The bi-annual exception is one of the tools available to NBA teams who are over the cap, giving those clubs the flexibility to offer free agents more than the minimum salary. In 2023/24, the bi-annual exception is worth $4,516,000 and can be used to offer a deal worth up to $9,257,800 over two years.
However, the bi-annual exception isn’t available to every team. Clubs that go below the cap in order to use cap room lose access to the exception. Additionally, using the BAE imposes a hard cap of $172,346,000 (the first tax apron) on a team. So if a club has surpassed the tax apron – or wants to retain the flexibility to do so – it can’t use the bi-annual exception.
Finally, as its name suggests, the bi-annual exception can’t be used by a team in consecutive years. In 2022/23, two teams used the BAE — the Sixers (Danuel House) and Heat (Kevin Love). As such, the exception isn’t available to those clubs during the 2023/24 league year. They’ll be able to use it again next summer.
With all those factors in mind, here’s a breakdown of how teams are using – or not using – their respective bi-annual exceptions in 2023/24:
Available Bi-Annual Exceptions:
Unused:
- Atlanta Hawks
- Brooklyn Nets
- Charlotte Hornets
- Chicago Bulls
- Dallas Mavericks
- Memphis Grizzlies
- Minnesota Timberwolves
- New Orleans Pelicans
- New York Knicks
- Portland Trail Blazers
- Washington Wizards
Although all of these teams technically have the ability to use their bi-annual exceptions at some point in 2023/24, it’s more plausible for some than others.
For instance, the Timberwolves still have their full $12MM+ mid-level exception available and are aren’t far from the luxury tax line, so I wouldn’t expect them to use the BAE this season. If they need to offer more than the veteran’s minimum to sign a player, it will likely come out of their MLE.
Used:
- Cleveland Cavaliers
- Used: $2,439,025 (Ty Jerome)
- Available: $2,076,975
- Los Angeles Lakers
- Used: $4,516,000 (Taurean Prince)
- Available: $0
- Toronto Raptors
- Used: $4,516,000 (Jalen McDaniels)
- Available: $0
Typically, about two to four teams in a given league year use the bi-annual exception, and this season has yet to buck that trend.
The Lakers and Raptors are the only two teams to use their entire bi-annual exceptions to date, so they won’t have it available in 2024/25. Neither will the Cavaliers, even though they’ve only used a little over half of the BAE so far this season.
Unavailable Bi-Annual Exceptions:
Went under cap:
- Detroit Pistons
- Houston Rockets
- Indiana Pacers
- Oklahoma City Thunder
- Orlando Magic
- Sacramento Kings
- San Antonio Spurs
- Utah Jazz
These eight teams forfeited their right to the bi-annual exception when they went under the cap and used space this offseason.
Over (or near) tax apron:
- Boston Celtics
- Denver Nuggets
- Golden State Warriors
- Los Angeles Clippers
- Milwaukee Bucks
- Phoenix Suns
In theory, cost-cutting moves by these teams could put them in position to use their bi-annual exceptions. In actuality though, that’s a long shot, especially for clubs like the Clippers, Warriors, and Suns, whose team salaries are well beyond the second tax apron.
Used last year:
- Miami Heat
- Philadelphia 76ers
As noted in the intro, these are the two teams that used their bi-annual exceptions in 2022/23 and, as a result, won’t have them again until 2024/25.
Didn’t the Mavs use theirs on Seth Curry or did they move him to the MLE?
That signing just went official last night, so it was still up in the air when I published this post. Would guess they used the MLE after missing out on Thybulle — should know for sure within the next day or two.
Salary Cap
Bi-Annual Exemption
Above the Cap
Below the Cap
First Tax Apron
Second Tax Apron
Tax Payer Apron
Consecutive Years
Non Consecutive Years
Available Bi-Annual Exemption
Mid-Level Exemption
Luxury Tax Line
Veteran’s Minimum
Can’t all of this BS be eliminated and simplified?
Do we really need to keep all of the Accountants and Lawyers EMPLOYED?
HARD CAP
No Exemptions, Exceptions, or Go Arounds.
Every team is equal in the dollars they can spend.
The games are played on the court.
Not in the front offices.
Or just no darn cap.
Is it still the case that a team can’t use the BAE if they’ve used a mid-level exception?
Don’t think that’s ever been the case. Plenty of teams use both (including the Cavaliers, Lakers, and Raptors in 2023/24).
Coon’s FAQ, under bi-annual exception, says, “It cannot be used by a team that has already used its Taxpayer Mid-Level or Room Mid-Level exception.”
So I wonder, since the Warriors already used the MLE, if they can still use the BAE.
The Warriors used the non-taxpayer MLE, so they’re OK to still use the BAE.
Room mid-level is for cap room teams and taxpayer mid-level is for teams over the first apron, neither of whom would have access to the BAE anyway.
Thanks, makes sense.