What is an NBA trade exception, and how did the Hawks get theirs through the John Collins deal?

Collins was one of the Hawks team core members, led by the young superstar Trae Young. The 25-year-old has three years left on his current contract, with another $78 million due. The agreement makes the Jazz receive a versatile forward who also arrives with a contract that ensures his long-term tenure. Interestingly, Collins is a native of Utah, so he will practically be at home in Salt Lake City.

How did the Hawks get their trade exception?

Atlanta’s John Collins, who was drafted 19th overall in 2017, has been a valuable player for the team. Under Quinn Snyder’s leadership last season, Collins scored an average of 13.1 points and 6.5 rebounds in all 71 games he started. Despite this, the Hawks traded him, which may seem like a weakening move.

However, the Hawks gained a substantial “trade exception” of $25.3 million, the biggest in the league. This trade exception is a valuable solution for a team that wants to find a deal they like or exceed payroll tax thresholds. It’s like an insurance policy or an extended warranty to have on hand, even if it’s never used. With this trade exception, Atlanta can acquire another fantastic player in the upcoming transfer window, with an annual salary of more than $20 million.

An essential factor to consider is the recently implemented collective agreement regulations, which prevent teams from exceeding the “salary cap” and offering excessively high salaries. It is crucial to follow these guidelines. Additionally, trade exceptions resulting from non-simultaneous trades cannot be combined with other exceptions or a player’s salary. They cannot be utilized to sign a free agent, except in cases of sign-and-trade, and cannot be directly traded to other teams. To determine if a team is over the cap or luxury tax line for traded player exception purposes, the team’s total salary after the trade is the determining factor. The Hawks have adhered to these regulations and are well below the “second cap” of $182.5 million. Nevertheless, General Manager Landry Fields has confirmed the team’s interest in acquiring new talent.

Meanwhile, the “Jazzers” have acquired a valuable player for a minimal cost, thanks to the professional management of Danny Ainge. Collins is expected to play a significant role alongside young talents Lauri Markkanen and Walker Kessler in interior positions.