91. What is the Poison Pill Provision?
"Poison Pill" isn't a defined term in the CBA, but there are a couple situations that are commonly referred to as a poison pill -- meaning a contract clause that creates a potential difficulty because the cap accounting can vary from the norm.
The first is when a team extends a first round draft pick's rookie scale contract (see question number
58) and then trades the player between the date the extension is signed and the date it takes effect. When this happens, the player's trade value for the receiving team is the
average of the salaries in the last year of the rookie scale contract and each year of the extension. The sending team uses the player's actual salary when calculating their total outgoing salary, and uses the current-year maximum salary in place of the (unknown) maximum salary for a future season, if necessary.