Hoops Rumors Originals

Bird rights offer teams the chance to sign their own free agents without regard to the salary cap, but they don’t apply to every player. Other salary cap exceptions are available for teams to keep players who don’t qualify for Bird rights. One such exception is the Early Bird, which applies to players formally known as Early Qualifying Veteran Free Agents.

While the Bird exception is for players who have spent three seasons with one club without changing teams as a free agent, Early Bird rights are earned after just two such seasons. Virtually all of the same rules that apply to Bird rights apply to Early Bird rights, with the requirements condensed to two years rather than three.

Players still see their Bird clocks restart by changing teams via free agency, being claimed in an expansion draft, or having their rights renounced. A player who is traded can also have his Bird clock reset if he approves a move after having re-signed with his previous team on a one-year contract (or a one-year contract with a second-year option) earlier in the league year.

As is the case with Bird rights, a player’s clock stops when he’s released by a team and clears waivers, but it would pick up where it left off if he re-signs with that same team down the road without joining another club in the interim. For instance, James Johnson will have Early Bird rights this offseason because – even though he was waived in January – he’s on track to finish a second consecutive season with the Pacers and didn’t join another team between his stints in Indiana.

The crucial difference between Bird rights and Early Bird rights involves the limitations on contract offers. Bird players can receive maximum-salary deals for up to five years, while the most a team can offer an Early Bird free agent without using cap space is 175% of his previous salary (up to the max) or 105% of the league-average salary in the previous season, whichever is greater.

These offers are also capped at four years rather than five, and the new contracts must run for at least two years — the second season can be non-guaranteed, but can’t be a team or player option. Raises are maxed out at 8% per season.

Besides Johnson, some of the more notable free agents who will have Early Bird rights during the 2024 offseason include Malik Monk (Kings), Isaiah Hartenstein (Knicks), Kyle Anderson (Timberwolves), and Andre Drummond (Bulls).

In some instances, teams can benefit from having Early Bird rights instead of full Bird rights if they’re trying to preserve cap space. The cap hold for an Early Bird player is 130% of his previous salary, significantly less than most Bird players, whose cap holds range from 150-300% of their previous salaries.

However, having a player’s Early Bird rights instead of his full Bird rights puts a team at a disadvantage in other cases. For example, when Christian Wood reached free agency in 2020, his Early Bird rights only allowed the Pistons to offer a starting salary of up to about $10.05MM, a figure the Rockets topped in their three-year, $41MM offer.

In order to match or exceed that number, Detroit would have had to use cap room — having Wood’s full Bird rights would’ve allowed the Pistons to make a far more substantial offer without requiring cap space.

Meanwhile, some players with limited NBA experience are subject to a special wrinkle involving Early Bird rights, called the Gilbert Arenas Provision, which applies to players who have only been in the league for one or two years. We cover the Arenas Provision in a separate glossary entry, so you can read up on the details there.

Essentially, the Arenas Provision protects teams from a situation like the ones the Pistons found themselves in with Wood, allowing them to match offer sheets on their restricted free agents without necessarily using Bird rights or cap room to do so. Last offseason, Lakers guard Austin Reaves and Pelicans forward Herbert Jones were both Arenas free agents. The provision would apply this coming offseason to a player like Pistons wing Simone Fontecchio.

Finally, one more distinction between Bird rights and Early Bird rights applies to waivers. Players who are claimed off waivers retain their Early Bird rights, just as they would if they were traded. Those who had Bird rights instead see those reduced to Early Bird rights if they’re claimed off waivers.

This rule stems from a 2012 settlement between the league and the union in which J.J. Hickson was given a special exception and retained his full Bird rights for the summer of 2012 even though he had been claimed off waivers that March.

Note: This is a Hoops Rumors Glossary entry. Our glossary posts will explain specific rules relating to trades, free agency, or other aspects of the NBA’s Collective Bargaining Agreement. Larry Coon’s Salary Cap FAQ was used in the creation of this post.

Earlier versions of this post were published in previous years by Luke Adams and Chuck Myron.

The Bird exception, named after Larry Bird, is a rule included in the NBA’s Collective Bargaining Agreement that allows teams to go over the salary cap to re-sign their own players. A player who qualifies for the Bird exception, formally referred to as a Qualifying Veteran Free Agent, is said to have “Bird rights.”

The most basic way for a player to earn Bird rights is to play for the same team for at least three seasons, either on a long-term deal or on separate one- or two-year contracts. Still, there are other criteria. A player retains his Bird rights in the following scenarios:

1. He changes teams via trade.

For instance, the Thunder will hold Gordon Hayward‘s Bird rights when he reaches free agency this offseason, despite just acquiring him in February. His Bird clock didn’t reset when he was traded from Charlotte to Oklahoma City.

2. He finishes a third season with a team after having only signed for a partial season with the club in the first year.

The Heat signed Haywood Highsmith during the second half of the 2021/22 season, adding him to their roster in March 2022. When his contract expires this offseason, Highsmith will have Bird rights despite not spending three full seasons with Miami, because that partial season in ’21/22 started his Bird clock.

3. He signed a full-season contract (ie. not a 10-day deal) in year one or two but the team waived him; he cleared waivers and didn’t sign with another team before re-signing with the club and ultimately remaining under contract through a third season.

This one’s a little confusing, but let’s use former Raptors big man Christian Koloko as an example. After spending the 2022/23 season with Toronto and opening the ’23/24 season on the roster, Koloko was waived by the team in January. If the Raptors were to re-sign him in July without him joining a new team in the interim, his Bird clock would pick up where it left off. He’d have full Bird rights in the summer of 2025, since he would’ve spent part or all of each of the previous three seasons with Toronto, without changing teams in between.

It’s worth noting that while the Raptors could restart Koloko’s Bird clock by re-signing him, they wouldn’t be able to use any form of Bird rights to add him to their roster this offseason — they would have to use cap room or another exception to do so. His Bird clock would only resume once he’s back under contract.

This rule also applies to players who are waived after they already have Bird rights. For example, let’s say the Warriors were to waive Chris Paul this offseason before his $30MM salary for 2024/25 becomes guaranteed.

Golden State, which doesn’t project to have cap room this summer, would have no means to re-sign Paul except via the minimum salary exception or perhaps the mid-level exception, since waiving him would mean losing his Bird rights. But if they did find a way to re-add him on a one-year contract after waiving him, the Warriors would regain Paul’s full Bird rights in 2025.

A player sees the clock on his Bird rights reset to zero in the following scenarios:

1. He changes teams via free agency.
2. He is waived and is not claimed on waivers (except as in scenario No. 3 above).
3. His rights are renounced by his team. However, as in scenario No. 3 above, a player’s Bird clock picks up where it left off if he re-signs with that team renounced without having signed with another NBA team. For example, Boban Marjanovic had Bird rights last offseason, then had those rights renounced by the Rockets as they freed up extra cap room. Since Marjanovic eventually signed a new deal with Houston, he’ll retain his full Bird rights this summer — that wouldn’t have been the case if he had signed with a new team.
4. He is selected in an expansion draft.

Players on two-way contracts accumulate Bird rights in the same way that players on standard contracts do. Magic forward Admiral Schofield has been under contract with Orlando on various two-way and standard deals in each of the past three seasons, so if he remains on his current two-way deal through the end of 2023/24, he’ll have full Bird rights this summer.

If a player who would have been in line for Bird rights at the end of the season is waived and claimed off waivers, he would retain only Early Bird rights.

It’s also worth noting that there’s one specific scenario in which a player with Bird rights can lose them in a trade. A player who re-signs with his previous team on a one-year contract (or a one-year deal with a second-year option) would have his Bird clock reset if he’s traded later that season. As such, he receives the ability to veto trades so he can avoid that scenario.

[RELATED: Players who had the ability to veto trades in 2023/24]

The Bird exception was designed to allow teams to keep their best players, even when those teams don’t have the cap room necessary to do so.

When a player earns Bird rights, he’s eligible to re-sign with his team for up to five years and for any price up to his maximum salary (with 8% annual raises) when he becomes a free agent, no matter how much cap space the team has — or doesn’t have.

The maximum salary varies from player to player depending on how long he has been in the league, but regardless of the precise amount, a team can exceed the salary cap to re-sign a player with Bird rights.

A team with a Bird free agent is assigned a “free agent amount” – also called a cap hold – worth either 190% of his previous salary (for a player with a below-average salary) or 150% of his previous salary (for an above-average salary), up to the maximum salary amount. For players coming off rookie scale contracts, the amounts of those cap holds are 300% and 250%, respectively.

The Sixers, for instance, will have a cap hold worth $13,031,760 for Tyrese Maxey on their books this offseason — 300% of his $4,343,920 salary for 2023/24. Philadelphia could renounce Maxey and generate an extra $13MM+ in cap flexibility, but doing so would cost the Sixers the ability to re-sign him using Bird rights, which would force them to use either cap room or a different cap exception to re-sign him. As such, we can count on Philadelphia keeping Maxey’s cap hold on the books until his free agency is resolved.

Note: This is a Hoops Rumors Glossary entry. Our glossary posts will explain specific rules relating to trades, free agency, or other aspects of the NBA’s Collective Bargaining Agreement. Larry Coon’s Salary Cap FAQ was used in the creation of this post.

Earlier versions of this post were published in previous years by Luke Adams and Chuck Myron.