Phoenix Suns: Circumventing the ‘reacquisition rule’
By Luke Swiatek
Loophole No. 2
The second little trick is much more clever. There are so many restrictions surrounding trades, but there’s a different way to transfer contracts: waivers.
If a player is claimed off waivers, the claiming team completely assumes the player’s contract, and the initial team is off the hook. Obviously, no one in their right mind would want to assume Melo’s gargantuan contract, but that’s the point.
Larry Coon’s invaluable CBA FAQ details many restrictions on waived players, but none pertain to a player waived twice. If a player is claimed off waivers, it’s almost like he was always with the second team.
Here’s how it could be used: the Thunder could waive Melo, and the Hawks could (seemingly quite idiotically) claim him and agree to pay him his $27.9 million, assuming they had the cap space for it.
Then, the Hawks would place him on waivers again, perhaps via a buyout arrangement. Presumably no team would claim him. Melo would pass through waivers be free to sign again with the Thunder.
In a completely separate deal, the Thunder would send the Hawks draft considerations for a very minor asset, perhaps the draft rights to an obscure European prospect. When the dust settles, Melo’s back on the Thunder, the Hawks got some assets in return for using their money and salary cap space (as in a traditional salary dump), and the Thunder avoid major taxes.