Indy didnt lose Peja for nothing after all

[ImAKing]

http://www.nba.com/pacers/news/stojakovic_trade_060712.html

INDIANAPOLIS, July 12, 2006 – The Indiana Pacers announced Wednesday night they had signed Peja Stojakovic and traded him, along with cash, to the New Orleans/Oklahoma City Hornets in exchange for the draft rights to Andrew Betts. Betts, a 7-1 center from Long Beach State who was a 1998 second-round draft pick of the Hornets, played in Europe through the 2005-06 season.
“This was an opportunity for the Pacers to benefit from Peja’s signing with the Hornets by doing a sign and trade,” said Pacers CEO and President Donnie Walsh. “We acquire a $7.5 million trade exception that will be very beneficial in any trades that come up in the next year.”

props to Donnie for pullin this off. i dont know why New Orleans even do this. couldnt they just straight-up sign Peja?

 

[pdxKingsFan]

Draft rights for a second round pick from '98? That's practically ten years ago, do draft rights ever expire in the NBA???

 

[NoBonus]

Hey, a $7.5 mil trade exception is better than nothing..

 

[target]

Shoot, a 7.5 mil exception is a lot better than nothing, wish we had one! Totally puzzling as to why the hornets would even need to do this though...

 

[AleksandarN]

Shoot, a 7.5 mil exception is a lot better than nothing, wish we had one! Totally puzzling as to why the hornets would even need to do this though...

The Indiana Pacers announced Wednesday night they had signed Peja Stojakovic and traded him, along with cash, to the New Orleans/Oklahoma City Hornets in exchange for the draft rights to Andrew Betts. Betts, a 7-1 center from Long Beach State who was a 1998 second-round draft pick of the Hornets, played in Europe through the 2005-06 season.

 

[Burrito06]

It doesn't make any sense to why they couldn't have signed him straight up.

 

[nbrans]

The Indiana Pacers announced Wednesday night they had signed Peja Stojakovic and traded him, along with cash, to the New Orleans/Oklahoma City Hornets in exchange for the draft rights to Andrew Betts. Betts, a 7-1 center from Long Beach State who was a 1998 second-round draft pick of the Hornets, played in Europe through the 2005-06 season.

Just in case anyone is still confused.

 

[KingsFan93]

Andrew Betts:

http://www.aek.com/basketball/roster/andrew_betts.htm

 

[KingsFan93]

The one in green

 

[NoBonus]

The one in green

That almost looks like a photo-shopped picture of him fouling himself.

 

[target]

mmm, i am pretty sure they got the $7.5 mil exception, its not just cash. i don't think donny walsh would be running around telling everyone he got this exception as he is quoted in the original post from NO if all they really got was a bunch of benjis.

here's a release from the pacers own website again saying they got the exception.
http://www.nba.com/pacers/news/walsh_moves_060712.html

"Walsh Outlines "Restoration" Project

By Conrad Brunner | July 12, 2006
So far, the summer scorecard reads like this:
Marquis Daniels, Orien Greene, Shawne Williams, James White and a $7.5 million trade exception are in;
Peja Stojakovic and Austin Croshere are out.
For a team that has been largely intact for three years, the moves already made constitute substantial turnover, but don't be confused by the intent.
"I wouldn't call it a rebuilding process," said Donnie Walsh. "I'd call it a restoration."
With the lifting of the NBA's moratorium preventing team officials from announcing or even commenting on pending trades or free agent signings, the franchise CEO and President met with the media to discuss the state of the team's offseason plan. That included two transactions that became official Wednesday: the acquisition of Daniels in a trade that sent Croshere to Dallas, and the sign-and-trade deal sending Stojakovic to New Orleans in a package that brought a $7.5 million trade exception to the Pacers..."

 

[nbrans]

mmm, i am pretty sure they got the $7.5 mil exception, its not just cash. i don't think donny walsh would be running around telling everyone he got this exception as he is quoted in the original post from NO if all they really got was a bunch of benjis.

here's a release from the pacers own website again saying they got the exception.
http://www.nba.com/pacers/news/walsh_moves_060712.html

"Walsh Outlines "Restoration" Project

By Conrad Brunner | July 12, 2006
So far, the summer scorecard reads like this:
Marquis Daniels, Orien Greene, Shawne Williams, James White and a $7.5 million trade exception are in;
Peja Stojakovic and Austin Croshere are out.
For a team that has been largely intact for three years, the moves already made constitute substantial turnover, but don't be confused by the intent.
"I wouldn't call it a rebuilding process," said Donnie Walsh. "I'd call it a restoration."
With the lifting of the NBA's moratorium preventing team officials from announcing or even commenting on pending trades or free agent signings, the franchise CEO and President met with the media to discuss the state of the team's offseason plan. That included two transactions that became official Wednesday: the acquisition of Daniels in a trade that sent Croshere to Dallas, and the sign-and-trade deal sending Stojakovic to New Orleans in a package that brought a $7.5 million trade exception to the Pacers..."

**smacks head**

Pacers GAVE CASH to the Hornets. The Hornets got the money, the Pacers got a scrub and a trade exception.

 

[BigSong]

"I wouldn't call it a rebuilding process," said Donnie Walsh. "I'd call it a restoration."

haha

 

[Bricklayer]

**smacks head**

Pacers GAVE CASH to the Hornets. The Hornets got the money, the Pacers got a scrub and a trade exception.

A large trade exception that unfortunately might put them back in the running for a Harrington or Bonzi.

 

[NoBonus]

That is a trade exception for this year? Good move on the Pacer's part... talk about getting something for nothing.

 

[nbrans]

A large trade exception that unfortunately might put them back in the running for a Harrington or Bonzi.

Yeah, it was an extremely smart move on their part.

 

[Bricklayer]

Yeah, it was an extremely smart move on their part.

On the positive side, maybe we can just trade them Kenny for their exemption, and use the capspace to resign Bonzi.

(actually my trade exemption knowledge is a little fuzzy -- not even sure if that's possible)

 

[nbrans]

On the positive side, maybe we can just trade them Kenny for their exemption, and use the capspace to resign Bonzi.

(actually my trade exemption knowledge is a little fuzzy -- not even sure if that's possible)

If, for some strange reason, Indiana decided they wanted Kenny Thomas they could trade for him using their new $7.5 million exception. The Kings would then have a trade exception equal to Kenny's salary ($6.7 million) for one year from the date of the Peja trade which they could use in a future trade (KG anyone?). Indiana's trade exception would be reduced to the balance of the original exception and Kenny's salary (about $800,000). It would give the Kings some additional breathing room under the tax level, but it wouldn't get them under the cap.

 

[VF21]

Okay, I have a headache.

Could someone explain, in layman terms, how this (meaning the whole deal between the Hornets and the Pacers) works? We used to have NME to explain this, but I haven't seen him around here in a long time...

 

[Bricklayer]

Okay, I have a headache.

Could someone explain, in layman terms, how this (meaning the whole deal between the Hornets and the Pacers) works? We used to have NME to explain this, but I haven't seen him around here in a long time...

Indiana signed and traded Peja, so basically THEY were the ones to sign him to a $13mil per year contract the way the deal got restructured here. But they took back no salary -- so by trading away a big salary for no salary in return, they got a trade exemption which they could use to do the opposite in the future -- trade for a salary without trading away any salary (except the exemption). Its like a placeholder.

My question would be where did the $7.5 mil come from -- is that half of Peja's average salary? The average salary minus the MLE? The largest a trade exemption can be? Not sure where that number came from given that they actually traded away $13mil in salary.

 

[nbrans]

^Nevermind, Brick beat me to it.

A lot of this is explained in the invaluable website on the salary cap:
http://members.cox.net/lmcoon/salarycap.htm

 

[VF21]

So why can't we trade Kenny Thomas away and not have to take salary back? We're nice people...

EDIT: I read that stuff, nbrans, since that's one of my favorite sites to go for on all things related to the CBA. I just didn't understand it...

 

[nbrans]

So why can't we trade Kenny Thomas away and not have to take salary back? We're nice people...

We could, if the team we were trading him to was under the cap.

 

[mcsluggo]

That almost looks like a photo-shopped picture of him fouling himself.

what are you crazy, thats not a foul.

 

[nbrans]

My question would be where did the $7.5 mil come from -- is that half of Peja's average salary? The average salary minus the MLE? The largest a trade exemption can be? Not sure where that number came from given that they actually traded away $13mil in salary.

I think since Peja got a raise of more than 20% he's now a base year compensation player, and $7.5 mil must represent his BYC figure, which is either half of his new salary or his salary from the previous season, whichever is greater. Since his new salary probably starts around $13 million, his BYC figure is his previous salary, which was $7.5 million. The trade still technically works because New Orleans was under the cap, but it reduces the amount of the trade exception Indiana receives in return.

 

[captain bill]

So why can't we trade Kenny Thomas away and not have to take salary back? We're nice people...

EDIT: I read that stuff, nbrans, since that's one of my favorite sites to go for on all things related to the CBA. I just didn't understand it...

Because no one wants Kenny Thomas. We'd have to give out a lot of cash to make that happen.

 

[AleksandarN]

Indiana signed and traded Peja, so basically THEY were the ones to sign him to a $13mil per year contract the way the deal got restructured here. But they took back no salary -- so by trading away a big salary for no salary in return, they got a trade exemption which they could use to do the opposite in the future -- trade for a salary without trading away any salary (except the exemption). Its like a placeholder.

My question would be where did the $7.5 mil come from -- is that half of Peja's average salary? The average salary minus the MLE? The largest a trade exemption can be? Not sure where that number came from given that they actually traded away $13mil in salary.

t
I think they got that number through the 25% difference in salary in which trades can structured under the new CBA. Also Pedja's deal starts out lower(probably starting at 10 mil in the first year) due to the 10.5 increase in each year of his contract. That is the reason other than the cash that NO did the sign and trade it gives them cap flexiblity to sign another FA.

 

[AleksandarN]

I think since Peja got a raise of more than 20% he's now a base year compensation player, and $7.5 mil must represent his BYC figure, which is either half of his new salary or his salary from the previous season, whichever is greater. Since his new salary probably starts around $13 million, his BYC figure is his previous salary, which was $7.5 million. The trade still technically works because New Orleans was under the cap, but it reduces the amount of the trade exception Indiana receives in return.

I think Pedja contract starts off lower then increase 10.5 each year of his contract. I think his contract starts off 10 mil then increase each of his contract.

 

[nbrans]

I think Pedja contract starts off lower then increase 10.5 each year of his contract. I think his contract starts off 10 mil then increase each of his contract.

That's possible, but wherever the deal starts, his BYC figure is $7.5 million since it's the greater of half his first year salary in the new deal or his previous salary (again, $7.5 million).

 

[PFFFT!!]

sick and tired of watching us get screwed by getting stuck with KT and Corliss while other teams get breathing space just like that *sigh*