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[Marks & Bontemps] Why any NBA trade this week comes with massive financial risk



[Marks & Bontemps] Why any NBA trade this week comes with massive financial risk

by foye2smith

1 Comment

  1. foye2smith

    Paywalled, but there’s a little blip about the Wolves projecting to be a 2nd apron team:

    >Starting with the first day of the offseason, teams over the second apron in 2023-24:

    > -can’t take back more salary in a trade;

    > -are not allowed to aggregate contracts;

    > -are restricted from sending out cash in deals;

    > -and are restricted from using preexisting trade exceptions to acquire a player.

    >The Timberwolves, for example, have been active in trade discussions, according to a league source, because this is the last time they are allowed to aggregate contracts in a deal. (The same rules apply for first-apron teams, except they are allowed to aggregate contracts and can send cash in a trade.)

    The thing I found interesting is that the restrictions aren’t put in place upon payment of the tax.

    Technically a team’s luxury tax tab doesn’t come due until the end of the season so the Wolves have this deadline, the upcoming off-season, and next year’s trade deadline as opportunities to shed money before the end of the 2024-25 season.

    However, the team building restrictions being “turned on” day 1 of the off-season is something I hadn’t really considered. I imagine there will be some prompt renouncing of rights and/or trades.

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