Aside from the No. 2 overall pick in the upcoming 2020 NBA Draft, the Golden State Warriors have another valuable asset available at their disposal. The team previously received a $17.2 million traded player exception (TPE) as part of last summer’s trade involving Andre Iguodala with the Memphis Grizzlies.
According to The Athletic‘s John Hollinger, the Dubs have until Nov. 23 to use the exception before it expires.
Golden State's Andre Iguodala TPE will expire on *Nov. 23*
Carry on.
— John Hollinger (@johnhollinger) November 15, 2020
The Warriors received the asset because they didn’t take back any salary in return after trading Iguodala to the Grizzlies to which they received a TPE worth the value of the veteran swingman’s 2019-2020 contract, plus $100,000 which sums to a total of $17.2 million.
In this instance as per NBC Sports, the TPE was created and must be used in a non-simultaneous trade situation. It entails that only one player can be traded similar to Iguodala and the trading team has one year to use the resulting TPE which has a value equivalent to that player’s salary plus $100,000.
With the asset on hand, the Warriors can acquire any player on the market using the $17.2 million TPE whose salary for the 2020-2021 season is equal or lesser to that amount. The contract of the player that Golden State has acquired using the TPE would then be added to the team’s salary cap for the 2020-2021 season.
The Warriors are already a tax-paying team with the lucrative contracts of Stephen Curry, Klay Thompson, Andrew Wiggins, and Draymond Green heading into the upcoming season. Using the $17.2 million TPE to acquire a player will increase their tax payments but will be pivotal if they want to get back to title contention as soon as possible.