Trade restrictions for “Base Year Compensation” players

If a team is over the salary cap and enters into a new player contract with a Bird or Early Bird free agent or an extension of a Rookie Scale Contract, that provides for a salary in the first year of the contract in excess of 120% of the player’s salary in the prior season, the player will be subject to a Base Year Compensation (BYC). If such a player is traded, his Base Year Compensation will be used instead of his salary for purposes of determining the amount of his Traded Player Exception. The player’s Base Year Compensation will equal the greater of the salary for the last season of his preceding contract, o 50% of the player’s then-current salary.

Some BYC players include:
Kendrick Perkins, Matt Carroll, Gerald Wallace, Kirk Hinrich, Andres Nocioni, LeBron James, Sasha Pavlovic, Anderson Varejao, Josh Howard, Carmelo Anthony, Chauncey Billups, Amir Johnson.