What is a Trade Kicker in the NBA? Why Anthony Davis Waived His for the Dallas Mavericks

The LA Lakers have traded Anthony Davis in a blockbuster move to acquire Luka Doncic. Along with AD, the Dallas Mavericks also get Max Christie and a 2029 first-round pick. Despite the sudden nature of the trade, AD seems to be happy with it, given that he waived his ‘trade kicker,’ too. But what exactly is a trade kicker? And what is its significance in this deal?

A trade kicker is a clause, often included in players’ contracts, to discourage teams from trading them. The trade kicker clause typically carries a maximum of 15% of the player’s annual salary. In a situation where a trade happens even though the clause is present in the contract, it allows the player to earn 15% above his salary amount.

Davis had the clause in his contract with the Lakers but decided to waive it to facilitate the trade. By doing so, he has helped the Mavericks retain $628K under luxury tax. As per Bobby Marks, the Dallas franchise was $5.1 million over the luxury bracket before the trade.

This shows that the 10-time All-Star is going all in for his new team. Due to this decision, AD’s salary will remain at $43.2 million.

Luka also has a trade kicker in his contract. So far, there’s no news of him waiving his clause.

Players waiving their trade kicker to facilitate a deal has been a common practice. In 2017, when Carmelo Anthony was traded by the New York Knicks to the OKC, he waived his $8.1 million trade kicker to allow the deal to go through.

With AD waiving his clause, the Mavs will have more money to play with while staying out of the luxury tax bracket. It seems like the 31-year-old is going in with a win-now mentality, allowing his new team to move freely in search of a championship.