Salary Cap Exceptions

Question 1

Veteran Free Agent Exception

Answer 1

• There are 3 flavors of this exception: Bird Rights, Early Bird Rights and Non-Bird Rights
• This exception allows a team to retain their own free agents and exceed the salary cap
• Ramps up over time
• A player is allowed to sign a 2 year and then 1 year contract to establish Bird Rights
• Maximum allowable years is 5 and minimum is 1

Question 2

Disabled Player Exception

Answer 2

• A team may sign or acquire a “Replacement Player” to replace a player who, as a result of a Disabling Injury or illness”, is unable to render playing service
• An application for a Disabled Player Exception may be made between July 1 through January 15
• Contract is 1 season
• Salary and Unlikely Bonuses = the lesser of 50% of the Disabled Player’s salary for the then-current Salary Cap Year, or an amount equal to Non-Taxpayer Mid Level Exception for such salary cap year ($12.4 million in 2023-24)

Question 3

Bi-annual Exception

Answer 3

• A team that is over the salary cap but below the First Apron can sign a player(s) using the Bi-Annual Exception
• Maximum 2 seasons
• Maximum Annual increase 5%
• A team is not allowed to use this exception in consecutive seasons and cannot exceed the First Apron

Question 4

Non-Taxpayer Mid Level Salary Exception

Question 5

Taxpayer Mid Level Salary Exception

Question 6

Mid Level Salary Exceptions for Room Teams

Question 7

Rookie Scale Exception

Question 8

Minimum Player Salary Exception

Question 9

Traded Player Exception

Question 10

Second Round Pick Exception

Question 11

Early Bird Exception

Question 12

Bird Exception