In the National Basketball Association, a draft selection that is conditionally transferred in a trade is often stipulated as “protected.” This protection ensures that if the selection falls within a specified range, the team receiving the selection does not acquire it. For instance, a team might trade a first-round pick that is top-ten protected. If the selection ends up being among the first ten picks in the draft, due to the lottery, the team trading it retains the pick. Instead, the team typically conveys a future selection or other compensation as outlined in the trade agreement.
These stipulations are crucial elements in NBA trades. They allow teams to manage risk and uncertainty associated with future performance. For teams acquiring potential draft selections, protections mitigate the risk of receiving a very late selection from a potentially successful team. For teams relinquishing a draft selection, the protections offer a safeguard against conveying a valuable, high selection should their performance unexpectedly decline. This mechanism has been utilized frequently in NBA history, significantly shaping team-building strategies and affecting the distribution of talent across the league.