The Golden State Warriors are looking to return to the top of the NBA after putting together the worst record in the league. They will have a $17.185 million trade exception to use, but they may not take advantage of it for financial reasons.
The Warriors received the trade exception when they dealt Andre Iguodala to the Memphis Grizzlies last year without taking any salary in return. They have until a week after free agency begins to use it, but can only use it via a trade, not by signing a player.
But will they use it? The Athletic’s Anthony Slater wrote last week that he has heard the Warriors will only use the trade exception for a “special opportunity.”
Why? There is financial uncertainty surrounding the league.
The Warriors do not know when next season will start nor whether fans will be able to attend games. They and other teams may be facing the possibility of losing money. Do you add to your payroll in a season when you think you’re going to lose money?
The Warriors are already in the luxury tax, and their projected tax amount is nearly $50 million, according to Spotrac. Not only would they have to pay the salary for a player whom they acquire using the trade exception, but they would have to pay much more as a tax penalty. For example, a $10 million player could cost them about $40 million because of the luxury tax.
Rudy Gay, Kelly Oubre, and Reggie Bullock are some players who have been mentioned as possible trade exception targets.
