The NBA salary cap can be confusing and frustrating for fans, but imagine how Indiana Pacers star Victor Oladipo feels when he learns how the intricacies of the collective bargaining agreement could cost him millions this offseason.
Danny Leroux of The Athletic is reporting that the timing of Oladipo's trade to the Pacers could cost Oladipo up to $37 million. He writes:
As happens fairly frequently in late June trades, the deal was reported when the sides agreed on June 30 but it was not actually completed until July 6, after the July Moratorium.
This is common and didn't turn many heads at the time. But now that Victor Oladipo is angling for a major contract, the timing of the trade will affect his ability to qualify for a Designated Veteran extension.
The NBA league year turns over on July 1 so the transaction happening July 6 instead of June 30 means that Oladipo changed teams via trade during the fifth year he was under a player contract rather than the fourth. As such, he is ineligible to sign a Designated Veteran extension or contract even if he fulfills every single other element, a fact confirmed by a league official.
The Designated Veteran extension was put in place to reward players like Victor Oladipo who win certain awards or make All-NBA teams. Unfortunately for Oladipo, he could miss out on this reward simply based on a technicality, though Leroux notes he could theoretically file a grievance with the league to gain eligibility.
Still, this is terrible luck for the emerging superstar, but as many love to say about the NBA, it's a business.
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