Dallas Mavericks
Post by JR Wiles on Aug 2, 2014 10:51:29 GMT -5
Teams are restricted from trading away future first round draft picks in consecutive years. This is known as the "Ted Stepien Rule." Stepien owned the Cavs from 1980-83, and made a series of bad trades (such as the 1982 trade mentioned above) that cost the Cavs several years' first round picks. As a result of Stepien's ineptitude, teams are now prevented from making trades which might leave them without a first round pick in consecutive future years.
The Stepien rule applies only to future first round picks. For example, if this is the 2011-12 season, then a team can trade its 2012 first round pick without regard to whether they had traded their 2011 pick, since their 2011 pick is no longer a future pick. But they can't trade away both their 2012 and 2013 picks, since both are future picks. Teams sometimes work around this rule by trading first round picks in alternate years, or by giving one team the right to swap picks with the other.
When dealing with protected picks, the Stepien rule is interpreted to mean that teams can't trade a pick if there is any chance it will leave the team without a first round pick in consecutive future drafts. Suppose a team makes a trade in 2011-12 that conveys a first round pick sometime from 2012 to 2017. The pick is protected only if it is the first overall pick from 2012 to 2017, and if it is not conveyed by 2017, the other team gets cash instead. In other words, in order to avoid sending a pick from 2012 to 2016, the team would have to win the first overall pick in the draft lottery five seasons in a row. Even though the likelihood of this happening is essentially nil, the team is not allowed to trade its 2018 pick.
If a team trades two future first round picks and the first pick is protected, then the first pick would be conveyed in the first draft in which it is not a protected pick (as described above), and the second pick would be conveyed in the first allowable draft (per the Stepien rule) in which that pick is not protected (i.e., two years after the first pick). But since both picks must be conveyed within seven years, the protection on the first pick cannot last longer than four years (i.e., the first pick must be conveyed by the fifth year). A team can have no more than one trade with such a waiting period in effect at any time.
Other rules that pertain to trading draft picks:
Teams cannot trade future picks not already in their possession. For example, a team cannot make a trade in 2013 that conveys the lesser of any 2016 first round pick in its possession on the date of the 2016 draft, and subsequently acquire a pick to send.
Teams cannot subsequently acquire picks to change the "first allowable draft" per the Stepien rule. For example, suppose a team trades away two picks, with the first being a conditional pick and the second in the first allowable draft after the first pick is conveyed. If the first pick is conveyed in 2014, then the first allowable draft in which the second pick can be conveyed is 2016. If the team subsequently acquires a 2015 pick from another team (so it has two picks that year), the first allowable draft for the conveyance of the second pick remains 2016.
Any or all teams in a trade may be granted the one-time option to defer the conveyance or receipt of a pick for one year (only). For example, a trade between Miami and Orlando that includes Miami's 2012 first round draft pick might provide Miami with the option to defer the pick to 2013. In addition:
A team can exercise a pick deferment only once.
The conveyance of a pick can be deferred for only one year.
A protected pick (as described above) cannot be deferred.
The deferment is subject to the Seven Year Rule. A pick in the seventh year following a trade cannot be deferred.
Except for pick protection and the one-time option to defer the conveyance of a pick as described above, trades must specify the precise year in which a pick is to be conveyed.
A traded draft pick cannot have protection based on draft position and a one-time option to defer.
Teams are required to have only a first round pick, and not necessarily their own first round pick. Teams may trade away their own future picks in consecutive years if they have another team's first round pick in one of those years.
A team cannot sign and immediately trade a draft pick in a sign-and-trade arrangement (see question number 91).
Teams cannot trade picks in that day's draft on the day of the draft before the pick is made.
Lottery picks cannot be traded from 6:00 PM on the day before the draft lottery until the lottery is complete.
The Stepien rule applies only to future first round picks. For example, if this is the 2011-12 season, then a team can trade its 2012 first round pick without regard to whether they had traded their 2011 pick, since their 2011 pick is no longer a future pick. But they can't trade away both their 2012 and 2013 picks, since both are future picks. Teams sometimes work around this rule by trading first round picks in alternate years, or by giving one team the right to swap picks with the other.
When dealing with protected picks, the Stepien rule is interpreted to mean that teams can't trade a pick if there is any chance it will leave the team without a first round pick in consecutive future drafts. Suppose a team makes a trade in 2011-12 that conveys a first round pick sometime from 2012 to 2017. The pick is protected only if it is the first overall pick from 2012 to 2017, and if it is not conveyed by 2017, the other team gets cash instead. In other words, in order to avoid sending a pick from 2012 to 2016, the team would have to win the first overall pick in the draft lottery five seasons in a row. Even though the likelihood of this happening is essentially nil, the team is not allowed to trade its 2018 pick.
If a team trades two future first round picks and the first pick is protected, then the first pick would be conveyed in the first draft in which it is not a protected pick (as described above), and the second pick would be conveyed in the first allowable draft (per the Stepien rule) in which that pick is not protected (i.e., two years after the first pick). But since both picks must be conveyed within seven years, the protection on the first pick cannot last longer than four years (i.e., the first pick must be conveyed by the fifth year). A team can have no more than one trade with such a waiting period in effect at any time.
Other rules that pertain to trading draft picks:
Teams cannot trade future picks not already in their possession. For example, a team cannot make a trade in 2013 that conveys the lesser of any 2016 first round pick in its possession on the date of the 2016 draft, and subsequently acquire a pick to send.
Teams cannot subsequently acquire picks to change the "first allowable draft" per the Stepien rule. For example, suppose a team trades away two picks, with the first being a conditional pick and the second in the first allowable draft after the first pick is conveyed. If the first pick is conveyed in 2014, then the first allowable draft in which the second pick can be conveyed is 2016. If the team subsequently acquires a 2015 pick from another team (so it has two picks that year), the first allowable draft for the conveyance of the second pick remains 2016.
Any or all teams in a trade may be granted the one-time option to defer the conveyance or receipt of a pick for one year (only). For example, a trade between Miami and Orlando that includes Miami's 2012 first round draft pick might provide Miami with the option to defer the pick to 2013. In addition:
A team can exercise a pick deferment only once.
The conveyance of a pick can be deferred for only one year.
A protected pick (as described above) cannot be deferred.
The deferment is subject to the Seven Year Rule. A pick in the seventh year following a trade cannot be deferred.
Except for pick protection and the one-time option to defer the conveyance of a pick as described above, trades must specify the precise year in which a pick is to be conveyed.
A traded draft pick cannot have protection based on draft position and a one-time option to defer.
Teams are required to have only a first round pick, and not necessarily their own first round pick. Teams may trade away their own future picks in consecutive years if they have another team's first round pick in one of those years.
A team cannot sign and immediately trade a draft pick in a sign-and-trade arrangement (see question number 91).
Teams cannot trade picks in that day's draft on the day of the draft before the pick is made.
Lottery picks cannot be traded from 6:00 PM on the day before the draft lottery until the lottery is complete.
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