Transaction Summary

 

 

 

 

 

 

 

Cap Discussion

GSW Trade Summary

  1. GSW uses the Standard TPE to acquire Schröder due to the $250,000 cushion ($12,822,000 + $250,000 = $13,072,000 permitted incoming salary), though they could have used the Expanded TPE if needed as they are under the First Apron.

BKN Trade Summary

  1. BKN uses the Standard TPE to acquire Melton, as Schröder’s salary is greater than Melton’s.
  2. BKN creates a trivial $203,250 TPE: the difference in salary between Schröder and Melton.
  3. BKN had an open Two-Way spot for Beekman, and Melton takes Schröder’s roster spot.

The Melton Disabled Player Exception (DPE)

  1. GSW could have applied for a $6.4 million DPE due to Melton’s injury.
  2. If the DPE had been granted prior to the trade, it would not transfer to BKN, nor can BKN apply for its own DPE because a DPE is limited to the team upon which the player was playing for when the season-ending injury occurred.
  3. GSW would have lost the DPE upon execution of the trade, as it is only available so long as the injured player remains on the team.

Trade Eligibility Dates

  1. Both Melton and Schröder were traded on the first day they were trade eligible (12/15), as Melton signed as a UFA and Schröder was acquired via Sign-and-Trade.
  2. As both players were acquired via exception, both players cannot be aggregated (combined as outgoing salary) in trade for two months. However, because they were traded prior to December 17th, this limitation does not apply if such trade occurs the day prior to the Trade Deadline or on the Trade Deadline.

GSW Financial Summary

  1. With the added $203,250 in salary, GSW is now $330,409 below the First Apron, a threshold they cannot surpass as they are hard-capped.
  2. They have one open Standard Roster spot. They cannot fill the open spot via free agent signing until March 18th, when the prorated salary for a minimum salary falls below their space below the First Apron.
  3. They have an open Two-Way spot they can fill at any time.

BKN Financial Summary

  1. BKN saves $203,250 in salary after the trade, but Melton will remain on their books despite not being able to play this season (absent another trade).
  2. BKN currently sits $6.2 million below the First Apron and $3.2 million below the Luxury Tax Threshold, with over $5 million in pending incentives.
  3. BKN was able to add two additional 2nd Round Picks while retaining cap flexibility this offseason, as both Melton and Schröder were expiring contracts.
  4. BKN currently has $68.2 million committed in 2025-2026, should Dorian Finney-Smith exercise his $15.3 million Player Option.