Review Questions Flashcards
1
Q
Summarize the difference between Simultaneous and Non-Simultaneous Trades
A
Simultaneous Trades complete all at once. The trade gives teams less time, but more money. Also, can use aggregation
Non-Simultaneous Trades gives the team more time, but less money. It can’t use aggregation and it can’t take back more than the outgoing salary plus $250,000
2
Q
How much can a team take back in a Non-Simultaneous Trade?
A
100% of the salary that they send out, plus $250,000
3
Q
How do trades work when the team is below the cap?
A
If a team is below the cap they don’t have to use an exception, like the Traded Player Exception.
A team that is below the cap can trade freely, without regard to salary matching, as long as they finish the trade no more than $250,000 over the salary cap
4
Q
What are the 2 categories of trade for teams if they finish a trade more than $250,000 over the salary cap?
A
If a team finishes the trade more than $250,000 over the salary cap, they mostly have to use the Traded Player Exception.
The Traded Player Exception breaks down to 2 categories: Simultaneous & Non - Simultaneous Trades
4
Q
What are the 3 levels of Bird Rights? And when do they apply?
A
Non - Bird: 1 year
Early Bird: 2 years
Bird (full bird): 3 years
4
Q
Exhibit 1
A
“Compensation”
It is where the player’s pay is specified. It includes:
- current and deferred salary for each season
- payment schedules
- any signing bonuses or incentives
- other payment arrangements such as options, ETO, insurance premium reimbursements and no-trade provisions
4
Q
What are the 3 Mid - Levels & when do they apply?
A
Non - Taxpayer: teams get when they are operating as a cap team and stay below the apron
Taxpayer: teams get when they are operating as a cap team and are over the apron
Room: teams get when they operate as a room team
5
Q
What are the 2 categories of a contract extension?
A
Rookie Extension & Veteran Extension
5
Q
What is a Designated Player?
A
“Supermax” players get to earn the full 35% maximum before they meet the 10 year tenure requirement.
The player has to earn the right to receive a Designated Veteran Extension by meeting Performance Criteria
6
Q
What is the last day an Extension can be signed?
A
Rookie Extension - the deadline is day before the Regular Season starts in the player’s 4th season (before the last season of his Rookie Scale Contract)
Veteran Extension - Can wait until the last minute. It can be signed on June 30 of the last season of the contract
6
Q
How many seasons can an Extension contain?
A
The NBA considers an extension to include the remaining years of the existing contract.
Rookie Extension - gets 5 new seasons, bringing the total to 6 seasons
Veteran Extension - 5 total seasons
Designated Veteran Extension - 6 total seasons
6
Q
When can a Rookie Extension be signed?
A
A Rookie Extension can be signed starting on July 6, when the July Moratorium ends, before the 4th season of the player’s Rookie Scale Contract.
(The team must pick up both of the options or else the contract is NOT eligible to be extended)
7
Q
What is 5th yr. 30% max? What is the Performance Criteria?
A
5th yr., 30% Max - The player maximum for a Rookie Extension
Performance Criteria (player has to do one of the following):
- Named MVP in any of the 3 preceding seasons
- Named All-NBA team (1st, 2nd, or 3rd), either in the most recent season, or both of the seasons that preceded the most recent season.
- Named DPOY, either in the most recent season or in both of the seasons that preceded the most recent season.
(For the last two, the player either does it once in the most recent season, or twice, in the 2 seasons that came before)
8
Q
What is the maximum for a Rookie Extension that doesn’t meet Performance Criteria?
A
The 0 to 6 maximum, or 25% of the Salary Cap
9
Q
If a player meets the 5th yr 30% Max Criteria, are they required to a higher salary? If not, what amount can they negotiate?
A
No, the salary is a matter of negotiation, especially between 25-30% of cap.
10
Q
If the team gave the player more than 25% of the cap, because he met the 5th yr 30% max, then his Extension must add how many seasons?
A
4 new seasons
11
Q
What are the raises in a Rookie Extension?
A
Up to 8% (up or down)
(8% of the salary in the first season of the extension)
12
Q
When can a Veteran Extension be signed?
A
- A 3 - 4 year contract can be extended after the second anniversary of it’s signing (or when most recent extension was signed)
- A 5 year contract has to wait until the third anniversary to be extended
- Deadline to sign is June 30
- If a contract has more than 1 season left, it can’t be extended once the regular season starts. (Has to be signed during offseason)
13
Q
What Options can a Veteran Extension have?
A
- Player or Team Option
- (If a previous contract before extension has an ETO, it can’t be extended if it is exercised. )
14
Q
How long can a Veteran Extension be?
A
5 yrs. - including the remaining years on the existing contract
15
Q
What is the salary for Veteran Extension?
A
- can start at up to 140% of the salary in the last year of the existing contract or up to 140% of the estimated average salary, whichever is greater
16
Q
How does the Maximum Salary rules apply to Veteran Extensions?
A
If 140% of a player’s salary is above his maximum, then the maximum is the most he can get in an extension.
17
Q
What are the raises for Veteran Extensions?
A
- Up to 8% of the salary in the first season of the extension
- If it’s an Extend and Trade, then up to 5%
18
Q
What kind of bonus can an Extension add?
A
- Signing Bonus
19
An Extension isn't the place to add what kind of bonus?
- No Trade Clause or Trade Bonus, if the contract didn't already have them
20
What is the max value of a signing bonus in an Extension?
Up to 15% of the total value of the extension
- It's charged to the Team Salary in every guaranteed year of the extension
21
What are the rules and payments to Extension Signing Bonuses?
- The portion of a Signing Bonus that's charged to the first season can't make that season's salary exceed the limits
- It can't take the first season's salary above that 40% limit or above the maximum salary. - if it happens, then the team needs to either reduce the salary, signing bonus or change the guarantee that fits
22
When can the Extension Signing Bonus be paid before the extension takes effect?
- A signing bonus can be paid before the extension takes effect when the team is below the cap
- The bonus is limited by the amount of cap room the team has at the time
23
What is a Designated Veteran?
- A veteran who has been designated by his team to receive a higher maximum salary
- Up to 35% of the cap, which is the full maximum for players with 10+ years
- Available for players finishing their Rookie Extension (has 8-9 years in the league)
24
When are Designated Veteran Extensions available?
- Can be signed when the player has 7 or 8 years in the league and has 1 or 2 years remaining on his existing contract
- Only available when the player has been with the same team continuously since at least his 5th year in the league (if he was traded, then he had to be traded in his first 4 seasons)
- Only players who meet certain Performance Criteria are eligible
25
Only players who meet the ____________ are eligible to be a Designated Veteran
Performance Criteria
26
What Performance Criteria does a player have to meet to become a Designated Veteran?
Performance Criteria ( player must meet one)
- Named MVP in any of the 3 proceeding seasons
- Named All-NBA team (1st, 2nd, or 3rd), either in the most recent season or both of the seasons that preceded the most recent season
- Named DPOY, either in the most recent season, or in both of the seasons that preceded the most recent season.
The player either does it once in the most recent season, or twice, in the two seasons that came before
27
When can a player sign a Designated Veteran Extension?
- From the end of the July Moratorium through the last day before the start of the regular season
-
28
When can a Designated Veteran be traded?
- After 1 year
29
How many seasons can a Designated Veteran Extension be?
- Up to 6 seasons, including the remaining years on the existing contract
30
What is a Renegotiation?
- When a team and player mutually agree to change the salary in the existing years of an active contract
31
What are the circumstances which contracts can be renegotiated?
- The contract must be for 4 or more seasons
- Can't be renegotiated until the 3rd anniversary of it's signing or most recent extension being signed
- Can't be renegotiated if it was renegotiated and previous renegotiation increased any season's salary by more than 5%
32
When can a contract be renegotiated?
- A contract can only be renegotiated after the July Moratorium through April 30
(so, it can't be renegotiated from May 1 through the following July Moratorium)
33
What is the biggest restriction for Renegotiations?
- The team has to be under the cap to be eligible to renegotiate a contract
- A salary can only be renegotiated to the extent of a team's cap room
- Can't take a player's salary above the maximum salary
34
A renegotiation can only lead to an _________ in salary
- Increase
- A player's can't take a pay cut in a renegotiation for any reason, including to give his team more cap room to sign another player
- Base salary, Likely Bonuses, and Unlikely Bonuses can't decrease in renegotiation
35
True or False:
A contract can be extended and renegotiated simultaneously
True
36
If a contract is extended and renegotiated simultaneously, then the salary can't drop by how much?
- The salary can't drop by more than 40% from the player's final season before the extension takes effect, to the first season of the extension
- For example:
If the salary in the last year of a player's contract is renegotiated to $10 million and they sign an extension at the same time, then the extension can't start any lower than $6 million
37
38
What does a Restricted Free Agent sign if he wants to change teams?
- A Restricted Free Agent signs an Offer Sheet with a new team.
- An Offer Sheet can be found in Exhibit G of the Uniform Player Contract (UPC)
39
After a Restricted Free Agent signs an offer sheet, what does the team with the Right of First Refusal submit to keep their player?
- The team provides a Right of First Refusal Exercise Notice to match the principal terms of the offer sheet and keep the player
- Can be found in Exhibit H of the UPC
40
How much time does a team get to provide a first Refusal Exercise Notice?
- The team gets 1 day to provide the notice, which indicates they are matching the Offer Sheet and keeping the player
41
Who is subject to Restricted Free Agency?
- First Round Draft picks and who become free agents after finishing ALL 4 seasons of their Rookie Scale Contracts
- Two Way players
- Everyone else
For example:
If a player signs a two year contract after being drafted in the second round, or signing as a Rookie Free Agent, then he’s subject to RFA following that two year contract. If he then simply re-signs with his previous team for one season, then at the end of that season - his third in the league - he’s subject to RFA all overagain
42
Every player is SUBJECT to Restricted Free Agency, not automatically an RFA. A team has to make the player a RFA, how do they do that?
- By submitting a Qualifying Offer, which is an offer to a 1 year contract
43
What does a Qualifying Offer provide for the team and player?
- For the player, it provides at least a small contract offer for the player to accept.
- For the team, the offer sheet secures the team’s Right of First Refusal, which is their ability to match an offer sheet and retain the player
44
What is a Qualifying Offer?
- A standing offer of a 1 year contract
45
What is Starter Criteria?
- A benchmark to determine a player’s Qualifying Offer
- The player either has to start 41 regular season games, or he has to play in 2,000 or more minutes during the regular season. This has to be done either in the most recent season or averaged across both of the preceding two seasons
- First Round draft picks in one of the top 14 picks, if they do not meet the threshold then they do NOT use the Qualifying Offer amount on their pick in the Rookie Scale. Instead, they use the Qualifying Offer amount for the 15th pick in the same draft.
- Lower picks, if they do reach the threshold, the Qualifying Offer rises. Those drafted 10th - 30th, receive the Qualifying Offer of the 9th pick.
- Those drafted in the second round or undrafted (if reach the threshold), will receive the the First Round 21st pick’s Qualifying Offer
46
What are the Protections for Qualifying Offers?
Qualifying Offers - 1 year contract has to be fully protected (with no conditions and no other protections)for:
- Lack of Skill
- Injury or Illness
47
Qualifying Offers for other NBA Contracts
- Other NBA contracts, those whose last contract was not a Rookie Scale Contract and not a Two Way contract
- Qualifying Offer amount is either 135% of his previous salary, or $200,000 above the minimum salary, whichever of those is greater.
48
When can a Qualifying Offer be submitted?
- A team can submit a Qualifying Offer to the player starting on the day following the last game of the NBA finals, and they must be submitted by June 29
- If the Qualifying Offer is not submitted on time or at all, then the player becomes an Unrestricted Free Agent (UFA).
49
How long does a Qualifying Offer remain opened?
- A Qualifying Offer has to stay in effect until October 1, unless it’s extended by the team
- The team does have the option to extend it until March 1
50
What happens if the Qualifying Offer expires without being withdrawn or accepted?
- The player loses his ability to accept his Qualifying Offer
- He’s still a Restricted Free Agent and subject to the team’s Right of First Refusal
- The team and player can still negotiate their own contract, including one that matches the Qualifying Offer
51
What is a Withdrawn Qualifying Offer?
- A team can withdraw a Qualifying Offer through July 13
- After that date, the team can still withdraw, but only with he player’s consent
- If a Qualifying Offer is withdrawn, the player immediately becomes an Unrestricted Free Agent, and his Bird Rights are renounced
52
Maximum Qualifying Offer
- Can only be done with players coming off the 4th year of their Rookie Scale Contract
- The team has to offer the player both the Standard Qualifying and a Maximum Qualifying Offer
- It is fully loaded - 5 new seasons, the maximum salary, 8% annual raises, and fully guaranteed
- The player can deny the Maximum Offer, to sacrifice the salary and security to become a UFA the following summer
53
Other rules for Maximum Qualifying Offer
- The offer has to remain open for as long as the standard Qualifying Offer
- A team can’t withdraw one without withdrawing the other. Once the team submits a Maximum Qualifying Offer they either both remain open, expire or withdrawn
54
True or False:
A RFA is free to negotiate with any team and negotiate any contract he can with another team, but is subject to Offer Sheets, Qualifying Offers and matching
True
55
The difference between an Restricted Free Agent and Unrestricted Free Agent is an RFA can't just sign a contract with a new team, he has to sign a ___________
Offer Sheet
56
An Offer Sheet consists of an unsigned player contract and terms filled out with Exhibits ___, ____, & ____
Exhibits 1, 2 & G
57
If the Right of First Refusal team receives the Offer Sheet during the July Moratorium, when does the 1 day clock start?
When the Moratorium period ends, July 6
58
How long does an Offer Sheet have to be?
At least 2 seasons, not including any seasons following an option
59
How long does a Maximum Qualifying Offer have to be?
At least 3 seasons, not including any seasons following an option
60
________________ contracts aren't allowed in Offer Sheets, even if the player is coming off that contract
Two Way
61
True or False:
Teams have to keep cap room available for as long as the offer sheet is outstanding
True
62
What day does an Offer Sheet have to be signed?
March 1
63
True or False:
The player's prior team is only required to match the principal terms of the new contract if they want to retain the player
True
64
What are Principal terms?
1.) The years of the contract, including any options (ETO's can't be included in any Offer Sheet), the longest contract a team can offer is 4 seasons
2.) Any fixed and specified compensation
3.) Some Incentive Compensation (likely bonuses & league honors)
4.) Certain terms that are considered "allowable amendments" in a contract, including guarantees and trade bonuses
65
Can Early Termination Options (ETO) be included in an Offer Sheet?
No
66
How long does a Right of First Refusal (ROFR) team have to match an offer sheet?
Once a team receives an Offer Sheet, they have 2 days to act.
(If a team receives the offer sheet during the July Moratorium, the clock doesn't start running until it ends, July 6)
67
When a team decides to match the offer and keep the player, it uses what Exhibit?
Exhibit H, the First Refusal Exercise Notice
68
In order to give a First Refusal Exercise Notice, the team has to have room or suitable Exceptions. What exceptions and room can they use?
- Cap Room to match
- Bird Exception or Minimum Player Salary Exception
69
True or False:
Once the First Refusal Exercise Notice is given, the player is under contract with his prior team. The contract terms contain all of the principal terms, but not any terms that are not Principal Terms.
True
70
If a team does not want to match the Offer Sheet, what are one of the two things they can do?
1.) Let the match period expire
2.) Provide written notice to the player that the team declines to exercise it's right of first refusal
When this happens, the player becomes a member of the Offer Sheet team
71
What does an Exhibit 6 require?
Requires players to pass a physical
72
What happens if a player is given a First Refusal Exercise Notice and they don't pass the Exhibit 6 physical exam?
The ROFR team gets 2 days to decide whether to withdraw their First Refusal Exercise Notice or take their fate with the player
73
What happens if a player doesn't report for a physical exam within two days (First Refusal Exercise Notice)?
The First Refusal Exercise Notice remains in effect until the player reports, and the match team has the option to withdraw
74
True or False:
A team can renounce a RFA with an outstanding Qualifying Offer
False
A team CANNOT renounce a RFA with an outstanding Qualifying Offer
75
If a team matches an Offer Sheet and keeps their RFA, when can they trade him?
- They can trade the player after 1 year
- Must have the player's consent
76
True or False:
A team can match an Offer Sheet and trade the player in a sign and trade
False
Teams cannot match an Offer Sheet and trade the player in a sign-and-trade
77
True or False:
Once a player's RFA is over, his contract can't be amended in any way for one year (doesn't matter if it's matched or not)
True
78
How many Offer Sheets can be in effect at a time?
One
79
How far in advance can a draft pick be traded?
- A draft pick can be traded 7 drafts in advance
- Seven Year Rule
80
What is the Ted Stepien Rule?
- Teams cannot make draft picks trades that leave them without a first round pick in consecutive future drafts
81
After signing a draft pick, how soon can a team trade him?
- 30 days after he is signed
- Veteran signings, they can't be traded for 3 months or until December 15 (whichever comes first)
82
Who can play in the NBA?
- Must be eligible for at least 1 draft
- Must be at least 19 during the calendar year of the draft
- If a U.S. player, he must be 1 year removed from high school
- At least one of the follow must be true below:
* Graduated from a US college or university during the calendar year of the draft, or at least his cohort class did & he has no remaining NCAA eligibility
* Played pro ball outside the US prior to the calendar year of the draft
* Declared as an "early entry" player
- International Players (along with first section, at least one of these must be true)
* 22 in the calendar year of the draft
* Played pro ball in the US, outside the NBA
* Declared as an "early entry" player
83
Draft picks count as ___ in trade for salary matching purposes
Zero
84
True or False:
The Stepien Rule just requires a team to have a First Round pick - it doesn't have to be their own pick, but can be acquired
True
85
What is a Required Tender?
- An initial contract offer made to a draft pick, in exchange for the team holding draft rights to the player
- Those required draft rights means the team that holds them is the only team that can negotiate with and sign the player to an NBA contract.
86
What happens if a team doesn't provide a Required Tender or withdraws an outstanding required tender?
The player becomes a Rookie Free Agent and can negotiate with any team
87
What is a Required Tender for a First Round pick?
Rookie Scale Contract
88
What is a Required Tender for a Second Round pick?
- A one season contract at the minimum salary ( the team and player can negotiate a different contract notwithstanding the required tender)
89
True or False:
A Required Tender may be accepted during the July Moratorium
True
90
True or False:
A Required Tender may contain an Exhibit 6, requiring a player to pass a physical
True
91
Why trade draft rights instead of a draft pick, or traded player?
- It avoids the Stepien Rule, when a player is drafted they are no longer a future pick, which means the rule no longer applies
- Draft rights are tradeable right away, rather than waiting 30 days after a player has signed
- The trade math might not work when the pick is traded, draft rights is zero in trade math
92
What happens if a player goes through the draft, but doesn't get drafted by any team?
He becomes a Rookie Free Agent and can sign with any team
93
What happens to a player that a team drafts, but doesn't sign to a contract?
It depends on what the player does in the meantime:
- If the player signs with another, non-NBA team, the team retains its draft rights to the player for 1 year after the obligation to the other team ends. The team then holds draft rights to him for a year from that point.
- If the player doesn't sign anywhere else, then the team retains the player's draft rights until the date of the next draft. But, if the player declares for that draft, then some other team gets to draft hum and the first team's rights end at that point.
If all this happens a second time, then he becomes a Rookie Free Agent after the second team's draft rights end and he can negotiate and sign with any team at that point
94
What is the rule for a drafted player who is unsigned - what kind of contact does he sign if he was a First Round pick and doesn't sign in the year he was drafted?
- If he signs within 3 years, they will still use the Rookie Salary Scale for the year they sign, not the year drafted
- If it takes more than 3 years to sign, they can still use the Rookie Salary Scale (from the year signed and not drafted), OR the team can sign him as a free agent.
95
What is Letter of Clearance?
A letter that must be obtained from the national member federation where a player was last licensed to play internationally and is required before a player can sign with an NBA team
96
What is an International Buyout?
- Some international teams require a buyout in order to release the player
- The buyout amount is up to the player and international team
- NBA teams are allowed to pay this buyout up to a certain amount called the Excluded International Player Payment Amount
97
What is the Excluded International Player Payment Amount?
- NBA teams are allowed to pay a buyout up to a certain amount
- The amount is not counted as salary, therefore it does not count against the cap
- Any portion of the buyout above the limit, comes out of the player's salary (which then counts against the cap)
- In 2023-24 the amount is $825k
- The limit goes up by $25,000 each season.
- Anything above this limit comes out of the player's paycheck.
- Since it's paid up front to release the player so he can be signed, it becomes a Signing Bonus (which can't exceed 15% of the total compensation)
98
How long do players stay on Waivers?
48 hours (including weekends and holidays)
99
What happens to a Waived player's salary?
-Any remaining protected base salary is still paid to the player
100
What is Set Off?
When a team waives a player with remaining compensation protection, they may be able to reduce the amount it still owes to the player, if the player signs with another team (including non-NBA).
101
How long do teams get to complete the trade in a Sign and Trade?
48 hours
102
When must a Sign-and-Trade be completed?
The transaction must be completed before the start of the regular season
103
To be eligible for a Sign-and-Trade, how long must the contract be?
3 or 4 seasons
104
True or False:
An International Buyout can't be paid when the player is signed to a Two Way contract, or when the contract contains an Exhibit 10.
Only regular NBA contracts without an Exhibit 10 are eligible for International Buyouts
True
105
How long do players stay on Waivers?
48 hours (includes weekends and holidays)
106
What happens to a waived player's salary?
Any remaining protected base salary is still paid to the player
107
What is Set Off?
When a team waives a player with remaining compensation protection, they may be able to reduce the amount it still owes to the player, if the player signs with another team.
108
What are Waivers?
A temporary status for players who are being released by their team.
109
One of two things happen when a player is placed on Waivers. What are they?
- Other teams have the opportunity to make a Waiver Claim, and take over the player's contract
- If no team claims the player before the end of the waiver period, the player clears waivers and is terminated. He is released from his contract and becomes a Free Agent
110
True or False:
Following Waivers, a player continues to receive any guaranteed base salary
True
111
True or False:
10 day contracts need waivers
False
- Ten Day contracts don't need waivers
- The team just needs to provide written notice to a player who's on a 10 day contract that they are ending his contract early
112
True or False:
The waiver period carries into the July Moratorium. Teams can waive players before & during, and other teams can claim a waived player during the Moratorium
True
113
True or False:
A roster spot is freed up and non-guaranteed salary comes off the cap instantly when a team requests waivers on a player
True
114
What does a team need in order to claim a player?
- The team has to have Room to claim the contract and a roster spot
- In order to claim a waived contract, the team has to use one of the following:
* Cap Room
* The Minimum Player Salary Exception, if the player is on a one or two year minimum salary contract
* The Disabled Player Exception, if the team has one, it's big enough for the player's salary, and the player is either on a one year contract or on the last year of a multi-year contract
* A Trade Exception from a previous non-simultaneous trade, assuming the team has one and it's big enough for the player's salary
115
What happens if a player is placed on Waivers and more than one team tries to claim him?
- During the season: the team with the worse record gets him
- Offseason: they use the final standings from the previous season
116
What is the fee paid to the league for claiming a waived player?
$1,000
117
Once a player is claimed through waivers, when can he be traded?
- During season: After 30 days
- Offseason: After 30 days of the next season
118
How does a player being claimed by waiver affect their Bird Rights?
- Players retain their Non Bird and Early Bird Rights
- A player with Full Bird Rights will be dropped to Early Bird Rights
119
How is a waived player's salary determined when a contract contains options?
- It depends on who is in control of the option or ETO
* ETO's are paid because player controls
* Team Option's, the players are not paid for the season that follows
* Player Option's, Exhibit 2 is used and will determine if a player is paid or not (a matter of negotiation)
120
What is Stretch Provision?
The rule dictating the payment schedule for remaining guaranteed salary when a player is waived. In addition to the automatic stretch of the player's remaining salary payments, the team may elect to stretch (or not stretch) the resulting Team Salary amounts
121
How does Stretch Provision work? What is the formula?
- If $500,000 or less is owed, then they don't bother stretching. It's just paid by the regular payment scheduled specified in the contract
- If more than $500,000 is owed, then payments are stretched or paid over a long period of time
- Formula: Multiply the remaining years by 2 plus 1
For example, if one season is remaining then it is stretched for 3 years. 2 seasons = 5 seasons, etc. etc.
- If a player is waived on or after September 1, the current season is not stretched, any seasons after that are stretched
- If a player is waived before September 1 with 2 years remaining his salary would have been stretched over 5 years
122
True or False:
When a waived player signs with a new team, his new contract is a matter of negotiation
True
123
What is the Zydrunas Ilgauskas rule?
When a player signs with a new team, if he's traded then waived, he can't re-sign with the team that traded him for one year, or until the waived contract would have ended. Whichever is sooner.
124
How do Waivers effect a player's playoff eligibility?
- If a team requests waivers after March 1 (11:59pm), then the player isn't eligible for the playoffs
- The only exception to this rule is if a player is claimed off waivers and that team is reduced to 8 players on it's active list due to injuries or illness, the rule doesn't count
125
What is a Buyout?
- A divorce between a player and team.
- When this happens, the player typically gives back some of the salary that's still owed, in exchange for his freedom
- They agree to reduce the compensation protection to whatever buyout amount they agreed to
126
What is the Set Off amount?
- One half the difference between the player's new salary and the one year vet minimum salary
(with any pro team, not just NBA)
127
What is the Set Off Amount for Rookies that are waived?
- One half the difference between the player's new salary and the rookie minimum salary
(with any pro team, not just NBA)
128
How long do teams get to complete the trade in a Sign-and-Trade?
Teams get 48 hours to complete the trade portion
129
When must a Sign-and-Trade be completed?
Before the start of the regular season
130
To be eligible for a Sign-and-Trade, how long must the contract be?
3 or 4 seasons
131
What is a Sign-and-Trade?
When a team re-signs it's own free agent for the purpose of a trade to another team.
(can use Bird Rights or Cap Room)
132
What happens if a Sign-and-Trade is not completed within the 48hr time frame?
The signing is null and void, and the player goes back to being a Free Agent
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Rules for Sign-and-Trade
1) The player has to be the team's own free agent (player has to have finished the most recent season w/ the team)
2) Must be completed before the start of the Regular Season
3) Player can receive up to the maximum salary - if player has fewer than 7yrs of service, he can't receive more than 25% max, even if he meets performance criteria. Fewer than 10 years service can't be more than 30% (can't use Designated Veteran rules)
4) Raises up to 5%
5) The team can sign the player with Bird Rights or Cap Room
6) Can NOT use any Mid-Level Exceptions, Bi-Annual Exception, Minimum or Disabled Exception
7) Contract has to be for 3 or 4 seasons, only the first season is guaranteed
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What exceptions cannot be used in a Sign-and-Trade?
- Any Mid-Level Exception
- Disabled Player Exception
- Bi-Annual Exception
- Minimum Player Salary Exception
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