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View Full Version : Questions about logistics of signing & trading players



sdlakerfan
06-28-2018, 09:36 PM
I have two questions about the nuances of signing and trading players, that I can't find the answers to anywhere. I am hoping this basketball community can help me.

1) After a player is traded, I often hear about a "buy out". For example, Dwight Howard and the Nets are rumored to be discussing a buy out after his trade from Charlotte. When this happens how does the player's salary affect the cap and luxury tax of the team that traded for him and bought him out? I believe if a player is bought out from a team, when a trade is NOT involved, their salary still impacts their cap? For example, if the Lakers bought out Luol Deng, they wouldn't have a any salary cap relief. However, is the bought out salary treated differently when a player is newly received via a trade?

2) Although not a situation that occurs frequently, there are times when a team ends up with multiple first round draft picks. Hypothetically, if that team already has a full roster, and would be pushed over the maximum number of players by their picks, are they compelled to sign their first round draft picks? I know they can trade the picks or players or stash player overseas and the D League. However, what happens if they have a full roster, draft picks and their draft picks refuse to play overseas?

Vee-Rex
06-28-2018, 10:36 PM
1. Don't think a trade matters. The main factor is the details of the contract of said player. Often times players are more willing to discuss buyout options if they're traded to a team they don't want to play for.

2. The NBA roster expands to 20 guys during the offseason. Once the season starts, it condenses to 15 - if they can't work out something with their draft picks then they need to figure out how to make room for them on the roster. Pretty sure there's rules regarding how long an unsigned draft pick can go before they hit free agency.

Scoots
06-28-2018, 11:27 PM
1. The reason these trades happen is often that one team has cap space to use up but they don't need the player. They get an asset they do want and give back cap space in return essentially. The team the player is traded to for their cap space still has to pay most of the bought out player's salary.

Oakmont_4
06-29-2018, 08:05 AM
I have two questions about the nuances of signing and trading players, that I can't find the answers to anywhere. I am hoping this basketball community can help me.

1) After a player is traded, I often hear about a "buy out". For example, Dwight Howard and the Nets are rumored to be discussing a buy out after his trade from Charlotte. When this happens how does the player's salary affect the cap and luxury tax of the team that traded for him and bought him out? I believe if a player is bought out from a team, when a trade is NOT involved, their salary still impacts their cap? For example, if the Lakers bought out Luol Deng, they wouldn't have a any salary cap relief. However, is the bought out salary treated differently when a player is newly received via a trade?

2) Although not a situation that occurs frequently, there are times when a team ends up with multiple first round draft picks. Hypothetically, if that team already has a full roster, and would be pushed over the maximum number of players by their picks, are they compelled to sign their first round draft picks? I know they can trade the picks or players or stash player overseas and the D League. However, what happens if they have a full roster, draft picks and their draft picks refuse to play overseas?

1. The buyout number counts against the cap. So let's say Dwight is bought out for $10M. It's mutually beneficial because now Dwight can sign somewhere he wants to play with $10M in his pockets. BRK reduces Dwights cap figure by over $10M and likely can sign another player using that saved money. If the Lakers buy out Deng, whatever number the buyout they agree to is, counts against their cap. So it's not ideal. Deng, unlike Howard, probably has less of a market so a buyout probably isn't appealing to Deng. And it doesn't necessarily help the Lakers that much either. The Lakers could stretch Deng and likely pay the same against the cap but ideally they want to attach assets and just move the entire contract.

2. Offseason roster size is 20 players so it's hard to imagine this situation unfolding. Before the first round pick is even signed it counts as a cap hold and roster spot against a teams cap anyways. I find it very unlikely this situation would ever unfold. Essentially a team would need to have 0 Free Agents in the offseason and 6 first round picks for this situation to arise...Which is unlikely, but not impossible I guess. Most GM's would account for this in their roster structure. But again, not impossible, there's been some really bad GM's in the NBA.

MILLERHIGHLIFE
06-29-2018, 08:20 AM
Teams can have a roster of 17. 15 roster players and 2 two way players that go in the G League. 20 players in the offseason.

HandsOnTheWheel
06-29-2018, 08:42 AM
Traded players that are bought out typically are on 1 year deals, no?

Scoots
06-29-2018, 09:00 AM
Traded players that are bought out typically are on 1 year deals, no?

Often they are on the last year of their deals because teams don't want to burn multiple years of cap space for a draft pick, but not always. I heard on the Locked On podcast the other day that the going rate is around 1 first round pick per $20M of cap space. It made me think that if there were a Hinkie-like in the league this year that team could clean up with so many teams looking to free up space and with so many bad contracts on their last year.

IndyRealist
06-29-2018, 09:49 AM
2) If a drafted player does not sign a contract with his team and does NOT play for any professional league for a year, that team loses his draft rights and he becomes a free agent. If he plays professionally anywhere, the team retains his rights until he sits out a year.

This will likely never happen at this point, because the rookie scale contract makes negotiating almost moot.

Also, cbafaq.com

sdlakerfan
06-29-2018, 10:07 AM
2) If a drafted player does not sign a contract with his team and does NOT play for any professional league for a year, that team loses his draft rights and he becomes a free agent. If he plays professionally anywhere, the team retains his rights until he sits out a year.

This will likely never happen at this point, because the rookie scale contract makes negotiating almost moot.

Also, cbafaq.com

So the team isn't compelled to sign their first round pick? I know a player doesn't have to sign, but it sounds like a team doesn't have to sign the player either. I know it is far fetched, but it seems like there is the possibility that a player could get screwed by a team. If a player only wants to play in the USA and is drafted by an NBA team in the first round, but the NBA team wants to stash that player in Europe, the player could be without a job for a year.

Oakmont_4
06-29-2018, 10:57 AM
So the team isn't compelled to sign their first round pick? I know a player doesn't have to sign, but it sounds like a team doesn't have to sign the player either. I know it is far fetched, but it seems like there is the possibility that a player could get screwed by a team. If a player only wants to play in the USA and is drafted by an NBA team in the first round, but the NBA team wants to stash that player in Europe, the player could be without a job for a year.

That would be the players choice not to play. They could play in Europe still. Usually it's not an issue. Teams will generally speak to the player or their reps first and see where the player is at. If the guy is dead set on playing in the NBA and the team is dead set on stashing - odds are the team wouldn't draft the player.

IndyRealist
06-29-2018, 10:57 AM
So the team isn't compelled to sign their first round pick? I know a player doesn't have to sign, but it sounds like a team doesn't have to sign the player either. I know it is far fetched, but it seems like there is the possibility that a player could get screwed by a team. If a player only wants to play in the USA and is drafted by an NBA team in the first round, but the NBA team wants to stash that player in Europe, the player could be without a job for a year.

Yup.