge the tax. They did so last year, managing to dip under the threshold upon trading the redundant Sam Young to Philly, and are now threatened by it again. This, to their credit, has not stopped their spending this summer – they paid to re-sign both Darrell Arthur and Marreese Speights, giving them a strong frontcourt with good depth, and were similarly unashamed to spend what it took to upgrade their big hole at the backup point guard spot. Dodging the tax again is unlikely to happen, though. The $3,006,217 given to Arthur, $3 million to Jerryd Bayless, $4.2 million to Speights and $1,110,120 to Tony Wroten has put them back above the $70.307 million tax threshold – after today’s trade, Memphis has $73,053,277 committed to 12 players, not including the unguaranteed salary of Kennedy. It is more than likely the case that Memphis will not be able to avoid a small tax penalty this season. But if it only costs a mid-to-late second-round pick to lessen that hit by $2 million, on a player who was […]
Tax Payers, Trade Kickers, And Other Deadline Day Bookkeeping
February 26th, 2011
He looks happy. And why shouldn’t he. That was one of the most interesting trade deadline weeks you’ll ever see. Fourteen trades, one kind of funny near trade, 50 players traded, 3 players signed, 4 players waived, 16 draft picks traded, 1 rights to swap traded, and two absolute Stone Cold Stunners of trades that no one expected. And these weren’t trades like Sam Cassell and cash for a 2016 top 55 protected second rounder, either. These were trades that changed teams significantly, and altered the landscape of the entire NBA. (Well, except for the Marquis Daniels one.) Superstars Carmelo Anthony and Deron Williams were dispatched from teams they didn’t want to stay with. Shane Battier and Mo Williams were dispatched from teams they didn’t want to leave. Draft busts Brandan Wright and Hasheem Thabeet were shipped for minimal returns; recently drafted rookies Derrick Favors and Jordan Crawford were shipped before even completing a season. And while my T.J. Ford for Dan Gadzuric idea never got done, Gadzuric did move to the New Jersey Nets, where he can grab as many rebounds as Brook Lopez in a third of the minutes. New York and New Jersey made the two biggest moves by acquiring the two All-Stars, Williams and Anthony. The Knicks finally closed the deal on the Anthony saga, their additional acquisition of Chauncey Billups and their retention of Landry Fields keeping the price tag just about on the right of ‘acceptable.’ Meanwhile, the Nets’s genuinely staggering trade for Williams, whilst ultimately a backup plan, turned out to be better then their original plan. If their intention was to chase Melo for half a year, then give up and trade less in a deal for a better, cheaper player with less mileage on the clock, then they pulled it off […]
Thunder acquire Eric Maynor and Matt Harpring for PETER FEHSE
December 23rd, 2009
I have only 48 things to say about this deal. 1) As his profile suggests, I have long regarded Peter Fehse as a yardstick for a person’s NBA knowledge. If a fan knows who Peter Fehse is, they are hardcore and deserve your respect. Short story short, Peter Fehse is a lanky German with lots of hair, who was drafted in the second round in 2002 as an absolute longshot based on his combination of height and athleticism. He never amounted to anything NBA-calibre, partly because he never had NBA calibre to begin with, but also because of constant injuries. It has been over seven years since Peter Fehse was last heard of in NBA circles; indeed, he’s barely even heard in German basketball circles either. Fehse has not played this season, played in only two games last season, and did not play in 2007/08, all of which is due to injury. As long shot projects go, he was about as long-shotty as a 49th pick can be, and is even more of a throw-in than Andy Betts was when he was traded for Peja Stojakovic in July 2006. Gotta love that. 2) Oklahoma City were able to make this trade because they had roughly $9 million’s worth of cap room. As documented here, Oklahoma City had about as much cap room as anyone this summer, and could have bid on a number of quality players that filled a need (including Utah’s very own Paul Millsap, whose new contract is ironically the reason for the need to salary-dump in the first place.) They didn’t do this, though, instead choosing to sign two of the most marginal players to have ever had ten or more year careers; Kevin Ollie and Ryan Bowen. Reasons like this are partly why; they maintain […]
