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Magic Get 10 Million Dollar Trade Exception


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I'm pretty sure there's a cap on how much money you can give in 'trade exceptions' and the numbers not high. Last year, it was done with Camby going to the Clippers for a trade exception, and the exception wasn't $13 million. I don't remember the exact number, but it was in between $3.5 and $5 million, I think. I might be way off on that, but I do recall the Nuggets having an exception of around abouts that price.

 

 

Riot, a trade exception is basically cash added onto a trade to make the deal work. Obviously, you know that players can't be trade for another player unless their contracts add up correctly, or within 20% of each other. A trade exception gives you the right to add on money to a trade to make it work properly. For example, say if we wanted to trade away J.J Reddick and his $2 million dollar contract for Kobe Bryant and his $20+ million dollar deal. Obviously this doesn't work financially (or realistically). But, if we could attain trade exceptions of roughly $18 million dollars, then we could throw that money in and the deal works. Trade exceptions usually come about when a team recieves more money in the contract then they give away, therefore, with their next trade, they can, for example, add on the exception they recieved, even if it's $200,000 to make a deal work.

 

With the Turkoglu-for-money trade, however, it seems to work differently. Since there was no player traded, I'm guessing Toronto traded all the exception money they had from previous trades to the Magic for the rights to sign Turkoglu. Hey, even if it's a million dollars, at least we got something out of this.

Edited by AtTheDriveIn
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I don't get how Orlando would just get 10 mill handed to them.....

 

Agreed. How are all of these high level teams getting so many opportunities to sign star players? And more than one for that matter? They could potentially snag 2 of those 3 mentioned above.

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