NBA Chat with Larry Coon 2/16/2017

Larry_Coon_ChatLarry Coon the noted author of the CBAFAQ, will answer your Salary Cap and Collective Bargaining Agreement questions. Larry will answers your questions about the Salary Cap, NBA trades and the CBA at 3:00 p.m. ET.

  1. arjun

    Teams are limited per year how much cash they can include in trades. Is there anything preventing teams from including more but spreading it across multiple years to stay in annual compliance?

    • Larry Coon

      It’s not within the intent of the rules to allow for that — cash is accounted for in the year of the trade. It IS possible to have cash trade hands later. For example, I can trade you a second round pick that’s protected for picks 31-40 for three years, and after three years my obligation converts to $250,000 cash. But when trades like this take place, they treat the money as though it had changed hands in the year of the trade, and it accounts toward the annual limit in the current season even though it potentially changes hands years later.

  2. Deven

    Who gets traded first: Carmelo or Butler? Or neither?

    • Larry Coon

      I’m guessing Carmelo. I think the Bulls will listen to offers for anyone other than Butler, and figure out what to do with Butler in the offseason. I think the Knicks are more aggressively pursuing opportunities with Melo.

  3. Deven

    Anyway the NBA can get Dolan to give up his ownership of the Knicks?

    • Larry Coon

      Probably not. The precedent here is that something needs to be Sterling-esque in order for the league to step in and take steps to divest an owner of his franchise.

  4. Jeff

    What’s up with Brandon Jennings deleting all his Knicks connections and making his twitter account private? Any insight as to where he might be heading would be appreciated.

    • Larry Coon

      Sorry, I have no insight into the inner workings of Brandon Jennings’ mind.

  5. Kirk

    With the new two-way contracts in 2017-2018 can the two-contract player who plays in the G-League be activated for the NBA parent club without releasing a player on the standard 15 man roster?

    For example the Bulls right now have a single affiliate D-League team. Alec Brown is on the Windy City Bulls. In 17-18 if there were a rash of injuries and Brown was on a two-way contract could the Chicago Bulls activate him without releasing say Zipser or Felicio (assuming they are back with Chicago next year but with non-guaranteed contracts)?

    • Larry Coon

      “G-League” Ha!

      Yes, they provide a 16th and 17th roster spot for two-way contracts, so two-way players can be brought to the NBA team as needed, even if the team has 15 players on standard contracts. (Get used to a new term: “Standard Contract.”)

      The rules for active lists for an individual game remain the same — if the two-way player is with the parent club, he must be on the team’s Active List or Inactive List on a game-by-game basis.

  6. bill jones

    can you explain how allen crabbe’s trade kicker works? I think he could ALMOST be worth $18 mil but not the $22 mil for 4 years I heard it would be if the sixers traded for him.
    thanx E

    • Larry Coon

      ANY trade bonus calls for an amount to be paid to the player when he is traded. (If you want the nitty-gritty details, it’s only on the FIRST trade, unless the player was signed with a sign-and-trade, in which case it’s only upon the SECOND trade. And the bonus amount is limited to 15% of the remaining value of the contract, pro-rated on a per-day basis.)

      Crabbe gets 15% of the remaining value of his contract if he is traded, which in his case makes his bonus about $6.59 million (about $2.2 of which would be charged to his new team’s cap this season).

  7. Nicolas Kacowicz

    Can a player be a RFA 3 times?

    Let’s say this player is drafted in the 2nd round and takes the tender offer. I undersyand that next July he will be a RFA, and now he takes again the tender offer. What happens next summer? Is he RFA again or UFA?

    Thank you!

    • Larry Coon

      As far as restricted free agency is concerned, players fall into two categories — those who were first round draft picks; and everyone else. In the “everyone else” category (e.g., for your 2nd round pick who took his tender offer), players are restricted free agents through their third offseason. So whether he takes signs tender offers or negotiates regular contracts, and whether he signs one or multiple contracts, if he his free agency following any of his first three years in the league, he’s subject to restricted free agency.

  8. David

    Any clarification if 2nd round draft picks are eligible for two way contracts?

    The required tender is for the rookie minimum. Can teams and agents agree to a two way deal outside of that? Otherwise, it seems to say that players can take the tender, be waived and then the team would have exclusive rights to negotiate with them for a two way contract (article 10, section D). That means they would have to pass through waivers without beign claimed, correct?

    • Larry Coon

      A second round pick CAN sign a Two-Way contract. They can either directly sign a two-way (by using the new Exhibit 1B in place of Exhibit 1 or 1A), or by adding an Exhibit 10, which provides for a Standard contract but gives the team the right to convert the contract to a Two-Way.

      And yes, if a team gives a Required Tender to a second-round pick, the player signs it, and the team waives him, then that team is the only team that can sign or convert that player to a Two-Way contract for the remainder of that season. But any other team can make a waiver claim, as with any other waiver. In this case, they are assuming the Standard NBA contract.

      As I continue to study the new CBA, I look at the edge cases. As I’m writing this answer, I had to look in the CBA to verify that a Required Tender can’t contain an Exhibit 10, so there isn’t a loophole where the team offers and the player signs a Required Tender that gives the team the right to convert the contract to a Two-Way contract, the team waives the player, another team makes a waiver claim, and the new team therefore inherits the right to convert the contract to a Two-Way.

  9. Jonathan Kiernan

    Hey Larry,

    What have you been hearing regarding a Lou Williams trade. Thanks and have a great day

    • Larry Coon

      I’ve definitely heard some chatter about interest, including from Houston*, among other teams.

      * I did not hear this directly from anyone with the Rockets, so given the nature of rumors, take this with a grain of salt.

  10. Derek

    When does registration begin for the Sports Business Classroom?

  11. Jeff

    Can the GSW give both Curry & Durant max deals this summer?

    • Larry Coon

      Assuming Durant opts-out, they will both have max salaries of about $35.7 million (KD as a 10-year vet, and Steph by the Designated Veteran rule). The Warriors will have full Bird rights to Steph, but non-Bird rights to KD, meaning they need cap room in order to give him the max. Steph’s cap hold will be $18.1 million. That would put their team salary somewhere in the $65 million range (I’m getting to the end of the chat, and I don’t have time to calculate it any more exactly than that), so that should leave room for KD. Question then is how they might also keep Iggy, Livingston, etc.

  12. Dan

    I understand that when the Celtics did not pick up option to make James Young restricted, they are limited in what they can pay him as a FA next year. If a player in this situation is traded, is the receiving team held to same rules?

    • Larry Coon

      It’s not that they didn’t pick up the option to make him restricted — that’ a different thing. It’s that they didn’t exercise their team option to extend his contract for another season. Rookie Scale contracts are four years long, but the last two years are team options. If the team exercises those options and the player plays all four seasons, then he is subject to restricted free agency at the end of it. If they don’t exercise one of the team options, then the player’s contract ends after the second or third season. When this happens, there are two repercussions: 1) The player becomes an unrestricted free agent; 2) If the team re-signs the player, it can’t use its Bird rights to give him any more than he would have gotten if they had picked up the option and paid him according to the rookie scale.

      This closes a loophole — it prevents the team from making an under-the-table deal with the player where they don’t pick up the option, the player becomes a free agent, and then they re-sign him for a much higher salary. Note that the team CAN sign him for more — they just can’t use Bird rights to do so (for example, they could use cap room). And since this restriction applies only to Bird rights, it doesn’t apply to any other team.

  13. Garry

    What is the job of the Secretary-Treasurer from the NBPA.

    • Larry Coon

      Typically a Secretary-Treasurer keeps and distributes meeting minutes, provides information for meeting attendees, and keeps records of income and expenses. That said, I do not know if this is what James Jones actually does in his role as “Secretary-Treasurer” of the NBPA.