I'm feeling much better about the loss of Gordon Hayward this morning. The Celtics have finalized a sign-and-trade deal with the Charlotte Hornets with Boston picking up a trade exception north of $27 million.
Celtics secure TPE for sign-and-trade of Hayward to Hornets, biggest ever https://t.co/bW5RYXMBaY
— The Celtics Wire (@TheCelticsWire) November 29, 2020
Although most TPEs are never used, my feeling is Danny Ainge will use all of part of that exception to improve his team. For the best (and clearest) analysis on the transaction, read Chris Forsberg's (NBC Sports) excellent breakdown:
It's basically all about creating cap space to possibly acquire a player or players without having to match salaries. It is mostly about FLEXIBILITY. Consider the TPE as another tool in Danny's arsenal of weapons in his quest for Banner #18.
To simplify, looking at the current salary cap ($109,140,000) and luxury tax level ($132,627,000), according to Forsberg, the Celtics will have roughly $16M to $22M to use and still possibly avoid future tax penalties. That is what this is all about.
So our payroll is now 105 mil.
— Celtics ☘️Canada🇨🇦 🏀 (@CelticsCanada) November 30, 2020
Thompson brings us to 115 mil (approx)
The Cap is 109 mil
Luxury Tax starts at 132 million.
As far as I can tell we trade for 16 mil net without getting us to $132 mil this season.
So we should at trades that would bring in a net of 16 mil
The Celtics have an entire calendar year in which to use this TPE, and the same holds for the lesser trade exceptions for Enes Kanter ($4.7M) and Vincent Poirier ($2,5M), but none of the TPEs can be combined with each other.
Hopefully, Chris Forsberg, @CelticsCanada and I have clarified what the Hayward Trade Exception is all about. Kudos to Trader Danny. He picked up Hayward for nothing, and I would be amazed if Ainge, unlike many past TPE holders, never uses it.
https://www.nbcsports.com/boston/celtics/what-trade-exception-and-how-can-it-help-celtics
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