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NBA

NBA free agency 2022: What is the mid-level exception and how much is it worth?

NBA free agency is set to begin on Thursday, and a provision allows teams to sign players to contracts even if they are above the salary cap.

Update:
NBA free agency is set to begin on Thursday, and a provision allows teams to sign players to contracts even if they are above the salary cap.
JEENAH MOONAFP

NBA free agency will begin later this week, and it’s the opportunity for players who are not bound by contracts to move teams.

One of the more complicated factors to take into consideration when acquiring players is the salary cap. This is particularly complicated for the NBA because it has a soft cap, as opposed to other sports, where the limit is hard-and-fast.

What is the mid-level exception?

The mid-level exception is one way by which a team can secure the services of their desired player without destroying their salary cap. This exception enables franchises to beef up their roster without going bankrupt.

Types of mid-level exceptions

The team may use one of three kinds of exceptions, and they may employ these depending on the organization’s money situation. Mid-level exceptions are set at different rates for different teams.

Franchises that are below the cap are given what is known as the cap-room mid-level exception. This allows them to make agreements with players for no more than two years, and this exception’s value is projected to be $5,329,000 for the coming season.

Teams that are above the cap and tax apron can make use of the taxpayer mid-level exception. They can sign athletes to contracts for three years or less, and this year, the value is estimated to reach $6,392,000.

The third option is the non-taxpayer mid-level exception, also known as the full mid-level exception, which any team that has gone over the salary cap can utilize. Teams using this exception can sign on a player for a maximum of four years, and an expected total of $10,349,000. Once they employ this exception, they have to be careful not to surpass the tax apron for the rest of the season.