The Official Trading a BYC player (RE: Gortat) Thread

[Fultz4thewin 2,464]

The amount of confusion on this topic is astounding so i thought I'd help clean this up.

 

If we match gortat's 5 yr 34 million offer he becomes a BYC player.

 

The BYC rules are:

 

quote:

Base year compensation (BYC) prevents another salary cap loophole. Without BYC, a team over the salary cap that wants to trade a player, but can't because of the Traded Player exception (which says teams can't take back more than 125% of the salary they trade away), could just sign the player to a new contract that fits within the desired range, then do the trade. BYC says "if you re-sign a player and give him a big raise, then for a period of time his trade value will be lower than his actual salary."

 

A player remains a base year player for six months, or until June 30, whichever comes later. When trading a base year player, the salary used for comparison is the player's previous salary, or 50% of the first-year salary in his new contract, whichever is greater.

 

gortats first year salary is somewhere around 6 million and his BYC salary for trading purposes is considered to be 3 Million. Due to this fact, we can only bring in 3.7 million dollars worth of salary

 

To trade him to a team its likely that a third team is going to have to get involved for salary dumping purposes.

 

quote:

As an example, let's say Player A plays for Washington. He earned $3 million last season and re-signed as a free agent for $10 million. That makes him a base year player whose BYC value is $5 million (see question number 73). Player B plays for Seattle and also earns $10 million, but is not a base year player. Both Seattle and Washington are over the salary cap.

 

Now suppose Seattle and Washington want to trade Player A and Player B for each other. Seattle can take back 125% plus $100,000 of Player B's $10 million salary, or $12.6 million. Player A's $10 million salary easily fits within that limit. But Washington can only take back as much as 125% plus $100,000 of Player A's $5 million BYC value, or $6.35 million. Player B's $10 million salary is too high.

 

If the two teams want to complete this trade, then Washington must rid themselves of an additional $2.92 million in salary (because Washington's total outgoing amount would then be $7.92 million, and 125% plus $100,000 of $7.92 million is $10 million, which is the amount of incoming salary Washington is trying to absorb in this example). Let's say that Player C plays for Washington, is not a base year player, and earns $3 million. What happens if they want to trade Player A plus Player C for Player B? Player A plus Player C total $13 million, which is greater than Seattle's $12.6 million maximum. So Washington can't give the additional $2.92 million to Seattle.

 

This is where a third team gets involved. This team must be far enough under the cap, or have a Traded Player exception (see question number 69) to absorb the additional $2.92 million in salary. Let's say Chicago is way under the salary cap. Here is an example three-team trade:

 

* Washington sends Seattle Player A

* Seattle sends Washington Player B

* Washington sends Chicago Player C

* Chicago sends Washington a future second round draft pick

 

Here's how the numbers work:

 

Washington trades $5 million BYC plus $3 million salary, or $8 million. They can receive 125% plus $100,000, or $10.1 million, in return. Washington receives Player B's $10 million salary, along with a draft pick that has zero trade value (see question number 71) for a total of $10 million.

 

Seattle trades $10 million in salary, and receives $10 million in salary, so they're fine.

 

Chicago trades $0 and receives $3 million, but since they're more than $3 million under the salary cap, they can absorb the increase.

 

So the numbers work for all teams involved.

 

Since we have a Traded Player Exception trading Gortat becomes a lot easier

 

quote:

 

Teams may have even more flexibility if one or both have a Traded Player exception (see question number 69) or Disabled Player exception (see question number 19). This happens when the team with the BYC player is receiving multiple players in trade. For example, if Washington has a player with a $10 million salary and a $5 million BYC amount, and they have a Disabled Player exception for $5 million, then they can accept two $5 million players in trade for their player. One of the incoming players fits within the $5 million Disabled Player exception; the other fits within the $6.35 million margin created by the Traded Player exception.

 

EDIT: with matching a Restricted Free Agent, you cannot trade the player for 1 year without his consent.

 

______________________________________________

[Fultz4thewin 2,464]

The amount of confusion on this topic is astounding so i thought I'd help clean this up.

 

If we match gortat's 5 yr 34 million offer he becomes a BYC player.

 

The BYC rules are:

 

quote:

Base year compensation (BYC) prevents another salary cap loophole. Without BYC, a team over the salary cap that wants to trade a player, but can't because of the Traded Player exception (which says teams can't take back more than 125% of the salary they trade away), could just sign the player to a new contract that fits within the desired range, then do the trade. BYC says "if you re-sign a player and give him a big raise, then for a period of time his trade value will be lower than his actual salary."

 

A player remains a base year player for six months, or until June 30, whichever comes later. When trading a base year player, the salary used for comparison is the player's previous salary, or 50% of the first-year salary in his new contract, whichever is greater.

 

gortats first year salary is somewhere around 6 million and his BYC salary for trading purposes is considered to be 3 Million. Due to this fact, we can only bring in 3.7 million dollars worth of salary

 

To trade him to a team its likely that a third team is going to have to get involved for salary dumping purposes.

 

quote:

As an example, let's say Player A plays for Washington. He earned $3 million last season and re-signed as a free agent for $10 million. That makes him a base year player whose BYC value is $5 million (see question number 73). Player B plays for Seattle and also earns $10 million, but is not a base year player. Both Seattle and Washington are over the salary cap.

 

Now suppose Seattle and Washington want to trade Player A and Player B for each other. Seattle can take back 125% plus $100,000 of Player B's $10 million salary, or $12.6 million. Player A's $10 million salary easily fits within that limit. But Washington can only take back as much as 125% plus $100,000 of Player A's $5 million BYC value, or $6.35 million. Player B's $10 million salary is too high.

 

If the two teams want to complete this trade, then Washington must rid themselves of an additional $2.92 million in salary (because Washington's total outgoing amount would then be $7.92 million, and 125% plus $100,000 of $7.92 million is $10 million, which is the amount of incoming salary Washington is trying to absorb in this example). Let's say that Player C plays for Washington, is not a base year player, and earns $3 million. What happens if they want to trade Player A plus Player C for Player B? Player A plus Player C total $13 million, which is greater than Seattle's $12.6 million maximum. So Washington can't give the additional $2.92 million to Seattle.

 

This is where a third team gets involved. This team must be far enough under the cap, or have a Traded Player exception (see question number 69) to absorb the additional $2.92 million in salary. Let's say Chicago is way under the salary cap. Here is an example three-team trade:

 

* Washington sends Seattle Player A

* Seattle sends Washington Player B

* Washington sends Chicago Player C

* Chicago sends Washington a future second round draft pick

 

Here's how the numbers work:

 

Washington trades $5 million BYC plus $3 million salary, or $8 million. They can receive 125% plus $100,000, or $10.1 million, in return. Washington receives Player B's $10 million salary, along with a draft pick that has zero trade value (see question number 71) for a total of $10 million.

 

Seattle trades $10 million in salary, and receives $10 million in salary, so they're fine.

 

Chicago trades $0 and receives $3 million, but since they're more than $3 million under the salary cap, they can absorb the increase.

 

So the numbers work for all teams involved.

 

Since we have a Traded Player Exception trading Gortat becomes a lot easier

 

quote:

 

Teams may have even more flexibility if one or both have a Traded Player exception (see question number 69) or Disabled Player exception (see question number 19). This happens when the team with the BYC player is receiving multiple players in trade. For example, if Washington has a player with a $10 million salary and a $5 million BYC amount, and they have a Disabled Player exception for $5 million, then they can accept two $5 million players in trade for their player. One of the incoming players fits within the $5 million Disabled Player exception; the other fits within the $6.35 million margin created by the Traded Player exception.

 

EDIT: with matching a Restricted Free Agent, you cannot trade the player for 1 year without his consent.

 

______________________________________________

[CubanMagic89 1]

That clears up a bunch of stuff I didn't realize. Thanks Lewis.

[chosen12 75]

Good job there Lew!! I think you and DOM should get together and set yourselves up as Consultants!!!

[BRich 56]

Props - I've been wanting an answer about this.

[Passenger57 65]

Thanks for clarifying this.

[Captain Hindsight 50]

i will read all that garbage again when i wake up from my nap a little more. but it's good that the info is there

[ReeceGaines 0]

so couldnt we trade him straight up for someone making around 3 million or so [for hypothetical purposes, Carl Landry]

[ball junkie 277]

So DOM, since most people here feel we will match Gortat...

 

What would be your "PERFECT" trade scenario for Marcin and what teams would be involved...and what players...that would suffice all the teams participating?

 

In other words, be realistic...

[Skywise316 211]

So for trading purposes Gortat might as well be a 3 million dollar player to the rest of the NBA, if he's brought back until the Summer of 2010. Then he'd be his full 5.8 or 6 million dollar self, whatever that Dallas offer sheet exactly is.

 

Maybe Otis' plan is to bring Gortat back for the big contract, just for all of next season? Then he can trade him for full value next summer without using the TPE.

 

Hey. If Otis can really spend whatever he wants, and he's gotten the okay to eat a few extra mil of luxury tax next year, then why not??

 

That's what I'm starting to think is going on here. Match Gortat, bring him back for backup C next season, then deal him for full contract value. You know he'll find takers for Warlock a plenty, this summer, next summer, the deadline, whenever. That's a given.

[Fultz4thewin 2,464]

quote:

Originally posted by ReeceGaines:

so couldnt we trade him straight up for someone making around 3 million or so [for hypothetical purposes, Carl Landry]

 

no it wouldnt work on houstons end.

[Fultz4thewin 2,464]

quote:

Originally posted by Skywise316:

So for trading purposes Gortat might as well be a 3 million dollar player to the rest of the NBA, if he's brought back until the Summer of 2010. Then he'd be his full 5.8 or 6 million dollar self, whatever that Dallas offer sheet exactly is.

 

Maybe Otis' plan is to bring Gortat back for the big contract, just for all of next season? Then he can trade him for full value next summer without using the TPE.

 

Hey. If Otis can really spend whatever he wants, and he's gotten the okay to eat a few extra mil of luxury tax next year, then why not??

 

That's what I'm starting to think is going on here. Match Gortat, bring him back for backup C next season, then deal him for full contract value. You know he'll find takers for Warlock a plenty, this summer, next summer, the deadline, whenever. That's a given.

 

we could trade him january 1st based on the 6 month rule