Why would teams or players want to do a sign-and-trade?
Teams benefit because it allows them to get something in return for players they would otherwise lose to free agency. Players benefit because they can earn more money and perhaps play for a team they wouldn’t otherwise be able to play for. This is because teams can use the Larry Bird exception (as long as the player qualifies) when re-signing players for a sign-and-trade deal. So they can probably offer more money than other teams, which are constrained by the salary cap. And even if the other team can offer the maximum salary to the player, they can only offer 10% raises, while the original team, using the Bird exception, can offer 12.5% raises. So the player makes more money. Also, the sign-and-trade can be made with a team that’s capped-out and wouldn’t otherwise be able to sign the player. This last point is very important — the sign-and-trade rule is a useful tool for teams that are capped-out and unable to offer players large contracts, but want to obtain specific high-priced fr
Teams benefit because it allows them to get something in return for players they would otherwise lose to free agency. Players benefit because they can get a richer contract, and/or play for a team that is over the salary cap and otherwise wouldn’t be able to afford them. Unlike the new team, the player’s original team can use the various Bird exceptions (as long as the player qualifies) to sign the player without regard to the cap. Also, if the player’s original team has full Bird rights, they can offer the player larger raises (10.5%, as opposed to 8%) and more seasons (six, as opposed to five — see question number 46 for more information). So sign-and-trade is a useful tool for teams that are capped-out and unable to offer players large contracts.
