Trade Summary

Cap Discussion

Atlanta Hawks

  1. Because ATL is acquiring more Salary than sending out, the Expanded TPE must be used.
  2. Outgoing Trade Salary is $23.7 million, which means ATL can acquire that amount plus the added cushion of $8,527,000 for a total limit of $32,227,000. 
  3. While Drake Powell’s draft rights were technically traded on July 7th, the trade was announced on June 24th. Therefore, Brooklyn essentially already had the 22nd pick prior to the Draft.
  4. Note that Draft Rights aren’t counted as Trade Salary in trade until the Draftee is signed. If Powell signed his Rookie Scale Contract first, then his first year’s salary would be counted in the trade (it would not change the result in this trade scenario), but he would also be restricted from trade for 30 days.
  5. ATL is hard capped at the First Apron for using the Expanded TPE. ATL was already hard capped for acquiring Nickeil Alexander-Walker via Sign-and-Trade.

Boston Celtics

  1. BOS is sending out more Trade Salary with a single player than acquiring, so we know a new TPE will be generated for future use. The question is whether BOS can absorb Niang’s Incoming Trade Salary without using Porzingis’s salary in doing so.
  2. Because BOS is over the First Apron, the NTMLE is unavailable to absorb Niang’s salary, and BOS has no pre-existing TPE’s large enough to absorb Niang’s salary.
  3. Therefore, Porzingis’s Outgoing Trade Salary must be used to absorb Niang’s Incoming Trade Salary, and BOS creates a new TPE for the difference–$22,531,707.
  4. BOS received Cash-in-Trade from BKN to satisfy the Touch Rule, discussed below. Cash-in-Trade has no effect on Incoming/Outgoing Trade Salary or Team Salary. It merely affects an owner’s bottom line.
  5. BOS main goal is accomplished in this trade, which is to shed salary in a season marred by an injury to their top star, Jaysom Tatum. BOS sheds $22.5 million in salary without the need to give up draft picks to do so.

Brooklyn Nets

  1. BKN joins the trade to absorb salary. ATL had to get to $22.2 million in outgoing salary to acquire Porzingis, and BOS did not want to absorb all of that salary since the main goal was to shed salary.
  2. BKN uses Cap Space to acquire Mann. When Cap Space is used, no Salary Cap Exception is required.
  3. In exchange for absorbing Salary BKN received the 22nd pick in this draft, which became Drake Powell. The trade was announced prior to the draft, but was official on July 7th. Therefore, his Draft Rights were acquired by BKN.
  4. Cash considerations were sent by BKN to BOS to satisfy the touch rule, discussed below.

Touch Rule

When a trade involves three or more teams, each Team must “touch” at least two other Teams. A “touch” is either sending or receiving a tradeable asset. Without sending cash considerations to BOS, there would not have been a touch between BOS and BKN.

The amount of cash sent in the trade is undisclosed, but my understanding is the minimum amount to count as a tradeable asset in a trade with 3+ teams is $1 million. For 2025, teams have $7,964,320 to send and to receive (accounted for separately).