91. Can a player be given an extension and traded at the same time?
Similar to a sign-and-trade arrangement (see question number 88), a team may sign an eligible player to an extension (see question number 58) and immediately trade him to another team. Such an "extend-and-trade" is limited to three seasons, which include any seasons remaining on the player's current contract1. The salary in the first season of the extension can have a 4.5% raise over the last season of the existing contract, and subsequent raises are limited to 4.5% of the salary in the first season of the extension.
A player cannot be traded in an extend-and-trade after the season (for example, on draft day) in the last season of his contract, or in any season that might be the last season due to an option or ETO.
http://www.cbafaq.com/salarycap.htm#Q91
Correct once again Matt
Similar to a sign-and-trade arrangement (see question number 88), a team may sign an eligible player to an extension (see question number 58) and immediately trade him to another team. Such an "extend-and-trade" is limited to three seasons, which include any seasons remaining on the player's current contract1. The salary in the first season of the extension can have a 4.5% raise over the last season of the existing contract, and subsequent raises are limited to 4.5% of the salary in the first season of the extension.
A player cannot be traded in an extend-and-trade after the season (for example, on draft day) in the last season of his contract, or in any season that might be the last season due to an option or ETO.
http://www.cbafaq.com/salarycap.htm#Q91
Correct once again Matt
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