The Free Agency will start on June 30 (July 1 for Spain) and, with the opening of the market, some terms are starting to come up that we don’t usually hear during the season. There is probably nothing more relevant this year than this The middle level exception.
what is it medium level? It is a contractual exception that the league, under the current labor agreement, offers its teams to sign players even if they are over the salary cap.. While there are a few other options available to these teams (biennial waivers and minimum contracts), the MLE is by far the most important of them because of the amount it allows franchises to use.
This salary exemption takes on a special role in the current market, for one simple reason: the vast majority of teams will enter Free Agency above the salary cap and unable to offer large contracts to players who did not play for them last season. It’s worth remembering that most can be renewed with their Bird entitlements, which also allow for renewal over the limit.
When you are over the limit and want to look for a major contract, it is where the mid-level exception applies with the following rules.
- Teams over the salary cap: They have the full midrange. Those teams can offer up to a four-year contract, with a maximum salary of $12.4 million in the first season and 5% annual raises.
- The groups above the luxury tax: They have the mid-level taxpayer available. These teams can offer a contract of up to three years, with a maximum salary of 5 million in the first season and annual raises of 5%.
- Teams that are under the salary cap: They have at their disposal the so-called room exception. These teams can only offer a two-year contract, with a maximum salary of 7.7 million in the first season and annual raises of 5%.
The taxpayer and room exemption are still limited options, as they do not allow contracts over 7.7 million to be offered. But in the case of the full mid-level (which is what most teams have), the option to exceed 12 million, plus the four years of the offer, allows us to aspire to quality players. Whether it’s guys who are really into those values or some top-tier veterans who pay a few million to sign with a quality team.
Secondly, It’s worth clarifying that teams can share their midrange. That is, if the cap is 12.4 million, they can sign three players for 4 million each, or any other combination that does not exceed the total.
In turn, the mid-level can also be used to sign 2nd round picks (those in the 1st round enter another category, based on rookie scale), especially because of the opportunity it offers to hire them for more years: the minimum contract can be extended for two years, while the average is four. Even if they only offer him a fraction of that $12.4 million, the prospect of locking up rookies for an extended period of time is very important to franchises who believe they’ve landed a 2nd round gem.
With so few teams with cap space available to offer big contracts in Free Agency, the mid-level exception will be more valuable than ever.. The mid-level exception gives teams tremendous leeway, offering the ability to sign anyone from rookies to mid-level players to quality veterans willing to take a small pay cut. Who will make the most of it this year?
The views expressed here do not necessarily reflect those of the NBA or its organizations.
