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The NBA introduced the Gilbert Arenas provision in the 2005 Collective Bargaining Agreement as a way to help teams to keep their young restricted free agents who aren't coming off rookie scale contracts. It was named after Gilbert Arenas, an Early Bird free agent for the Warriors in 2003, who signed an offer sheet with the Wizards starting at about $8.5MM. Because Golden State could only offer Arenas a first-year salary of about $4.9MM using the Early Bird exception, the Warriors were unable to match the offer sheet and lost Arenas to Washington.

The Arenas provision limits the first-year salary that teams can offer restricted free agents who have only been in the league for one or two years. The starting salary for an offer sheet can't exceed the amount of the non-taxpayer mid-level exception, which allows the player's original team to use its MLE to match it. Otherwise, a team without the necessary cap space or exceptions would be powerless to keep its player, like the Warriors were with Arenas.

A rival offer sheet can still have an average annual salary that exceeds the non-taxpayer mid-level exception, however. The annual raises are limited to 4.5% between years one and two, and 4.1% between years three and four, but a significant raise can be included between the second and third years of the offer. A team's cap space dictates the average annual salary limit for the entire contract, since the average salary still has to fit under the cap. The Rockets had enough cap space last summer to make a pair of sizable offers, to Jeremy Lin and Omer Asik, that fell under the Arenas provision.

Both Lin and Asik were restricted free agents coming off their second seasons in the league, with the Knicks and Bulls, respectively. Their previous clubs owned their Non-Bird rights, but the Non-Bird exception certainly wouldn't have been enough to match the twin three-year, $25,123,938 offers they received from the Rockets. The cap hit for the Rockets is $8,374,646 in each season of their deals. But, thanks to the Arenas provision, the cap hit for the Knicks and Bulls would only have been $5MM in the first season, and $5.225MM in the second. The third season was what scared New York and Chicago off, since it would have entailed a nearly $15MM cap hit, as detailed here:

Because the first-year salary of the offer sheet doesn't exceed the non-taxpayer mid-level exception, the Knicks and Bulls could have used their mid-level exceptions to match, even though that big a third-year raise wouldn't typically be permitted when using the mid-level. The uneven amount in the third season reflects the amount of cap space the Rockets had to make the offers. The Rockets could have included a fourth season on both deals if they had additional cap room.

For 2013/14, the mid-level exception will be slightly larger, with a starting salary of $5.15MM instead of $5MM, so clubs will have a little more flexibility to keep their free agents using the Arenas provision. Still, just because a team is given the opportunity to use the Arenas provision to keep its restricted free agent doesn't mean it will necessarily have the means. Here are a few situations in which the Arenas provision wouldn't help a team keep its restricted free agent:

• If the team only had the taxpayer mid-level exception ($3.183MM) available, it would be unable to match an offer sheet for a Non-Bird free agent if the starting salary exceeded the taxpayer MLE amount.
• If the team used its mid-level exception on another player, it would be unable to match an offer sheet for a Non-Bird free agent.
• If the player has three years of NBA experience, the Arenas provision would not apply — only players with one or two years in the league are eligible. This is why many teams, as a matter of practice, sign second-round picks and undrafted rookies to three-year contracts with team options in the second and third seasons. This way, the team has the player's full Bird rights if it wishes to re-sign him.

Luke Adams contributed to this post, which was initially published on May 9th, 2012.

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.

Among free agents this offseason will be several former first-round picks whose teams elected not to exercise the options on their rookie-scale contracts. Those rookie deals are usually some of the best bargains in the league, but when a draft choice doesn't pan out, even the cheapest of contracts can become unappealing.

Rooke-scale contracts include team options for the third and fourth seasons, but clubs must decide on those options before the player's second and third seasons, respectively. That lead time allows some of those players, like Earl Clark, whom I profiled earlier tonight, to redeem themselves and wind up with another contract. Still, the market for these discarded former prospects isn't hospitable. As this year's option declinees prepare for an offseason of uncertainty, here's what happened to the former first-rounders whose options were declined before last season: 

• Hasheem Thabeet quickly established a reputation as one of the worst draft busts of all time soon after the Grizzlies took him second overall in 2009. He saw the floor for just 13.1 minutes per game as a rookie, and got even fewer minutes in his second season, during which Memphis traded him to Houston. Thabeet only appeared in two games the rest of that year, and the following summer the Rockets declined his fourth-year option. Thabeet endured another trade at last year's deadline, heading to the Trail Blazers, but still wound up with more than the minimum salary this summer when the Thunder signed him to a three-year, $3.65MM contract. 
• After David Kahn's tenure with the Timberwolves ended this week, he addressed the thinking that went into his ill-fated decision to draft Jonny Flynn sixth overall in 2009. The pick appeared OK in Flynn's first season, when the point guard started 81 games and averaged 13.5 PPG and 4.4 APG, but he made just eight starts the next season, after which Minnesota traded him to the Rockets, who declined his fourth-year option. He wound up joining Thabeet in the trade to Portland last year, but unlike the No. 2 pick, Flynn didn't stick after joining the Pistons as a training camp invitee. He spent this season playing in Australia. 
• The Knicks passed up DeMar DeRozan and Brandon Jennings, among others, to take Jordan Hill eighth overall in 2009. New York promptly traded him to Houston just 24 games into his rookie season. The Rockets picked up his third-year option, but despite a career-high 11 starts in 2010/11, the team decided against bringing him back for a fourth year and shipped him to the Lakers at the deadline last year. Hill blossomed in L.A. and earned a two-year, $7.127MM contract to return to the Lakers. 
• Terrence Williams was a lottery pick in 2009, going 11th overall to the Nets, who traded him to Houston midway through his second season. The Rockets declined his fourth-year option, and he wound up in China before hooking on with the Celtics, first on a 10-day deal, and then for the rest of the season and beyond.
• Even the vaunted Spurs can have a draft miss now and again. They drafted James Anderson 20th overall in 2010, but declined their third-year option on him after he totaled just 94 points in 26 games as a rookie. He saw action in about twice as many contests the next year, though his per-minute production didn't increase. San Antonio re-signed him as an injury fill-in early this season, but let him go again once Kawhi Leonard got healthy. Still, the Rockets saw something they liked, and signed him for the minimum in January, cutting Daequan Cook to make room.
• Craig Brackins went 21st overall to the Thunder in 2010, who traded him to the Pelicans (nee Hornets) as part of a draft-night deal. New Orleans swapped him again, to the Sixers, later that summer, and it became apparent Philadelphia wasn't high on him, either. The Sixers declined his third-year option after he appeared in only three games as a rookie. He didn't see much more time in his second season, and he didn't return to the NBA this year, playing in Italy and the D-League. 
• Damion James, the 24th overall pick by the Nets in 2010, showed enough promise in 2010/11 to garner nine starts, but a foot injury limited him to just 25 games. The same foot caused him to miss most of the next season after the team declined his third-year option. The Nets brought him back on a 10-day contract this January, but elected not to re-sign him when it expired.
• Injury prevented Daniel Orton, the Magic's 29th overall pick in 2010, from seeing the floor at all for the team in his rookie season, and Orlando decided against picking up his third-year option. He wound up with the Thunder as a training camp invitee this fall, and the roster spots left open in the wake of the James Harden trade allowed Oklahoma City to re-sign him to a minimum-salary deal just days after cutting him.

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A pair of unexpected starters delivered performances that were even more surprising this week in the playoffs. Andrew Goudelock of the Lakers sprang for 20 points last night, while Patrick Beverley delivered 16 points, 12 rebounds and six assists for the Rockets in Wednesday's loss to the Thunder.

Beverley also lunged at Russell Westbrook, who was trying to call for a timeout, and that resulted in a tear of the right lateral meniscus in Westbrook's knee. The injury will keep Westbrook out for the rest of the playoffs, the team announced today. That could open up an opportunity for Derek Fisher, another player who wasn't on an opening-night roster, just like Beverley and Goudelock. Similarly, Aron Baynes may be thrust into the spotlight with Tiago Splitter out indefinitely with a sprained ankle, just as Jeff McDonald of the San Antonio Express-News suggests (Twitter link).

All but three playoff teams have players who went from out of the league on opening night to the postseason. The Celtics, Heat, Rockets and Grizzlies all have three such players. Here's a complete list:

• Celtics: Terrence Williams, Shavlik Randolph, D.J. White
• Knicks: Kenyon Martin, Quentin Richardson
• Heat: Chris Andersen, Juwan Howard, Jarvis Varnado
• Bucks: None
• Nets: None
• Bulls: Malcolm Thomas
• Pacers: None
• Spurs: Aron Baynes, Tracy McGrady
• Lakers: Andrew Goudelock
• Thunder: Derek Fisher
• Rockets: Patrick Beverley, James Anderson, Tim Ohlbrecht
• Clippers: DaJuan Summers
• Grizzlies: Keyon Dooling, Donte Greene, Willie Reed
• Warriors: Dwayne Jones

Thirteen teams made use of the mid-level exception this year, going with different strategies as they did so. Some teams deployed the full mid-level, with a starting salary of $5MM, while others used the taxpayer's mid-level of $3.09MM, which allowed them to exceed the $74.307MM tax apron. Many teams committed all of their mid-level to one player, while some split it up to sign multiple guys. 

Still, a couple of common themes developed. Most of the best signings involved players who came off the bench and shot well from behind the arc. We'll chronicle this year's top mid-level signings here, in no particular order:

• Louis Williams, Hawks (three years, $15.675MM): Atlanta committed its full non-taxpayer's mid-level to the former Sixer, and he carried his off-the-bench scoring punch to the Hawks, averaging 14.1 PPG in 28.7 MPG until he tore his right ACL in January.
• Kyle Singler, Pistons (three years, $3.135MM): Usually, teams use their mid-level exceptions for veterans, but occasionally they use a part of them to lock up their second-round picks, and that's what Detroit did with Singler, their 2011 second-round selection who spent last season overseas. Singler started 74 games and displayed a decent stroke from outside, hitting 35% of his three-point attempts.
• Carl Landry, Warriors (two years, $8MM): Golden State became a playoff team thanks in part to Landry's contributions as the first big man off the bench. He averaged 9.3 rebounds per 36 minutes, his best rate since he was a rookie.
• Jamal Crawford, Clippers (four years, $21.35MM): His final two seasons are partially guaranteed, which prevents the deal from being the best possible mid-level arrangement for a player, but Crawford sure looks like he deserved all he could get. He made a push for an All-Star berth and the Sixth Man of the Year award, and led the team in points per 36 minutes, with 20.3.
• Ray Allen, Heat (two years, $6,319,050): Miami used its full taxpayer's mid-level and got just what they were looking for in Allen, a sharpshooter who came off the bench and enhanced the team's floor spacing on offense. He shot 41.9% from three-point land, bettering his career mark.
• Randy Foye, Jazz (one year, $2.5MM): The small size and short length of this contract have as much to do with its inclusion on this list as Foye's performance. Still, the former No. 7 overall pick started 72 games this season, the most in his career, and he shot 41% from three-point range. The Jazz still might have been better off if they had been able to bring Foye and his shooting off the bench, as other teams did with their mid-level signings this year.
• Martell Webster, Wizards (one year, $1.75MM): Few would have predicted that Webster, a cousin of Jason Terry, would have outperformed his relative, but that's what happened this season. Webster set career marks in PPG (11.4) and three-point percentage (42.2%), prompting the Wizards to prioritize re-signing him this summer. They'll probably need to give him a raise to make that happen.

Honorable mention: Jodie Meeks, Lakers; Draymond Green, Warriors; Jason Kidd, Knicks; Boris Diaw, Spurs.

Storytellers Contracts was used in the creation of this post.

Hoops Rumors passes along the latest news and rumors on NBA player movement 365 days a year, but those aren't the only updates you'll see on the site. On our right sidebar, you'll find a number of additional features and featured posts. Here's a rundown of a few of them:

• We'll be keeping a close eye on free agency this summer with the help of our list of 2013 free agents. If you want to look ahead to the summer of 2014, we've rounded up those free agents as well. Both lists will continue to be modified as needed.
• Our Free Agent Tracker, which features data sortable by team, position, contract years, and contract amount, currently includes last summer's signings and will be used to track the upcoming summer's deals as well.
• Speaking of those upcoming signings, we've started looking ahead to a number of specific free agent cases in our Free Agent Stock Watch series, which we'll continue through July.
• Our agency database is a handy reference point for determining the representation for virtually every NBA player.
• Throughout the season, we kept tabs on the year's D-League assignments and recalls and all the in-season trades consummated this year.
• NCAA underclassmen who have declared for June's draft are rounded up on our list of 2013 early entrants.
• We've taken a closer look at a number of those early entrants for this year's draft in our Prospect Profile series.
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With the 2012/13 regular season behind us and the postseason underway, we don't figure to see many more NBA roster changes until at least June. As our Chuck Myron detailed yesterday, there will occasionally be a transaction of note while the playoffs are still ongoing, but for the most part we won't see any signings or other moves.

As such, we've moved all the notable players who finished this season as free agents to our list of 2013/14 free agents, retiring our list of 2012/13 free agents. For the most part, players were only moved to our '13/14 list if they played in the NBA this past season. However, in some cases, I moved notable veterans to this summer's FA list, even if they didn't appear in an NBA game in '12/13. For instance, players like Gilbert Arenas, Delonte West, and Michael Redd show up in the current list, since I think they'll draw some NBA interest and perhaps even sign with a team this offseason.

Our list of 2013/14 free agents is quite extensive at the moment, as it includes players who have player or team options for next season, as well as players whose contracts are non-guaranteed. Some of those players will be removed from the list by the time July arrives — the Raptors will undoubtedly guarantee Kyle Lowry's contract, for instance, while Ben Gordon is a lock to exercise his player option, putting off his free agency for a year.

For now though, check out our '13/14 list to get an idea of which players your favorite team might target this offseason.

The NBA usually focuses strictly on basketball during the playoffs, but front offices don't go completely dark during this time of year. Scouts and executives are preparing for the draft and free agency, and sometimes teams get a jump-start on the summer with a key move. Here are five such transactions from the past three springs.

June 20th, 2012: Pelicans (then Hornets) trade Emeka Okafor and Trevor Ariza to Wizards for Rashard Lewis and the 46th pick in the 2012 draft — None of the players in this deal had team-friendly contracts, but New Orleans swapped two years of Okafor and Ariza for one season of Lewis, whose massive $22.7MM salary for 2012/13 was only guaranteed for $13.7MM. New Orleans waived Lewis to save the $9MM difference. The Wizards played well in stretches this season, but Okafor and Ariza failed to help them into the playoffs. Both intend to opt in for next season, at a combined cost of $22.2MM.

May 30th, 2011: Timberwolves sign Ricky Rubio — Rubio and the Wolves ended a nearly two-year wait, finally agreeing on a rookie-scale contract after Minnesota made him the fifth overall pick in 2009. The two-year delay made Rubio slightly more expensive, since he signed for the 2011 scale amount, rather than the figure from 2009, but it also bought the Wolves some time before they have to extend or re-sign Rubio with his next contract, which figures to include a sizable raise. If Minnesota had signed Rubio in 2009, his rookie contract would be up this summer.

April 20th, 2011: Grizzlies extend Zach Randolph — Eighth-seeded Memphis had a 1-0 lead on the No. 1 seed Spurs when the Grizzlies finalized their four-year, $66MM extension. Z-Bo paid immediate dividends, leading Memphis to a series victory over San Antonio and helping push the Thunder to seven games in the next round. The past two seasons haven't been as fruitful, though, as Randolph's scoring has declined to an average of 14.4 points per game in 2011/12 and 2012/13 after four straight 20-PPG seasons.

June 17th, 2010: Kings trade Spencer Hawes and Andres Nocioni to Sixers for Samuel Dalembert — The Kings sent the 10th pick in the 2007 draft away with one season remaining on his rookie-scale contract for Dalembert, who also had just one season left on his deal. Unlike the affordable Hawes, Dalembert cost $13.4MM that season, and gave the Kings just 24.2 minutes per game. Nocioni had a similar cap hit spread out over two seasons, with $13.5MM left on his deal through 2012, but he never played a significant role in Philadelphia.

April 20, 2010: Trail Blazers extend Marcus Camby — Camby signed a two-year, $17.7MM extension, but after helping the Blazers to their third straight playoff appearance in 2011, Portland traded Camby to the Rockets at the deadline in 2012. In return, the Blazers received only Hasheem Thabeet and Jonny Flynn, neither of whom is with the team anymore, along with a future second-round pick. The Rockets signed-and-traded Camby last summer for a package of three players who are no longer with them, either.

Last year's lockout prompted many NBA players without contracts to jump to a league they might not have otherwise considered. Chinese Basketball Association teams don't allow their imports from overseas an out in case the NBA comes calling, but with the 2011/12 season in doubt, Wilson Chandler, J.R. Smith, Aaron Brooks and a handful of others took the chance and signed to play in China. 

The lockout ended in December, but since the Chinese league's season ends much earlier than the NBA's, the prominent Americans playing in China were able to come back stateside. The gamble paid off particularly well for Chandler, who inked a five-year, $31.72MM deal with the Nuggets upon his return. 

Even without the specter of the lockout this season, the CBA has continued to funnel talent to the NBA, with the early end to its schedule a key factor. No team took advantage quite like the Celtics, who brought three players over from China when injuries depleted their roster. Here's a look at all the players who wound up in the NBA after playing in the CBA this season: 

• Shavlik Randolph, Celtics: After pouring in 32.0 PPG and 14.5 RPG for the Foshan Long Lions, Boston signed Randolph to a pair of 10-day contracts and a deal that covers the rest of the season and beyond. The power forward was the CBA's leading scorer and third-leading rebounder in 2012/13.
• Josh Akognon, Mavericks: The 5'11" guard parlayed 29.0 PPG and four made three-pointers per contest for the Liaoning Jiebao Hunters into a 10-day contract with the Mavericks, who re-signed him to a deal for the rest of this season with a team option for next year.
• Solomon Jones, Knicks: Akognon's Liaoning teammate put up 15.8 PPG and 10.4 RPG, and that got him a deal with the Knicks. It didn't last long, as the Knicks waived him two games and less than 72 hours later.
• Terrence Williams, Celtics: Williams was the first of Boston's three China refugees to sign for the rest of the season and beyond, even though his numbers for the Guangdong Southern Tigers weren't eye-popping. He averaged 17.9 PPG and 4.1 APG, and shot worse from the field (42%) and from three-point range (31.7%) than he has with Boston.
• Tracy McGrady, Spurs: San Antonio followed up its surprising release of Stephen Jackson with McGrady's unexpected signing this week. The two-time NBA scoring champ showed an all-around game for the Qingdao Double Star Eagles, racking up 25.0 PPG, 7.2 RPG and 5.1 APG.
• D.J. White, Celtics: Gilbert Arenas, White's teammate on the Shanghai Sharks, carries much more starpower, but White was the Chinese team's leading scorer this season, at 21.6 PPG. He also notched 9.7 RPG en route to a pair of 10-day contracts with the Celtics, who ultimately signed him for the rest of the season with a team option for 2013/14.
• Honorary mention: James Singleton of the Xinjiang Flying Tigers had an agreement in place to sign with the Knicks last week, but the Tigers had trouble arranging his FIBA letter of clearance, which is required when players jump between leagues in different countries. That prevented Singleton's deal with the Knicks from coming to fruition.

As non-playoff teams prepare to seek offseason upgrades, it's worth taking a look at a few of the salary commitments already on teams' books for 2013/14. We'll do this more thoroughly in the coming weeks, as we preview each club's offseason individually. But for now, let's check in on each team's highest-paid player.

In some cases, a free-agent-to-be will ultimately become the highest-paid player on his team for 2013/14. In other instances, a player that currently projects to be his club's highest-paid player may be traded before next season gets underway. But at the moment, here are the players expected to be in line for the most money next season on each of the NBA's 30 teams:

• 76ers: Jrue Holiday, $9.21MM
• Bobcats: Ben Gordon, $13.2MM. Gordon has a player option, but is a lock to pick it up.
• Bucks: Ersan Ilyasova, $7.9MM. Monta Ellis has an $11MM player option that would make him the Bucks' highest-paid player, but he's expected to opt out.
• Bulls: Derrick Rose, $17.63MM
• Cavaliers: Anderson Varejao, $9.04MM
• Celtics: Paul Pierce, $15.33MM. Not only is Pierce's last year a player option, but only $4MM of it is guaranteed. Still, I expect he'll exercise the option and I doubt Boston will buy him out.
• Clippers: Blake Griffin, $13.67MM. Griffin's salary actually figures to be a little higher, depending on where the maximum salary ends up for '13/14. Either way, if Chris Paul re-signs with L.A., Paul's will have the team's highest salary.
• Grizzlies: Zach Randolph, $17.8MM
• Hawks: Al Horford, $12MM
• Heat: LeBron James, $19.07MM; Chris Bosh, $19.07MM
• Jazz: Marvin Williams, $7.5MM
• Kings: Marcus Thornton, $8.05MM
• Knicks: Carmelo Anthony, $22.41MM
• Lakers: Kobe Bryant, $30.45MM
• Magic: Gilbert Arenas, $22.35MM. Arenas may be off Orlando's cap, but the team continues to pay the amnesty casualty a ridiculous salary in '13/14. Jameer Nelson will likely be the highest-paid player still on the roster, at $8.6MM, since only $6MM of Hedo Turkoglu's $12MM player option is guaranteed.
• Mavericks: Dirk Nowitzki, $22.72MM
• Nets: Joe Johnson, $21.47MM
• Nuggets: Andre Iguodala, $16.15MM
• Pacers: Roy Hibbert, $14.28MM
• Pelicans: Eric Gordon, $14.28MM
• Pistons: Charlie Villanueva, $8.58MM. Villanueva has a player option which he'll exercise, but he could also be amnestied. Rodney Stuckey is the team's next biggest salary at $8.5MM, though only $4MM of that amount is guaranteed. Jonas Jerebko would be next at $4.5MM.
• Raptors: Rudy Gay, $17.89MM
• Rockets: James Harden, $13.67MM. Like Griffin's max salary, Harden's exact amount won't be known until July, but figures to be a little higher.
• Spurs: Tony Parker, $12.5MM
• Suns: Marcin Gortat, $7.73MM
• Thunder: Kevin Durant, $17.83MM
• Timberwolves: Kevin Love, $14.69MM
• Trail Blazers: Brandon Roy, $17.89MM. Roy is the other amnesty victim besides Arenas who will still represent the largest expense on his former team's books. LaMarcus Aldridge, at $14.63MM, is next.
• Warriors: Andrew Bogut, $14MM
• Wizards: Emeka Okafor, $14.49MM

Storytellers Contracts was used in the creation of this post.