What is a Traded Player Exception? All about Dallas Mavericks' cap space measure dumping Davis Bertans' contract

The Dallas Mavericks acquired the No. 12 pick Dereck Lively II in the 2023 NBA draft from the OKC Thunder. The Mavericks sent the No. 10 pick Cason Wallace and Davis Bertans to Oklahoma City.

So, why did the Mavs agree to trade a higher pick and a player for a lower pick? Apart from Lively, Dallas also received a $17 million trade exception from the Thunder due to getting rid of Bertans' massive salary. That means they can use it this summer or next season to acquire a player who can help the team.

ESPN's Tim McMahon added that the trade also allowed Dallas to have a full midlevel exception, which could be useful this offseason. The Mavericks can now sign a good rotation player, particularly a good defensive player who could be a difference-maker.

The Traded Player Exception is part of the NBA and NBPA's collective bargaining agreement. It's used by teams acquiring a player or players that make their salaries go above the salary cap. The TPE makes sure that any trade is legal under the CBA.

There are two types of TPEs in the NBA — simultaneous and non-simultaneous trades. Simultaneous trades are for teams that pay and don't pay the luxury tax. The TPE is used to complete a transaction that falls under this.

Meanwhile, non-simultaneous trades mean a team can trade a player or players without taking any salaries in return. That team will have a year to sign or bring in players to fill the traded player or players' salary.

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Dallas Mavericks looking to bounce back after failing to make playoffs

Luka Doncic (left) and Kyrie Irving of the Dallas Mavericks

The Dallas Mavericks made the Western Conference finals in 2022. However, things fell apart last season, as they failed to make it to the play-in tournament. They lost Jalen Brunson for nothing in free agency, which greatly affected the team.

Dallas tried to salvage its season by acquiring Kyrie Irving from the Brooklyn Nets. However, the Mavericks lost their defensive identity in the trade.

With the Traded Player Exception, the Dallas Mavericks now have the ability to acquire another player to improve the roster. It will be interesting to see how the Mavericks perform next season, with Luka Doncic and Kyrie Irving having a full summer to prepare together.