some Tuesday morning draft/trade mind wonderings....

Larry Coon's NBA Salary Cap FAQ wrote:81. What are the rules regarding trades?

Teams under the salary cap may make trades as they please, as long as they don't finish more than $100,000 above the salary cap following any trade.

But if a team finishes more than $100,000 over the cap, whether they started out above or below the cap, then an exception is required. An exception is the mechanism that allows a team to make trades or sign players and finish over the salary cap. Since most teams are usually over the salary cap, trades are usually completed using exceptions.

Some exceptions are available only for signing free agents, and those exceptions are covered in question number 25. The exceptions available for making trades are as follows:
•The Traded Player exception is the principal means through which most trades are made. It is described in question numbers 82, 83 and 84.
•The Minimum Salary exception can be used for either trades or signing free agents. It allows teams to acquire minimum-salary players. See question number 85 for more information.
•The Disabled Player exception also can be used for either trades or signing free agents. It allows teams to replace certain injured players (see question number 25 for more information).

Note that sometimes there are multiple ways to configure the same trade. For example, a minimum-salary player might be acquired using either the Traded Player exception or the Minimum Salary exception, or a two-for-two trade might also work as two separate one-for-one trades. Teams are allowed to choose the configuration that works best for them. See question number 87 for an example of this.

When teams wish to complete a trade they must set up a "trade call" with the league office. If the teams wish to complete the trade over a weekend they must notify the league office on Friday, otherwise the trade call cannot be held until the following Monday. The trade is not complete until all terms have been agreed to during the trade call.

During the trade call the teams and the league office review:
•The exact terms of the trade (players involved, cash, draft picks, etc.).
•Contract details for each player, including remaining seasons, salary and any trade bonuses.
•Health information for all players, including any factors that could affect a player's ability to play basketball at any point in his career.
•Insurance information, including any exclusions (see question number 72).
•Each team's responsibilities and understandings.

Following the trade call each team sends the league office an email with the terms of the transaction, and the league office sends the involved teams instructions for conditions that must be satisfied before the trade becomes official (such as physical exams). When all conditions have been satisfied, the league office sends another email notifying the teams that the trade is complete.

Players cannot play, practice or work out with their new teams until the league office notifies the teams that the trade is complete.

If a team misrepresents or fails to disclose any pertinent information during the trade call, the Commissioner can impose penalties including a fine up to $1 million, suspension of the team executives who were involved, rescinding the trade, and/or the forfeit of draft picks.

Traded players must report to their new teams within 48 hours of receiving notice of an in-season trade, or within one week if the trade occurred during the offseason. If a player fails to report to his new team following a trade it can be deemed conduct prejudicial to the NBA, and subject the player to a fine and/or suspension.