How does the TPE work?

[KirbyPls]

:confusedshrug:

[GoRapz]

By jerking your dad off at the same time you're giving it to him in the ass

[Done_And_Done]

/\ wtf lololololol

[Sarcastic]

http://bfy.tw/y7C

[Phenith]

Here is a good article that covers it and is easy to understand.

http://basketball.realgm.com/analysis/238637/CBA-Encyclopedia-Trade-Exceptions

[kshutts1]

Here is a good article that covers it and is easy to understand.

http://basketball.realgm.com/analysis/238637/CBA-Encyclopedia-Trade-Exceptions
Thanks for the link, but it doesn't explicitly state how/when the exception is created.

It sounds like one is created every time a team at, or over, the cap deals with a team under the cap, and the at/over team receives less salary than they send out.

Is that correct?
If correct, is one created with each trade that fits that criteria? Something later in the article made it sound almost like there was a choice in the matter.
Also, how does a team "use" an exception? It reads as though just having an exception is "using" it in that it's an asset that doesn't count against the tax. But once you actually use it, to trade for a player, then you're paying the tax. So when being actually used, it costs money, but when being held, it does not?

[Phenith]

Thanks for the link, but it doesn't explicitly state how/when the exception is created.

It sounds like one is created every time a team at, or over, the cap deals with a team under the cap, and the at/over team receives less salary than they send out.

Is that correct?

Yes, if an under cap team takes on additional salary in a deal, the over cap team gets a TPE.

If correct, is one created with each trade that fits that criteria? Something later in the article made it sound almost like there was a choice in the matter.
It counts against the cap, but not the luxury tax, and a team can renounce a TPE at any time.

Also, how does a team "use" an exception? It reads as though just having an exception is "using" it in that it's an asset that doesn't count against the tax. But once you actually use it, to trade for a player, then you're paying the tax. So when being actually used, it costs money, but when being held, it does not?
This is the part that is tricky... there is all kinds of rules around them... but essentially, a TPE is like a contract that you can use to absorb an incoming players salary instead of adding more to your cap. Once a TPE turns into actual salary it is then that salary counts towards luxury tax as well.

That's the basics, plus a bunch of rules and conditions mentioned in the article.


Commented in quote.

[kshutts1]

Commented in quote.
Thanks.

I understood the entire article, just some things were seemingly implied rather than explicitly stated.