FanPost

Trade Exceptions

Well, when it's all said and done Boozer did something really nice on the way out of Utah.

He didn't simply sign with the Bulls. He arranged for the Jazz to get a MASSIVE trade exception.

Reading through the comments, I realized there's a bit of confusion about the trade exception rules. So here they are:

1. A trade exception is a right for the Jazz to acquire any player via trade without either actually trading anyone or worrying about salary cap figures (however luxury tax penalties still apply).

So, in an ordinary world the if the Jazz traded for a guy making $15 million, they'd have to give up anywhere between $12-18 million in contracts (assuming both teams are over the salary cap). With a trade exception the Jazz can take on an extra player and contract without giving anything up.

2. They expire in 1 year.

This means they have until December to use the exception for Harpring/Maynor, February for the one from Ronnie B., and now next July for the one from Boozer.

3. Trade exceptions cannot be combined

The Jazz cannot acquire a player with a $9 million salary by combining both the Harpring/Maynor and Ronnie B. exceptions. However, the exception can be used on more than 1 player (say 3 players whose salaries total $16 million via the Boozer trade exception).

4. Why are they useful? Why would another team give up a quality player without getting anything in return?

See Pau Gasol's miraculous movement from the Grizzlies to the Lakers.

Or another situation: let's say the Jazz want Andrew Bogut (I know, I know, you're all sick of me bringing this up—humor me), but the Jazz don't have anyone the Bucks want. But the Bucks do want Al Jefferson (I'm just throwing out names here). But the Wolves are in full rebuilding mode, don't want anyone from the Bucks and either want to cut payroll or to make a move at a free agent—but they can't because right now they're over the cap. (P.S. I know the Wolves are under the cap, I'm just dealing with examples here).

So the Jazz use their exception to get Bogut. The Bucks then get a trade exception (because they didn't acquire anyone from the Jazz). They use the exception to get Jefferson. Now the Wolves have a trade exception (because they acquired nobody). But the Wolves don't use the trade exception—they just wanted to cut payroll. And that's the end of it. 

That's how they work.

Here's my source:

http://www.hoopsworld.com/Story.asp?story_id=14923

* P.S. The Bogut scenario is simply an example. There are no rumors about it. I have no inside information. It is simply a total pipe-dream of mine. I use it as an example because of this crazy idea that if it gets mentioned enough maybe the powers-that-be will figure out a way to make it happen. Plus talking specific teams & players is a lot easier to follow than Team A and Player X.

All comments are the opinion of the commenter and not necessarily that of SLC Dunk or SB Nation.

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