Miami-Toronto

Miami
In: Jermaine O'Neal ($21.3525 M) and Jamario Moon (.711517*)
Out: Shawn Marion (17.18) and Marcus Banks (4.176)

Toronto
In: Shawn Marion (17.18*) and Marcus Banks (4.176)
Out: Jermaine O'Neal ($21.3525 M) and Jamario Moon (.711517)

*- expiring contracts

     First, both teams are over the salary cap and require a trade exception to complete this trade. The most commonly used trade exception is the simultaneous traded player exception. The simultaneous traded player exception is codified in Article VII, Section 6, subsection h(1)(i), of the NBA's Collective Bargaining Agreement. Under this exception, a team may simultaneously acquire post-assignment salaries that are no more than an amount equal to 125% plus $100,000 of the team's pre-trade salary. 

    However, determining whether a trade fits within the simultaneous traded player exception is simpler than interpreting the CBA's language may sound. In the vast majority of trades, one team will acquire more salary than it is assigning and the other team will assign more salary than it acquires. In this situation, the team that assigns more salary than it acquires will fit within the simultaneous traded player exception because it is acquiring less than 100% of its pre-trade salary, let alone an amount no more than equal to 125% plus $100,000 of the team's pre-trade salary. To determine whether the team that acquires more salary than it assigns fits within the simultaneous traded player exception requires a calculation. Take the amount of salary that the team is assigning and multiply this number by 1.25 and then add 100,000. If this number is equal to or exceeds the amount of salary which the team is acquiring in the trade, then the simultaneous traded player exception applies. This inquiry will resolve most trades that involve teams whose total salaries exceed the salary cap.

     In this trade, Toronto is assigning more salary than it is acquiring. Therefore, Toronto fits within the simultaneous traded player exception. Miami is acquiring more salary than it is assigning. So, a further calculation is required to determine if Miami also fits within the simultaneous traded player exception. Miami is assigning $21.356 M in salary and is acquiring $22.064017 M in salary. 21,356,000 multiplied by 1.25 plus 100,000 equals 26,795,000. Because 26,795,000 exceeds 22,064,017, Miami also fits within the simultaneous traded player exception. Because both teams fit within an exception this is a legal trade.