How are draft picks handled in trades?

Draft picks (both first and second round) count $0 for salary matching purposes. This is true both before and after the draft. This can make it very difficult to construct a trade that is equitable in both trade value and basketball talent. For example, Vancouver selected Steve Francis with the #2 pick in the 1999 draft, and traded his draft rights to Houston. When the trade was finally engineered, it included three teams (Orlando was also involved), 11 players (including Francis) and two future draft picks. Once the draft pick signs a contract, his actual salary becomes his trade value. Note that even though a draft pick's trade value (for salary matching purposes) is $0, the pick is included in the team's team salary at 100% of his scale amount once he is selected in the draft (see questions 38 and 41 ). If an unsigned first round draft pick is traded, then 100% of his scale amount is included in the acquiring team's team salary as soon as the trade is completed. Teams can only ...  more

Draft picks (both first and second round) count $0 for salary matching purposes. This is true both before and after the draft, until the player signs a contract. This can make it very difficult to construct a trade that is equitable in both trade value and basketball talent. For example, Vancouver selected Steve Francis with the #2 pick in the 1999 draft, and traded his draft rights to Houston. When the trade was finally engineered, it included three teams (Orlando was also involved), 11 players (including Francis) and two future draft picks. Once the draft pick signs a contract, his actual salary becomes his trade value. Note that even though a draft pick's trade value (for salary matching purposes) is $0, a first round pick is included in the team's team salary at 100% of his scale amount once he is selected in the draft, unless he signs with a non-NBA team (see question number 41). If an unsigned first round draft pick is traded, then 100% of his scale amount is included in the ...  more

Draft picks (both first and second round) count $0 for salary matching purposes. This is true both before and after the draft, until the player signs a contract. This can make it very difficult to construct a trade that is equitable in both trade value and basketball talent. For example, Vancouver selected Steve Francis with the #2 pick in the 1999 draft, and traded his draft rights to Houston. When the trade was finally engineered, it included three teams (Orlando was also involved), 11 players (including Francis) and two future draft picks. Once the draft pick signs a contract, his actual salary becomes his trade value. Note that even though a draft pick's trade value (for salary matching purposes) is $0, a first round pick is included in his team's team salary at 100% of his scale amount once he is selected in the draft, unless he signs with a non-NBA team (see question number 41). If an unsigned first round draft pick is traded, then 100% of his scale amount is included in the ...  more