Nba Expansion Rules

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The expansion of the National Basketball Association has happened several times in the league's history since it began play in 1946. The most recent examples of the expansion of the NBA are the Charlotte Hornets and Miami Heat in 1988, Minnesota Timberwolves and Orlando Magic in 1989, Toronto Raptors and Vancouver Grizzlies in 1995 (who relocated to Memphis in 2001), and New Orleans Pelicans. Furthermore, per NBA territorial rules, no team can relocate or expand to a city within 75 miles of another NBA team without the incumbent team’s permission. The history and presence of basketball in the market already can help predict the future. In an NBA expansion draft, new NBA teams are allowed to acquire players from the previously established teams in the league. Not all players on a given team are available during an expansion draft, since each team can protect a certain number of players from being selected. NBA history NBA Rules Unrestricted free agents are ineligible for the expansion draft. Each team can protect up to eight players. If a team has less than eight players on its roster to protect, it still must leave a minimum of one player unprotected.

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Primer: NBA Contract Extension Rules

As Peter Novak and I were preparing for our nerd smackdown debate on extension values for Gordon Hayward and Derrick Favors, Peter aptly threw in a primer on extension rules. I decided to share those here as a companion post for anyone who wants to join in the argument while making sure they have all their facts right.

Peter put together the following description of what the fourth-year forwards are eligible for if they agree to an extension by the October 31, 2013 deadline:

Until October 31, either player is eligible to sign a 4 year extension with a first year salary in the approximate amount of 25% of the 2014-15 Salary Cap and annual 7.5% raises. Depending on what the Salary Cap ends up at next summer (really it depends on Basketball Related Income), a maximum contract extension would be about 4 years and $62.3mm.

There are two new 2011 CBA provisions which potentially could modify that figure. The first is the “Derrick Rose Rule” which allows two-time All-Star/All-NBA players or an MVP to get an extension with a first year starting salary of up to 30% of the 2014-15 Salary Cap. However, neither player will meet those conditions to get the bonus jump in salary.

The other new rule is the “Designated Player” provision which allows the Jazz to offer 1, and only 1, player on its roster a 5 year extension. The Jazz will be hesitant to offer either Hayward or Favors the extra year and should save their Designated Player provision for a more identifiable franchise player in the future.

If the Jazz and Hayward/Favors are able to come to an agreement within those guidelines by October 31, then the player would finish out the fourth year of the contract on the scale figure from their rookie contract and then the new numbers would kick in for the 2014-15 season.

If not – and here’s where the negotiating leverage comes in – then the team can make either player a restricted free agent next summer by extending a qualifying offer at a pre-set amount. Once that offer has been made, the Jazz then have the right to match any contract terms that are agreed upon by the player and another team, giving them the upper leg in re-signing either guy.

Peter brought this up later in our debate when he said:

I should also disclaim that there is a possibility that the Jazz do not want to extend either player now in order for them to maintain maximum salary cap flexibility next offseason. Since the Jazz can control the restricted free agency process next year they have little incentive to overpay now.

Restricted free agency is extremely pro-team and can work against the player, for a couple of different reasons. First, because many teams’ approach to RFA is to tell their player to go out and set a market value by negotiating with other teams. This is smart, given that the team doesn’t want to bid against itself, but getting serious bidders as an RFA is hard. If you’re a Bird free agent (both Favors and Hayward are), then any team that has an ounce of interest knows your team has the ability to match any offer, so they may not even mess around with you.

That happened to a number of RFAs this summer who were thought to be among the prizes of the free agent class but wound up signing very late because their old team only wanted to talk when the number was set by the market and no new teams wanted to help them out, at least at a dollar amount that the players found attractive.

Of course, the players do have one other chip — a veto threat, if you will. If they are really turned off by the team’s offer or handling of the situation, they can ride out their contract with no extension, accept the one-year qualifying offer and then become an unrestricted free agent after the fifth season. Very few take this route because of the bird-in-the-hand logic; now your career is five years in before you get your first major payday, and if you get hurt or suffer a slump before then, you may never cash in on the millions that may have been available to you in extension negotiations or as a restricted free agent.

So that’s basically what’s behind door number 1, 2 and a distant 3 for Hayward, Favors and the Jazz. Now that you’re primed, go watch Peter and me fight. Pay-per-view subscription not required.

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NBA Expansion Team Draft Rules
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By InsideHoops.com and the NBA

How Does Nba Expansion Work

/ June 17, 2004

New Nba Teams Expansion

NBA expansion team and NBA expansion draft rules for the Charlotte Bobcats. The NBA expansion draft for the Bobcats is on June 22. The Bobcats' first NBA season will be 2004-05.

Nba Expansion Drafts

NBA Expansion Draft Player Selection
Each current NBA team can protect up to 8 players from its active, injured and suspended lists as of the last day of the season; provided that each current team must leave at least one player unprotected.
Unrestricted free agents and unsigned draft picks will not be eligible to be selected in the Expansion Draft. So, current NBA teams do not protect any unrestricted free agents or unsigned draft picks. The 8 players they protect will be players signed to contracts, or restricted free agents. Restricted free agents are eligible to be selected.
If a current NBA team's restricted free agent is selected by the NBA expansion team in the expansion draft, that player will become an unrestricted free agent, eligible to be signed by any team (including the expansion team) other than his prior team.
Charlotte, the NBA expansion team, has the option to select one (and only one) player from each of the 29 current teams. Charlotte must select one player from at least 14 teams.
Pre-Expansion Draft Trades
Current NBA teams will be permitted to enter into pre-Expansion Draft trades in which Charlotte, the NBA expansion team, agrees to select or not select certain unprotected players.
NBA Expansion rules for Salary Cap
Charlotte, the NBA expansion team, will be permitted to select players in the Expansion Draft without regard to the Salary Cap.
Charlotte, the NBA expansion team, will have a Salary Cap in its first season equal to 66% of the Salary Cap applicable to the rest of the league and a Salary Cap in its second season equal to 75% of the Salary Cap applicable to the rest of the league.
Charlotte, the NBA expansion team, can sign any restricted free agent it selects in the Expansion Draft using the same “Bird,” “Early Bird” or “Non-Bird” Exception that the player’s prior team would have had.
Compensation paid to a selected player in the expansion draft under a contract protected for lack of skill will be excluded from Charlotte’s Team Salary if the player’s contract is terminated (via the waiver procedure) prior to the start of the 2004-05 season.
A team with a Team Salary above the Salary Cap will receive a Trade Exception to replace a player (other than a restricted free agent) selected from its unprotected list.
Post-Expansion Draft Transactions
A current NBA team will not be permitted to reacquire a player that it loses in the Expansion Draft prior to the expiration of one year from the date of the Expansion Draft, unless the player is waived and not claimed by any other team.
NBA expansion rules for NBA Draft
Charlotte, the NBA expansion team, will have the fourth selection in the first and second rounds of the 2004 Draft. In subsequent years, the expansion team will be treated the same as other teams for purposes of determining where it selects in the Draft.

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