Mid-Level, Bi-Annual Projections For 2026/27
The mid-level exception and bi-annual exception are the two key tools that an over-the-cap team typically has at its disposal to sign free agents from other clubs — or to re-sign one of its own free agents, if the player’s Bird rights aren’t available or aren’t sufficient.
The values of the mid-level, room, and bi-annual exceptions are tied to the salary cap and the percentage that it shifts in a given year. Here’s how that math works:
- Non-taxpayer mid-level exception: Worth 9.12% of salary cap.
- Taxpayer mid-level exception: Increases at the same rate as the salary cap.
- Room exception: Worth 5.678% of the salary cap.
- Bi-annual exception: Worth 3.32% of the salary cap.
As such, we don’t know yet exactly what those exceptions will be worth in 2026/27, but we can make an educated estimate. The NBA’s most recent projection for ’26/27 called for a cap of $166,000,000, which is the number we’ll use to project next season’s mid-level and bi-annual exceptions.
[RELATED: Maximum Salary Projections For 2026/27]
[RELATED: Minimum Salary Projections For 2026/27]
Based on a $166MM cap, here’s what the mid-level and bi-annual exceptions would look like in 2026/27:
Mid-Level Exception
| Year | Standard MLE |
Taxpayer MLE | Room MLE |
|---|---|---|---|
| 2026/27 | $15,139,000 | $6,102,000 | $9,425,000 |
| 2027/28 | $15,895,950 | $6,407,100 | $9,896,250 |
| 2028/29 | $16,652,900 | $10,367,500 | |
| 2029/30 | $17,409,850 | – | – |
| Total | $65,097,700 | $12,509,100 | $29,688,750 |
The standard mid-level exception is available to over-the-cap teams who haven’t dipped below the cap to use room and whose team salary remains below the first tax apron. It can run for up to four years, with 5% annual raises. Once a team uses the standard/non-taxpayer MLE, that team is hard-capped at the first tax apron for the rest of the league year.
[RELATED: Hoops Rumors Glossary: Mid-Level Exception]
The taxpayer mid-level exception is for a team whose salary is between the first and second tax aprons, or teams who want the flexibility to surpass the first apron later. It can run for up to two years, with 5% annual raises. Once a team uses the taxpayer MLE, that team is hard-capped at the second tax apron for the rest of the league year.
The room exception is for teams who go under the cap and use their space. Once they’ve used all their cap room, they can use this version of the mid-level exception, which runs for up to three years with 5% annual raises.
Teams can use the non-taxpayer mid-level exception or the room exception – but not the taxpayer mid-level – to acquire a player via trade or waiver claim. The taxpayer MLE can only be used to sign players to new contracts.
Bi-Annual Exception
| Year | BAE Value |
|---|---|
| 2026/27 | $5,511,000 |
| 2027/28 | $5,786,550 |
| Total | $11,297,550 |
The bi-annual exception – which can be used for contracts up to two years, with a 5% raise after year one – is only available to teams that are over the cap and below the first tax apron.
It can also only be used once every two years, which will disqualify the Lakers, Jazz, and Wizards from using it in 2026/27, since those teams have used their BAEs in 2025/26.
NBA Reveals Opening Week, MLK Day Matchups
The NBA unveiled a little more of its 2025/26 regular season schedule on Tuesday, two days ahead of the release of the full schedule. In addition to confirming the opening night and Christmas Day matchups previously reported by Shams Charania of ESPN, the league announced several more games from the first week of the season, along with a four-game slate for Martin Luther King Day.
Here are the games officially confirmed by the league so far (via Twitter):
Tuesday, October 21:
- Houston Rockets at Oklahoma City Thunder (7:30 pm Eastern time)
- Golden State Warriors at Los Angeles Lakers (10:00 pm ET)
The NBA will return to NBC and debut on Peacock on Oct. 21 with a pair of star-studded matchups. Kevin Durant will return to Oklahoma City and make his Rockets debut after the Thunder are presented with their championship rings, then Stephen Curry and the Warriors will visit LeBron James and the Lakers as James begins his record-setting 23rd NBA season.
Wednesday, October 22:
- Cleveland Cavaliers at New York Knicks (7:00 pm ET)
- San Antonio Spurs at Dallas Mavericks (9:30 pm ET)
ESPN’s first doubleheader of the season will feature the two teams widely expected to be the top Eastern Conference seeds in 2025/26, along with a matchup between No. 1 overall pick Cooper Flagg and No. 2 pick Dylan Harper.
According to the NBA (Twitter link), the Spurs/Mavericks game will be just the second time since 1966 that the top two picks in that year’s draft square off against one another in the first regular season contest of their careers. The only other time it happened was in 2015, when Karl-Anthony Towns‘ Timberwolves faced D’Angelo Russell‘s Lakers to open the season.
Thursday, October 23:
- Oklahoma City Thunder at Indiana Pacers (7:30 pm ET)
- Denver Nuggets at Golden State Warriors (10:00 pm ET)
ESPN’s second consecutive doubleheader will include a rematch of last season’s NBA Finals, followed by a showdown between three-time Most Valuable Player Nikola Jokic and two-time MVP Curry.
Monday, October 27:
- Cleveland Cavaliers at Detroit Pistons (7:00 pm ET)
- Denver Nuggets at Minnesota Timberwolves (9:30 pm ET)
Peacock, NBC’s streaming service, will regularly broadcast up to three games on Monday nights throughout the season. Their first Monday of the 2025/26 campaign will feature a doubleheader consisting of a Central Division battle and a Northwest matchup.
Thursday, December 25:
- Cleveland Cavaliers at New York Knicks (12:00 pm ET)
- San Antonio Spurs at Oklahoma City Thunder (2:30 pm ET)
- Dallas Mavericks at Golden State Warriors (5:00 pm ET)
- Houston Rockets at Los Angeles Lakers (8:00 pm ET)
- Minnesota Timberwolves at Denver Nuggets (10:30 pm ET)
ABC and ESPN will remain the home of the NBA’s Christmas Day games, which we discussed in greater detail last Friday.
Monday, January 19:
- Milwaukee Bucks at Atlanta Hawks (1:00 pm ET)
- Oklahoma City Thunder at Cleveland Cavaliers (2:30 pm ET)
- Dallas Mavericks at New York Knicks (5:00 pm ET)
- Boston Celtics at Detroit Pistons (8:00 pm ET)
The Bucks/Hawks game on Martin Luther King Day will stream on Peacock, while the other three nationally televised MLK Day contests will also be available on NBC. Whereas the NBA’s Christmas Day features eight Western Conference teams and just two Eastern Conference clubs, the MLK Day slate goes the other way, with six of eight teams from the East.
In total, half of the league’s 30 teams are featured in this series of marquee nationally televised games. Notable omissions – based on projected record, star power, and/or market – include the Clippers, Grizzlies, Suns, and Pelicans in the West and the Sixers, Heat, Magic, and Bulls in the East.
Jesse Edwards Signs With Melbourne United
Timberwolves center Jesse Edwards has signed a one-year contract with Melbourne United of Australia’s National Basketball League, the team announced on Tuesday in a press release.
Edwards said he’s “very excited” to be joining the team, while Melbourne United head coach Dean Vickerman reciprocated that enthusiasm.
“Looking at our final import spot, we wanted to bring in someone that was an elite rim protector, which Jesse has been across his college and pro career so far,” Vickerman said. “We think he’s got great length, really good timing and elite defensive instincts. He’s also got the mobility to get out and play with pace, which really suits what we’re wanting to do this year.
“He can live above the rim, and I think our crowd is going to love it. He’s a great lob threat, and we’ve got the guards to put the ball in the perfect place for him to make big plays. I really believe he’s an NBA player, and it’s really exciting to have both he and Tyson Walker as young, talented imports that are at their athletic peaks.”
A Dutch seven-footer who played his college ball at Syracuse and West Virginia, Edwards joined the Timberwolves on a two-way deal last July after going undrafted. The 25-year-old appeared in just two NBA games, but played a major role for the Iowa Wolves in the G League, averaging 11.9 points, 7.6 rebounds, and 1.9 blocks in 25.1 minutes per game across 34 total outings.
Edwards was tendered a two-way qualifying offer by the Timberwolves last month and immediately accepted it. However, reporting earlier this month indicated that the big man was expected to be waived by Minnesota as Tristen Newton signed his own qualifying offer to return to fill the team’s third and final two-way slot alongside Enrique Freeman and Rocco Zikarsky.
Neither the signing of Newton nor the release of Edwards has been officially confirmed by the team or the league, but Edwards’ agreement with Melbourne United is the latest indication that he won’t be back with the Wolves.
Offseason Observations: Tax Rates, Extensions, Kuminga/Giddey
The NBA's offseason news wire has slowed down since Summer League ended, but there's still no shortage of storylines to follow in August. Since the month began, Luka Doncic, De'Aaron Fox, and Mikal Bridges have signed lucrative new extensions, and top restricted free agents like Jonathan Kuminga, Josh Giddey, Quentin Grimes, and Cam Thomas are still working on new contracts.
As we await further updates on the summer's top remaining free agents and extension candidates, I'm taking a closer look today at some of the stories that have caught my eye as of late. That includes taking a closer look at how the new luxury tax rates are affecting projected tax bills, how the extend-and-trade rules might affect players traded this summer, and whether a Kuminga/Giddey double sign-and-trade could really work.
Kai Jones Working Out For Heat
Free agent big man Kai Jones is working out for the Heat on Monday, according to NBA insider Chris Haynes (Twitter link).
The 19th overall pick in the 2021 draft, Jones played for the Clippers and Mavericks in 2024/25, appearing in 40 total games and averaging 5.0 points and 3.1 rebounds in 11.7 minutes per contest.
Jones began last season on a two-way contract with the Clippers, then was waived on March 1 so the team could bring in a couple of new two-way players. He caught on immediately with the injury-plagued Mavericks, who were desperately seeking frontcourt depth as they pushed for a play-in spot. Jones averaged 11.4 PPG and 6.6 RPG in 12 games (21.7 MPG) with Dallas down the stretch, even making six starts for the Mavs.
Reporting over the weekend indicated that Jones was making progress toward a potential deal with Virtus Bologna, but Haynes’ update today suggests the 24-year-old hasn’t given up on the idea of catching on with an NBA team for the 2025/26 season.
As Ira Winderman of The South Florida Sun Sentinel notes (via Twitter), Miami still has several spots available on its 21-man training camp roster and makes a habit of working out veteran free agents during the offseason. Some of those free agents – including R.J. Hampton and Nassir Little – have earned camp invites in recent years.
If Jones is going to open the ’25/26 season with an NBA team, he’ll have to be part of a club’s standard 15-man roster, since he’s no longer eligible to sign a two-way contract.
Contract Details: Gill, Potter, Spurs, Clippers
Anthony Gill‘s new one-year, minimum-salary contract with the Wizards is guaranteed, Hoops Rumors has confirmed.
While that had been expected, it’s worth noting that it once again creates a roster crunch in Washington, where the team is now carrying 15 players on guaranteed contracts along with rotation regular Justin Champagnie on a non-guaranteed deal. The Wizards will have to trade or waive one of those 16 players before the regular season begins, with Dillon Jones and Malaki Branham among the potential odd men out.
As part of his new agreement with the Wizards, Gill also waived his right to veto a trade during the 2025/26 season. A player who signs a one-year contract with his previous team typically gets an implicit no-trade clause, but a club can ask the player to give it up when he re-signs.
While the Wizards can now freely trade Gill beginning on December 15, he has established himself as a veteran locker-room leader in D.C. in recent years and will be earning the minimum, so he doesn’t seem like an obvious candidate to be moved ahead of February’s deadline.
Here are a few more details on recently signed contracts:
- The non-guaranteed contracts that Micah Potter and Adam Flagler signed with the Spurs contain both Exhibit 9 and Exhibit 10 language, Hoops Rumors has confirmed. Potter and Flagler would each earn bonuses worth $85,300 if they’re waived by San Antonio and then spend at least 60 days with the Austin Spurs in the G League.
- Both Riley Minix and Harrison Ingram simply accepted their two-way qualifying offers when they re-signed with the Spurs, so their two-way deals are both one-year pacts that include partial guarantees of $85,300 apiece.
- Patrick Baldwin Jr. and TyTy Washington Jr. both got maximum Exhibit 10 bonuses ($85,300) on their deals with the Clippers. Los Angeles already holds Baldwin’s G League rights and could obtain Washington’s by designating him as an affiliate player, so it appears likely both players will end up with the San Diego Clippers in the NBAGL if they aren’t converted to two-way contracts prior to the regular season.
Isaiah Mobley Signs With Manisa Basket
Free agent forward Isaiah Mobley, the older brother of reigning NBA Defensive Player of the Year Evan Mobley, has signed with Manisa Basket, the Turkish team announced today (Twitter link; hat tip to Sportando).
Mobley was the 49th overall pick in the 2022 draft and has played in the NBA in each of his first three professional seasons. However, the 6’8″ forward was unable to establish himself as a reliable rotation option stateside, having made just 23 total appearances for the Cavaliers and Sixers, with averages of 2.6 points and 1.5 rebounds in 7.5 minutes per game.
Mobley signed a rest-of-season contract with the banged-up Sixers via a hardship exception just before the 2024/25 campaign came to an end. He logged 17 minutes in Philadelphia’s regular season finale, contributing six points, five assists, and four rebounds in a loss to Chicago.
While Mobley doesn’t have an extensive NBA résumé, he has performed well in the G League, including averaging 21.5 points and 8.7 rebounds per game for the Cleveland Charge in 2022/23. He also had a big Summer League showing in 2023, earning championship game MVP honors after his 28 points and 11 boards in the final helped lead the Cavs to a Las Vegas title.
Manisa Basket will be looking to bounce back from an underwhelming season that saw the club finish tied for 12th (out of 16 teams) with an 11-19 record in Turkey’s Basketball Super League.
Free Agent Rumors: Kuminga, Horford, Westbrook, Grimes
There has been no meaningful movement in any direction on the Jonathan Kuminga front in the past couple weeks, per Anthony Slater of ESPN.
Having returned to his offseason base of Miami after a recent trip to his home country – the Democratic Republic of the Congo – the restricted free agent forward remains underwhelmed by the Warriors‘ two-year, $45MM offer that includes a second-year team option (and a request that he waive his implicit no-trade clause).
With no guaranteed money beyond year one, a trade-friendly salary, and no ability for Kuminga to have any say in a mid-season trade destination, the structure of the proposal is too team-friendly for Kuminga’s liking, Slater explains. Sources tell ESPN that the 22-year-old’s priority has been to find a contract that positions him to be a long-term building block for either the Warriors or another club. A short-term deal that essentially sets him up to be traded runs counter to that goal.
Kuminga’s camp pitched a three-year, $82MM contract that the Warriors turned down, according to Slater, who adds that the forward has told people close to him that the idea of signing his one-year, $8MM qualifying offer and reaching unrestricted free agency in 2026 appeals more to him than accepting Golden State’s one-plus-one proposal.
Here are a few more rumors on some of the top unsigned free agents:
- Even though Al Horford has had to wait for resolution on the Kuminga situation and has mulled the idea of retirement, the Warriors seem to be operating as if the 39-year-old big man is a firm part of their plans for 2025/26, Slater writes. The idea would be to slot Horford in as their starting center to help reduce Draymond Green‘s regular season workload, according to Slater, though he notes that Horford’s minutes would have to be carefully managed as well.
- League sources consider the Kings to be the most likely landing spot for free agent point guard Russell Westbrook, ESPN’s Tim MacMahon reports within the same story. Multiple reports earlier this summer indicated that there may not be room in Sacramento’s backcourt for Westbrook unless the team were to trade Malik Monk or Devin Carter, but the former MVP is still being linked to the Kings even with those two guards still on the roster.
- The Sixers continue to project confidence that they’ll re-sign restricted free agent guard Quentin Grimes, says Jake Fischer of The Stein Line (Substack link). While it’s not out of the question that Grimes could accept his $8.7MM qualifying offer, Fischer believes the two sides will work out a more mutually beneficial deal that begins at a higher salary.
Knicks To Hire T.J. Saint As Assistant Coach
The Knicks will add another assistant to Mike Brown‘s coaching staff, according to Ian Begley of SNY.tv, who reports (via Twitter) that the team is hiring T.J. Saint.
Saint has spent the past several seasons with the Pelicans’ G League affiliate, which has been known as the Birmingham Squadron since 2021. He came aboard in 2019/20 when the team was the Erie BayHawks, then was promoted to associate head coach in 2020 and to head coach in 2022.
According to Begley, Saint is considered in NBA circles to be a “bright offensive mind.” As Begley observes, the Squadron had the G League’s No. 1 offense during the 2023/24 season.
Before his stint with New Orleans’ G League team, Saint spent one year as the director of basketball strategy at the University of Georgia (2018/19) and was the Pistons’ video coordinator for four seasons (2014-18).
Saint is one of a handful of coaching hires New York has made since bringing in Brown to replace former head coach Tom Thibodeau. New assistants Chris Jent and Brendan O’Connor are expected to run the offense and defense, respectively. The Knicks are also retaining several coaches from Tom Thibodeau‘s staff, including Rick Brunson and Maurice Cheeks, and are adding Charles Allen and Riccardo Fois, a pair of player development assistants who worked under Brown in Sacramento.
NBA To Announce Regular Season Schedule On Thursday
The NBA will unveil its full schedule for the 2025/26 regular season on Thursday (August 14), according to an announcement from the league (Twitter link).
The NBA typically leaks several marquee games during the week before its full schedule announcement, and that trend has continued this August.
Shams Charania of ESPN reported on Friday that the opening night schedule this fall will consist of Rockets at Thunder and Warriors at Lakers. He also confirmed the five Christmas Day games, which feature four Western Conference showdowns and just a single Eastern Conference matchup.
The league also indicated today that it will provide a sneak peek at a few more notable matchups on Tuesday during Good Morning America (ABC) and The Today Show (NBC). Those games announced on Tuesday will all be airing on ESPN/ABC or NBC/Peacock.
A year ago, the NBA also put out the full schedule for the Emirates NBA Cup a couple days before the rest of the regular season slate was revealed. It’s unclear if that’s the plan again this time around, but if so, that NBA Cup schedule should be released within the next 24-to-48 hours.