Cap Space / Trade question

[wuck]

Mike Prada posted this:

Early FA contracts validate Ernie/Ted (Knicks) FA/trade plan. The real test, though, is in August, when teams can use spare cap room in trade. For example, what happens to Dallas, Cleveland and Charlotte in August? Remember, Toronto used cap space to take on Kyle Lowry.

Can someone explain what changes in August? Why might spare cap room become more valuable for trading purposes at that time?

 

[TransplantII]

I believe this is where the term "Flexibility" comes into play. While some teams are out there spending like fools, the cap space will allow us to step in and take advantage of "Buyers Remorse". We will be able to gain access to other assets due to us being able to absorb the cap hit. Example, the Bulls would LOVE someone with cap space to approach them about Boozer but they made that bed and now have to sleep in it.

 

[theSTEREO.]

Yeah I'm gonna guess they are saying the free agent frenzy is in July and in August cap space will be used for trades rather than signings.