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Originally Posted by Dirkenstien
Forgive me for my ignorance but what is the poison pill provision?
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This applies when trying to trade guys who are on rookie scale contracts who have already signed a big contract extension that hasn't kicked in yet. It turns that player's incoming salary for the team trying to acquire him into the average of all the years he has left on the deal, but leaves his outgoing salary for the team trying to trade him as what he's making now.
Probably easier to use an example. Devin's making $4 mil this year. I forget what Devin's extension was, but for easy math lets say it was 5 years, $44 mil. So if the Mavs were trying to trade him, they would use $4 mil as his outgoing salary. But the team trying to acquire him would use $8 mil as his incoming salary, total of $48 mil owed to him averaged over the next 6 years.
I believe the theory behind this was the league didn't want teams to get around the salary cap by being able to acquire guys who's salaries are well below market value because they're confined to a rookie deal. In other words, the league doesn't want someone to be able to acquire a $9 mil per year talent in a trade where they only had to match $4 mil per year in salary.