Trading in the NBA: The Ins and Outs of Player Trades
The NBA is not a static league. While teams tend to keep their best players year after year, rosters look different each season thanks to trades. Being able to move players around keeps the league competitive, and gives all teams a chance to get better.
Trading allows for internal movement and creates an ever-changing landscape. It provides franchises the ability to sculpt a strong roster and either stay competitive or plan the future. Such moves are the basis of the NBA, which is why they are regulated so heavily.
NBA Trade Rules and Mechanisms
Trading in the NBA might seem simple on the surface, but it’s a complex process with multiple layers that all need to be taken into account.
First, everyone must adhere to luxury and salary tax requirements. Any team over the luxury tax is not able to receive a salary amount in a trade greater than 125 percent of the outgoing money plus $100,000.
Franchises must also keep at least one first round pick in every other draft, which prevents them from simply giving away all of their picks, and they cannot trade any picks that are more than seven years away.
However, they do have the option to use the Traded Player Exception (TPE). Under that, teams can trade two players without matching salaries as long as both remain under the salary cap. That lasts for one year, and enables teams to trade away players eating up too much space.
There are also rules for newly signed players. Teams must wait 30 days before trading a new draft pick or two-way contract player, while they must wait three months before trading a recently signed free agent.
Injured players have no such restrictions. Though many wonder if you can trade injured players in the NBA, as long as both teams know about the injury it’s fair game. Similar rules go for coaches as well.
Though it doesn’t happen often, coaches can be traded in the NBA. However, they can only be moved for draft picks, not players. Knowing if you can trade a coach in the NBA is important for teams who might want a new head of their team.
Historical and Impactful NBA Trades
Trades are a big part of basketball, but some are much bigger and more impactful than others. For instance, Boston grabbing Bill Russell after the draft in 1956 led to the Celtics dynasty and altered NBA history in the same way Shaquille O’Neal to the Lakers led to one of the greatest teams to ever exist.
Many championships have come about due to large trades, including Kawhi Leonard going to the Raptors in 2018, Kevin Garnett being dealt to the Celtics to form The Big Three, and Anthony Davis going to the Lakers in 2019.
High-impact trades are a key part of what makes the NBA so exciting, and it’s impossible to know who’s going to be good each year. Many teams might seem out of it, only to explode back into playoff contention due to getting a key piece.
Just in the past season, the Thunder brought in Gordon Hayward, the Bucks signed Patrick Beverley, and Pascal Siakam went to the Pacers in a three team deal. Those moves bolstered those teams and set the groundwork for future success.
The NBA Trade Deadline
As with any pro sports league, the NBA utilizes a trade deadline in order to keep competition fair and prevent organizations from stacking their team or making deals going into the postseason. That means they have to pull the trigger much earlier, usually in early February.
The deadline marks the last point at which teams can make trades. Once it hits, every organization has to freeze. Free agents can be signed later on, but trades are done until after the season ends.
That’s a key point in time because many teams will wait until right up until the deadline to make moves. The end time puts a lot of pressure on organizations, which may cause them to strike deals they normally wouldn’t make.
Some teams looking to get rid of a player will pause up until the last second to see who’s interested, while others might use the deadline to force through a deal they want.
The trade deadline also creates a lot of suspense, and has led to some of the biggest deals in NBA history. Carmelo Anthony went to the Knicks at the deadline back in 2011, while the Nets dealt Kevin Durant to the Suns at the last second back in 2023.
Two other major deadline deals occurred when the Bucks unexpectedly moved Ray Allen to the Sonics in 2002, and when the 76ers brought in James Harden. Though such moves with big names are rare, they do happen when time is running out.
Strategic Considerations in Trading
Making a trade is not an easy process, as one wrong move can be the difference between fielding a winning team and a decade of disappointment. That’s why organizations are so careful when moving big names or large stars.
The first aspect of putting together the right squad is staying under the salary cap. Having to build a strong franchise without spending too much money is not an easy task, and it only gets more difficult with the more talent a team brings in.
One move franchises do have, however, is spending draft picks. Being able to trade picks instead of players is a great way for teams to sacrifice a little bit of their future in order to focus on the now.
Of course, such moves are always risky. There’s no telling what type of A-list talent a pick might turn into, and it’s impossible to know how a trade might end up. That’s why teams carefully evaluate player value to make sure everyone gets what they want.
Recent stats and previous performances are two great indicators of how an athlete might perform in the future. Teams also look at other factors like team chemistry and on-court presence. External factors like salary hits and contracts come into play too.
Young talent and picks tend to be worth a lot, as they will pay big dividends over time. Even so, many franchises are willing to leverage those athletes in order to win now. As a player can be traded twice in the NBA, some teams might even move someone they just signed.
While analyzing trades can be fun, simulating potential moves is exciting as well. That’s where trade machines and simulators come in. There are various models on the internet that allow fans to create potential trades and see how teams would look with new lineups.
There are several popular NBA trade machines, but the two biggest are Fanspo and the ESPN Trade Machine. ESPN strictly adheres to NBA trade rules, meaning it only allows trades that could happen in reality, while Fanspo breaks down the salary cap on each move.
Those structures enable fans to make, look at, and analyze potential trades with just a few clicks. It helps them monitor their favorite team, and shows how real-life trades affected their franchise too.
On top of that, when a big trade happens in the NBA many websites and analysts will give it a grade, ranging from F to A. That will then reflect on the move and discuss why it might be good or bad for a certain franchise.
For instance, the Knicks and Thunder both received A grades last season due to getting key pieces (OG Anunoby and Gordon Hayward respectively) and strengthening their teams towards the back half of the season. The Bulls received an F for doing nothing.
Simulators can predict the future or show a trade in terms of numbers, but being able to see the whole picture is the best way to properly analyze a deal.
Conclusion
There are quite a few rules surrounding trading in the NBA, and for good reason. Having restrictions on moving draft picks, keeping a strict deadline, and properly structuring deals around the salary cap are all critical elements that ensure nobody breaks the rules.
As long as such guidelines are in place, trading will continue to be one of the most important and critical aspects of the NBA. There are many franchise stars, but there’s no telling what moves organizations might make in the coming years.
A team that is good now might become a seller soon, while teams that look out of it might make a play for a big star. That unpredictability is one of the reasons the NBA is so fun and why, no matter what happens, everyone has a chance to become a contender.
