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Contract Absorbing & Trade Exception

englishJazz

englishJazz

New Member
Hello guys,

Can someone please explain to an ignorant, yet huge Jazz fan from across the pond what exactly these two terms mean? I've heard the terms an awful lot over the past few days with the Boozer and Jefferson trades.

...and yes, the Jazz empire reaches the far flung corners of the world...even football dominated England.

Go Jazz!
 
It's basically a "coupon" that we got from Chicago that was up 13 million dollars. It meant we could trade for a player's contract (up to 13 million) and not have to send guys from our team to match that or we could absorb it. That's the best way I understand it. Hope that helps.
 
A trade exception allows you to absorb a player's salary within a certain range of the value of that exception, without giving equal salary back (as you would without the trade exception). So the Jazz did not trade the trade exception to the Wolves; they used it to absorb Jefferson's salary without giving a bunch of players to MN.
 
siromar said:
A trade exception allows you to absorb a player's salary within a certain range of the value of that exception, without giving equal salary back (as you would without the trade exception). So the Jazz did not trade the trade exception to the Wolves; they used it to absorb Jefferson's salary without giving a bunch of players to MN.
Click to expand...

This. haha plus 1 rep.
 
A trade exception can be given when a team under the salary cap trades for a player and the team trading that player doesn't want to take back equal money in return. For example the Jazz traded Matt Harpriing (6.5 million dollars) and Eric Maynor (1.3 million dollars) for a player that OKC owned the draft rights to. Because OKC was taking on salary because they were under the cap the Jazz got a 6.5 million dollar trade exception for Harprings contract to use later. That evens out the money in the trade.

A contract absorbing is the opposite of a salary dump. OKC absorbed Harprings contract into there salary cap. The Jazz salary dumped Harprings Contract to get a lower tax payment.
 
Zerol said:
So were there two separate deals, one Jefferson-for-TPE+draft picks and Koufos-for-TPE?
Click to expand...

No, but it could have been done that way. Utah wants Jefferson. They have a TPE that covers Jefferson's salary as a "part" of the deal. But in any trade, as per the CBA, a team can take up to 25 percent more than what they're sending away. So Koufos can be heaped into it because it fits the parameters of any deal. If the Jazz TPE was a dollar short of Jefferson's deal, Koufos + TPE would not have worked.

Alternately, the Jazz could have elected to make the trade in two separate deals. One would have been Jefferson for the TPE. A second one would have been Minny absorbing Koufos with their Cap Space, sending back a conditional second rounder, and the Jazz would have gotten back a TPE for Koufos' salary.

If Koufos really had value to the Jazz, KOC might have tried to make option 2 happen. The likelihood is Minny didn't want Koufos but agreed to take him in Option 1. That way, they still lose the Cap Space for Koufos, but they don't give up the pick.
 
billyshelby said:
No, but it could have been done that way. Utah wants Jefferson. They have a TPE that covers Jefferson's salary as a "part" of the deal. But in any trade, as per the CBA, a team can take up to 25 percent more than what they're sending away. So Koufos can be heaped into it because it fits the parameters of any deal. If the Jazz TPE was a dollar short of Jefferson's deal, Koufos + TPE would not have worked.

Alternately, the Jazz could have elected to make the trade in two separate deals. One would have been Jefferson for the TPE. A second one would have been Minny absorbing Koufos with their Cap Space, sending back a conditional second rounder, and the Jazz would have gotten back a TPE for Koufos' salary.

If Koufos really had value to the Jazz, KOC might have tried to make option 2 happen. The likelihood is Minny didn't want Koufos but agreed to take him in Option 1. That way, they still lose the Cap Space for Koufos, but they don't give up the pick.
Click to expand...

Got it. Thanks!
 
Welcome, 'EnglishJazz'!
The other explanations here weren't quite complete; it is complicated, so here's my try: Ordinarily players in a trade from a team over the NBA salary cap must match salary values (within a percentage) with the players from their trading partner. A Traded Player Exception is basically an insurance policy you can buy (we gave Chicago a future 2nd round pick for it) from the trading partner (Chicago Bulls) who signed your free agent (Carlos Boozer). It's value is the 1st year salary ($13 million) the trading partner (Chicago Bulls) agreed to pay him (Boozer). This ticket can then be used by a team (Utah Jazz) that is over the NBA salary cap to sign another player (Al Jefferson) it ordinarily would not be able to do. The ticket value ($13 million) is then added to the value of our outgoing players' combined salary (Koufos' salary) to get an adjusted value of our players being traded. I might be wrong here, but I think the TPE goes to the trading partner when it gets used, so Minnesota may now use it.
Oh, and it expires after one year. Teams frequently purchase this when they lose a free agent, but it does not always get used.
 
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