Understanding trade rules and restrictions: What Celtics can and can't do this season

One of the most complicated parts of the NBA for fans is the ins and outs of team building during the offseason. There are complex rules about what a team can and can’t do with certain players, how much a team can offer a free agent, what happens when a team goes into the luxury tax and much more.

I write a lot about the particulars of these rules, but one of the common requests I’ve received at BSJ is to simplify an explanation of these tricky CBA rules and terms and how they apply to the Celtics. Over the upcoming month, we will take a weekly look at some of the common phrases and rules I used that are involved in the collective bargaining agreement and try to make them easier to understand so it’s easier to break down the options the Celtics or another team has with their players in any offseason. Today, we start to cover trade rules. 

There are two types of trades in the NBA world. One is the simple kind (simultaneous). The other (non-simultaneous) usually involve trade exceptions, which we will get to in another post. For now, we will stick to a basic trade

What is a simultaneous trade?

It’s a deal that takes place in one swoop. It’s dependent only on the salary of the players involved in the deal and whether the teams involved are over the tax or not.

What are the salary restrictions in a simultaneous trade?

There are three different categories for non-tax teams, with tighter restrictions for each amount of money included in the deal.

Small salary trade: Team A sends out 0 to $6.533 million in salary. Team A can receive 175 percent of what they take out, plus $100,000.

Example: The Celtics could trade Daniel Theis and his $5-million salary and take back 175 percent of his salary ($8.75 million) plus $100,000 so the most they could take back is $8.85 million for him. That could be the salary of just one player or multiple players.

Mid-size salary trade: Team A sends out $6.533 million to $19.6 million in salary. Team A can receive the outgoing salary amount plus $5 million in return.

Example: The Celtics could trade Marcus Smart ($12.55 million) in salary and receive up to $17.55 million in return for him with one player or multiple players.

Big salary trade: Team A sends out player(s) making $19.6 million or more in salary. Team A can receive 125 percent of the outgoing salary plus $100,000.

Example: The Celtics could trade Gordon Hayward ($32.7 million) and receive up to $40.975 million in return for him in multiple salaries from players, based on the 125 percent number plus $100,000.

Is it tougher for tax teams to make a trade?

Yes, the rules for them or more restrictive when it comes to total amounts. Tax teams have to abide by the Big salary trade rules (only can take back 125 percent of outgoing salary in trade plus $100,000) in all deals.

This limited trade possibilities for the Celtics last year when they were a tax team, but since they will not be in the tax for this year, it should give them more flexibility to operate.

Do the Celtics have any trade restrictions involving their current players?

Yes. Several of their newly signed free agents are not eligible to be dealt until December 15th. Those names include Kemba Walker, Enes Kanter, Vincent Poirier and Brad Wanamaker. Tacko Fall and Javonte Green won’t be able to be traded until this date if one of them makes the team. Daniel Theis’ no-trade restriction lasts a little longer (Jan. 15) since he was a restricted free agent at the start of this offseason.

What about the Celtics' rookies trade eligibility?

The team could not have traded their newly signed players for 30 days after signing their rookie deals. That period has passed though so Grant Williams, Romeo Langford and Carsen Edwards could be dealt at any point of the year. That won’t happen though since rookies are rarely dealt before the season begins.

Are there any other trade restrictions that we should know about?

Some players can negotiate trade kickers (bonuses) into their contracts. Kemba Walker (15 percent) and Gordon Hayward (15 percent) both have these clauses, which give the C’s a little extra incentive to keep them with the penalty of paying out more in the event either is dealt.

What are important rules/dates to watch for involving the Celtics for this year?

Hundreds of players will be newly eligible to be dealt on December 15th including nearly a third of the Celtics roster. This will be the time of year when trade rumors heat up since a lot of new doors open up in terms of the type of trades that can be pulled off. Before this date, any trade the C’s would want to make would have to involve a core piece or someone on a rookie deal. After Dec. 15 and Jan. 15, the team has much more movable salary, especially among the depth in the frontcourt. That will open the door for some bigger trade possibilities if the team wants to make a splash during the middle of the year.

Do the Celtics have enough movable salary to trade for a star during this season?

Acquiring one making big money (over $25 million per year) is going to be tough unless Marcus Smart or Gordon Hayward is part of the package for salary matching purposes. The biggest name that is expected to be available this year is Bradley Beal ($27 million). The Celtics would have to send just over $22 million to make the money work in such a transaction which is only realistic if Smart or Hayward is used. Otherwise, a combination of smaller salaries would have to be used with Jaylen Brown that would force Boston to move five or six players to make the money work. That’s an unlikely possibility midseason since it would decimate Boston’s roster and the Wizards have to have enough open roster spots to take in the new talent.

For that reason, the more likely scenario for trades this year with Boston would be for mid-tier salaries (below $19.6 million). The C’s have enough expiring contracts (Brown, Theis, Kanter) to get into that range fairly easily ahead of the trade deadline. That combined with first-round picks and cheap rookie contracts should make a trade doable if the C’s find someone they like in that range. Any splashier deal will have to wait until the offseason, unless the team is willing to include Hayward or Smart.