Hoops Rumors Glossary: Bi-Annual Exception
The most common tool over-the-cap teams use to sign free agents from other teams is the mid-level exception, but that’s not the only exception those clubs have to squeeze an extra player onto the payroll. The bi-annual exception is a way for a team to sign a player who may command more than the minimum salary, but less than the mid-level.
As its name suggests, the bi-annual exception can only be used every other season. Even if a team uses only a portion of the exception, it’s off-limits during the following league year.
During the 2019/20 league year, four teams – the Bucks, Pelicans, Knicks, and Spurs – were ineligible to use the bi-annual exception at all, since they used it in 2018/19. Four teams have used the BAE this season, with the Mavericks signing Boban Marjanovic, the Pistons signing Markieff Morris, the Grizzlies signing Marko Guduric, and the Raptors signing Stanley Johnson. Those four clubs won’t have the exception at their disposal during the 2020/21 league year.
The bi-annual exception is available only to a limited number of clubs, even among those that didn’t use the exception during the previous season. Teams that create and use cap space forfeit the BAE, along with all but the smallest version of the mid-level (the room exception). Additionally, teams lose access to the bi-annual exception when they go over the “tax apron,” a figure approximately $6MM+ above the tax line. So, only teams over the cap and under the tax apron can use the BAE.
If a team uses all or part of the bi-annual exception, the tax apron becomes the club’s hard cap for that season. Teams that sign a player using the BAE can later go under the cap, but can’t go over the tax apron at any time during the season once the contract is signed.
[RELATED: NBA Teams With Hard Caps For 2019/20]
The bi-annual exception allowed for a starting salary of up to $3,623,000 in 2019/20. Under the NBA’s previous Collective Bargaining Agreement, the value of each season’s bi-annual exception was determined in advance. However, under the current CBA, the value of the BAE in future league years is tied to salary cap increases or decreases. If the cap goes up by 5%, the value of the bi-annual exception will also increase by 5%.
A player who signs a contract using the bi-annual exception is eligible for a one- or two-year deal, with a raise of 5% for the second season. For players who signed using the BAE in 2019/20, the maximum value of a two-year contract was $7,427,150. Teams also have the option of splitting the bi-annual exception among multiple players, though that happens much less frequently than it does with the mid-level exception, since a split bi-annual deal may not even be worth more than a veteran’s minimum salary.
The bi-annual exception starts to prorate on January 10, decreasing in value by 1/177th each day until the end of the regular season.
When the NBA went on hiatus last month, several teams remained eligible to use the bi-annual exception in 2019/20. However, it seems extremely unlikely that any will actually do so, even if the league is able to resume its season later in the spring. Assuming those BAEs go unused, they’ll be available to those teams in 2020/21.
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. Photo courtesy of USA Today Sports Images.
Chinese Basketball Association Postpones Restart Again
The Chinese Basketball Association is facing another setback, having postponed the resumption of its 2019/20 season until at least July, according to Chinese journalist Zhang Duo (Twitter link). The CBA, which initially suspended its season in January, had wanted to resume play on April 15, but has been forced to push that target date back multiple times.
In a full story on the CBA’s latest delay, Jonathan Givony of ESPN writes that a final decision on resuming the league’s season can’t be made without government clearance, and that won’t happen until mid-May at the earliest. There’s still a chance that the remainder of the season will be canceled altogether.
A government order banning non-citizens from traveling into China complicates the situation, as we detailed last month. While some foreign players had returned to China before that ban was implemented in March, others had yet to do so — it remains to be seen if and when they’ll actually be able to re-enter the country to rejoin their teams.
As for the import players who did report to China in March, they’re now stuck in limbo, as Givony explains. They’ve completed their 14-day quarantines and CBA teams have started conducting basketball activities, but with the season not scheduled to resume for at least two-and-a-half more months, it’s unclear whether all of those players will continue being paid to stick around.
According to Givony, some of the top CBA players told ESPN that they plan to stay in China as long as they continue to receive their salaries, since leaving now and then returning in the summer would mean undergoing two additional 14-day quarantines.
Givony cites a report from Chinese outlet Xinhua, which suggests that some top CBA executives – including CEO Wang Dawei – will accept a pay reduction to help ease the financial burden on the league.
The CBA’s latest setback doesn’t bode well for the NBA and other major sports leagues around the world hoping that resumed seasons will be possible in the coming months. Even if the Chinese league is able to restart in July, its hiatus would have lasted more than five months by that point.
Bulls Receive Permission To Interview Three GM Candidates
Having officially hired Arturas Karnisovas as their new head of basketball operations, the Bulls are now in the market for a new general manager. With Karnisovas leading that search, the club has received permission to interview three candidates so far, sources tell ESPN’s Adrian Wojnarowski (Twitter link).
According to Wojnarowski, Chicago has been granted permission to speak to Sixers senior VP of player personnel Marc Eversley, Clippers assistant GM Mark Hughes, and Magic assistant GM Matt Lloyd.
[RELATED: Bulls Part Ways With GM Gar Forman]
Those three executives were among the candidates initially identified by Wojnarowski for the job last Friday. At the time, Woj also said that Nuggets assistant GM Calvin Booth was a target, so his omission from today’s list is notable. There’s a belief that Denver will attempt to keep Booth after losing Karnisovas — he’s a candidate to be promoted to fill the Nuggets’ newly-opened GM role.
It remains to be seen whether Eversley, Hughes, and Lloyd are the Bulls’ top choices or whether the team’s search will continue to expand to include other candidates.
A source tells Joe Cowley of The Chicago Sun-Times (Twitter link) that Heat assistant GM Shane Battier won’t be interviewing with the Bulls, since Chicago recognizes that Miami values him and won’t be letting him go. Cowley adds (via Twitter) that despite some chatter, Pelicans GM Trajan Langdon won’t be a candidate for the Bulls’ GM position either.
Cowley previously identified Mavericks VP of basketball operations Michael Finley and Thunder executives Troy Weaver and Nazr Mohammed as potential GM targets for Chicago. However, based on a subsequent report, it would be a surprise if Weaver has interest in the job.
Draft Decisions: Richards, Tshiebwe, West, Burk, Adams
After initially tweeting on Monday that Nick Richards would likely be the next Kentucky underclassman to enter the 2020 NBA draft, Adam Zagoria of ZagsBlog.com writes that Richards will in fact declare for the draft.
Richards made his decision official this morning, announcing on his Twitter account that he intends to forgo his final year of college eligibility and go pro.
The junior big man looks like a realistic candidate to be drafted, ranking 59th on ESPN’s big board of 2020 prospects. He’s coming off a breakout season in which he averaged 14.0 PPG, 7.8 RPG, and 2.1 BPG in 31 games (29.6 MPG).
Here are more updates on early entrants declaring for the 2020 draft:
- West Virginia forward/center Oscar Tshiebwe announced on Twitter that he’ll enter the draft while maintaining his NCAA eligibility. Tshiebwe nearly averaged a double-double (11.2 PPG, 9.3 RPG) in just 23.2 minutes per contest as a freshman and shows up on ESPN’s big board at No. 79. However, West Virginia head coach Bob Huggins said on Monday that he believes the big man will likely return for his sophomore season, as Alex Hickey of WVMetroNews.com writes.
- Marshall guard Jarrod West has declared for the draft while maintaining his eligibility, the program announced (via Twitter). West, a strong defender who averaged 14.2 PPG as a junior, sounds like he’s leaning toward returning to school. “It’s a chance to get my name out there and possibly get some feedback which could help improve my game, and end up helping our team be even better,” he said of the draft process, per Keith Morehouse of WSAZ-TV (Twitter link).
- IUPUI junior guard Marcus Burk announced on Twitter that he has decided to test the 2020 draft waters. After transferring from Cambell, he averaged 21.3 PPG on .432/.386/.782 shooting in 2019/20, earning All-Horizon League Second Team honors.
- Austin Peay freshman guard Jordyn Adams will also test the draft process, as he announced in a tweet. Adams was the Governors’ second-leading scorer in his first college season, with 17.4 PPG in 31 games (33.2 MPG). He was named Ohio Valley Conference Freshman of the Year.
International Notes: Messina, Italy, Euro Salaries
Olimpia Milano president and head coach Ettore Messina doesn’t think that the EuroLeague will resume, Emiliano Carchia of Sportando relays. Messina, a former Spurs assistant, made his comments to RaiSport.
“A resumption of the EuroLeague season looks very difficult to me,” Messina said. “Maybe in a more normal situation, in two-three months. But it is something you can’t plan now. Thinking about 18 European teams flying from one country to another or players coming back from USA seems very unlikely.”
We have more from the basketball world:
- There’s a good chance that the Italian Basketball League will play without fans in the stands for at least the remainder of the calendar year if and when it resumes, Carchia writes in another story. According to Mediaset, the Italian government may not allow any spectators at sporting events until at least January. That could be a financial disaster for Italy’s basketball clubs, many of whom rely on ticket sales, Carchia adds.
- CSKA Moscow president Andrey Vatutin said EuroLeague clubs need to come up with salary compromises with its players, according to a Sportando post. Nikola Milutinov, a Spurs draft-and-stash prospect, has reportedly agreed to a three-year deal with the Moscow club. “Everything in the economy is crashing down, restrictions are being extended, and CSKA confidently throws millions from the bedside table. Because of quarantine and self-isolation, I don’t remember the last time I picked up a pen in order to sign something,” Vatutin said. “For CSKA, as for all Euroleague clubs, it’s now more important to find a compromise on salaries with current players.”
- The Pelicans reportedly have their eyes on a guard who plays for Maccabi Tel Aviv. Get the details here.
Western Notes: Leonard, Giles, Johnson, Blazers
Clippers coach Doc Rivers isn’t worried about his stars getting out of shape during the NBA’s hiatus, he told ESPN’s Ohm Youngmisuk and other reporters. “I know (Kawhi Leonard is) overworking. I can guarantee you that,” Rivers said. “And the difference is, during the summer, Kawhi couldn’t work, you know, so now he’s got this break and he’s able to train. The Kawhi we’ll see will be in phenomenal shape. PG (Paul George) is another guy that’s going to be in phenomenal shape.”
We have more from the Western Conference:
- Kings center Harry Giles is likely to be playing elsewhere next season, according to James Ham of NBC Sports Bay Area. His original coaching and training staff are gone and the franchise didn’t pick up his contract option for next season, Ham notes. Giles, who will be an unrestricted free agent, did enough during his opportunities this season to intrigue plenty of teams, Ham adds.
- Big man James Johnson is a solid reserve but not the answer as a starter alongside Timberwolves center Karl-Anthony Towns, Jon Krawczynski of The Athletic opines. Johnson gave the club a boost in 14 games after being acquired in a three-team deal, averaging 12.0 PPG, 4.7 RPG and 3.8 APG in 24.1 MPG. Johnson will surely exercise his $16MM player option for next season and the team hopes he can pick up where he left off.
- Zach Cooper, a video assistant for the Trail Blazers, has died unexpectedly due to undisclosed reasons, Shams Charania of The Athletic tweets. “I am devastated by the news of Zach’s passing,” head coach Terry Stotts said in a statement. “He was a valued member of our staff, but more importantly, he was an outstanding young man who everyone loved and appreciated.”
Coronavirus Updates: Training, Gores, Taiwan, Testing
A 25-day program designed to get players back in action is one of the ideas being floated around as the NBA explores ways to resume its season, Brian Windhorst of ESPN reports. Players would undergo 11 days of individual workouts while maintain some measure of social distancing. A two-week training camp would follow with entire teams participating. NBA executives and training staff have expressed players would require approximately a month to get back into shape after such a long layoff.
We have more from around the league on coronavirus-related topics:
- Pistons owner Tom Gores will purchase and donate 100,000 surgical masks for distribution among Detroit-area health care workers, according to a team press release. Gores is making arrangements to buy the surgical grade masks from a supplier in New Jersey. The masks are expected to be delivered by mid-week. Michigan has been hit hard by COVID-19 with the third-most deaths in the country due to the virus.
- The NBA could learn some lessons on how to restart its season from Taiwan, believed to be the world’s only widely-recognized pro basketball league currently in operation, Marc Stein of the New York Times reports. Taiwan’s Super Basketball League is playing games in a gym with no fans in a smaller version of the “bubble” environment that the NBA will likely try to replicate, Stein continues. The only people allowed inside, beyond the teams and the referees, are camera operators for the television broadcasts, the scoring crew, and journalists.
- Playing in a neutral quarantined environment, with players and personnel isolated from the rest of society and undergoing frequent rapid-response tests, are the most logical ways for the NBA to resume its season, according to Omari Sankofa II of the Detroit Free Press.
Hawks’ Schlenk Talks Free Agency, Draft, Teague, More
After waiting out the first few days of free agency and then making modest moves in each of the last couple summers, the Hawks are in position to be more aggressive during 2020’s free agent period, general manager Travis Schlenk said on Monday, per Chris Kirschner of The Athletic. Atlanta may have the most cap room of any NBA team this offseason, though Schlenk cautioned that that doesn’t mean the Hawks will spend wildly when the new league year begins.
“If there are guys that we think are good fits, we might be out of the gates a little bit sooner,” Schlenk said. “I think the thing I’m always hesitant of is a lot of the times the first couple of contracts handed out might not be the best ones that look the best on paper.
“I think it’s conceivable that we might make some offers (well) before we have in the past, but whether or not agents or players jump at the offers we make right away or see if there’s something better out there might prevent us from signing someone right away. I do anticipate us being a little more assertive in free agency, but it all depends on the cap and if it shrinks.”
According to Kirschner, the Hawks have a Zoom meeting scheduled for Tuesday in which they plan to examine all 29 other NBA teams, determining which cap exceptions they’ll have and how they might use them. That will give Atlanta a better idea of which of its own targets might be available and how might those players might cost.
As Kirschner details, Schlenk and the Hawks would ideally like to add younger players who can grow along with the current core — Clint Capela, who turns 26 next month, was a player who fit that bill. Schlenk also won’t hesitate to create competition on the roster for young players by adding veterans who can help the team win, since he’d rather have too much depth than not enough.
Schlenk offered up several more interesting tidbits on Monday. Let’s round up a few…
- The Hawks plan to keep their lottery pick unless “some great offer came our way and it’s something we couldn’t turn down,” according to Schlenk. As Kirschner relays, Atlanta also plans to take the best player available rather than focusing on a specific position. “We’re not in a position when you start picking (for need) that high in the draft,” Schlenk said. “I think it’s a mistake to draft on need unless the talent is equal, but you look for the best talent when you draft that high.”
- When the Hawks acquired Jeff Teague earlier in the season, they reportedly envisioned him as a player who could re-sign with the team and serve as Trae Young‘s backup beyond this season. It’s unclear how seriously Atlanta is still mulling that possibility. According to Kirschner, Schlenk thought the veteran point guard “struggled getting comfortable” with the Hawks. “I think he was still trying to feel out the situation,” Schlenk said. “I don’t think we saw what Jeff Teague has left in those 25 games that he was here with us. He’s going to be an unrestricted free agent this summer, and obviously backup point guard is going to be a position (of need) for us. And we’ll have that dialogue with he and his agent at the proper time.”
- Asked to evaluate the Hawks’ performance in 2019/20, Schlenk gave the team an incomplete grade, pointing to John Collins‘ 25-game suspension, Capela’s inability to suit up due to injury, and – of course – the NBA’s hiatus as roadblocks that prevented the team from making a complete assessment. “I think the positives are after we got healthy, our most productive group was our draft picks on the floor,” the Hawks’ GM said, per Kirschner. “That’s obviously the exciting and positive part of it all.”
Bulls Notes: Front Office, Boylen, Forman, Paxson
On a conference call today introducing new executive VP of basketball operations Arturas Karnisovas, Bulls COO Michael Reinsdorf said that it was clear during the search process that the former Denver GM “checked every box,” as K.C. Johnson of NBC Sports Chicago tweets. Reinsdorf admitted that his father, Bulls chairman Jerry Reinsdorf, ultimately had to sign off on the hire, but said “it was clear after that meeting that we had our guy.”
Karnisovas, meanwhile, confirmed that J.J. Polk and Pat Connelly will join the Bulls’ front office, as previously reported, and said that hiring a general manager is next on his list of priorities. According to Karnisovas, the GM search will be “extensive and diverse,” and the goal will be to hire an executive whose skills complement his own, rather than overlapping significantly with his strengths (all Twitter links via K.C. Johnson).
As for the future of head coach Jim Boylen, that remains up in the air, with Karnisovas telling reporters that there’s no timeline for a decision on Boylen or the coaching staff (Twitter link via Johnson).
Boylen took the unusual step of issuing a welcome message to the new head of basketball operations through the team’s PR department, lauding Karnisovas’ résumé and commending the Reinsdorfs for bringing him aboard.
Here’s more on the Bulls:
- Karnisovas offered the following explanation when asked about Gar Forman‘s dismissal: “After some consideration and conversation, it was apparent that we have different philosophies that will prevent us from moving forward. Those decisions are never easy. I was hired to affect change” (Twitter link via Johnson).
- Joe Cowley of The Chicago Sun-Times tweets that Forman’s departure should increase the Bulls’ appeal to free agents. Forman’s presence “poisoned the well” with players and agents, according to Cowley, who says the longtime general manager was viewed as “untrustworthy.”
- Confirming a recent report, Michael Reinsdorf said today that it was John Paxson who came to ownership in the winter to suggest the need for changes in the front office (Twitter link via Johnson). Previously the Bulls’ executive VP of basketball operations, Paxson will now be a senior advisor.
- After facing some criticism last week for a perceived lack of diversity in the Bulls’ front office search, Reinsdorf defended the team’s record on that front, as Johnson details for NBC Sports Chicago. According to Reinsdorf, two of the six candidates on the team’s short list for head of basketball operations were people of color, but Chicago was denied permission to interview both.
- Karnisovas said today that facilitating player development will be one of his primary goals in Chicago, since the Bulls are a young team with a handful of promising young players (Twitter link via Johnson).
Karl-Anthony Towns’ Mother Passes Away Due To COVID-19
Jacqueline Towns, the mother of Timberwolves star Karl-Anthony Towns, has passed away due to COVID-19 complications, a Towns family spokesperson announced today (via the Timberwolves’ Twitter).
“Jackie, as she was affectionately known among family and friends, had been battling the virus for more than a month when she succumbed on April 13,” the statement reads. “Jackie was many things to many people — a wife, mother, daughter, grandmother, sister, aunt, and friend. The matriarch of the Towns family, she was an incredible source of strength; a fiery, caring, and extremely loving person, who touched everyone she met. Her passion was palpable and her energy will never be replaced.
“… The family is devastated by their tremendous loss, and respectfully requests privacy in this time of great mourning.”
The Timberwolves’ big man had previously revealed in a YouTube video that his mother was in a coma after being diagnosed with the coronavirus. Towns’ father, Karl Sr., also tested positive for COVID-19 but was said in March to be recovering well after being briefly hospitalized.
We at Hoops Rumors send our condolences to Karl-Anthony, as well as to the rest of Jacqueline’s family and friends.