ARTICLE XXIV:
PROHIBITION OF NO-TRADE CONTRACTS
INDEX
Section 1. General Limitation
Section 2. Exceptions to General
Limitation
Section
1. General Limitation.
No Player Contract may contain any prohibition or limitation
of an NBA Team’s right to assign such Contract
to another NBA Team.
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Section 2. Exceptions
to General Limitation.
Notwithstanding the provisions of Section 1 of this
Article XXIV:
(a) A Player Contract may contain (in Exhibit 4 to such
Player Contract) a provision entitling a Player to earn
Compensation if the player’s Uniform Player Contract
is traded (“trade bonus”) subject to the
following:
(i) A trade bonus shall be payable only the first
time that the Contract is traded (and not as a result
of any subsequent trade); provided, however, that
if a Contract is signed in connection with an agreement
to trade the Contract in accordance with Article VII,
Section 8(e) and the Contract contains a trade bonus,
the bonus shall not apply to such initial trade but
shall instead be payable only if the Contract is traded
a second time (and not as a result of any subsequent
trade).
(ii) A trade bonus shall not exceed 15% of the Base
Compensation remaining to be earned by the player
pursuant to the Contract at the time of the trade
(excluding an Option Year if not yet exercised).
(iii) The only allowable amendment to Exhibit 4 to
a Uniform Player Contract shall be the specification
of the amount of the trade bonus to be paid to the
player, expressed as either (A) a specified percentage
of the Base Compensation remaining to be earned under
the Contract at the time of the trade (excluding an
Option Year if not yet exercised), or (B) a specified
dollar amount not to exceed a specified percentage
of Base Compensation remaining to be earned under
the Contract at the time of the trade (excluding an
Option Year if not yet exercised).
(iv) A Contract that does not contain a trade bonus
when signed cannot be amended to add one, except that:
(A) if the Contract is extended (other than pursuant
to an agreement to trade the extended Contract in
accordance with Article VII, Section 8(e)), the Contract
may be amended simultaneously to provide for a trade
bonus that will be payable only the first time that
the Contract is traded following the signing of the
Extension (and not as a result of any subsequent trade)
and (B) if the Contract is extended pursuant to an
agreement to trade the extended Contract in accordance
with Article VII, Section 8(e), the Contract may be
amended simultaneously to provide for a trade bonus
that shall not apply to such initial trade but shall
instead be payable only if the extended Contract is
traded a second time (and not as a result of a subsequent
trade).
(b) A Player Contract entered into by a player who
has eight (8) or more Years of Service in the NBA and
who has rendered four (4) or more Years of Service for
the Team entering into such Contract may contain a prohibition
or limitation of such Team’s right to trade such
Contract to another NBA Team.
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