The bi-annual exception is one of the tools available to NBA teams who are over the cap, giving those clubs the flexibility to offer free agents more than the minimum salary. In 2025/26, the bi-annual exception is worth $5,134,000 and can be used to offer a deal worth up to $10,524,700 over two years. It can also be used to acquire a player via trade if his contract fits into the bi-annual exception.
However, the bi-annual exception isn’t available to every team. Clubs that go below the cap in order to use cap room lose access to the exception. Additionally, using the BAE imposes a hard cap of $195,945,000 (the first tax apron) on a team. So if a club has surpassed the first apron – or wants to retain the flexibility to do so – it can’t use the bi-annual exception.
Finally, as its name suggests, the bi-annual exception can’t be used by a team in consecutive years. In 2024/25, two teams used the BAE — the Rockets (Aaron Holiday) and Clippers (Nicolas Batum). As such, the exception isn’t available to those clubs during the 2025/26 league year. They’ll be able to use it again next summer.
With all those factors in mind, here’s a breakdown of how teams are using – or not using – their respective bi-annual exceptions in 2025/26:
Available Bi-Annual Exceptions:
Unused:
- Atlanta Hawks
- Boston Celtics
- Chicago Bulls
- Dallas Mavericks
- Denver Nuggets
- Indiana Pacers
- Miami Heat
- Minnesota Timberwolves
- New Orleans Pelicans
- Oklahoma City Thunder
- Orlando Magic
- Philadelphia 76ers
- Phoenix Suns
- Portland Trail Blazers
- Sacramento Kings
- San Antonio Spurs
- Toronto Raptors
Although all of these teams technically have the ability to use their bi-annual exceptions at some point in 2025/26, it’s more plausible for some than others.
For instance, the Timberwolves currently have just over $1.5MM in breathing room below the first apron, so using even a small portion of their bi-annual exception wouldn’t be an option until later in the league year unless they make a cost-cutting move.
Used:
- Charlotte Hornets
- Used: $4,962,033 (Malaki Branham)
- Detroit Pistons
- Used: $3,809,524 (Daniss Jenkins)
- Los Angeles Lakers
- Used: $5,134,000 (Marcus Smart)
- Utah Jazz
- Used: $4,150,000 (Kevin Love)
- Washington Wizards
- Used: $4,726,328 (Blake Wesley)
Typically, about two to four teams in a given league year use the bi-annual exception, so this season is busier than usual in terms of BAE activity.
The Jazz, Wizards, and Hornets used the BAE to acquire a player in a trade, while the Lakers used theirs to sign a free agent and the Pistons used theirs to promote a player from a two-way contract. None of those clubs will have the exception available during the 2026/27 season.
Unavailable Bi-Annual Exceptions:
Went under cap:
- Brooklyn Nets
- Memphis Grizzlies
- Milwaukee Bucks
These three teams forfeited their right to the bi-annual exception when they went under the cap and used space this offseason.
Over first apron:
- Cleveland Cavaliers
- Golden State Warriors
- New York Knicks
In theory, cost-cutting moves by these teams could put them in position to use their bi-annual exceptions. In actuality though, that’s a long shot for some of them, especially for a team like the Cavaliers, whose team salary is well beyond the second tax apron.
Used last year:
- Houston Rockets
- Los Angeles Clippers
As noted in the intro, these are the two teams that used their bi-annual exceptions in 2024/25 and, as a result, won’t have them again until 2026/27.
Information from Sports Business Classroom was used in the creation of this article.
In some parts of this story, it was hard to read and understand what you were saying here.
Like this for example in paragraph 2,” Clubs that go below the cap in order to use cap room lose access to the exception.” What are you saying here?
Or this one.
You say this, “ So if a club has surpassed the first apron – or wants to retain the flexibility to do so – it can’t use the bi-annual exception.”
And this.
These three teams forfeited their right to the bi-annual exception when they went under the cap and used space this offseason
But said this.
In theory, cost-cutting moves by these teams could put them in position to use their bi-annual exceptions. In actuality though, that’s a long shot for some of them, especially for a team like the Cavaliers, whose team salary is well beyond the second tax apron.
So, wouldn’t the Cavs lose their BAE because they surpass the first they are in the second apron (past the first apron)? If they cost cut to get under the apron, wouldn’t they also lose their BAE?
*face palm forehand in disgust*
Salary cap: $154,647,000
First tax apron: $195,945,000
Second tax apron: $207,824,000
Teams who operate in between the salary cap threshold ($154.6MM) and the first tax apron ($195.9MM) are allowed to use the BAE.
A team above the first apron can gain access to the BAE by shedding enough salary to get below the apron ($195.9MM), but a team that goes all the way below the cap ($154.6MM) to use room forfeits the BAE.
Yeah the nba payroll structure is akin to understanding chinese.. and there are exceptions for everything and the exceptions have exceptions. But probably the worst thing about it is that trades have to be about matching money, not about talent. And half the time, as soon as a contract is signed it becomes an albatross that the team plots how to get rid of. The whole thing is like mah jong.