NewsOK Contributor You have a story to tell, and others want to hear it. What is this?

Thunder could be active in trade market

The Thunder hold a valuable trade exception that could bring a new player to Oklahoma City. But how was this exception created? And how can it be used?
by Jon Hamm Modified: June 3, 2014 at 12:14 pm •  Published: June 3, 2014


photo - Minnesota Timberwolves guard Kevin Martin (23) moves past Oklahoma City Thunder forward Serge Ibaka (9) for a shot during the first quarter of an NBA basketball game in Oklahoma City, Wednesday, Feb. 5, 2014. (AP Photo/Sue Ogrocki)
Minnesota Timberwolves guard Kevin Martin (23) moves past Oklahoma City Thunder forward Serge Ibaka (9) for a shot during the first quarter of an NBA basketball game in Oklahoma City, Wednesday, Feb. 5, 2014. (AP Photo/Sue Ogrocki)

NBA Salary Cap 101: the Cap, the Luxury Tax and the Apron


To get technical, the Martin trade is an example of a non-simultaneous trade. Think of it this way: The Thunder traded Martin, but have up to one year to acquire his replacement via trade.

What the Thunder can do with this exception: They can trade almost nothing in exchange for one or more players making up to $6.6 million. Or perhaps stated best, they do not have to send out matching salaries to complete a trade, as you would normally see with other teams over the salary cap. The player can be under an existing contract or can be acquired as part of a sign-and-trade transaction.

What the Thunder cannot do with this exception: They cannot aggregate the salary of a player with the exception. For example, the Thunder can’t combine this $6.6 million exception with a $9 million player and acquire a player making $15 million. The trade exception also cannot be used to sign free agents.

This exception expires on July 11, 2014. That’s one day after the end of the NBA’s annual July moratorium. Because every team’s luxury tax status is locked in place as of the last game of the regular season, the Thunder can tap into this exception before June 30 and not trigger the luxury tax this season. They can also negotiate a trade after July 1 and complete it after the moratorium ends instead.

There’s no guarantee that the Thunder will use all or even part of this exception. Historically, far more trade exceptions go unused than used. For example, the Thunder once had a trade exception worth $2.4 million via the Maynor trade, but it was allowed to expire.

Working in the Thunder’s favor is the fact that the salary cap and luxury tax line will be higher next season than anticipated. That extra breathing room might put this exception in play as the team re-tools for next season.

Jon Hamm is a NewsOK contributor, a life-long Oklahoma resident and contributor to www.dailythunder.com.

by Jon Hamm
NewsOK Contributor
I am a long-time follower of NBA basketball. While I love the sport, it's the behind-the-scenes activity that fascinates me most. For over 20 years I have studied how the NBA's Collective Bargaining Agreement impacts the final product. I was...
+ show more


Contributors

We're looking for

  •   Writers

  •   Photographers

  •   Videographers
  • APPLY
  • LOGIN

Are you passionate about a topic, an expert, a writer, a photographer, a story teller or maybe an artist looking for an audience? Do you want to make a difference?

We can help connect you to the topics, sources, coaching and community to help you publish in major media outlets like NewsOK and The Oklahoman. You provide trusted content, and Contributor Connect will help you get traffic.

AROUND THE WEB

  1. 1
    Report: Wes Welker suspended four games
  2. 2
    Report: Cowboys to bring in Michael Sam for physical
  3. 3
    Broken Arrow couple jailed on homicide, abuse complaints after death of foster child
  4. 4
    Grantland.com compares OSU's Tyreek Hill to 'celestial being'
  5. 5
    Family of Oklahoma teenager killed by off-duty cop files protective order against key witness
+ show more