What do pick swaps mean in NBA and how are they useful for franchises?

Pick swaps are a big part of trade negotiations in the NBA and teams mostly use them when they are not allowed to trade consecutive first-round draft picks.

There have been several big trades lately that have included pick swaps, including the Rudy Gobert trade in the summer of 2022. While trading players can be confusing, trading draft picks is even more complex as it often involves swaps, protections, and more.

This article will explain everything you need to know about pick swaps in the NBA. We will also provide a couple of examples that will clarify how these swaps work in trades between two or more teams.

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NBA pick swaps are important for securing long-term future

To ensure the long-term stability of its teams, the NBA prohibits franchises from trading consecutive first-round draft picks (Sepien Rule) in their trades. Due to this, the Cleveland Cavaliers were able to trade 2025, 2027 and 2029 first-round picks for Donovan Mitchell.

The Utah Jazz wanted even more picks for the superstar, but the Cavaliers were not allowed to include 2026 and 2028 first-round picks due to the Sepien Rule. This rule was named after Ted Stepien, a businessman who owned the Cavaliers from 1981 to 1983.

The Cavaliers used draft picks to acquire Donovan Mitchell (Image via Getty Images)

Stepien's ownership was very controversial and he made a couple of trades that left the team without first-round picks for a couple of years. Due to this, the basketball league instituted a rule that prevents teams from excessively trading first-round picks.

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Instead of trading picks, the Cavaliers swapped their drafting rights in 2026 and 2028 to acquire Mitchell. This simply means that the Cavs and the Jazz will exchange their picks in the next two years.

The Utah Jazz have acquired several pick swaps (Image via Getty Images)

For example, if the Cavaliers end up with the third overall pick in 2026 and the Jazz have the 12th pick, the picks will be swapped and the Jazz will have the third pick.

The Jazz has also acquired a 2026 first-round pick swap from the Minnesota Timberwolves in a Rudy Gobert trade. Due to this, they will be able to choose whichever pick is the most favorable.

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Teams have to be careful with pick swaps

In their trade for Anthony Davis in 2019, the LA Lakers gave up a 2023 first-round pick swap to the New Orleans Pelicans. While these swaps can be very useful, teams also have to be careful with them.

At the moment, the Lakers are 25-30 and have the third-worst record in the Western Conference. Due to this, their draft position will be very high.

The Lakers used their 2023 pick swap for Davis (Image via Getty Images)

If the Lakers miss the playoffs, they will get a lottery pick, yet won't be able to use it. Instead, the New Orleans Pelicans will get their pick, despite their own record.

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Even if the Pelicans, who are currently 27-29, finish the regular season with one of the best records in the league, they will be able to use the Lakers' first-round pick.