Module 3 Pt. 3 Flashcards
Apron Amount
The amount by which the Apron exceeds the Luxury Tax threshold. The Apron Amount rises or falls each Salary Cap Year by one half the percentage that the Salary Cap rises or falls
Cut Down Date
On January 10, all contracts become fully guaranteed for the remainder of that season
Hard Cap
A condition created when a team uses its Non-Taxpayer Mid Level or Bi-Annual exception, or receives a player in a Sign and Trade transaction.
The Team Salary of team is this situation cannot be above the Apron for any reason, for the remainder of that salary cap year
Luxury Tax
A spending disincentive and a form of revenue sharing between teams whereby teams above the Luxury Tax Threshold pay tax on the basis of their Team Salary amounts, and teams with Team Salaries below the Luxury Tax Threshold are recipients of a portion of the tax proceeds
Maximum Annual Cash Limit
A team’s limit to the amount of Cash in Trade that can be conveyed across all trades in a salary cap year.
Each team has separate limits for the amounts it can receive and convey to other teams
Minimum Team Salary
The lowest amount a team can spend on player payroll in a given season, which is 90% of the Salary Cap.
The Minimum Team Salary is based on actual payroll, and not Team Salary amounts
Negotiated No-Trade Clause
An “Other Consideration” in Exhibit 1 of the UPC, giving the player the right to consent to any trade
Pick Protection
An optional provision in a trade involving a future draft pick, in which the pick is not conveyed if it falls within a defined range
Seven Year Rule
Future draft picks can only be traded 7 drafts in advance
Ted Stepien Rule
Teams cannot make draft pick trades that leave them without a 1st Round pick in any consecutive future drafts.
This rule applies ONLY to future drafts, so the picks in any previous drafts are not considered for this rule.
Ten Day Contract
A temporary contract lasting 10 days, or 3 games, whichever is longer
Trade Deadline
The 2nd Thursday before the All Star game (10 days before All Star Sunday).
After 3pm est on that date, teams are not permitted to make trades until their season ends.
