Atlanta Hawks: Childress sign-and-trade in works (UPDATE: Hawks, Suns agree to trade)

The Hawks have agreed to a sign-and-trade that would send forward Josh Childress to Phoenix for a second-round pick and a trade exception, people with knowledge of the situation confirmed.

Paul Coro of the Arizona Republic reported Sunday night that the deal was “on the verge” of completion. Childress would sign with Phoenix for six years and at least $30 million, according to the report.

If Childress signs a deal for those terms, Atlanta’s trade exception would be worth half the amount of his first-year salary since he would become a base-year compensation player. The exception works as a sort of credit that would allow the Hawks to make a trade while over the salary cap without meeting the usual salary-matching requirement.

Atlanta drafted Childress with the No. 6 overall pick of the 2004 draft. He played four seasons with the Hawks before opting to sign a free-agent contract with Greek team Olympiakos in 2008. He has until Thursday to opt out of the final season of that three-year, $20 million deal.

MC

740 comments Add your comment

RAD

July 12th, 2010
12:11 am

So basically we get nothing for Childress?

3Klub

July 12th, 2010
12:12 am

That would be some crap. I really hope that’s not true!!!

HoosierHawk

July 12th, 2010
12:12 am

At least he would be off the books. I feel like ASG has been weary of making any moves without knowing whether or not he is going to take the QO. Still sad to see a lottery pick leaving for little more than cap relief and a 2nd rounder. Ask Michael Beasley how that feels. Wouldn’t have minded having him, but I’d rather have a lockdown defender for the 2 and 3.

RAD

July 12th, 2010
12:14 am

MC, What happened to the deal with Cleveland?

Fundamentals

July 12th, 2010
12:14 am

No, we get a 2nd round pick that we can use on a guy who will also play overseas and never see our roster, promising as they might look. They’ll spin it with the “cap space” problem.

What’s our next move – Help for Al? Where’s the update now that we solved the guard situation without improvement.

John

July 12th, 2010
12:15 am

ANYTHING for Childress is good…considering he is really not of much value playing in Greece for 2 years…and the cap space we save helps tremendously!!!

John

July 12th, 2010
12:16 am

@RAD….thank you for not being one of those many idiots that puts “first”!!!!!

Joe Johnson

July 12th, 2010
12:17 am

The trade exception is HUGE for the Hawks, people. Think about it.

Mac

July 12th, 2010
12:17 am

pretty much what it sounds like :( ………..was hoping to use him to get some pieces back right now, not the future

John

July 12th, 2010
12:17 am

And I think Cleveland is still interested in Marvin Williams…if we clear that space…that would be AWESOME. Although I am one of few that does believe he may thrive in a new system in Atlanta…but if his contract comes off the books and we get decent value for him…I’m all for it.

J

July 12th, 2010
12:17 am

Now time to get Kwame Brown

Jeff

July 12th, 2010
12:17 am

oh my goodness….the Hawks gonna lose their whole fanbase….flippin Nets are making more productive moves than us…

I mean dang….Golden State just got David Lee..the dont need Biedrins anymore…

why dont u trade Bibby and Marvin for him

RAD

July 12th, 2010
12:18 am

I agree with you Fundamentals ….

John

July 12th, 2010
12:18 am

@Mac…nothing to really get for him. Noone would give up a proven player for a guy that’s played in Greece for 2 years.

Jeff

July 12th, 2010
12:18 am

im seriously losing interest in the Hawks rather quickly….you see no one with hawks stuff on anymore….its all Braves now…cause their actually doing something

HawkKingBibby

July 12th, 2010
12:18 am

Several reports say its done. I hope they are WRONG

J

July 12th, 2010
12:20 am

How much money to spend now?

HawkKingBibby

July 12th, 2010
12:20 am

The TE can only be half of Chills starting salary because he is byc. So maybe we can deal a 2nd rounder to Clev for Shaq but in essence WE LOSE CHILLS FOR NOTHING.

3Klub

July 12th, 2010
12:20 am

MC What happened to the Washington Trade? He’s worth atleast a player. There’s not many FA’s left. You needed to get someone off of somebody’s roster for Chills. He’s a valuable player.

ignition

July 12th, 2010
12:22 am

Still don’t know what that trade exception means… Please explain..

Jerry West

July 12th, 2010
12:22 am

Jeff,

GS probably wouldn’t want Bibby and Marvin for Biedrins. Now the trade exception and Mo…. hmmm…

RAD

July 12th, 2010
12:22 am

It seems like the Hawks are always clearing cap space which is a good thing as long as you take advantage of the cap space that was cleared.

smooth

July 12th, 2010
12:23 am

this isnt a bad move considering we couldn’t afford him, yes i thought we should’ve at least gotten a first rounder from them but they must know they are about to suck and aren’t budging. This must be a sign for a shaq and mo williams acquisition

3Klub

July 12th, 2010
12:24 am

Money can’t play for you.

Najeh Davenpoop

July 12th, 2010
12:24 am

From the previous blog:

“I’m not even sure I understand the whole concept of
how trade exceptions are generated to begin with?”

A trade exception is just a chunk of cap space. Over-the-cap teams are supposed to make dollar for dollar trades, but under-the-cap teams don’t have this restriction. When a free agent from an over-the-cap team signs with an under-the-cap team, the over-the-cap team can elect to receive cap space equaling that player’s contract instead of players whose salaries match.

In this case, Amare Stoudemire went from Phoenix (an over-the-cap team) to New York (an under-the-cap team), signing a contract worth $20 million annually. New York is under the cap and has no restriction and can sign Amare outright, but if Phoenix wants to sign-and-trade him, they have to take back $20 million in annual salary because they are over the cap. Instead of taking back salary, though, Phoenix sign-and-traded him for $20 million in cap space which allows them to get around the regular cap rules; this is why it’s called a trade “exception”.

Phoenix is now using this chunk of cap space to send Leandro Barbosa (who makes $7 million annually) for Hedo Turkoglu (who makes $11 million annually). Normally they can’t do this, but they ate into $4 million of that trade exception to make this deal work; since Toronto is also over the cap, that $4 million of trade exception goes to them, for them to use in a future trade. Next, they are signing Childress for $6 million annually, which eats into a corresponding $6 million of that trade exception; since Atlanta is over the cap, that $6 million comes to Atlanta for the Hawks to use in a future trade. This means Phoenix now have a remaining $10 million of cap space with which they can get around the normal salary cap rules.

I may be off on the numbers here and there, but that’s basically how a trade exception works.

Najeh Davenpoop

July 12th, 2010
12:24 am

Also from the previous blog:

The restriction on trade exceptions is that they expire a year after they are created; so a year after the day Amare signed his contract, the trade exception will expire. (At least that’s how I understand it; it may be a year after the trade exception is acquired for each team, which would give the Hawks and Raptors more time to use their exceptions than Phoenix.) So anything the Hawks want to do with that exception would have to be done before next year’s free agency period. Usually teams use their exceptions before that year’s trade deadline.

Jerry West

July 12th, 2010
12:25 am

damn, didn’t realize Chills was BYC

josh childress

July 12th, 2010
12:26 am

bye sukasssssssssssssssssssssssss

josh childress

July 12th, 2010
12:27 am

im a sun now

Najeh Davenpoop

July 12th, 2010
12:27 am

“The TE can only be half of Chills starting salary because he is byc. ”

I don’t think so. I think the Hawks get the full value of Childress’ annual salary, which would be $6 million. If someone knows for a fact that I’m wrong, feel free to correct me, but BYC is only supposed to apply to players who have already signed a contract within the past year, not players who are getting sign-and-traded.

doc

July 12th, 2010
12:28 am

Let us see haven’t we not usd trade exceptions before alongvwith MLE’s?

Well it will be interesting to see how it falls out. Wouldyear have almost preferred to se marvin go intead but it couldn’t happen. come on asg shaq next? If not then who? Make my day.

Najeh Davenpoop

July 12th, 2010
12:28 am

Never mind, forget my last post, I just read the article. That means it’s worth $3 million, not $6 million.

i_am_soulstar

July 12th, 2010
12:28 am

The trade exception is extremely valuable, especially for a team over the cap. If the exception is 6 million, that means the Hawks can trade a Hawks player making 7 million and the trade exception for another player making 13 million.

OR the Hawks can outright work a sign-and-trade for a player and send the trading team the trade exception for a player who has that value, or throw in pieces to make it work.

It’s very valuable for a team in the current position of the Hawks.

And Childress’ 4.8 QO comes off the books finally! Bittersweet I suppose.

ignition

July 12th, 2010
12:31 am

I’m ignorant whats BYC?

Jerry West

July 12th, 2010
12:31 am

Najeh, unless I’m reading this wrong, Childress would be BYC: http://members.cox.net/lmcoon/salarycap.htm#Q76

Also, not sure Phx would have to use their TE to get Hedo. The salaries are close enough with him and Barbosa that they would likely throw in Earl Clark (where would he get minutes with Hill, Dudley, and the additions of Hedo and Hakim Warrick).

josh childress

July 12th, 2010
12:31 am

dont worry atl will be getting shaq this morning sometime and mo williams

HawkKingBibby

July 12th, 2010
12:33 am

Yeah he is still BYC believe it or not. Now we can offer Shaq more money then the mle ( roughly up to 3 mil more ) and get him from Clev in a s & t with the 2nd round pick Pho gave us. It still sucks to lose Chills like this though, dam after ALL THAT DRAMA the last few years and all we get is a 2nd rounder. The Bucks offer of Kurt Thomas and a 2nd rounder was better last year.

MsDee

July 12th, 2010
12:34 am

Patience, everyone patience..Chills did nothing for us being in greece and now that he wants back in the NBA, he wants nothing to do with us. We may not be getting anything back from Phoenix, but with the cap relief and a draft pick, we could trade those for whomever Sund has his eye on. Sund may have talked about possible trades/players he could get as FA but needed extra cash for them. He shopped Chills around to see who would give Sund what he needed and Phoenix took the bait. All we need to do now is see what surprise is waiting for us Hawks fans under the ‘x-mas in July’ tree!!

i_am_soulstar

July 12th, 2010
12:34 am

BYC- Base Year Compensation.

The short version is, if a player is BYC, the team trading the player is only credited for half of the player’s salary.

Najeh Davenpoop

July 12th, 2010
12:35 am

“I’m ignorant whats BYC?”

Long story short, if you re-sign or sign-and-trade a guy, and his new contract is worth more than 20% per year than his old contract, you can only trade him for half the actual value of his contract for the first 6 months of his new deal.

Childress got paid $3.6 million in 2007-08 and is getting paid $6 million annually under his new contract. Since this is more than a 20% raise, he can only be traded for $3 million in salary for the first six months of his new deal.

Disregard my 12:27 AM post. Childress IS a BYC player.

Realsquawk

July 12th, 2010
12:35 am

As long as they use the trade exception on something valuable I am happy even though I would have liked to see Childress work things out with us.

Clyde

July 12th, 2010
12:36 am

A lottery pick for a second round pick and a trade exemption. SMGDH. Being a Hawks fan ain’t easy.

Najeh Davenpoop

July 12th, 2010
12:36 am

“Let us see haven’t we not usd trade exceptions before alongvwith MLE’s?

Well it will be interesting to see how it falls out. Wouldyear have almost preferred to se marvin go intead but it couldn’t happen. come on asg shaq next? If not then who? Make my day.”

Are you feeling OK? That’s like 8 capital letters…

OK

July 12th, 2010
12:36 am

So because of the BYC the TE is only worth 3mill?

OK

July 12th, 2010
12:37 am

Not happy anymore.

i_am_soulstar

July 12th, 2010
12:38 am

Long version of BYC:

Assuming a team is over the salary cap, a team can take in more salary than they send out only if it comes within 125% + $100k of the incoming figure. In other words if a team is sending out a player making $10 million, they can take in as much as $12.6 million but no more. (Note: This doesn’t apply for trade exceptions.)

Any raise over 20% makes a player BYC, meaning the team sending out the player is only credited for half of the player’s salary (or their prior year’s compensation, whichever is greater). That means if a player signed a contract starting at $10 million, the league would consider the Hawks’ outgoing number as $5 million. Factoring in the 125% + $100k cushion, the most they would be able to take in for the player would be $6.35 million.

Najeh Davenpoop

July 12th, 2010
12:39 am

“Now we can offer Shaq more money then the mle ( roughly up to 3 mil more ) ”

Someone correct me if I’m wrong, but I’m pretty sure the MLE and the trade exception can’t be combined. The MLE allows you to sign one league-average salary when you’re above the cap. The trade exception only allows you to trade for more salary than you ship out when you’re over the cap. I don’t think MLEs can be used in trades the way trade exceptions must be used.

Mikeal

July 12th, 2010
12:41 am

ALRIGHT a $2 TPE. Now that is what I’m talking about. I think you can buy a 20oz Coke with that.

i_am_soulstar

July 12th, 2010
12:42 am

Najeh,

I’ve heard the same. Apparently, you can’t combine the trade exception w/ anything (MLE, LLE, etc.)

northcyde

July 12th, 2010
12:43 am

I predict that Shaq will be brought in

2yrs . . . 14 million ( with part of that Trade Exception being added with the MLE to do it )