Trade question

[Clipsfan]

In another thread we discussed the trading of draft picks for contracts. One thing which we mentioned was that the contracts have to come close to matching up, as with other trades. However, Charlotte picked up a very large salary in Richardson, only trading away the 8th pick. How does that work? Jason is guaranteed at least $10 million next season, why doesn't Golden State receive at least $8 million in contracts in return? The 8th pick is less than $3 million.

[Kdogg]

I don't know the definite answer but in this case it must have to do with the Bobcats' total salary. They have the lowest payroll in the NBA. At one point last season they were under the minimum NBA salary floor. If they did not sign a player they would have to give every player on the roster a bonus to reach the floor. The Bobcats have space to absorb a bigger contract. Usually teams are close to the salary cap not the floor.

[Clipsfan]

I don't know the definite answer but in this case it must have to do with the Bobcats' total salary. They have the lowest payroll in the NBA. At one point last season they were under the minimum NBA salary floor. If they did not sign a player they would have to give every player on the roster a bonus to reach the floor. The Bobcats have space to absorb a bigger contract. Usually teams are close to the salary cap not the floor.

It is true that they had the lowest salary total last year, but I haven't heard of any rules which allow teams to just dump salary on other teams. It's still possible, though? Anyone know for sure?

[Clipsfan]

I really should look things up before I randomly post sometimes...

According to random salary cap site,

"Teams under the salary cap may make trades as they please, as long as they don't end up more than $100,000 above the salary cap following a trade. But if a team is over the cap, or they are under the cap and a trade would take them more than $100,000 over the cap, then an exception is required. An exception is the mechanism that allows a team to make trades or sign free agents and be over the salary cap. Since teams are usually over the salary cap, trades are usually accomplished using exceptions."