A trade exception essentially allows NBA teams over the salary cap to make trades. Those teams can make deals with restrictions attached. And, because nothing can be simple, there are two types of trade exceptions. One type is created in a simultaneous trade, and the other is non-simultaneous.

Are trade exceptions good or bad?

The trade exception is the intended solution. If a team uses it, if a team finds deals to its liking, if a team actually is eager to push the payroll to or beyond tax thresholds. One way to look at a trade exception is like an insurance policy or an extended warranty. They are good to have, even if you never use them.

How long does a trade exception last?

Contracts signed under this exception can cover up to 2 seasons. Teams cannot use this exception in consecutive years. Teams may use this exception to re-sign their own free agents or another team's free agents. A team may not use this exception to acquire a player through a trade.