Originally Posted by box1992
oh alright, thanks for the clarification. So this would be us sending with a 4 mill contract for someone like a 1o mill contract? and it doesnt count against the cap for the year?
Nope - there are two types of traded player exception. The traded player exception allows a team to go over or further over the cap in a trade (i.e. absorb more salary than they send out). There are two types - the instantaneous TPE, which is the 125% + $100,000 margin for trading groups of players (adjusted to 150% in this CBA) - and the non-instantaneous TPE, which is what is commonly known as the TPE.
This non-instantaneous TPE allows a team to make a trade like the Chris Bosh
trade, where the team sends out a SINGLE player to a team with cap space, and takes much less or no salary back, and then "complete" the trade at a later date by absorbing a player without sending out salary (up to 100%+$100,000). Since it needs to be a single player, and the trade using the TPE is considered a part of the original trade, you cannot use a non-instantaneous TPE and send out a player as well.
Consider the Bosh
(14.5 million) to Miami for picks. 14.6 million N-I TPE generated.
2) Bayless absorbed with 2.293M of TPE - reduces TPE to 12.207M
3) Ajinca absorbed with 1.468M of TPE - reduces TPE to 10.739M
4) James Johnson absorbed with 1.713M of TPE - reduces TPE to 9.026M
So so far the Bosh
Bosh for Bayless + Ajinca + Johnson
Notice that there is only 1 outgoing player. To keep that true, and allow us to use the TPE, we cannot send out a player in a trade involving our TPE. So we can absorb a 9M player (or players), but no more than that.
See this post for more details.
Raptors Cap / Tax Status for 2010-2011 (Updated on Page 8)