Can the Blazers trade Bledsoe or Hart around draft night?
Posted: Wed Feb 9, 2022 10:29 pm
And then the recieving teams renounces them?
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Telfaire wrote:And then the recieving teams renounces them?
After a team's season ends (and through June 30), they use the lesser of the full salary for the current season and the guaranteed base salary for the upcoming season.
raleigh wrote:How then would a draft night trade affect the current year salary cap of the team receiving the player with the partial guarantee?
raleigh wrote:For example, if a team near the luxury tax acquired Gallinari in exchange for a player making ~$5M in 2022-23, said team would have to pay the luxury tax, right?
DBoys wrote:Future year salary (and guarantee) does not have any bearing on what was paid in 21-22, so no impact on current year (21-22) tax.
raleigh wrote:DBoys wrote:Future year salary (and guarantee) does not have any bearing on what was paid in 21-22, so no impact on current year (21-22) tax.
I'm not suggesting that. Lemme try to ask another way.
According to my lay understanding of the Coon FAQ, this is how a Gallo trade would work:
1) Hawks trade Gallo in mid-June 2022 to Team X. His outgoing salary is treated as $5M.
2) In exchange, Team X trades a player to Atlanta making, say, $8M in both 2021-22 and 2022-23 to make the trade legal.
3) Team X waives Gallo immediately.
For Team X, Gallo's 21-22 salary counts as ~$20M vs. their 21-22 cap sheet, and $5M vs. their 22-23 cap sheet.
If I'm correctly interpreting step #2, then the difference between Gallo's $20M cap hit for 21-22 and the $8M player's cap hit for 21-22 would push most teams into the luxury tax for 2021-22.
It would, for all intents and purposes, make his contract untradeable (unless paired with a bunch more salary or sent to OKC to overcome the difference between his "outgoing salary for trade purposes" and his "cap hit").
giberish wrote:In your hypothetical, Gallo's salary counts as $5M outgoing from Atlanta but as the full $20M incoming to team X.
raleigh wrote: ... the difference between Gallo's $20M cap hit for 21-22 and the $8M player's cap hit for 21-22 would push most teams into the luxury tax for 2021-22.