Cleveland-Milwaukee-OKC trade

Cleveland
In: Maurice Williams ($8.353 M)
Out: Joe Smith (4.795) and Damon Jones (4.460186) 

Milwaukee
In: Luke Ridnour (6.5), Damon Jones (4.460186*), and Adrian Griffin (1.711*)
Out: Maurice Williams (8.353) and Desmond Mason (5.3)

Oklahoma City
In: Joe Smith (4.795*) and Desmond Mason (5.3*)
Out: Luke Ridnour (6.5) and Adrian Griffin (1.711)

*- expiring contracts

     This trade is fairly bland from a CBA perspective. All three teams are over the salary cap, so each team must have a trade exception. Cleveland and Oklahoma City will both use the simultaneous traded player exception. Under the simultaneous traded player exception, when a team is over the salary cap it may receive up to 125% +100K of the salary that it assigns. Both teams fit within this exception and will use the simultaneous traded player exception.

     Milwaukee, also over the salary cap, may use the non-simultaneous traded player exception. The non-simultaneous traded player exception is available when a team assigns a single player and the salary it receives is less than 100% + 100K of the assigned player's salary. Additionally, even though Milwaukee assigned two players, a team can reorganize a multi-player trade into single player trades to fit within the non-simultaneous traded player exception. Any amount less than the assigned player's salary may be used in a later trade in what is commonly termed a "trade exception." More accurately, the later acquisition simply completes the previous trade. 

     Here, Milwaukee will organize this as two trades. One trade is Desmond Mason for Damon Jones and the second trade is Maurice Williams for Luke Ridnour and Adrian Griffin. In both trades, Milwaukee is only assigning one player. Additionally, Milwaukee recieves less salary than it assigns in both trades. Therefore, Milwaukee actually creates two non-simultaneous traded player exceptions that may be used in future trades. Unfortunately, the non-simultaneous traded player exceptions are only for $839,814 and 142,000. Also, the non-simultaneous traded player exceptions can not be combined.

Welcome

     I am starting this blog for many reasons. I intend this blog to answer questions about the NBA salary cap. As a fan, it can be frustrating to follow and understand the inner-workings of the increasingly complex salary cap. Adding to the confusion, many reporters do not report transactions with precision. I hope to help NBA followers understand the NBA salary cap.

     Please feel free to ask any questions!