FanPost

The intracacies of Cash Considerations

OK so I'm more of a NFL fan (go broncos!) but I have always loved salary cap stuff.  Just recently I have been studying the NBA's 'soft' cap and its rules -which I find very interesting.  But one thing I can't  find any information on by googling is trading cash.


Example:  Team A trades a draft pick to Team B in return for 3 mil$

So my questions are:

1.  Does Team A get 3 mil added to their cap?

2.   Does Team B get 3 mil subtracted from their cap?

3.  Or is it like the GM for Team B just gives the GM for Team A 3 mil with no cap affect?

can someone please explain!!? 

 

Heres what I found in the CBA....but it doesn't answer my Qs

Section 8. Trade Rules.
(a) A Team shall not be permitted to receive in connection with any trade, directly or indirectly, more than $3 million in cash or other compensation, including cash or other compensation received as reimbursement for Compensation obligations to players who the Team is acquiring. For purposes of this Section 8(a), if a Contract is signed and then traded pursuant to Section 8(e)(1) below, and the Contract contains a signing bonus, the payment of all or any portion of such bonus by the Team that signed the Contract shall be treated as a reimbursement of a Compensation obligation of the assignee Team and shall be subject to this Section 8(a).

 

Thanks 

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