In our Complete Guide to the NBA Market, we discussed the topic of Sign-and-Trade, which we will explore in detail in this article.
What is Sign-and-Trade?
Sign-and-Trade is a market tactic used to “navigate” the restrictions of the Salary Cap, where a player is signed and then traded shortly after.
In the context of NBA Trades, this is a legal and fully allowed practice aimed at providing flexibility in trade movements between teams. This arrangement benefits both the team and the player, unlike the Buyout process.
How does Sign-and-Trade work?
A player who has become a Free Agent can choose to sign immediately with a team (Sign) and then be traded shortly afterward (Trade).
In this case, the player will be able to sign a lucrative contract and maximize their earnings, while the team can free up salary space equal to the player’s contract value.
However, there are some limits to respect:
- The player must execute the Sign-and-Trade with the team they played for the previous season and no one else.
- The new season must not have started.
- The player must have completed the previous season with the same team they are agreeing to the S&T with.
- The player must receive a contract of at least three or four years, with the first year fully guaranteed.
- The team receiving the player must not exceed the Luxury Tax limits after the trade.
When all these restrictions are respected, the Sign-and-Trade can be carried out, ensuring the benefits for both parties.
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Author: Team Dunkest
December 16, 2024 | 2:46 am
