Explaining the Mid-Level Exception

Brian Windhorst of the Akron-Beacon Journal today summarized the rules around the NBA's "mid-level exception".

Below is his description of this salary cap exception:

The mid-level exception changes every year and can be used to sign one or more free agents. This year it is $5.3 million. All teams over the salary cap, or within $5.3 million of the cap, get the exception. The bi-annual exception must go to one player and can only be used every other year. This year it is worth $1.8 million and the Cavs can use it. These contracts can only be for two years. Trade exceptions are created when trades are unbalanced within the trade rules. Say a player making $10 million gets traded for a player making $7.5 million (which is legal) the team who got the $7.5 million player gets a $2.5 million trade exception. It can be used by itself in another trade. Sometimes teams can just trade salary-cap space for players, creating large exceptions. This is what the Charlotte Bobcats and Orlando Magic did this summer. When a player gets injured and is out for the year, teams can apply to the league for injured player exceptions, which can be used like trade exceptions but can be combined with players. The Milwaukee Bucks used an injured player exception (for Bobby Simmons) to get Earl Boykins last season.

This can be found by going to:
http://www.ohiomm.com/blogs/cavs/2007/07/30/the-as-to-the-qs-part-two/