How Does NBA Trade Work?

NBA trades can be confusing to follow, but we’re here to help. Learn how NBA trades work, including the role of the NBA trade deadline.

Introduction

In the NBA, a trade is a transaction that involves two or more teams exchanging players, draft picks, or other assets. The most common type of trade is a player trade, in which one team acquires another team’s player(s) in exchange for one or more of its own players, draft picks, or cash considerations.

Other types of trades include draft pick trades and cash trades. In a draft pick trade, a team acquires another team’s future draft pick(s) in exchange for one or more of its own future draft picks. In a cash trade, a team acquires another team’s cash considerations in exchange for one or more of its own future draft picks.

Trades can also involve multiple teams and multiple assets. For example, a three-team trade may involve two player trades and one draft pick trade.

Trades are governed by the NBA’s Collective Bargaining Agreement (CBA). The CBA contains rules that limit the number and types of trades that can be made, as well as when trades can be made.

Trades can be made at any time during the NBA season, but there are two periods during the year when trades are prohibited: from the end of the regular season until the day before the NBA Draft, and from the day after the NBA Draft until the end of the NBA’s summer league period.

What is an NBA Trade?

An NBA trade is when two NBA teams agree to swap players, draft picks, or both. In order to make a trade, both teams must agree on the terms of the trade and submit the trade to the NBA for approval. Once the trade is approved, the players involved in the trade will be notified and can report to their new teams.

Types of NBA Trades

In the NBA, teams will often times trade players in order to improve their team. There are two types of NBA trades: player-for-player and player-for-draft pick. In a player-for-player trade, both teams involved in the trade will receive a player from the other team. This type of trade is relatively rare because it is hard to find two teams who have a match in terms of the players they want to trade. In a player-for-draft pick trade, one team will receive a player from the other team in exchange for a future draft pick. This type of trade is more common because it is easier to find trading partners when there is only one desired asset (a draft pick) involved.

Player-for-Player Trade

A player-for-player trade is the most simpler form of a trade that can happen in the NBA. As the name suggests, this type of trade involve two teams exchanging players with each other, with nothing else being involved in the deal. In order for a player-for-player trade to work, the salaries of the two players being traded must match up fairly closely with each other. If not, then the NBA’s collective bargaining agreement (CBA) guidelines come into play, which we’ll get to in a bit.

Assuming that the salaries do match up, then it’s simply a case of two players being traded for each other and nothing else. The only other thing to consider here is if one or both of the players being traded have any sort of trade protection included in their contract. This could be a no-trade clause or something similar, which would give them some control over where they get traded (or if they get traded at all). Other than that, though, there’s not much else to a player-for-player trade.

Player-for-Draft-Pick Trade

In a player-for-draft-pick trade, a team will trade away a player (or players) in exchange for one or more draft picks. For example, a team might trade a veteran player to a rebuilding team in exchange for that team’s first-round pick. In this type of trade, the focus is usually on the future rather than the present. The team trading away the player(s) is looking to rebuild through the draft, while the team receiving the player(s) is looking to add talent to its roster.

Draft-Pick-for-Player Trade

The most common NBA trade is when one team sends a player to another team in exchange for a draft pick. The team that is receiving the player is generally trying to improve its chances of winning games in the present, while the team that is receiving the draft pick is trying to improve its chances of winning games in the future. In order for this type of trade to be completed, the teams must agree on which players will be traded, as well as which draft picks will be exchanged.

How NBA Trades are Made

An NBA trade happens when two teams agree to exchange players and/or draft picks.

To make a trade, the teams must first agree on which players and/or picks will be traded. Once the trade is agreed upon, each team must then notify the league office of the trade and provide all necessary documentation, including signed player contracts.

Once the league office has received and approved all documentation, the trade is official. Players have 48 hours to report to their new team after which they are eligible to play in games.

NBA trades can happen at any time during the season, but the league’s trading deadline is typically in February. After the deadline, trades can still happen but are much less common.

Trades are an important part of building a successful NBA team. They give teams the opportunity to acquire players that they otherwise would not be able to get, and can help them get rid of players that no longer fit with their plans.

Why Do NBA Teams Make Trades?

NBA teams make trades for a variety of reasons. Sometimes, it’s to clear salary cap space. Other times, it’s to get rid of a player that doesn’t fit with the team’s current direction. Sometimes, it’s to acquire a player that the team believes can help them win a championship. Whatever the reason, every trade has a purpose.

To Improve the Team

One of the main reasons NBA teams make trades is to improve the team. If a team feels like it is close to contending for a championship, it may trade for a player that it believes will put the team over the top. For example, the Los Angeles Lakers traded for All-Star center Pau Gasol in 2008. The Lakers believed that Gasol would help them win a championship, and he did just that, as the Lakers won titles in 2008 and 2009.

To Free Up Salary Cap Space

One common reason NBA teams make trades is to free up salary cap space. The salary cap is the total amount of money that a team can spend on player salaries in a given season. For the 2019-20 season, the salary cap was $109.1 million.

NBA teams are only allowed to exceed the salary cap in certain circumstances, such as when they use one of their “exceptions.” Exceptions are special rules that allow teams to sign or trade for players even if they are over the salary cap. The most common exception is the “mid-level exception,” which allows teams to sign free agents for up to $9 million per season even if they are over the salary cap.

Teams can also create “trade exceptions” when they make trades. Trade exceptions can be used to acquire players even if the team is over the salary cap. For example, let’s say Team A trade Player X to Team B for Player Y and a future second-round draft pick. If Team A is over the salary cap, they can create a “trade exception” worth the amount of Player X’s salary. This exception can be used to acquire another player within 365 days, even if Team A is over the salary cap at the time of the trade.

Some trades are made simply because one team has too many players at a certain position, and they need to unload some of those players in order to stay under the league’s roster limit. Each NBA team is allowed a maximum of 15 players on their roster at any given time.

To Acquire Future Assets

Teams make trades in the NBA for a variety of reasons. Sometimes it’s to address a immediate need, while other times it’s to improve the long-term outlook of the franchise.

One common reason for making a trade is to acquire future assets. This could be in the form of draft picks or young players with potential. For example, a team that is rebuilding might trade away a veteran player who is no longer part of their long-term plans, in exchange for draft picks which can be used to select new players.

Another reason for making a trade is to create cap space. This is often done by trading away players with high salaries, in exchange for players with lower salaries (or no salaries at all). This can give a team more flexibility when it comes to signing free agents or making other moves in the future.

Finally, teams will sometimes make trades simply because they think it will make them better in the short-term. This could be due to a change in coaching staff, an injury to a key player, or anything else that’s impacted the team’s performance. For example, a team might trade for an experienced player who can provide leadership and stability during a tough stretch of games.

Conclusion

As we have seen, NBA trades involve a complex set of rules and procedures that must be followed in order for the trade to be approved. Both teams must agree to the trade, and then the league office must approve the trade. Once the trade is approved, the players involved have to report to their new team and pass a physical examination. After that, they are free to play for their new team.

The process of making an NBA trade can be complicated, but it is an essential part of building a successful team. By understanding the rules and procedures involved in making a trade, you can help ensure that your team makes the best possible decisions when it comes to trading players.