The Brooklyn Nets struck a few days ahead of the trade deadline with a deal sending Kyrie Irving and Markieff Morris to the Dallas Mavericks on Monday for Spencer Dinwiddie, Dorian Finney-Smith and draft considerations. The Mavericks add an eight-time All-Star to play with Luka Dončić, and the Nets get two players and three future draft picks.

How were the trades structured, and how will they impact the Nets and Mavericks?

Understanding Irving’s Trade Bonus

Nearly every NBA trade comes with its share of complexities. In Irving’s case, he had a 15 percent trade bonus in his contract, which the Nets are responsible for paying. The trade bonus only applies to Irving’s base salary ($36,503,300), not incentives ($431,250 likely, $718,750 unlikely). Also, a trade bonus only applies to the player’s remaining salary in-season.

As of February 6, the 111th day of a 174, Irving’s bonus was based on 36.21 percent of his base salary (63 days) or $13,216,712, of which he’ll receive 15 percent ($1,982,507). For Dallas, the incoming salary was $38,917,057 (Irving’s base, likely incentives and trade bonus), which is also his new cap number for the remainder of the season. The Nets’ outgoing salary for Irving was his pre-trade cap hit of $36,934,550 (base plus likely incentives).

Had Irving declined any part of his bonus, he wouldn’t have been extension eligible for six months. Since his contract expires on June 30, that would have removed the extension possibility altogether. Instead, Irving is limited within the extend-and-trade boundaries through the end of June, allowing him to sign for two additional years with a maximum of five percent raises ($78.6-$81 million, depending on incentives). The trade bonus wouldn’t factor into his extension math, as it’s treated like a signing bonus.

Irving can (and probably does) wait until free agency, when he will be eligible for up to a five-year maximum contract.

Finney Smith Bonus; Dinwiddie Incentives

Finney-Smith also had a trade kicker in his deal, albeit a smaller one at five percent. Unlike Irving, Finney-Smith’s contract has three more seasons, the last a player option. Pre-trade, he was $12,402,000 on the Mavericks’ books (plus $13,394,160 for 2023-24 and $14,386,320 for 2024-25 with a $15,378,480 player option for 2025-26).

The bonus, payable by the Mavericks, is on his remaining salary for 2022-23 ($4,490,379) and the two non-option years. Five percent of $32,270,859 yields a bonus of $1,613,543. His cap number for the Nets will climb by a third of that figure ($537,848) each year. The 2025-26 option year doesn’t change.

Dinwiddie’s cap number also changes in the deal based on his contract incentives. Because the Mavericks advanced to the Western Conference Finals, he received various incentives that were considered likely for the current season in Dallas. But those incentives in Brooklyn are now regarded as unlikely. For the Mavericks, Dinwiddie’s outgoing salary was $20,171,427 but just $19.5 million incoming to the Nets.

Additionally, his $21,028,570 for 2023-24 falls to $20,357,143, with incentives now considered unlikely. While he only had $10 million initially guaranteed, his salary locked in recently when he reached 50 games played.

The Nets’ Side of the Deal

Because Irving (pre-trade bonus) had a salary cap figure larger than Dinwiddie’s incoming salary of $19.5 million and Finney’s Smith’s $12,939,848 (post-trade bonus) combined, the Nets were able to take both players and generate a non-simultaneous traded player exception (NS-TPE) for the difference of $4,494,702.

Brooklyn didn’t receive a player in return for Morris, instead receiving a second NS-TPE for his salary (at the two years of service level) at $1,836,090. Both trade exceptions expire on February 8, 2024.

The Nets also get a Dallas first in 2029 and two seconds (2027 and 2029), all unprotected.

The Mavericks’ Side of the Deal

Dallas aggregated the pre-trade salaries of Dinwiddie ($20,171,427) and Finney-Smith ($12,402,000) and, as a tax team, generated a simultaneous traded player exception (S-TPE) at 125 percent plus $100,000. The total of $40,816,784 was enough to absorb Irving’s post-trade salary of $38,917,057.

Morris was acquired as a minimum player. The Mavericks took him in without needing to salary match.

Email Eric Pincus at eric.pincus@gmail.com and follow him on Twitter @EricPincus.