Bi-Annual Exception
The most common method over-the-cap teams use to sign free agents from other teams is the mid-level exception, but it's not the only tool those clubs can use to squeeze an extra player onto the payroll. The bi-annual exception is a way to sign a player who commands more than the minimum salary and less than the mid-level.
As its name suggests, the bi-annual exception can only be used every other year. Even if a team uses only a portion of the exception, it becomes unavailable the following year.
The bi-annual exception is available only to a select few clubs. Teams whose player salaries and cap exceptions add up to less than the salary cap lose their bi-annual exception as well as their full mid-level exception and any trade exceptions. They must use their cap room to sign players. Additionally, teams lose access to the bi-annual exception when they go more than $4MM over the tax threshold, exceeding what's known as the tax apron. So, only teams over the cap but under the tax apron can use the bi-annual exception.
Additionally, if a team uses all or part of the bi-annual exception, it triggers a hard cap for that season. Clubs that sign a player with using the exception can't go over the tax apron at any time during the season in which the contract is signed.
The value of the bi-annual exception rises from $1.957MM in 2012/13 to $2.016MM for 2013/14, and will continue to go up by 3% each year during the current collective bargaining agreement. The contract can be for either one or two seasons, with a raise of 4.5% for the second season. The Clippers used the full bi-annual exception last summer to give Grant Hill a two-year deal worth a total of $4,002,065. Teams also have the option of splitting the exception among multiple players. The Spurs signed Nando De Colo to a two-year deal for a total of $2.863MM, but never used the remaining amount on the exception. The bi-annual exception becomes pro-rated starting on January 10th, so it's rarely used for late-season signees.
The Bulls, who gave Marco Belinelli a one-year contract for the full value of the bi-annual exception, were the only team besides the Clippers and Spurs to use it in 2012/13. So, those three clubs can't use the bi-annual in 2013/14, but any other team with a payroll above the cap and below the tax apron may.
Luke Adams contributed to this post, which was initially published on April 23rd, 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.
Layden, Weltman, McDonough Suns GM Finalists
8:31pm: Adrian Wojnarowski of Yahoo! Sports adds Celtics assistant GM Ryan McDonough to the list of finalists. McDonough interviewed Tuesday with Babby and owner Robert Sarver, and Weltman will interview Thursday. The Suns want to make a hire quickly so they can decide on a coach and prepare for the draft. Babby made a push to hire Weltman in 2010, when Sarver favored Lance Blanks instead.
5:03pm: Spurs assistant GM Scott Layden and Bucks assistant GM Jeff Weltman are rumored as the finalists for the vacant GM position in Phoenix, according to Gery Woelfel of the Racine Journal Times (Twitter link). Milwaukee gave Weltman approval over the weekend to interview for the Suns job, while this is the first we've heard of Layden in connection with the opening. Chris Broussard of ESPN.com reported Weltman was the frontrunner for the gig last week.
Layden has only been on the job in San Antonio for eight months. He previously held GM jobs with the Knicks and Jazz. Weltman hasn't run a team's front office before, but he's been with Bucks GM John Hammond ever since Hammond came aboard in 2008, and prior to that, Weltman and Hammond worked together with the Pistons.
Whoever gets the Suns job will decide who will coach the team next season. Interim Lindsey Hunter is still Phoenix's head coach, but he appears on shaky footing, and is interviewing with the Pistons for their head coaching vacancy. Suns president of basketball operations Lon Babby is promising a "summer of analytics" for the team, so presumably the next GM will be a devotee of advanced metrics.
Southeast Links: Bobcats, Mack, LeBron
The Southeast Division champion Heat have plenty of time to chill in advance of their second-round opener, which won't be until Monday. The division's other playoff team is engaged in a much tougher first-round fight than Miami endured, as the Hawks are batting the Pacers in Game 5 tonight with the series tied 2-2. There's news on both the Heat and Hawks tonight, along with more from the Southeast:
- A pair of head coaching candidates are lined up for interviews with the Bobcats next week. TNT's David Aldridge reports, via Twitter, that the team will sit down with former Suns coach Alvin Gentry, while Marc J. Spears of Yahoo! Sports tweets that Elston Turner will also interview for the job. Turner served as an assistant under Gentry in Phoenix.
- When Shelvin Mack signed with the Hawks in March for the rest of the season, the deal included a team option for next season, reports Chris Vivlamore of the Atlanta Journal-Constitution (Twitter link). It's probably for the minimum salary.
- LeBron James appears to be a shoo-in for the MVP award, and it's likely he'll officially receive the honor on Sunday, tweets Ira Winderman of the South Florida Sun-Sentinel. He has a chance to become the first unanimous selection for the award, and Chris Tomasson of Fox Sports Florida hears all three votes from Oklahoma City went to James instead of Kevin Durant.
Bucks Rumors: Jennings, Van Gundy, Ellis
Brandon Jennings has gone back and forth about whether he wants to continue playing for the Bucks, and now he says he doesn't know whether he'd like to return, as Michael Hunt of the Milwaukee Journal Sentinel observes. Getting at the root of the point guard's true intentions appears challenging, but according to the Bucks' Twitter feed, GM John Hammond thinks that Jennings, deep down, wants to be back. We'll find out this summer if Hammond's hunch is right, and in the meantime, here's the latest on the Bucks just hours after their head coaching position came open:
- HoopsWorld's Alex Kennedy hears the Bucks don't want to lose Jennings, and since they have the right to match offers for the restricted free agent, the decision is ultimately in the team's hands. Kennedy thinks the situation will play out much like the one involving Eric Gordon and New Orleans last summer, when the Pelicans matched Gordon's maximum-salary offer sheet from the Suns.
- Gery Woelfel hears from a "Van Gundy associate," presumably in reference to Stan Van Gundy and not brother Jeff, that Van Gundy isn't interested in returning to the bench for next season (Twitter link). The Bucks have been expected to target the former Magic boss for their coaching vacancy.
- Hammond says head coaching experience isn't a requirement to become the next head coach of the Bucks, tweets Journal Sentinel scribe Charles F. Gardner.
- The GM also revealed that Monta Ellis has until June 20th to decide whether to exercise the early-termination option on his contract, Gardner tweets. Ellis is due $11MM next season if he decides to stay under contract.
- Earlier tonight we heard Bucks assistant GM Jeff Weltman is a finalist to become the GM of the Suns.
Damian Lillard Wins Rookie Of The Year
Damian Lillard won a unanimous vote for the Rookie of the Year award, the Trail Blazers have announced (Twitter link). The honor comes as no surprise, since Lillard swept this season's Rookie of the Month awards. The only drama involved whether Anthony Davis, Bradley Beal or anyone else would garner a first-place vote or two, but that didn't happen. Davis and Beal finished second and third, respectively. Lillard is just the fourth unanimous selection for the award, joining Ralph Sampson (1984), David Robinson (1990), and Blake Griffin (2011).
The Blazers selected Lillard sixth overall last year, using a draft pick they acquired from the Nets at the trade deadline. The point guard from Weber State made an instant impression, averaging 26.5 points per game in four summer league contests. He put up 19.0 PPG during the regular season to finish second behind LaMarcus Aldridge on the team in scoring, and Lillard led the league in minutes played. He averaged 6.5 assists and 3.0 turnovers per contest, a ratio that proves there's still room for improvement.
Even so, Lillard is already one of the league's best bargains on his rookie-scale contract. He made just $3,065,040 this year, and his four-year deal is worth only $13,845,167
Blair Says He’ll Be Better Off Leaving Spurs
DeJuan Blair will be thrust into the playoff spotlight for the Spurs with Tiago Splitter out indefinitely because of a sprained ankle, and Blair sees the opportunity as an audition for other clubs, observes Buck Harvey of the San Antonio Express-News. The 24-year-old, who'll be an unrestricted free agent this summer, thinks "the better situation" for him will be to sign with another team that can expand his role.
The stance is one that Luke Adams of Hoops Rumors predicted Blair would take when he examined the power forward's free agent stock last summer. Blair saw declines in just about every category this season, as his minutes and games started both hit career lows. When he did see the floor this year, he was less efficient than in the past, notching a 14.6 PER compared to the 17.5 PER he posted over his first three seasons. Blair appeared a likely trade candidate before the deadline this season, but according to Harvey, the Spurs were in no rush to trade him, in part because of his paltry $1.054MM salary. The team also believes he's shown increased maturity off the court, Harvey writes.
Unlike many other fourth-year players, the Spurs won't have the right to match offers for Blair in free agency this summer because he was originally a second-round draft choice. Second-rounders become eligible for unrestricted free agency after only three years in the league. I'm not sure the Spurs, despite their affection for Blair, would be likely to try to bring him back either way, but unrestricted free agency will allow him to make a clean break if he so chooses. He could have plenty of suitors, since the Hawks, Raptors, Pistons, Celtics, Heat, Blazers and Warriors were all linked to Blair before the deadline this year.
Blair thinks the Spurs would have traded him if they could have found the right deal, but the consensus among other teams at the deadline was that the Spurs' asking price was too high.
Odds & Ends: J.R. Smith, Celtics, Davis, Jack
J.R. Smith is likely to opt out of his deal for next season with the Knicks, and once he does, he'll be looking for a long-term deal, writes Gary Washburn of the Boston Globe. While Smith's comments suggest he'd favor the Knicks over other teams, New York can't do any better than a four-year deal worth about $25MM, since they only have his Early Bird rights. As our Ryan Raroque surmised when he looked at Smith's free agent stock, the Sixth Man of the Year will be able to command a hefty raise on his $2.8MM salary this season. We'll soon find out whether the Knicks' best offer will be enough.
Washburn has more on the NBA as part of his weekly column, and we'll round that up along with other Sunday afternoon tidbits here:
- Washburn gets former NBA executive Tom Penn's take on the future of the Celtics, and hears from Glen Davis of the Magic, who says he's willing to stick it out through the team's rebuilding process.
- Jarrett Jack is adamant that he'll prioritize a return to the Warriors in free agency this summer, even if it means passing up the opportunity to become a starter elsewhere, as he tells Scott Howard-Cooper of NBA.com.
- Bucks center Joel Przybilla saw a total of just 68 minutes this season, but he says he's healthy and believes he can still play in the NBA next season, reports Gery Woelfel of the Racine Journal Times. He'll be an unrestricted free agent this summer.
- Shooting guard Trey Johnson and Italian club Angelico Biella have parted ways, Sportando's Emiliano Carchia reports (Twitter link). Johnson appeared in 11 games with the Pelicans in 2011/12, and has also spent time with the Cavaliers, Raptors and Lakers.
- Jonathan Givony of DraftExpress already had Giannis Adetokunbo on his list of early entrants for the draft, as did we, and agent Giorgos Dimitropoulos confirms the Greek swingman has officially declared, Givony tweets.
Cavs Rumors: Trades, Speights, Livingston, Miles
The Cavaliers missed the playoffs and have already hired Mike Brown as their new coach. The draft lottery, in which they'll have a 15.6% chance at the top pick, is more than three weeks away. Still, the rumor mill is far from dry in Cleveland. Bob Finnan of The News-Herald rounds up the latest:
- Finnan doesn't believe rumors that the Cavs are willing to part with young talent like Dion Waiters and Tristan Thompson in return for All-Stars LaMarcus Aldridge or Kevin Love, in part because Cleveland would have to give up too much to swing such a deal.
- Finnan thinks Marreese Speights might not fit the Cavs culture, and the scribe believes the team is hoping Speights turns down his $4.515MM player option for next season.
- A source tells Finnan that Shaun Livingston will likely ask for $3MM to $4MM this summer and settle for $2MM to $2.5MM.
- It's no longer a given that the Cavs will bring back C.J. Miles next season. His $2.225MM contract for 2013/14 is fully non-guaranteed.
- John Kuester has been expected to join new Brown's staff, but sources tell Finnan he might be reluctant to coach again in the NBA after negative experiences as head coach of the Pistons and as an assistant with the Lakers.
- Donyell Marshall, a player under Brown from 2005 to 2008, has likely inquired about a position on Brown's coaching staff, according to Finnan, who suggests Eric Snow, Jamahl Mosley, Nate Tibbetts and Alex Jensen as other possible assistant coaching candidates for the team.
Larry Drew Interested In Coaching Sixers
Larry Drew wants to become a candidate for the Sixers head coaching job if the Hawks let him go, a source tells John Mitchell of the Philadelphia Inquirer. Drew is in the final season of his contract with Atlanta, and he hasn't had any discussions with GM Danny Ferry about an extension, Mitchell hears.
Ferry said in November that he was "fully engaged with Larry and our partnership," but rumors persisted that the GM would replace Drew with close associate Mike Brown at season's end. Brown's hiring in Cleveland hasn't ended speculation that Ferry may change coaches, as Grantland's Zach Lowe this week linked the Hawks to Quin Snyder.
The Sixers appear to be taking it slow with their search for Doug Collins' replacement, and that could allow Drew, who's still coaching the Hawks in the playoffs, to enter the picture. For now, assistant coaches Michael Malone of the Warriors and Brian Shaw of the Pacers appear to be the top candidates for the job. Gary Washburn of the Boston Globe believes Aaron McKie, who served as an assistant on Collins' staff, may receive consideration as well. Mitchell hinted earlier this week that the team could replace GM Tony DiLeo as well.
Ray McCallum To Enter Draft
University of Detroit point guard Ray McCallum will enter the NBA draft, tweets Aran Smith of NBADraft.net. The junior is ranked 40th on Chad Ford's ESPN.com list of the top 100 prospects, while Jonathan Givony of DraftExpress has him at No. 57.
McCallum displayed an all-around game in three seasons with the Titans, and averaged 18.7 points, 5.1 rebounds and 4.5 assists per game this year. The Michigan native led Detroit to a 20-13 record and a berth in the NIT, but he struggled in his team's final two games, going 5-for-20 from the floor and totaling 21 points in 77 minutes over a pair of losses to Wright State and Arizona State.
Underclassmen like McCallum face an 11:00pm Central time deadline tonight to declare for the draft. Adam Zagoria of SNY.tv had McCallum on a list of four key undecided prospects, along a trio of power forwards: Isaiah Austin of Baylor, Adreian Payne of Michigan State and Andre Roberson of Colorado. We'll update our full list of early entrants throughout the day as players reach their decisions.