Hoops Rumors Glossary: Minimum Salary Exception

The minimum salary exception is something of a last resort for capped-out teams looking to add players, as well as for players seeking NBA contracts, but it’s one of the most commonly used cap exceptions.

As its name suggests, the minimum salary exception allows an over-the-cap team to sign a player to a minimum-salary deal. A contract signed using the minimum salary exception can be a one- or two-year deal, but can’t cover more than two seasons.

Teams can use the exception multiple times in a league year, giving clubs that have used all of their cap room and other exceptions an avenue to fill out their rosters. The exception also accommodates teams’ acquisitions of minimum-salary players via trade, as players signed via the minimum salary exception don’t count as incoming salary for salary-matching purposes.

Players are entitled to varying minimum salaries based on how long they’ve been in the NBA. In 2023/24, a player with no prior NBA experience was eligible for a $1,119,563 minimum salary, while a player with 10 or more years of experience was eligible for $3,196,448.

[RELATED: NBA Minimum Salaries For 2023/24]

Under the NBA’s current Collective Bargaining Agreement, the minimum salary is adjusted each season to reflect the year-to-year salary cap change. If the cap increases by 5%, so will minimum salaries. If the cap doesn’t change from one season to the next, neither will minimum salaries.

Our minimum-salary estimates for 2024/25, based on a projected salary cap of $141MM, can be found right here.

There’s a wide disparity between the minimum salary for rookies and for long-tenured players, with a minimum-salary veteran of 10+ seasons earning nearly three times as much as a rookie making the minimum next season. The NBA doesn’t want those pricier deals to discourage clubs from signing veterans, however, so the league reimburses teams for a portion of a minimum-salary player’s cost if he has three or more years of experience, as long as the contract is a one-year deal.

For example, when the Bucks signed 11-year veteran Jae Crowder to a one-year pact for 2023/24 using the minimum salary exception, he locked in a salary of $3,196,448, but the team’s cap hit was just $2,019,706, equivalent to the minimum salary for a player with two years of NBA experience. The league will reimburse the Bucks for the difference between Crowder’s salary and cap hit ($1,176,742).

Many salary cap exceptions can only be used once each season. When a team uses its full mid-level exception to sign one or more players, the club can no longer use that exception until the following league year. Unlike the mid-level and other cap exceptions though, the minimum salary exception can be used any number of times in a single season.

The Suns, for instance, used the minimum salary exception to sign Eric Gordon, Damion Lee, Keita Bates-Diop, Drew Eubanks, Chimezie Metu, Bol Bol, and Yuta Watanabe last offseason. They also used it during the season to add Thaddeus Young and Isaiah Thomas on rest-of-season contracts.

While many exceptions begin to prorate midway through the regular season, the minimum salary exception prorates beginning after opening night. If a season is 174 days long and a player signs a minimum-salary deal after 25 days have passed, he would only be paid for 149 days.

An extreme example of a prorated minimum salary occurred when the Clippers signed Kai Jones to a minimum-salary contract on the final day of the 2023/24 season. Last year’s rookie minimum for a player like Jones – with two years of NBA experience – was $2,019,706, so he received 1/174th of that amount: $11,608.

In cases where a veteran player signs a one-year contract using the minimum salary exception midway through a season, his cap hit is prorated in the same way that his salary is.

When Young signed with the Suns on February 20, 2024, there were 55 days left in the ’23/24 season. He earned a rest-of-season salary of $1,010,371 (55/174ths of his full-season minimum of $3,196,448), while his cap hit was $638,413 (55/174ths of $2,019,706, the minimum salary for a player with two years of experience).

When a player signs a two-year contract using the minimum salary exception, his second-year salary is locked in as part of that agreement. Depending on the amount of the second-year cap increase, he may end up making more or less than the amount he would have earned if he’d instead signed two consecutive one-year minimum contracts.

On a two-year, minimum-salary deal, the player’s second-year salary is worth 105% of the first-year minimum for a player with the same years of NBA experience.

For example, a rookie signing a two-year minimum-salary deal in 2023/24 would be assured of $1,891,857 in ’24/25, once he has one year of NBA experience under his belt — that’s 5% more than the minimum for a player with one year of NBA experience in ’23/24 ($1,801,769).

Finally, it’s worth noting that the minimum salary exception can be used to claim a player off waivers in the same way that it can be used to trade for a player. However, in the case of both trades and waiver claims, a minimum-salary player can’t be acquired using the minimum salary exception if his contract is for more than two years or if his salary exceeded the minimum in any previous year of the contract.

When the Wizards waived Isaiah Livers in April, he was earning a minimum salary for 2023/24 ($1,836,096). But Livers was in the third year of his contract and had earned more than the minimum in his first season of that deal — both of those factors made him ineligible to be claimed using the minimum salary exception, so if a team had wanted to claim him, it would have needed to use cap room or a trade exception.

Here are a few more notes on the minimum salary exception:

  • Players signed using the minimum salary exception are eligible for trade bonuses, but not incentive bonuses. A minimum-salary player with a trade bonus cannot be acquired in a trade using the minimum salary exception unless he waives that bonus.
  • When a minimum-salary player is traded during the season, any reimbursement from the NBA is split between his two teams. It’s prorated based on the number of days he spends with each club.
  • If a minimum-salary player with a non-guaranteed salary is waived before he exceeds the minimum for a two-year veteran, his team won’t be reimbursed for any portion of his salary.
  • Every 10-day contract is worth a prorated minimum salary. The NBA also reimburses teams for a portion of the 10-day minimum salary for veterans with three or more years of experience.

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 and the Basketball Insiders salary pages were used in the creation of this post.

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

Central Notes: Portis, Giannis, Lillard, LaVine, Morris, Pistons

Bucks forward Bobby Portis, who was ejected in the first quarter of Sunday’s Game 4 loss in Indiana, apologized to his teammates prior to Game 5, then matched Khris Middleton‘s game-high 29 points in Milwaukee’s home win on Tuesday, writes Jamal Collier of ESPN.

“I’m an emotional player, I wear my heart on my sleeve, I give my all every night and take pride of being available for my team,” Portis said on Tuesday. “Game 4, little scuffle, maybe crossed the line. I let my team down by getting ejected and not being available for my team. I owed them an apology for sure.”

With Giannis Antetokounmpo (calf strain) and Damian Lillard (Achilles tendinitis) both unavailable for Game 5, the rest of the Bucks’ starters came up big to extend the team’s season. Portis (29 points, 10 rebounds), Middleton (29 points, 12 rebounds), and Patrick Beverley (13 points, 12 assists) each posted double-doubles, while Malik Beasley and Brook Lopez combined for 30 points.

The Bucks are still down 3-2 to the Pacers in the series, but forcing a Game 6 on Thursday gives Antetokounmpo and Lillard another chance to return to the court. Their availability remains up in the air, but head coach Doc Rivers expressed some optimism after Tuesday’s victory.

“I think they’re very, very, very close,” Rivers said of his two stars, per Collier.

Here’s more from around the Central:

  • Zach LaVine is “well ahead” of the four-to-six month recovery timeline the Bulls set after he underwent right foot surgery in February, according to K.C. Johnson of NBC Sports Chicago. Johnson says LaVine’s goal remains to resume on-court work at around the three-month mark, in the hopes of having a “relatively normal” offseason. Both Johnson and Joe Cowley of The Chicago Sun-Times reiterate that trying to make a LaVine trade is the top priority for the Bulls this summer — that task should be less complicated if he’s healthy.
  • After joining the Cavaliers as a free agent in March, veteran forward Marcus Morris didn’t play a significant role down the stretch, averaging 15.0 minutes per game in 12 regular season appearances and sitting out the team’s first two playoff contests. But he was a key contributor off the bench in Tuesday’s Game 5 win, writes Joe Vardon of The Athletic, scoring 12 points and grabbing three rebounds in 26 minutes of action. “We knew what he’s capable of,” head coach J.B. Bickerstaff said of Morris, who was a +8 in the one-point victory. “He’s just a guy you trust. And he’s been through these battles before. He’s tough as nails. He’s not afraid of s–t.”
  • Within his latest mailbag for The Athletic, James L. Edwards III discusses whether Brandon Ingram is a realistic trade target for the Pistons and checks in on Detroit’s president of basketball operations search. Confirming reporting from Marc Stein, Edwards says Dennis Lindsey is a name to watch for the Pistons. Edwards also mentions Bulls general manager Marc Eversley and Timberwolves executive VP of basketball operations Sachin Gupta as possible candidates to keep an eye on.

Sixers Notes: Maxey, Embiid, Nurse, Harris

After winning the NBA’s Most Improved Player award for 2023/24 last week, Tyrese Maxey capped a memorable April with the biggest game of his four-year NBA career on Tuesday. The star guard scored 46 points in 52 minutes, including seven in the final 30 seconds of regulation to force the game into overtime, leading the Sixers to a Game 5 victory that kept their season alive.

“What was going through my mind was trying to survive,” Maxey said, per Tim Bontemps of ESPN. “Our season is on the line. I trust my work. I trust what I’ve done all my life, and I just tried to get to a spot, raise up and knock that shot down.”

The Sixers’ other star, Joel Embiid, had a triple-double in Tuesday’s victory, racking up 19 points, 16 rebounds, and 10 assists. But Embiid, who is dealing with a sore knee, a case of Bell’s palsy, and a migraine that forced him to miss Tuesday morning’s shootaround, clearly wasn’t operating at full strength and made just 7-of-19 shots from the field. Last season’s MVP said after the game that he appreciated Maxey coming through when the club needed him most.

“Tonight, obviously based on the circumstances and knowing what was needed, based on what was happening and me not being able to be myself, he just had to do it,” Embiid said, per Bontemps. “And he did it. That’s why he is such an amazing basketball player.”

Here’s more on the Sixers, who now trail the Knicks 3-2 in their first-round series:

  • Embiid has become public enemy number one among Knicks fans during the first round, especially following a physical Game 3 performance in which he was accused of committing a “dirty” foul on opposing center Mitchell Robinson. However, the Sixers star had nothing but praise for the New York faithful after being on the receiving end of their vitriol in Game 5, according to Brian Lewis of The New York Post. “It’s not hostile. I love New York. New York is my favorite city in the world. I have a place here for the past five years. I just love New York,” Embiid said. “And then the (Knicks) fans, when you play against a team they’re always gonna pick that guy. And they seem to have picked me, which is fine. I love it. If I gotta be the punching bag and keep hearing a lot of ‘F Embiid,’ that’s ok. I love it.”
  • Nick Nurse become the second NBA head coach to suffer an injury during the postseason, though it doesn’t sound as if his issue is as serious as Chris Finch‘s patellar tendon tear, which required surgery. As Ian Begley of SNY.tv tweets, Nurse injured a finger during Tuesday’s game when he slammed his hand in frustration over a call. It’s unclear if he broke or sprained the finger, but the 76ers’ coach couldn’t grip a marker to draw up plays during the second half, Begley adds.
  • Prior to Tuesday’s game, Keith Pompey of The Philadelphia Inquirer suggested that it might be a good idea to bring struggling forward Tobias Harris off the bench after he scored no more than 10 points in any of the series’ first four games. However, Nurse stuck with Harris in the starting five and the veteran rewarded his faith in Game 5, Pompey notes, scoring 19 points on 7-of-11 shooting. Harris was a +11 in 49 minutes of action. “Coach drew up some opportunities for me early on to get me going,” Harris said. “And I think that was just big for myself and overall, and just getting into a rhythm and getting into a flow out there.”

Western Notes: Thunder, Doncic, Spurs’ Arena, Edwards

Youth and playoff inexperience didn’t matter in the Thunder‘s sweep of the Pelicans in the opening round. They’re the youngest team in NBA history to win a playoff series and ESPN’s Tim MacMahon notes that the Thunder got only one basket in the entire series from a player older than 25 (Twitter link).

“There’s a difference between age and maturity,” Thunder coach Mark Daigneault said, per The Athletic’s Darnell Mayberry. “And we have a mature team. We have a committed team.”

We have more from the Western Conference:

  • Mavericks star Luka Doncic has been fighting through a knee injury since the first quarter of Game 3 of their series against the Clippers, according to Brad Townsend of the Dallas Morning News. Game 5 will be played on Wednesday. “It’s hurting, obviously, but it shouldn’t be an excuse, man,” Doncic said after the Game 4 loss. “We just came out a little sloppy. We’ve got to do way better than that.”
  • There’s a hush-hush tone to the discussions about San Antonio building a downtown arena for the Spurs, Molly Smith of the Express-News reports. City officials have not only been trying to keep their talks secret, they’ve signed legally binding contracts that would penalize them for saying anything about the discussions, or even acknowledging that they’re considering building a new arena. The project, if it advances, could cost $1 billion or more, and San Antonio taxpayers could be asked to foot at least part of the bill.
  • Anthony Edwards has quickly grown into a leadership role on the Timberwolves at a young age, according to Chris Hine of the Minnepolis Star Tribune. “One thing about Ant, he’s become more of a vocal leader,” assistant coach Micah Nori said. “But he’s also one of those guys that he puts in the work, so guys see him working. He’s got some self humor — you’ve seen all of his interviews — he’s the first one to congratulate and move all of his glory or whatever over to his teammates.”

Suns Notes: Booker, Gordon, Beal

Don’t believe the rumor that Suns All-Star guard Devin Booker wants to be moved to the Knicks, Gerald Bourguet of PHNX Sports reports.

ESPN commentator Stephen A. Smith claimed on an episode of First Take that Booker “wants to be in New York.” However, a source in Booker’s camp told Bourguet that these rumors are unequivocally false.

The Knicks have been interested in acquiring Booker since Leon Rose became their team president. Rose would like to pair him up with Jalen Brunson, according to Bourguet, and would be willing to do just about anything to make it happen. But the Knicks’ interest in Booker is one-sided, Bourguet writes, as the All-Star guard is loyal to the Suns and likes the idea of sticking with one team his entire career.

We have more on the Suns:

  • Several Phoenix players hold contract options for next season and none will be watched more closely than Eric Gordon. According to the Arizona Republic’s Duane Rankin, Gordon hasn’t made a decision on his player option. “There’s no way I’m going to make a decision right now,” Gordon said. “Just enjoy the offseason, watch a lot of these games, see what everybody is doing. We still have a talented team. We just got to jell and mesh together, but I’m not going to make a decision right now.” It’s generally expected that Gordon will decline his $3.36MM option and look for a more lucrative deal.
  • Bradley Beal fully expects that the team’s big three – himself, Booker and Kevin Durant – will be more dangerous next postseason, ESPN’s Baxter Holmes relays. “We didn’t look at this thing as a one-year thing and we’re going to come in and just, we only got this year to figure it out,” Beal said. “No, we’ve got time. You don’t want to use that as a cop-out, but the reality we live in, that’s the game plan. We have a window. Yeah, it’s a short window, but we have a window, so we want to maximize it as much as possible. And obviously, we still have a lot of room to grow.”
  • In case you missed it, Booker and Durant spoke about the value of continuity in the aftermath of getting swept in the playoffs.

Southeast Notes: Jaquez, Aller, Harrel, Redick

Add Jaime Jaquez Jr. to the list of injured Heat players. Jaquez suffered a right hip flexor strain during Game 4 of the team’s first-round series against Boston on Monday, according to Ira Winderman of the South Florida Sun Sentinel.

The Heat rookie has already been ruled out for Game 5, Winderman tweets. Terry Rozier (neck) has also been ruled out for Wednesday’s game, the team tweets.

We have more from the Southeast Division:

  • The Hornets have expressed significant interest in hiring Brock Aller to Jeff Peterson‘s front office staff, SNY TV’s Ian Begley reports. Aller has been the Knicks’ vice president of basketball and strategic planning since 2020. Aller, who has already been contacted by Charlotte, has been instrumental in salary cap strategy, general strategy and contract structure for New York.
  • The Hornets are hiring Patrick Harrel as their new vice president of basketball insights and analysis, Yahoo Sports’ Jake Fischer tweets. Harrel has been working for the NBA’s data science department, where he led game scheduling optimization.
  • Hiring J.J. Redick as head coach would be an outside-the-box move, but he would inject life into the Hornets organization, Roderick Boone of the Charlotte Observer opines. Redick’s candidacy was revealed early last week. His lack of coaching experience would be the major concern, but he played in the league for a long time and can relate to today’s players.  The possible move is already being met with positive vibes, Boone adds.

Bucks’ Giannis, Lillard Out For Game 5

APRIL 30: Antetokounmpo and Lillard are both out for Tuesday’s Game 5, Rivers told reporters prior the game, Eric Nehm of The Athletic tweets.


APRIL 29: The Bucks are on the verge of elimination and it’s unlikely they’ll have their two best players available for Game 5 of their first-round series with the Pacers. The team is listing both Giannis Antetokounmpo and Damian Lillard as doubtful to play on Tuesday, The Athletic’s Eric Nehm tweets.

Antetokounmpo hasn’t played the entire series due to a left calf strain that he suffered late in the regular season. Damian Lillard missed the Bucks’ Game 4 loss on Sunday due to right Achilles tendinitis. Lillard averaged 32.3 points and 5.3 assists in 40.7 minutes per contest during the first three games of the series.

Prior to Game 4, Milwaukee coach Doc Rivers expressed optimism that Antetokounmpo could return to action after the superstar went through a rugged workout on Sunday morning. “I think there’s a chance for him to play in this series. I really do,” he said.

Patrick Beverley (right oblique muscle strain) and Khris Middleton (right ankle sprain) are listed as probable to play.

The Pacers’ top player isn’t a lock to suit up, either. Tyrese Haliburton is listed as questionable due to back spasms, Dustin Dopirak of The Indianapolis Star tweets.

Jarrett Allen Ruled Out For Game 5 With Rib Injury

Cavaliers center Jarrett Allen has been ruled out of tonight’s Game 5 against the Magic due to a bruised rib, The Athletic’s Shams Charania tweets.

It’s a major blow to Cleveland, especially on the boards, as Allen has been a force during the series. The big man is averaging 17.0 points and 13.8 rebounds in the four games and was particularly dominant inside during Cleveland’s Game 1 and 2 victories.

With Allen sidelined, the Cavs will go with a smaller lineup, Keith Smith of Spotrac tweets. Forward Isaac Okoro will join the starting five alongside Evan Mobley, Max Strus, Donovan Mitchell and Darius Garland with the series knotted at two games apiece.

Tim Connelly Among Potential Targets For Pistons’ President Opening

The Pistons would be interested in Timberwolves president of basketball operations Tim Connelly if Connelly exercises the opt-out clause in his contract with Minnesota at the end of the season, Marc Stein reports in his latest Substack post.

The dispute between current Timberwolves majority owner Glen Taylor and minority owners Alex Rodriguez and Marc Lore could cause Connelly to weigh his future in Minnesota. Connelly signed a five-year, $40MM contract with the organization in 2022. The Pistons announced after their season ended that they would hire a president of basketball operations.

Here’s more info on the Pistons’ search for a new president, via Stein:

  • Detroit’s search is expected to ramp up during the second and third rounds of the playoffs, when more potential candidates will be available for interviews. Stein confirms that Bucks general manager – and former Pistons employee – Jon Horst will be a candidate if he is willing to move on from Milwaukee.
  • Mavericks consultant and former Jazz executive Dennis Lindsey is another name to watch for the basketball ops position, per Stein.
  • J.J. Redick, a candidate for the Hornets’ coaching vacancy, could get an interview if he’s interested in a front office job, Stein says. Pistons chairman Arn Tellem represented Redick in his days as a player agent.
  • The new president of basketball operations will have the ability to decide whether current GM Troy Weaver will remain in his position, be reassigned to a different front office role, or get cut loose, according to Stein. The new exec will also determine whether head coach Monty Williams, who just completed the first year of a six-year contract worth nearly $80MM, will remain in his position.

Pelicans Notes: Offseason, Ingram, Center, Point Guard

Entering the final day of the regular season earlier this month, the Pelicans just needed a victory to secure the No. 6 seed in the West. However, they lost that game, lost their first play-in game, and lost star forward Zion Williamson in that contest to a hamstring injury that turned out to be a season-ender. New Orleans ultimately claimed the No. 8 seed in the West, but was quickly dispatched by the Thunder in a four-game sweep.

Speaking on Tuesday to reporters (Twitter video link), head of basketball operations David Griffin said there were “so many positives” to take away from the season, pointing to the Pelicans’ league-best 28-14 road record and their sixth-best net rating (+4.6). But while he acknowledged that the team was once again bitten by the injury bug at an inopportune time, he said the front office can’t just bring back the same group and hope for better health luck next season.

“In the past, we’ve always erred on the side of continuity, and our takeaway has always been, ‘Let’s see this group healthy.’ I think we’ve seen it enough,” Griffin said. “I think we had a really, really good opportunity to see Zion play a career high in games. I think we saw it for segments of time well enough to understand that we’ve got a lot of work to do. Because it is a historically good Western Conference, there are teams that didn’t make the playoffs that are going to get radically better this offseason. We need to do the same. I think you’ll see a real sense of urgency from all of us to do that.

“… I want to be really, really clear,” Griffin added (Twitter video link). “This is not going to be a summer of complacency. It’s time to get better.”

The Pelicans aren’t quite as loaded with draft assets as they once were, but they’re still in good position to make a deal heavy on picks. They control all their own future first-round selections, an unprotected Lakers first-rounder (they can take this year’s No. 17 pick or defer it to 2025), an unprotected Bucks first-rounder (2027), and swap rights with Milwaukee in 2026.

Here’s more on the Pelicans:

  • The Pelicans will face a significant decision this offseason on Brandon Ingram, as the star forward prepares to enter the final year of his maximum-salary contract following an ugly series vs. the Thunder (14.3 PPG on .345/.250/.895 shooting). As Christian Clark of NOLA.com writes, if they don’t want to enter next season with Ingram on an expiring deal, the Pels will have to determine this summer whether to trade or extend him. “That’s not in the front of my mind right now,” Ingram said after Monday’s Game 4 loss. “This is a place where I got my first All-Star (appearance). Where they let me be myself. I have good relationships with everyone. But you never know. I will take a few weeks off and think about what’s best for me, what’s best for my family. Then take it from there.”
  • While sorting out Ingram’s future will likely be their top priority, the Pelicans have plenty of important items on their summer to-do list, according to offseason previews from ESPN’s Bobby Marks (Insider link) and Mark Deeks of HoopsHype. Trey Murphy will be eligible for a rookie scale extension, Naji Marshall will be an unrestricted free agent, and New Orleans would presumably like to find a center who can reliably close games after having to bench both Jonas Valanciunas and Larry Nance in certain matchups. Valanciunas will also be a free agent this offseason.
  • Adding a traditional point guard to their roster may be another item on the Pelicans’ offseason to-do list. Asked today about that possibility, Ingram acknowledged, “It would definitely be helpful” (Twitter link via Clark). CJ McCollum has been New Orleans’ primary point guard since being acquired from Portland, but it’s not his original position.