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Yahoo! Sports: Orlando Magic Will Sign-and-Trade Hedo Turkoglu to Toronto Raptors for a Traded Player Exception

Yahoo! Sports is reporting that the Orlando Magic have agreed to work out a sign-and-trade deal with the Toronto Raptors which will send Hedo Turkoglu to Toronto in exchange for a trade exception. This deal, in turn, allows the Raptors to complete a separate, three-team trade with Dallas and Memphis, which chiefly involves sending Shawn Marion to the Mavericks. Orlando will not receive any players in the deal.

It's hard not to like this move, as far as Orlando is concerned. There's no guarantee it'll use the trade exception--which would allow the Magic to take on a sizable contract in a lopsided deal--but it's just there, waiting to be used in case GM Otis Smith needs it. What, exactly, can the trade exception accomplish? I'm hardly an expert on stuff like this, so I'll just go ahead and excerpt Larry Coon's indispensable salary cap FAQ:

Here is an example of a non-simultaneous trade: a team trades away a $2 million player for a $1 million player. Sometime in the next year, they trade a draft pick (with zero trade value itself) for a $1.1 million player to complete the earlier trade. They ended up acquiring $2.1 million in salary for their $2 million player -- they just didn't do it all at once, or even necessarily with the same trading partner.

In the above example, after the initial trade of the $2 million player for the $1 million player, it was like the team had a "credit" for one year, with which they could acquire up to $1.1 million in salaries without having to send out salaries to match. This credit is often referred to as a Traded Player exception or a trade exception, but be aware that the CBA uses the name "Traded Player exception" to refer to the entire exception which allows teams to make trades above the salary cap (including simultaneous trades, non-simultaneous trades, and base year compensation).

It's worth noting, as Coon later does, that trade exceptions can't be combined with other players in a separate trade. They also can't be combined with any of the salary exceptions. Still, it's quite the useful tool. For instance, Orlando used the trade exception it acquired from the New Jersey Nets in last year's sign-and-trade involving Keyon Dooling to acquire Ryan Anderson from the Nets just a few weeks ago.

The move doesn't necessarily mean any other Magic move is imminent. The trade exception won't expire for another calendar year, so Smith can afford to bide his time. And, as we've learned during his tenure in Orlando, Otis is nothing if not patient.

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Better than nothing!

I’ll take it.

"It's difficult to win when you're outscored in every quarter." -Bill Walton

by betterthanburke on Jul 9, 2009 12:37 AM EDT reply actions  

Zzzzzz

Nah' mean, nah'm sayin

by Dr Things on Jul 9, 2009 12:46 AM EDT up reply actions  

LOL

I'm the other guy at Third Quarter Collapse, with a Twitter account.

"Never hate your enemies. It affects your judgement." - Michael Corleone

by erivera7 on Jul 9, 2009 2:49 AM EDT up reply actions  

lololololol

+1 for sure on this pic. Good show sir…

"Blue and white...ignite...* BOOOOOM * !!!!! - Dwight Howard (Orlando Magic playoff jumbotron message)

by magic12ball on Jul 9, 2009 1:02 AM EDT up reply actions  

it was part of an expression

not a personalization…lol @ you

"Blue and white...ignite...* BOOOOOM * !!!!! - Dwight Howard (Orlando Magic playoff jumbotron message)

by magic12ball on Jul 9, 2009 1:26 AM EDT up reply actions  

10 million dollars!?!

“Who you think you got, a Chelsea Clinton?!?”

by bandrewg08 on Jul 9, 2009 1:30 AM EDT reply actions  

2 easy...

Chris Tucker – Rush Hour

"Blue and white...ignite...* BOOOOOM * !!!!! - Dwight Howard (Orlando Magic playoff jumbotron message)

by magic12ball on Jul 9, 2009 2:26 AM EDT up reply actions  

LOL .. ya'll are trippin'.

I'm the other guy at Third Quarter Collapse, with a Twitter account.

"Never hate your enemies. It affects your judgement." - Michael Corleone

by erivera7 on Jul 9, 2009 2:49 AM EDT up reply actions  

Here are some of my thoughts: Reportedly Magic received a 10mil TPE and Cash.

I think the TPE is great, what I was expecting really too, except for maybe Bass and filler/cash. I kept wondering why the Magic wouldn’t want to atleast get that TPE instead of nothing, GM’s words seemed so brash tho and at the same time it made no sense. They last till next mid seasons deadline and next summer too. Its like gold for some teams who just want to dump a player for salary cap. It can be used as a great trade enhancer to help finish and make more creative separate trades linked as “one deal”. Now Magic may never use it, but I suspect they’ll use alittle bit of it this summer atleast. Or GM Smith can go crazy and just shock and awe with a S/T on a team wanting to dump a Starte PF or somehting, very, very unlikely tho. Im trying to think of potential teams and players targets. Like teams above the luxury who would love to trade one of their players for cap, altho many times it’ll be a bad player too, tho I suspect some teams may be desperate for the cap and surrender decent player(s), and that the TPE will gain value as NBA collectively nears the mid deadline where some unfinished dealing is left, or teams are underperforming, or in the next summer when all teams really get a maximum cap lowering level. It’ll be unlikely Magic use that TPE all up I think, but for small salary players, sure, Magic can use small portions of the TPE to acquire smaller contracts, but good quality players too. This is going back to if GM Smith might take advantage yet again of a lopsided deal where he can get quality and the other team gets Cap, and at how high a level, which as I know GM Smith, he won’t let us know unless its leaked or just about a completed deal by the NBA. Itll be very interesting to see what GM Smith does with it, I suspect a little of it to be used if the MLE does not satisfy GM Smith’s players needs and for it to gain more value as the next season progresses. Which is a big plus for nothing becuase the Magic were not going to resign Turk, and leaves a potential Mega plus (tho unlikely) scenario where GM Smith can acquire another player of 6mil or higher contract, which tend to be high quality players.

by derekk on Jul 9, 2009 1:37 AM EDT reply actions  

Change that to reportedly an 8mil TPE. Still quite sizeable :)

And another way to think of it in a simpler way is as a contract of an invisible player for 8mil. Doesnt count against Orl’s cap except for the players Magic get with it, which they can only do with trades, or FA sign and trades.
One example was Denver was so over the tax, it wanted to dump Marcus Camby last yr. So Clippers took him from Den giving away just a TPE mainly. Its believed Den still has this big TPE also.

by derekk on Jul 9, 2009 1:47 AM EDT up reply actions  

sweet.

Nah' mean, nah'm sayin

by Dr Things on Jul 9, 2009 1:50 AM EDT up reply actions  

It's how the Magic were able to land Ryan Anderson, by using the TPE.

Everyone is screaming bloody murder with Otis and his lack of many moves so far in the off-season, but I told everyone he’s making things happen. This isn’t really a sign-and-trade, but it’s a smart move because it gives the team flexibility to add a guy “for free” either now or at the trade deadline.

Good move.

I'm the other guy at Third Quarter Collapse, with a Twitter account.

"Never hate your enemies. It affects your judgement." - Michael Corleone

by erivera7 on Jul 9, 2009 2:52 AM EDT up reply actions  

Otis showing his mettle

Very astute move, I’m impressed. Otis is showing that he is not going to let any of his assets just walk for nothing, as he turned Hedo’s Larry Bird exception into a sizable TPE. Next is to wait and see what happens with Gortat as I’m now even more inclined to believe we either match or do another S&T, and not necessarily with Dallas.

'Coach, Dwight is a nice guy. Dwight don't hit anybody. But Superman will knock the crap out of you.' - D12

by Eyriq the Red on Jul 9, 2009 2:10 AM EDT reply actions  

Astute is a nice word to describe the move.

Very savvy.

I'm the other guy at Third Quarter Collapse, with a Twitter account.

"Never hate your enemies. It affects your judgement." - Michael Corleone

by erivera7 on Jul 9, 2009 2:52 AM EDT up reply actions  

I'm impressed too!

The greatest virtues I have seen in Otis, is his crafty, almost spooky patience AND totally discrete way of handling complex negotiations with teams and players alike.

And I have this feeling… he’s cooking something BETTER!

You HAVE to admire the guy; he builds TRUST!

Way to go, Otis!

by manny55 on Jul 9, 2009 3:28 AM EDT reply actions  

Well

If we use that easily gets us two good role players without even touching the mle. Good move we were going to loose him regardless now we at least get something back for it. I went from being a heat fan to a magic a few years back and I can honestly say I am happy I made the switch. I feel like our FO really knows what they are doing. Go Magic!

by qbinfin on Jul 9, 2009 10:03 AM EDT reply actions  

Hollinger's Take

Which is in line with my take after some reflection – there’s already chatter about Toronto nabbing Barnes!

In fact, by getting only the trade exception, Orlando let the Raptors off the hook quite cheaply. The Magic got cash in the deal, and that always helps, but I’m amazed they didn’t get a draft pick or some other form of compensation for their trouble. They’ve enabled a conference rival to escape from a mess of their own making at shockingly little cost. Orlando is well over the luxury-tax line already and might never use the exception. And besides, they already had a midlevel exception available to use. The Magic should have demanded more to let Toronto off the mat.

by Half-man Half-gortat on Jul 9, 2009 11:59 AM EDT reply actions  

I don't agree. There's no one on the Raptors, aside from Bosh, that is of any particular use to the Magic.

I'm the other guy at Third Quarter Collapse, with a Twitter account.

"Never hate your enemies. It affects your judgement." - Michael Corleone

by erivera7 on Jul 9, 2009 12:24 PM EDT up reply actions  

Second round pick next season

Protected, maybe, but we should have at least made them toss in something, arguably.

by eltharion_doa on Jul 9, 2009 4:09 PM EDT up reply actions  

Eh, the Magic were offered guys but again, the team felt just as I did.

There was no one of realistic value.

I'm the other guy at Third Quarter Collapse, with a Twitter account.

"Never hate your enemies. It affects your judgement." - Michael Corleone

by erivera7 on Jul 10, 2009 12:09 AM EDT up reply actions  

Using the TPE

Hmmmm…. i was wondering if the Magic decide to S&T gortat to the mavs if we could use the TPE to pick up someone, not neccesarily from the mavs but maybe a three team deal. any ideas? im just throwing something out there. like an example would be to pick up Brandon Bass in the Trade and we might have to use a little of the TPE and then use the MLE on Barnes. sounds reasonable to me..

by MagicGator on Jul 9, 2009 12:39 PM EDT reply actions  

Yay!!

The Magic have a trade exception!! I’m doing backflips!! This doesn’t not take away from the fact we lost Turk. He was a guy that was a major part of the Magic’s identity and he created a lot of confidence for the team. Obviously being part of a the construction of this Magic team since day 1 didn’t mean much to him. He obviously wanted to get paid. I wonder though if the Magic did enough to try and sign him during the regular season. If there is any blame on the Magic’s part, it would be that. But for personal matters, etc. Turk is gone. In the end, the joke’s on Toronto really. They overpay for a guy who isn’t an all star and functioned extremely well in a system somewhat created for him. We’ll see if this success correlates elsewhere. One thing’s for sure, the downtown Orlando nightlife will truly miss one of their loyal patrons.

Spreading that Calgary Flames, Montreal Expos, and Orlando Magic love...get it on Twitter : KingJafi29.

by KingJafi on Jul 9, 2009 1:40 PM EDT reply actions  

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