NBA Rumors: Warriors will only use trade exemptions for “special occasions”.

NBA Rumors: Warriors will only use trade exemptions for “special occasions”.
NBA Rumors: Warriors will only use trade exemptions for “special occasions”.
If you were to list the Warriors’ top three non-player assets, the $ 17.2 million trade exception they received as part of Andre Iguodala’s deal with the Memphis Grizzlies last off-season would surely be one of them . The draft picks – Golden State’s # 2 overall in 2020 and the Minnesota Timberwolves’ three best protected first classics in 2021 – could usher in a new era of warriors basketball in the not too distant future, but the massive trading exemptions could her Change fate instantly.

With this $ 17.2 million trading exemption, which expires seven days after the free agency begins, the Warriors can enroll any player whose salary is equal to or less than that amount for the next season. This way, however, it will cost Golden State a lot more.

The Warriors are expected to owe around $ 69 million in luxury tax penalties by the next season, and each additional dollar added to the ledger will be multiplied, based on their tax bracket. If they were to take in a salary equal to the full value of the trade exception, it would add about $ 76 million to the projected tax burden. Even if the warriors received a much smaller salary, other than trade, it would still cost them a few pretty pennies.

Given the massive loss of league revenue as a result of the COVID-19 pandemic, it stands to reason that the Warriors and every other NBA team will be more cautious about how they spend money this off-season. That explains why The Athletic’s Anthony Slater reported last week, citing sources, that the Warriors will only use the trade exception for something they cannot afford to forgo.

“But every additional dollar is multiplied in the warriors’ tax bracket,” wrote Slater. “Without knowing the exact upper limits or the future date the Chase Center will reopen to fans, sources are increasingly insisting on using this $ 17.2 million exemption: It would have to be a special occasion. Is an overpriced medium rotation piece considered special? ”

RELATED: Seven Candidates For Warriors Massive Trading Exemption Of $ 17.2M

A special opportunity, right? How the warriors define what is “special” is unclear, but we should find out soon. When they use the trading exception, they clearly see the acquired player as worth the massive investment that would be required to get them on the list.

And if not? Well, the warriors will lose one of their best assets for free, but at least it won’t cost them anything extra.

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