Expansion Draft Rules

[George O'Brien]

I picked this up from nba.com. Mostly this is old news, but I am now confused about exactly what the cap impact of drafted players are if they are not cut.

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.

We have been using the term "bribe". Can the Suns make "trades" prior to the expansion draft? Are there restrictions on trades that not applicable to bribes?

C. Salary Cap

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

What does this mean?

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.

 

[Errntknght]

>>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. <<

Does anyone have any idea what the phrase, "player under a contract protected for lack of skill" means? I remember seeing it a couple of times before and it always puzzled me.
I can't even figure out who is protected - the team or the player. Presumeably most or, at least, many players have such contracts because normally it's simply said that Charlotte can waive players it selects in the expansion draft before the season starts to avoid their contract contributing to their Team Salary (for salary cap purposes).

 

[Errntknght]

>>Quote:
C. Salary Cap

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


What does this mean? <<

I take it to mean that Charlotte can pick any unprotected players under contract that it wishes. They then have until the season begins to waive enough players to get under their salary cap of 30 million. If you are right about which players will left unprotected then there are not going to be 14 players whose combined salaries will be under 30 million, so they cannot possibly stay under their cap during the expansion draft.


Here's an interesting scenario that the Lakers, Kobe, and Bobcats might agree on - if Kobe can opt out of his contract after the expansion draft. Lakers leave Kobe unprotected and Charlotte selects him and then Kobe opts out and becomes a FA. The Lakers do it because, being over the salary cap, they get a trade exception equal to Kobe's salary when Charlotte picks him. Charlotte does it because they get no hit against their salary cap and don't have to pay anything to Kobe, since they are not waiving him. I would guess it won't work because Kobe will have to exercise his right to terminate his contract before the expansion draft but who knows... (Of course, the Lakers might not go along with it because the rules then prohibit them from re-acquiring Kobe for a year. And the NBA could step in and disallow it because it contravenes the spirit of free agency.

 

[hcsilla]

I take it to mean that Charlotte can pick any unprotected players under contract that it wishes.

That's correct.

They then have until the season begins to waive enough players to get under their salary cap of 30 million.

That is not. They can stay above the cap.

 

[George O'Brien]

>>Quote:
C. Salary Cap

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


What does this mean? <<

I take it to mean that Charlotte can pick any unprotected players under contract that it wishes. They then have until the season begins to waive enough players to get under their salary cap of 30 million. If you are right about which players will left unprotected then there are not going to be 14 players whose combined salaries will be under 30 million, so they cannot possibly stay under their cap during the expansion draft.


Here's an interesting scenario that the Lakers, Kobe, and Bobcats might agree on - if Kobe can opt out of his contract after the expansion draft. Lakers leave Kobe unprotected and Charlotte selects him and then Kobe opts out and becomes a FA. The Lakers do it because, being over the salary cap, they get a trade exception equal to Kobe's salary when Charlotte picks him. Charlotte does it because they get no hit against their salary cap and don't have to pay anything to Kobe, since they are not waiving him. I would guess it won't work because Kobe will have to exercise his right to terminate his contract before the expansion draft but who knows... (Of course, the Lakers might not go along with it because the rules then prohibit them from re-acquiring Kobe for a year. And the NBA could step in and disallow it because it contravenes the spirit of free agency.

Congratulations. That is the most extraordinary idea I've seen in a long time. It seems unlikely, but I can't see a flaw in the logic. I don't think Kobe can exercise his option before July 1st (does anyone know), so it certainly looks like a feasible plan if the Lakers figure they will lose him anyway.

 

[elindholm]

I agree that's a very clever idea. But is it all that different from having the Lakers trade Bryant to the Jazz for nothing (or, say, a second-round pick in 2011), and then having Bryant ditch the Jazz instead of the Bobcats?

 

[thegrahamcrackr]

Congratulations. That is the most extraordinary idea I've seen in a long time. It seems unlikely, but I can't see a flaw in the logic. I don't think Kobe can exercise his option before July 1st (does anyone know), so it certainly looks like a feasible plan if the Lakers figure they will lose him anyway.

The idea is extremely interesting, however I fail to see the point. If the Lakers are certain they are going to loose Kobe to FA, why not just concede to doing a sign and trade instead? With a trade exception, they aren't going to get much. I mean who would give up young talent or a big star for anyone on the Lakers not named Kobe or Shaq?

They could basically pick their players with a sign and trade for Kobe, as long as he was willing to go to the team. Memphis, Chicago, Indiana all have a large amount of talent, and Kobe might be willing to go to any of those.

 

[George O'Brien]

The idea is extremely interesting, however I fail to see the point. If the Lakers are certain they are going to loose Kobe to FA, why not just concede to doing a sign and trade instead? With a trade exception, they aren't going to get much. I mean who would give up young talent or a big star for anyone on the Lakers not named Kobe or Shaq?

They could basically pick their players with a sign and trade for Kobe, as long as he was willing to go to the team. Memphis, Chicago, Indiana all have a large amount of talent, and Kobe might be willing to go to any of those.

The advantage to the Lakers is that they do not have to work out some complicated three or four way trades to get the guy/guys they want. They could do a straight pick and player trade for a guy they wanted without having to match cap space.

As I said, I consider it extremely unlikely because I think the Lakers will end up re-signing Kobe. But it is a very creative proposal none the less.