Can someone better explain to me the 'trade exception'

[X]

The Magic have one that is worth 18 million. How exactly will we use this for it to be beneficial.

[Avster]

you can absorb 18 mil of salary in a a trade for example without having to put any salary out.

so a team could potentially ship you a shit contract, along with a pick/young guy as incentive to absorb the contract. helps you get pieces for the future.

[X]

I say this because I have been reading many people opinions that say that this trade exception is the best part of the Magic trade. But I do not see much use in absorbing a near maximum contract when we are rebuilding. I thought maybe I was missing something.

Unless this is an expiring of course.

[Spens1]

they have an 18 mill trade exception

well. time to get rid of hedo i think

[Trolliver]

its definetily not the best thing about the trade... it will most likely not even get used (they so rarely are... why would u want to take on salary in their situation srs ...

plus btw i dont think u have a trade exception that large + they expire after a year...

[X]

its definetily not the best thing about the trade... it will most likely not even get used (they so rarely are... why would u want to take on salary in their situation srs ...

plus btw i dont think u have a trade exception that large + they expire after a year...

I did a quick google search to see if I was just seeing things. Here is an article talking about it.

OK, maybe that's a little unfair. The Magic actually got six players in this deal, as many as everybody else combined! Unfortunately those players are Al Harrington, Arron Afflalo, Nikola Vucevic, Moe Harkless, Josh McRoberts, and Christian Eyenga. Orlando also receives five draft picks, three of which are protected first-rounders, one each from Denver, L.A., and Philadelphia. All three of those teams made the playoffs last year. The Sixers are the only team with a ghost of a chance of missing the post-season in the next few years. Therefore it's likely that all three picks will be in the bottom half of the first round, a couple of them below 20 for sure. The Magic also got an $18 million trade exception, you know, in case they want to pick up Amare Stoudemire.

Dwight Howard Trade (and How it Relates to the Blazers) - Blazer's Edge (source)

Well I thought I knew how a trade exception works (looks like I was right anyway) but I just do not see how it was the best thing coming out of the Magic trade. It makes no sense to pick up another large contract if we are rebuilding.

Spens how do you suppose we get rid of Hedo with the trade exception? I do not think it is possible.

[Trolliver]

oh i seee ....look here: NBA AM: Don’t Bank On The Magic Spending | HOOPSWORLD | Basketball News & NBA Rumors

[Spens1]

idk. it is possible that Hedo can go somehow. the Magic really needed about 5 amnesty clauses in the CBA, not just 1

[X]

I just do not know how they will be able to pull a trade off which puts them in better financial situation. It seems impossible to me. The only thing I can see happening is that the Magic use the trade exception for a big named free agent in a sign and trade. But it expires in a year, would it really be worth locking up a player on a maximum contract?

No

[Spens1]

honestly, i doubt the TPE gets used unless an offer comes that gets a real good youngster or relieves them of long term cap space