Mid Level Exception (2016/17)

[Ian Noble]

Mid Level Exception (2016/17)

Mid Level Exception - $5,628,000

• The only teams who possess the MLE are those who are over the Salary Cap on the starting day of Off Season Free Agency. If a team drops below the Salary Cap on that date then they forfeit their MLE.
  
  
• GMs may use all or part of their Mid Level Exception to sign a player if their team is over the salary cap.
  
  
• The MLE can be used on multiple players.
  
  
• The amount of MLE money a team can use resets each season at the start of Off Season Free Agency. Previous MLE signings have no impact on the amount a team can spend.
• Teams under the cap by an amount less than the MLE have the full MLE to spend.

There are only two teams who are able to use their MLE in the 2016/17 Season:
^{Denver Nuggets - Anthony Morrow ($3,628,000)
LA Clippers - David Lee ($5,628,000)}



See 2015/16 Mid Level Exception thread here.

[JR Wiles]

There needs to be an exact date for this so teams don't try and use it if they can't.

Is it after the draft, FA, start of the season or when?

Ian Noble?

[Alex English]

Jul 10, 2016 2:38:51 GMT JR Wiles said:

There needs to be an exact date for this so teams don't try and use it if they can't.

Is it after the draft, FA, start of the season or when?

Ian Noble?

EDIT: In the NBA the MLE is just a cap hold. Teams can use it or renounce it for more space. We don't do it that way though (but we could). When you start signing free agents in the off-season is when we should start counting. That way you could still make a trade that takes up cap space, but not lose your MLE to make signings.

This year is easy though with how much cap space everyone has. As of now the only teams who have the MLE are:

Denver Nuggets
Los Angeles Clippers
Milwaukee Bucks

[JR Wiles]

It either begins July 1st from what I see, because thats when the new season official begins or after FA.

[JR Wiles]

I mean the roster page and salaries have been updated with the draft, FA and trades, etc.

[Walt Frazier]

Are we on board with Alex's post here, Ian Noble ?

Only 3 teams should really have the MLE. I know we've had some .... problems... in the past with the MLE, including people being allowed to use it TWICE in the same offseason! haha :-) I just want to get this right or at least have it spelled out super clearly.

I believe (disregarding the cap holds thing since we don't do that and never have), that only teams who begin the offseason (so, July 1st for us) over the cap get it. As Alex said, that's only 3 teams. Nuggets, Clippers, Bucks.

[Hanamichi Sakuragi]

Jul 13, 2016 2:35:53 GMT Walt Frazier said:

Are we on board with Alex's post here, Ian Noble ?

Only 3 teams should really have the MLE. I know we've had some .... problems... in the past with the MLE, including people being allowed to use it TWICE in the same offseason! haha :-) I just want to get this right or at least have it spelled out super clearly.

I believe (disregarding the cap holds thing since we don't do that and never have), that only teams who begin the offseason (so, July 1st for us) over the cap get it. As Alex said, that's only 3 teams. Nuggets, Clippers, Bucks.

I think, it doesn't need to be over. As long as their cap space entering the offseason is smaller than the MLE, they are allowed to use it. 

[Walt Frazier]

Jul 13, 2016 3:05:13 GMT Hanamichi Sakuragi said:

Jul 13, 2016 2:35:53 GMT Walt Frazier said:

Are we on board with Alex's post here, Ian Noble ?

Only 3 teams should really have the MLE. I know we've had some .... problems... in the past with the MLE, including people being allowed to use it TWICE in the same offseason! haha :-) I just want to get this right or at least have it spelled out super clearly.

I believe (disregarding the cap holds thing since we don't do that and never have), that only teams who begin the offseason (so, July 1st for us) over the cap get it. As Alex said, that's only 3 teams. Nuggets, Clippers, Bucks.

I think, it doesn't need to be over. As long as their cap space entering the offseason is smaller than the MLE, they are allowed to use it. 

Yes that too, thanks

[Brian Scalabrine]

Hey this kind of affects the offers I'm trying to put out. Do we know which teams will be permitted to use the mle?

[Ian Noble]

Update: The only teams who possess the MLE are those who are over the salary cap on the starting day of Off Season Free Agency. If a team drops below the Salary Cap they forfeit their MLE.

This means only Denver and the LA Clippers have the MLE to use this year.

[JR Wiles]

Article VII, Sections 6(e)-(g) of the Collective Bargaining Agreement lay out the terms for the Mid-Level Exceptions.

While Bird rights carry the heavy lifting for teams looking to retain their own free agents, the Mid-Level Exception is often the most powerful tool over the cap teams have to add new talent.

The Three Mid-Level Exceptions:

There are three different Mid-Level Exceptions but each team can only use one at most in a given league year. The current CBA changed the structure from a single MLE to three that function in different circumstances.

The Non-Taxpayer Mid-Level Exception can be used by teams under the apron (always exactly $4 million above the luxury tax line) and not so far under the salary cap to lose their exceptions. It is the largest of the MLE’s in terms of annual value and can be used to sign players for up to four seasons.

The Taxpayer Mid-Level Exception can only be used by teams over the apron. It has a lower annual value (about 60% of the Non-Taxpayer MLE this season) and contracts can only be three seasons at the most.

The Room Mid-Level Exception becomes available when a franchise drops so low below the salary cap that they lose the use of exceptions. It has the lowest annual value (about 50% of the Non-Taxpayer MLE this season) and contracts cannot be longer than two seasons.

How the Mid-Level Exceptions Work:

Teams can use one Mid-Level Exception every season- Unlike the Bi-annual Exception, using the MLE one season has zero effect on their ability to use it the next season.

The amount of each Mid-Level Exception is specified in the CBA and does not vary based on the salary cap- For better or for worse, the Collective Bargaining Agreement dictates the amount of each MLE for each season. RealGM has the specific amounts, as does Larry Coon’s invaluable CBAFAQ.

Each Mid-Level Exception can be split; While much more prevalent for the larger Non-Taxpayer MLE, each of the Mid-Level exception variants can be split among multiple players during a given season.

The Mid-Level Exception cannot be used to acquire a player via trade; The MLE’s do not work like trade exceptions.

There is one other nuance that can be useful to understand: Since using any of the benefits available only to non-tax teams triggers a hard cap at the apron (meaning they cannot spend more than $4 million above the luxury tax line for any reason), a team signing someone using the Non-Taxpayer Mid-Level Exception would prevent them from going over that line. However, if the team spends less of the Non-Taxpayer MLE than the amount of the smaller Taxpayer MLE (smaller in money and maximum years), it can be reclassified and the hard cap will not apply because of it. Interestingly, Section 6(g)(2) says that a team using the Taxpayer Mid-Level Exception cannot then use the Non-Taxpayer MLE, so a franchise that signs a contract for the Taxpayer MLE and then moves under the apron cannot use the increased flexibility to sign anyone else.

The Purpose / Future of the Mid-Level Exception:

At its most basic, the Mid-Level Exception functions as a way for expensive teams to add more talent. Since the current CBA limits the tools for over the tax teams to add talent, even a comparatively limited MLE still holds plenty of value. The current CBA’s handling of the three different Mid-Level Exceptions has worked very well but the players and owners must consider tying this essential team-building piece to the salary cap because it has quickly lost its relative value due to a skyrocketing salary cap fueled by increased revenues.

Beyond that sort of change, it appears unlikely that the next Collective Bargaining Agreement will bring about as large a change as the current one. More likely, it will tweak the relative strengths of the three MLE’s while maintaining the general structure.