What's Holding Up Charlotte's Latest Trade?

Few details have emerged since the initial reports on Friday, here is my theory as to why

Mar 31, 2024; Charlotte, North Carolina, USA; Charlotte Hornets mascot Hugo entertains the fans during the second quarter between the Charlotte Hornets and the LA Clippers at Spectrum Center. Mandatory Credit: Jim Dedmon-Imagn Images / Jim Dedmon-Imagn Images

It's been 48 hours since the Charlotte Hornets' involvement in the blockbuster trade between the Knicks and Timberwolves first became public. However, details of what Charlotte will be receiving or sending out remains unclear. But by putting together pieces of the puzzle from snippets of reports, the framework for the trade is now starting to take shape.

Reports have confirmed that the Knicks need to reduce their payroll by $8.8 million to make the trade work under NBA rules. However, they’re facing a challenge because they can’t easily reach that number with the players they currently have. Achiuwa can’t be traded until October 28th, and Mitchell Robinson’s salary is higher than the $12.8M Charlotte can take on (Explained here). This leaves the Knicks with just one option: signing and trading (S&T) their free agents. Confused? Let me break it down.

According to the collective bargaining agreement’s S&T rules, a player must have been on a team's roster at the end of the previous season to qualify for a sign-and-trade deal. For the Knicks, DaQuan Jeffries, Duane Washington Jr., and Charlie Brown Jr. all meet this requirement. New York will likely sign one, two, or even all three of these players to contracts, with their combined salaries adding up to the necessary $8.8 million. These players would then be immediately traded to the Hornets, along with draft picks as compensation. Coordinating these sign-and-trade agreements, along with ensuring that salary figures and contract terms align with NBA rules, adds significant complexity to an already complex trade.

An important detail is that all S&T contracts must be for at least three years, but the last two years can be non-guaranteed. In this case, Charlotte would likely only be responsible for paying one year of guaranteed salary, minimizing long-term financial impact. Ignore any eyebrow raising 3-year figures you see reported.

The Hornets currently have 19 players under contract for training camp but can have up to 21 players on their roster during the off-season. This means they could take in up to two players from the Knicks through a sign-and-trade without needing to cut anyone. However, if the Knicks send all three players, the Hornets would likely have to waive someone. In that case, Caleb McConnell or Keyontae Johnson, who are both on Exhibit-10 contracts, would probably be the ones let go.

What Charlotte will receive in the trade is still uncertain, as the Knicks have several tradable first- and second-round picks they could offer. For reference, the Hornets received three second-round picks when they absorbed Reggie Jackson's $5.1 million salary dump during the draft. Given that this current trade involves a larger $8.8 million salary and it's at a more difficult time of the year to make trades, it’s reasonable to expect that Charlotte would receive a similar or even greater return in draft compensation.

MORE STORIES FROM HORNETS ON SI

Five Biggest Storylines Heading Into Hornets Training Camp

Hornets Emerge as Key Player in Knicks-Timberwolves Trade

Former Hornet Forward/Swarm Head Coach Joe Wolf Passes Away

ESPN Projects Low Win Total for the Charlotte Hornets