With the Imminent arrival of the 2016 NBA Draft, the next step is free agency. More important than top talent is how the Philadelphia 76ers fill up its bench
You know the names of free agency: LeBron James, Kevin Durant, Al Horford, Mike Conley, Al Horford, and the list goes on and on. But what do we REALLY know about the 2016 NBA free agency?
First of all, the best of the best NBA free agents will likely re-sign with their original teams. Why?
The NBA has a salary cap imposed upon each team, but then has designed a network of exemptions to give the original team a distinct advantage to pay more, but offer better package deals to a potential free agent player.
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Thanks to NBAExplained by Kirkburger, we can give you the rules and reasons behind the complexities of the NBA free agency market pertaining to the Salary Cap rules:
Free Agency in the NBA officially opens on July 1st. There is a moratorium set by the league, usually from one to two weeks, where agents and teams can negotiate contract terms, but no contracts can be signed nor any trades executed. In 2016, the moratorium only lasts until July 6th. NBA contracts may be signed on July 7th.
The NBA and NBPA have agreed to shorten July free agent moratorium to five days -- July 1 to July 6, league sources tell The Vertical.
— Adrian Wojnarowski (@wojespn) March 17, 2016
Now that we have established the WHEN, lets talk about some of the rules of the salary cap itself. The rules are very complex, and I admit that I will often refer back to this article throughout free agency.
Next: Rookie Pay Scale
Rookie Salary Scale
All rookie contracts signed with first round picks have a term of two guaranteed years with two separate one – year team options for seasons three and four. If the team wants to exercise the first team option, it must do so during the period from the day following the end of the player’s first season through the immediately following October 31. If the team wants to exercise the second team option, it must do so during the period from the day following the end of the player’s second season through the immediately following October 31.
In the 2016-2017 Rookie scale, the first selection earns $4,919,300. The 24th selection earns $1,105,800. Finallay, the 26th selection earns $1,026,300.
Just for comparison sake, falling to the second draft pick in the 2016 NBA draft costs that player over $500,000 per year.
Next: Rose Exemption
Exemptions Related to the Derrick Rose Situation
The Designated Player Rule (The Derrick Rose Rule)
Each team in the NBA has the right to nominate one rookie to receive a designated player extension. This allows teams to offer this player a 5-year extension, compared to the usual limit of 4. Teams can only have one designated player on a roster at one time. However teams are allowed to sign a designated player from another team, meaning they can have two, this is the final limit and no more can be signed except this.
The “Derrick Rose Rule” as it was coined means that a designated player can earn 30% of a teams salary cap instead of the usual limit of 25%.
In order to do this, that player must meet certain criteria;
they must have either been voted to start in the All-Star game at least twice,
be named to an All-NBA team at least twice,
or have won MVP.
Only three players in the NBA have qualified to sign a contract with this exception: Derrick Rose (Chicago Bulls), Blake Griffin (LA Clippers) and Paul George (Indiana Pacers).
Next: Bird Exception
Exemptions related to Larry Bird Situation
Bird Exception
Boston Celtic Larry Bird was the first player to be retained by these means.
The Bird Exception allows to re-sign their own players even if they exceed the cap limit by doing so. To qualify for this a player must have played three consecutive seasons without being waived or moving teams through free agency.
Blue Man Hoop
Players who are traded or are amnestied have their bird rights transferred to their new team.
Players who qualify for bird rights can be signed for any amount up to the maximum salary. Players claimed off waivers are not eligible for full bird rights but may qualify for the early-bird exception.
Early-Bird Exception
The Early-Bird Exception is the lesser form of the full bird exception where free agents qualify for this after playing only two years with their team.
With this exception teams can sign their free agents for either 175% of their previous season salary or for the league’s average salary, whichever is more.
Non-Bird Exception
Non-Qualifying free agents who do not qualify for the bird exception can sign under the non-bird exception.
This allows teams to re-sign players for either 120% of their previous years salary or 120% of the leagues minimum salary, whichever is greater.
Next: Other Exceptions
Other Exceptions for players NOT related to the Larry Bird situation:
Mid-Level Exception
Once every season each team can use the mid-level exception to sign a player. The contract amount and duration depend on the teams status in the salary cap.
To simplify , any team without cap room but which is below the tax apron (not in luxury tax) can sign a player for $5.3 million; a team over the luxury tax can sign a player for $3.2 million and a team with cap room can sign a player to an mid-level exception for $2.5million (teams under the cap were previously unable to sign players on an mid-level exception).
Why would a team under the cap wish to do so? If they plan multiple transactions, this gives a team a better strategy by which they can claim which transaction (not necessarily chronological) it places under the exception.
Bi-Annual Exception
The Bi-Annual exception allows teams to sign players for contracts starting at $1.6 million for the first year, with a maximum of an 8% raise for the following year. Teams already in the luxury tax are not allowed to sign players through this exception as many were using it to sign top paid players.
Rookie Exception
The Rookie Exception allows players to sign their draft choices to rookie scale contracts even if it means they would push them over the cap limit.
Next: Unique Circumstance Exceptions
Unique Circumstance Exceptions
Minimum Salary Exception
The Minimum Salary Exception allows teams to sign players for the leagues minimum salary even if they are already over the cap limit for up to two years (the second year of the contract is for the leagues minimum salary that year). This exception also allows minimum salary players to be acquired by trade.
Traded Player Exception
With the Traded-Player Exception if a team trades a player with a higher salary away than the one they get in return then they qualify for a trade exception. This means that teams with this exception have up to a year in which they can acquire more salary in other trades than they send away, as long as the difference is the same.
Disabled Player Exception
The Disabled Player Exception allows a team to sign a replacement for a player who will be out for the rest of the season (through death or injury) even if they are over the cap. This also can be used for the next season if an injury occurs during the off-season. Teams can sign players for 50% of the disabled players contract or the MLE for a non luxury tax team, whichever is less. This player can only be signed for one season.
Reinstatement
A player who was banned from the league for a drug related issue can be reinstated and re-sign for their team under the same contract.
Next: Free Agency Coverage
Free Agency Coverage
Luxury Tax
Although teams can re-sign their own players indefinitely through the numerous Bird Rules, there are financial consequences for those who do. A luxury tax payment is required to be paid by teams who exceed a certain tax level. This is determined by a complicated formula and teams exceeding it must pay bracket-based amounts for each dollar they are over the tax level.
Upcoming Free Agency Analysis
For the next few weeks, we hope to analyze the free agency situation of other NBA teams. While the Philadelphia 76ers are in no danger for the upcoming Salary Cap situation, it’s very important for the true understanding of the market to know what is driving each team’s ability to meet the salary demands of an elite player.
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For now, elite players can command top salary dollars at virtually any NBA team, and it’s that reason that makes the team’s likelihood of winning immediately so very important to the top NBA talent.
But that distinction only lasts as long as all teams have capacity for signing top tier talent. As soon as this year’s salary cap is consumed, the NBA will create the two tiers – teams willing to exceed the salary cap to remain competitive, and teams which agree to absorb other team’s hefty contracts to expedite their improvement through acquiring NBA draft picks.
Right now, the Philadelphia 76er are building – neither overpaying nor absorbing. We’ll try to analyze the free agency opportunities of each of the other 29 NBA teams. While the Philadelphia 76ers are in need of veterans who can contribute quality minutes, the team is not in the situation of many teams this free agency. The 76ers have key pieces, and with wisdom could assemble not only a formidable starting lineup, but also have incredible bench depth this season.
Next: Brandon Ingram Spotted In Philly With Brett Brown
With a first draft pick looming, the team will have as many as three solid pieces to start the year on draft night. (front court). The back court, while still under construction, does have some promising pieces as well. It will be a good 2016-2017 season. We are nearly to the 2016 NBA draft night, which is when the action begins.