Hoops Rumors

As long as a team is operating below the second tax apron, it has access to at least some form of the mid-level exception, a tool designed to allow clubs to add talent without using cap room to do so. As we outline in more detail within our glossary, one of the following MLEs is available to a team below the second apron of $188,931,000:

• Taxpayer mid-level exception ($5,183,000): For teams operating between the first and second tax aprons.
• Non-taxpayer mid-level exception ($12,822,000): For teams operating above the cap and below the first apron.
• Room exception ($7,983,000): For teams who operate under the cap and use up all their room.

While four teams – the Celtics, Suns, Timberwolves, and Bucks – currently have salaries above the second tax apron, the other 26 clubs have access to one of these three mid-level exceptions. However, only a small handful of those clubs have actually taken advantage of the exception, as our tracker shows.

The Warriors are the lone team to use the full portion of the non-taxpayer mid-level exception so far in 2024/25, having signed free agent guard De’Anthony Melton a one-year contract worth $12,822,000.

Four other teams have used at least some portion of the non-taxpayer mid-level exception, but still have a chunk left over for one or more signings later in the league year. That group includes the Bulls (approximately $4.25MM remaining), Mavericks ($4.25MM), Clippers ($3.3MM), and Wizards ($6.38MM). They used part of their MLEs to sign Jalen Smith, Naji Marshall, Derrick Jones, and Saddiq Bey, respectively.

The Nuggets used the entire $5.2MM taxpayer mid-level exception to add Dario Saric in free agency, while the Sixers re-signed Kelly Oubre using their full $8MM room exception.

The remaining 19 teams have yet to dip into their mid-level or room exceptions at all.

In some cases, it’s not practical to do so. For example, the Heat and Lakers technically have access to the taxpayer MLE, but are so close to the second apron that they can’t realistically use it without shedding some salary.

Other teams are close enough to the luxury tax line that it wouldn’t make sense for them to spend their mid-level exception and become a taxpayer. The Nets and Hawks, for instance, have yet to touch their MLEs, but they’re each less than $2MM away from the tax threshold, so it’s safe to assume neither team is on the verge of bringing in an MLE-level free agent.

Still, there are plenty of teams that have more than enough spending flexibility to use some or all of their exception. That group includes every club with access to the room exception, including potential contenders such as the Thunder and Magic.

The 2024/25 season represents the first league year in which teams are permitted to use the non-taxpayer mid-level exception or the room exception to acquire a player via trade rather than just to sign a player to a contract, so some clubs may be waiting until mid-season to see if a better opportunity arises on the trade market. Others may use some of their leftover exception money to pursue a free agent on the buyout market in February.