Charlotte expansion Draft

[madape]

Here's a really good article going over the NBA rules for the expansion draft.

INSIDE THE NBA
Quirk in rules could help new team
Expansion draft could offer Charlotte more for less with wise moves
RICK BONNELL




Rick Bonnell


One way or another, restricted free agency -- and how it relates to the expansion draft -- could be very kind to Charlotte's new NBA team.

Expansion drafts (Charlotte's will be in June 2004) are touted as a way to stock rosters of new teams with capable veterans. In fact, for both the NBA and NFL, these drafts have become a great way for established teams to dump overpriced contracts on the new team.

But a subtlety in the expansion rules, involving restricted free agency and the five-season rookie salary scale, could help.

Here's how it works:

First-round picks become restricted free agents at the end of their fourth season. That means the team holding that player's rights can match another team's contract offer to retain the player. That's a big advantage to a team trying to keep young players as good as Elton Brand, for instance.

The NBA has ruled that any team with a restricted free agent in the summer of 2004 would have to count him among the eight veterans protected from the Charlotte expansion draft, or risk losing him. Forcing teams to protect restricted free agents figures to improve the talent pool from which Charlotte will pick.

But think about the opposite scenario: What happens if a restricted free agent in 2004 -- a player such as Chicago's Jamal Crawford or Cleveland's Chris Mihm -- is left unprotected in the expansion draft?

Under the rules, if Charlotte drafts that player, he immediately becomes an unrestricted free agent. You might ask why Charlotte would draft such a player -- who, by definition, has no obligation to play in Charlotte. But in fact, that could be a great strategy for managing the new team's salary cap.

Think about it: Teams are going to load up the unprotected list with their worst contracts -- overpriced bench-warmers such as Boston's Vin Baker, Portland's Damon Stoudamire and Indiana's Austin Croshere.

Charlotte will be obligated to draft 14 veterans off 14 teams. Under the expansion rules, the Charlotte franchise will have a salary cap two-thirds as large as that of established teams. So 14 high-priced contracts could easily exceed that cap, estimated at about $30 million that first season, and make it virtually impossible for the new team to sign free agents or make trades.

My suggestion?

Draft six or seven low-priced, young players off other teams, then fill up as many of the 14 slots as possible with those restricted free agents. That would save cap room for the players Charlotte will really want.

Ed Tapscott, vice president of Charlotte's new franchise, isn't predicting how the team will approach the expansion draft, but believe me, this is a tactic worth considering.

[Drbio]

That is very interesting stategy. Thanks for the article!

[Max Power]

http://www.nba.com/bobcats/news/expansion_draft.html
Charlotte Bobcats Expansion Draft Set For June 22

NBA Draft To Take Place On June 24

The Charlotte Bobcats will begin assembling their inaugural season roster on Tuesday, June 22, with the Charlotte Expansion Draft, the NBA announced. Should the NBA Finals extend to seven games, the Charlotte Expansion Draft will be held on Wednesday, June 23.

The 2004 NBA Draft for incoming rookies is Thursday, June 24, in New York, with the Bobcats owning the fourth overall pick and the fourth choice in the second round (#33 overall).

“June will be an exciting month for our organization as we assemble our inaugural roster,” said Ed Tapscott, Bobcats executive vice president and chief operating officer. “We expect to make both our Expansion Draft and the NBA Draft events that all our fans in the Charlotte region can feel a part of.”

“Our basketball operations staff has been evaluating talent throughout the NBA this season, in addition to the minor leagues, colleges, high schools and international leagues, preparing extensively for both the Expansion Draft and the rookie draft,” said Bernie Bickerstaff, Bobcats general manager and head coach. “We are excited to begin the process of building our team and look forward to the many options we will have surrounding both of the Expansion Draft and the NBA Draft.”

Charlotte will receive lists from each of the 27 teams not competing in the NBA Finals 10 days prior to the scheduled Expansion Draft (June 12) and those from the competing teams in the Finals within two days of the conclusion of the Finals. Team lists will designate a maximum of eight protected players for that team’s players under contract or restricted free agents for the 2004-05 NBA season. The unprotected players are eligible for selection by the Bobcats, who will draft a minimum of 14 players from NBA rosters.

The Bobcats will play their inaugural season in 2004-05 at the Charlotte Coliseum before moving to Charlotte’s new Uptown Arena beginning with the 2005-06 NBA season.

[Max Power]

SUMMARY OF EXPANSION DRAFT RULES

A. Player Selection

The Charlotte Bobcats Expansion Draft will take place on June 22 (if the NBA Finals extend to seven games, it will be June 23), prior to the 2004 NBA Draft on June 24.

The Bobcats will select a minimum of 14 players who are under contract or restricted free agents for the 2004-05 season.

The Bobcats may select no more than one player from each team.

The Bobcats can only select players that are left unprotected by an NBA team.

Each of the 29 NBA teams may protect a maximum of eight players on its roster who are under contract or are restricted free agents at the conclusion of the 2003-04 season.

Each of the 29 NBA teams will designate the players on its roster who are eligible for selection by the Bobcats.

Each of the 29 NBA teams must designate at least one player on its roster to be eligible for selection by the Bobcats, even if the team does not have eight players under contract or as restricted free agents for the 2004-05 season.

Any player under contract selected by the Bobcats will immediately be placed on the Bobcats roster.

Any eligible restricted free agent selected by the Bobcats shall immediately become an unrestricted free agent.

Unrestricted free agents are not eligible to be protected nor are they eligible to be selected by the Bobcats.


B. Pre-Expansion Draft Trades
Teams will be permitted to enter into pre-Expansion Draft trades in which Charlotte agrees to select or not select certain unprotected players.


C. Salary Cap
Charlotte will be permitted to select players in the Expansion Draft without regard to the Salary Cap.

Charlotte will have a Salary Cap in its first season equal to 66% of the Salary Cap applicable to the rest of the league and a Salary Cap in its second season equal to 75% of the Salary Cap applicable to the rest of the league.

Charlotte will be permitted to sign any restricted free agent it selects in the Expansion Draft using the same “Bird,” “Early Bird” or “Non-Bird” Exception that the player’s prior team would have had.

Compensation paid to a selected player under a contract protected for lack of skill will be excluded from Charlotte’s Team Salary if the player’s contract is terminated (via the waiver procedure) prior to the start of the 2004-05 season.

A team with a Team Salary above the Salary Cap will receive a Trade Exception to replace a player (other than a restricted free agent) selected from its unprotected list.


D. Post-Expansion Draft Transactions
A team will not be permitted to reacquire a player that it loses in the Expansion Draft prior to the expiration of one year from the date of the Expansion Draft, unless the player is waived and not claimed by any other team.

[grndmstr_c]

A team with a Team Salary above the Salary Cap will receive a Trade Exception to replace a player (other than a restricted free agent) selected from its unprotected list.

Anybody know any more about this? Specifically, what are the rules regarding the size of this trade exception and how can it be used?

[mavsman55]

Originally posted by: grndmstr_c

Anybody know any more about this? Specifically, what are the rules regarding the size of this trade exception and how can it be used?

Link

I'm not sure if this has much to do with that rule, but it says at the bottom that:

"A team will not be permitted to reacquire a player that it loses in the Expansion Draft prior to the expiration of one year from the date of the Expansion Draft, unless the player is waived and not claimed by any other team."

[Poindexter Einstein]

A trade exception is an "exception" to the cap rules. There is nothing special about this trade exception compared to any other ones. If you read the expansion rules closely, the process reflects the trade process; thus, trade "exceptions" arise since nothing comes back the other way. It all fits under the "Assigned Player" process that governs movement of players from team to team.

[Poindexter Einstein]

A trade exception is an "exception" to the cap rules. There is nothing special about this trade exception compared to any other ones. If you read the expansion rules closely, the process reflects the trade process; thus, trade "exceptions" arise since nothing comes back the other way. It all fits under the "Assigned Player" process that governs movement of players from team to team.

[Poindexter Einstein]

A trade exception is an "exception" to the cap rules. There is nothing special about this trade exception compared to any other ones. If you read the expansion rules closely, the process reflects the trade process; thus, trade "exceptions" arise since nothing comes back the other way. It all fits under the "Assigned Player" process that governs movement of players from team to team.

[grndmstr_c]

English, PE? Does that mean, for example, that if the Bobcats pick up a player who makes 4 million in the expansion draft that the team they picked him up from would then get a 4 million dollar exception to use on a free agent of their choosing?

[Poindexter Einstein]

Nope, it is not a salary cap exception, it is a Trade Exception. It falls under the rules of Assigned Contracts, and assumes a non-simultaneous trade: ie, I sent someone away, and didnt get someone back yet. But the rules say I can get someone (via trade) using this same extra salary later, using my exception to acquire them without having to worry about cap numbers.

Yes I know this is all very technical, but there isnt a way to explain it without getting technical.

What can you do with a Trade Exception? If you are working a trade, you can use the exception to take back more cap room than you traded away. (Thats why it is called an Exception.) Using your hypothetical of Charlotte getting a $4M player from me in the draft, I could trade away a $5M player and take back a $9M player in a future trade. Or I could trade a 5M for a 7M, and then retain the other 2M for a later deal.

There are very limited uses for it however, and it expires in a year. It cannot be combined with other exceptions such as the 115% rule, thus unless it is a sizable amount it probably wont ever come into play.

Trade Exceptions are typically trumpeted by GMs as if they acquired something of great value and in great demand when they get one, but I am convinced it is mostly just PR hogwash, cause they are rarely used and merely expire. (I have even heard it announced thusly, as if a great prize had been obtained: "And from Team X, we were also able to acquire a $2M Trade Exception! This gives us great flexibility and we were lucky to get it from them." )

[grndmstr_c]

Thanks, that's what I was after - all the technicality in the world is nothing without a little practicality.

[Stressboy]

A sizable trade exception would be a real asset to a team that does not mind spending money. Grand is correct that the 6.9 mil exception that the rockets currently posess is really a waste because they don' t want to pay tax. Since it only lasts a year, it would have to be a great prize for them to spend it.

Now in the hands of the Mavs, it just might be a real piece to a big puzzle. I believe we got Tim Hardaway using our trade exemption and he did a S&T with the Heat for 3 mil a year and we traded them our second rounder. I think that was why the Mavs did not feel too bad about trading Hardaway since they helped him make a mil or two more than he was worth at the time.

The rockets could be a big player using the trade exemption if they had the huevos to do something, but I doubt they will. Now the mavs might do something crazy to get one of those to facilitate a big trade. Here is how a crazy thing could play out:

1) Dallas trades Walker to the Rockets for Mo Taylor and the 6.9 trade exemption, and a future 1st.
2) Now the bobcats get GS's #1/3mil cash to take NVE with the knowledge that Dallas is going to trade the trade exemption to GS for Dampier, thus clearing 17mil in cap room this summer for the Warriors.
3) Bobcats get Phoenix pick #7/3 mil cash for picking up Jahiadi White to clear cap for Kobestakes.
4) Dallas trades Jamison/Delk/future 1st/3mil to the bobcats for #7(Phoenix pick)/NVE/Jahadi White.

So for Walker/Jamison/Delk the Mavs got Mo Taylor/NVE/Dampier/Jahiadi White and #7. FOLKS this is just an example and I doubt the bobcats would want to do this, but I can see GS, and the rockets jumping at this. Of course the way I have played it out, the bobcats would have Jamison to score 20 a night, #4 and #11 in the draft. Along with the players in expansion draft, they might have a decent core pretty quick.

Just some more wild conjecture on the part of Stressboy.

EDIT: After confiring with my Rockets pal, he stated that unless they already had a way to move Walker, then there is no way they do that part of the trade.