When free agency began last week, it was reported that Doug McDermott would be signing a deal with the San Antonio Spurs. After spending three-straight seasons with the Pacers, the sharpshooter would start the next chapter of his career with a new team.
However, over the next handful of days, the Pacers and Spurs would work towards a sign-and-trade deal that would mutually benefit both teams.
In this deal, Indiana sent San Antonio a future second-round pick and the rights to swap second rounders in a future draft. In return, the sign-and-trade would allow the Pacers create a Traded Player Exception of approximately $7.4 million.
The Spurs still get McDermott at the price they originally agreed upon, but gain draft capital in the process. The Pacers now can use this new TPE for flexibility in deals over the next year.
This type of transaction has become more common this offseason, as we’ve seen many sign-and-trades be facilitated between teams to create these exceptions.