Sign-and-trade deal

In the National Basketball Association (NBA), a sign-and-trade deal is a type of transaction allowed by the collective bargaining agreement (CBA) where one franchise/team signs an unrestricted free agent or restricted free agent player to a new contract, only to then immediately trade him to another team of the player’s choosing. This is typically done to enable the player to obtain a higher salary and/or greater number of years on their contract than NBA salary cap rules would ordinarily allow a destination team that signs him directly to a contract.