Hoops Rumors Glossary: Wage Cap Exceptions

There are a selection of ways in which NBA groups with out wage cap house are ready so as to add gamers. Once we talk about trades and free company at Hoops Rumors, we’ll usually refer to those wage cap “exceptions.”

In case you’re questioning what precisely we imply once we point out a “Non-Chicken exception” or a “bi-annual exception,” we’ve compiled a quick overview for reference. The NBA’s wage cap exceptions discovered within the newest Collective Bargaining Settlement are listed under, together with hyperlinks to extra intensive glossary entries on every exception.

• Chicken Exception: If a participant has been on the identical workforce for 3 years (not essentially full seasons), his workforce can re-sign him for as much as the participant’s most wage. Typically, a participant who modifications groups through commerce retains his Chicken rights, however he loses them if he indicators with a brand new workforce as a free agent. A Chicken participant can signal for as much as 5 years with most annual raises of 8%.
• Early Chicken Exception: If a participant has been on the identical workforce for 2 years (not essentially full seasons), his workforce can re-sign him for as much as 175% of his earlier wage or 105% of the typical participant wage from the earlier season, whichever is bigger. Early Chicken contracts have to be for no less than two seasons (not more than 4), with most annual raises of 8%.
• Non-Chicken Exception: If a participant finishes a season with a workforce with out having earned Chicken or Early Chicken rights, his workforce can re-sign him for 120% of his earlier wage, 120% of the relevant minimal wage, or – if he’s a restricted free agent – the quantity of his qualifying provide. A Non-Chicken participant can signal for as much as 4 years with most annual raises of 5%.
• Non-Taxpayer Mid-Degree Exception: A workforce working under the primary tax apron can provide a participant a contract for as much as 4 years with most annual raises of 5% utilizing the mid-level exception. The MLE quantity for 2024/25 is $12,822,000; it would improve yearly on the identical fee because the wage cap. This exception, which can be utilized on one or a number of gamers, can be used to accumulate gamers through commerce or waiver declare.
• Taxpayer Mid-Degree Exception: A workforce working under the second tax apron can provide a participant a contract for as much as two years with a most second-year increase of 5% utilizing the mid-level exception. The taxpayer MLE quantity for 2024/25 is $5,168,000; it would improve yearly on the identical fee because the wage cap. This exception, which can be utilized on one or a number of gamers, can solely be used to signal gamers, to not purchase them through commerce or waiver declare.
• Room Exception: If a workforce makes use of room beneath the cap to signal gamers, it forfeits its full mid-level exception and receives this exception, which isn’t out there to groups above the cap. After utilizing its cap room, a workforce can provide a participant a contract for as much as three years with most annual raises of 5%. The room exception quantity for 2024/25 is $7,983,000; it would improve yearly on the identical fee because the wage cap. This exception, which can be utilized on one or a number of gamers, can be used to accumulate gamers through commerce or waiver declare.
• Bi-Annual Exception: A workforce can provide a participant a contract for as much as two years with a most increase of 5% utilizing the bi-annual exception. Nevertheless, it’s solely out there to groups that function over the cap and under the primary tax apron. The bi-annual exception quantity for 2024/25 is $4,668,000; it would improve yearly on the identical fee because the wage cap. This exception, which can be utilized on one or a number of gamers, can be used to accumulate gamers through commerce or waiver declare. As its title suggests, the bi-annual exception can solely be used each different 12 months.
• Minimal Wage Exception: A workforce can provide a participant a contract for as much as two years definitely worth the relevant minimal wage. A workforce may use this exception to commerce for minimum-salary gamers, so long as their contracts don’t cowl greater than two seasons and by no means included a wage above the minimal. There isn’t any restrict to the variety of gamers a workforce can purchase utilizing this exception.
• Rookie Scale Exception: A workforce can signal its first-round draft picks for as much as 120% of the rookie wage scale quantity or as little as 80% of the rookie wage scale quantity. The rookie salaries for 2024 first-round picks will be discovered proper right here. The rookie scale will increase yearly on the identical fee because the wage cap.
• Second-Spherical Decide Exception: A workforce can signal a second-round choose to a three- or four-year contract with a workforce possibility on the ultimate 12 months. A contract signed utilizing the second-round exception can exceed the relevant rookie minimal within the first 12 months (or the primary two years, for a four-year deal), however not within the ultimate two years. The main points for second-round choose exception signings in 2024/25 will be discovered proper right here.
• Disabled Participant Exception: If a participant suffers an damage deemed extra seemingly than to not sideline him by way of the next June 15, a workforce will be granted this exception by the league. It may be used to signal a alternative participant for one 12 months, and is price 50% of the disabled participant’s wage or the quantity of the non-taxpayer mid-level exception, whichever is lesser. It can be used to accumulate a participant through commerce or waiver declare if he’s within the ultimate 12 months of his contract. This exception, which have to be utilized for between July 1 and January 15, can solely be used as soon as and is forfeited if not utilized by March 10 (or the following enterprise day, if March 10 falls on a weekend).
• Traded Participant Exception: Any workforce can exchange a traded participant – or traded gamers – concurrently (in the identical transaction) with a number of gamers whose whole salaries quantity to not more than 100% of the outgoing wage. For groups working under the tax aprons, the incoming worth can improve to as excessive as 200% of the outgoing wage (plus $250K), relying on the quantity of that wage. Alternately, each non-taxpaying and taxpaying groups can exchange a traded participant non-simultaneously (inside one 12 months) with a number of gamers whose whole salaries quantity to not more than 100% of the traded participant’s wage.

Observe: It is a Hoops Rumors Glossary entry. Our glossary posts will clarify particular guidelines regarding trades, free company, or different elements of the NBA’s Collective Bargaining Settlement.

Earlier variations of this put up have been revealed in 2012 and 2018.