NBA Trades, what they are and how they work.
What are NBA Trades and how do they work, one of the most interesting and exciting aspects of the NBA Market.
In our Complete Guide to the NBA Market, we have addressed the topic of Trades, which we will explore in more detail in this article.
What is a Trade?
In the NBA, a Trade refers to the exchange of players between two teams. Each player joins the other franchise with the salary terms of their previous contract, so both front offices must make the necessary adjustments to ensure that the Salary Cap is not exceeded, thus avoiding the heavy fines imposed by the Luxury Tax.
How NBA Trades Work
In the NBA, all trades are allowed as long as they follow the salary guidelines, regardless of the player’s value on the court.
A franchise can thus make a direct trade if the salaries of the two players are equivalent (or if they differ slightly), otherwise, they must resort to a multi-trade, as in the case of James Harden.
It is crucial for front offices to stay below the salary cap, no matter how some contracts may seem to be undeserved (both positively and negatively).
Currently, Ben Simmons is worth almost the same as Luka Doncic in terms of salary ($35,448,672 vs $37,080,000).
The James Harden Case
Let’s look at a practical example: the trade that brought James Harden to the Brooklyn Nets.
To ensure that Harden’s salary fit within the salary cap limits, four teams were even involved, exchanging picks and players to make it work.
Harden’s $41 million salary wasn’t easy to absorb. The Nets had to part with Levert, Allen, Kurucs, and four first-round picks in the upcoming drafts, but all of this was necessary to avoid exceeding the cap and facing heavy penalties from the NBA.