Multiple ripple effects are still rolling over the long-drawn transfer saga of Nigerian-born USA basketball star, Andre Iguodala, as different talking points keep popping up in the matter of a deal that appeared to have been sealed for the veteran star from under the carpet, megasportsarena.com reports.
Latest information out of God’s Own Country indicates that mouths are still wagging over how the veteran National Basketball Association (NBA) ace got a $17.2m traded player exception (TPE), which Golden State Warriors received as part of last summer’s agreement with Memphis Grizzlies.
The deal for Iguodala is said to be arguably Golden State’s best non-player asset at the moment, with The Dubs getting a top-five pick in the 2020 NBA Draft and a high pick in 2021, with the link of $17.2m via Minnesota Timberwolves according The Warriors chances of a huge acquisition.
NBC Sports’ reporter, Brian Witt note that there are many areas of the NBA collective bargaining agreement that can be awfully complex to comprehend, and TPEs certainly qualify, even as he provided a breakdown of details in explaining The Warriors’ $17.2m traded player exception.
Witt expatiated: “By trading Iguodala to the Grizzlies last offseason without taking back any salary in return, the Warriors received a TPE worth the value of Iguoadala’s 2019-20 contract, plus $100k ($17.2 million).
“TPEs can be used in two different types of NBA transactions: simultaneous and non-simultaneous. In a simultaneous trade, teams can trade one or more players and acquire more salary than they send away.
“In a non-simultaneous trade, only one player can be traded, and the trading team has one year to use the resulting TPE, which has a value equivalent to that player’s salary plus $100k. The Warriors’ $17.2 million TPE was created in and must be used in a non-simultaneous trade.
“Traditionally, TPEs from non-simultaneous trades must be used within one year of the date on which they are created. However, that’s not the case with the Warriors’ $17.2 million TPE. Due to the lengthy pause of the current season due to the coronavirus (COVID-19) pandemic, the NBA reportedly has pushed back the expiration deadline for TPEs to correspond with the adjusted 2020-21 league year.
“As such, Golden State’s $17.2 million TPE reportedly won’t expire until Oct. 25. That was tremendous news for the Warriors, as the TPE originally was slated to expire on July 7. TPEs created in non-simultaneous trades cannot be combined with one another, nor can they be combined with other exceptions.
“Additionally, they can’t be combined with other player salaries, or used to sign free agents. So, the Warriors cannot combine any other salaries or exceptions to increase the maximum salary they could absorb using the $17.2 million TPE. In theory, the Warriors could acquire any NBA player using the $17.2 million TPE whose 2020-21 salary is equal or lesser to that value.
“That’s no small chunk of change, so Golden State should be able to get involved with any high-salaried players that are made available on the trade market. Given the expected drop in league revenue due to the pandemic, it wouldn’t be surprising if teams made more of those types of players available so as to lower tax payments, etc.
“The Warriors can’t use the $17.2 million TPE until the start of the new cap calendar, currently set for Oct. 18. If it expires on Oct. 25 as reported, that would give them a full week within which to utilize it — much longer than the 36-hour period they would have had under the original league calendar.
“Any player Golden State acquired using the TPE would be added to the team’s 2020-21 salary cap. Considering the Warriors already are projected to be a tax-paying team, using the full value of the $17.2 million TPE could greatly increase their tax payments. However, that might be necessary if Golden State is going to compete for the championship next season.”
