NBA 101 Wednesday: Salary Cap Exceptions (Part 2/2)

Today is Part 2, the final day of our series on Salary Cap Exceptions.  Last week we discussed the Mid Level, Bi-Annual, Rookie, Larry Bird, Early Bird, and No Bird Exceptions. 

Today let’s take a look at the following:

• Minimum Salary Exception
• Traded Player Exception
• Disabled Player Exception

Minimum Salary Exception: The Minimum Salary Exception allows a team to sign a player to a contract of up to 2 years at the NBA’s minimum salary each year.  The contract may not contain a signing bonus, but there is no limit to the number of players that can be signed or acquired using this exception. 

Traded Player Exception: The Traded Player Exception allows a team, who trades away a player with a higher salary than the player they get in return, to receive a “Trade Exception.”  The team then has a year to acquire more salary via other trades, however those trades must be less than or equal to the difference in the salary that was made during the first trade.

This exception is good in various cases, one being when a team does a sign and trade with one of their free agents.  This will allow the team, who loses a free agent, to recieve a trade exception that can be used at a later date.

This exception is for single player trades only, though additional cash and draft picks can be part of the trade.

Disabled Player Exception: The Disabled Player Exception allows a team that is over the cap to get a replacement for a disabled player who will be out for either the rest of the season (due to an  in-season injury), or out the next season (due to an off-season injury). 

The maximum salary of the replacement player is either 50% of the injured player’s salary, or the average salary, whichever is less.  This exception requires verification of the injury by an NBA doctor.

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Review the Series:
Introduction:  NBA 101 Wednesday: The Salary Cap
NBA 101 Wednesday: Salary Cap Exceptions (Part 1/2)
NBA 101 Wednesday: Salary Cap Exceptions (Part 2/2)

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Final Thoughts:
I hope you enjoyed this series and obtained a decent understanding of the Salary Cap Exceptions.  I have added a “Review the Series” section to the end of each article for easy reading and back-tracking.

To keep the information presented in this series fresh, and up-to-date, the information will be modified, as any changes are made, and added to, if any new exceptions arise.  I ask that my NBA buffs help me in this task by commenting below if any changes are made that are not reflected in these articles.

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