I want to get rid of sign and trades where players get the benefits of re-signing but get to leave their team and the past team is forced to go along with it because they might get a compensatory pick out of it, but they also get stuck with a bunch of junk contracts.
In any event my proposed exception would limit trades that were unfavorable to the player as well as the team.
So here is my hypothetical using nice round numbers, of course:
Hard Cap is 40 million. Bird exception = contract = 10% of cap. 4 players are allowed to be Bird. Bird status granted after 4 years of tenure with current club (thus all rookies at the end of their contract plus long term players). Max contract is 10 million.
Let's say the Kings signed Dally for 8 mill and Thornton for 6.
They will give Evans, Cousins and Jimmer 10 million each but declare them Bird players so their cap hit will be 4 million.
At that point they have 5 guys signed for 44 million but the total cap hit is actually 26, leaving 14 million to fill out the roster. JT would be eligible for a Bird exception. Hickson would not.
Let's say you need to make them tradeable the rule would be simple - Bird players can only be traded for Bird players plus cash or picks. A Bird player traded for a Bird player retains his status.
So you've got cost certainty - a two tiered hard cap that gives wiggle room to keep your franchise players, still allows player movement and rewards star players for team loyalty.
Is the hard cap $40 million, or is it $60 million? You said you have five guys signed for $44 million with $14 million to fill out the roster, so I'm assuming you meant $60 million...
Generally speaking, sign-and-trades are only done when the team and/or player wants to part ways, but there's a team that's favorable to paying said player but doesn't have the cap space to sign them outright. The team sending the player away typically doesn't take back junk contracts. They could simply say "no" and let the player land wherever he may land.
For instance, we got Brad Miller in a three team deal, and all Indiana took back was Scot Pollard, who they wanted anyway. They didn't want to pay Miller $60 million, and would have let him walk regardless (Utah and Denver both wanted him), but in exchange they got a player in the deal. And San Antonio hopped in the deal because they had cap space, and got two players out of it, for nothing. The deal included Bird rights, but only for a seventh year on his contract, as he wasn't a max level player.
What I'm protesting against is the idea that sign-and-trades are the players' way of leaving their team and the team is forced into a bad deal. In reality, sign and trades are usually effected because the team doesn't intend to keep the player, for one reason or another (usually money), but wants to get some kind of compensation. The other popular scenario is that the team the player is going to doesn't have cap space, but is willing to provide the compensation the original team is looking for. So the Pacers said "we can let Miller sign with Denver or Utah and wave goodbye, or we can S&T with Sacramento, and ditch Ron Mercer, and get back Scot Pollard." Win for the Kings, win for the Pacers, win for the Spurs for using their cap space, and win for the player. What's wrong with that?
Usually, when a player walks, there is no S&T, like when Amare Stoudemire went to the Knicks last summer. In which case, the original team didn't even try to keep him, didn't make an offer, nothing. Bird rights didn't even matter; he only signed a five year deal. In that case, the Suns could have offered the Knicks a S&T in exchange for a draft pick, but why would the Knicks do that when the player is willing to sign a non-Bird contract with them and they have the cap space?
And where we're diametrically opposed is the idea that players should be rewarded for team loyalty. That's never been the design. The design has been to give the Bird team the ability to add extra incentive for the player. They don't stay out of loyalty; they stay for extra money. That being the case, it would seem that the fix would be to make Bird rights stronger in comparison to other teams, not to restrict the Bird team's ability to reap compensation from a player leaving, if they choose to do so. That way, if the Pacers want to let Brad Miller leave, but have a chance to get some compensation, they can make that decision themselves, rather than being legislated out of it.
This nonsense that the Cavs and Raptors did with the Heat last season was not normal, and wasn't the original plan. Bosh and James were going to sign with Miami with or without the S&T for draft picks, and probably should have. As it stands, Miami agreed to part with picks in exchange for Bird rights for both players, which may or may not make sense. What would have been more appropriate would have been four year deals for both with player options after Year 3, so they could extend the contracts at that time. But whatever, the point is that generally speaking a team doesn't have to do a bad trade in order to get compensation.
Even in the Carmelo Anthony deal, the Nuggets did the deal the way he wanted them to because they wanted to maximize compensation, and he wasn't willing to sign an extension with anyone but the Knicks. In reality, they could have traded him to Utah for Gordon Hayward and a pick if they wanted to do it their way. Bird rights only matter when it's time for a new contract. Other than that, I don't see why we're focusing on them.