SUMMARY OF EXPANSION DRAFT RULES
A. Player Selection
- The Charlotte Bobcats Expansion Draft will take place on June 22 (if the NBA Finals extend to seven games, it will be June 23), prior to the 2004 NBA Draft on June 24.
- The Bobcats will select a minimum of 14 players who are under contract or restricted free agents for the 2004-05 season.
- The Bobcats may select no more than one player from each team.
- The Bobcats can only select players that are left unprotected by an NBA team.
- Each of the 29 NBA teams may protect a maximum of eight players on its roster who are under contract or are restricted free agents at the conclusion of the 2003-04 season.
- Each of the 29 NBA teams will designate the players on its roster who are eligible for selection by the Bobcats.
- Each of the 29 NBA teams must designate at least one player on its roster to be eligible for selection by the Bobcats, even if the team does not have eight players under contract or as restricted free agents for the 2004-05 season.
- Any player under contract selected by the Bobcats will immediately be placed on the Bobcats roster.
- Any eligible restricted free agent selected by the Bobcats shall immediately become an unrestricted free agent.
- Unrestricted free agents are not eligible to be protected nor are they eligible to be selected by the Bobcats.
B. Pre-Expansion Draft Trades
- Teams will be permitted to enter into pre-Expansion Draft trades involving players or draft picks in which Charlotte agrees to select or not select certain unprotected players in return.
C. Salary Cap
- Charlotte will be permitted to select players in the Expansion Draft without regard to the Salary Cap.
- Charlotte will have a Salary Cap in its first season equal to 66% of the Salary Cap applicable to the rest of the league and a Salary Cap in its second season equal to 75% of the Salary Cap applicable to the rest of the league.
- Charlotte will be permitted to sign any restricted free agent it selects in the Expansion Draft using the same “Bird,” “Early Bird” or “Non-Bird” Exception that the player’s prior team would have had.
- Compensation paid to a selected player under a contract protected for lack of skill will be excluded from Charlotte’s Team Salary if the player’s contract is terminated (via the waiver procedure) prior to the start of the 2004-05 season.
- A team with a Team Salary above the Salary Cap will receive a Trade Exception to replace a player (other than a restricted free agent) selected from its unprotected list.
D. Post-Expansion Draft Transactions
- A team will not be permitted to reacquire a player that it loses in the Expansion Draft prior to the expiration of one year from the date of the Expansion Draft, unless the player is waived and not claimed by any other team.