Re: Predictions-Celtics lineup next year
posted at 3/27/2012 2:41 PM EDT
Can a team with cap room sign all the free agents it wants (up to the salary cap) and THEN re-sign its own free agents using the Bird exception?
A team's ability to do this is very limited. The team's free agents continue to count against their team salary (against the salary cap). This charge is called the "free agent amount." There may not be enough money available under the cap to sign another team's free agent, because the team's own free agents are taking up all their cap room.
That's why renouncing KG & Ray solves that problem Mutt & Jeff ... Get it?
Why do free agents continue to count against a team's cap?
It closes another loophole. Teams otherwise would be able to sign other teams' free agents using their cap room, and then turn their attention to their own free agents using the Bird exceptions. This rule restricts their ability to do that. It doesn't close this loophole completely -- for example, in 2005 Michael Redd's free agent amount was $6 million, even though the Bucks intended to re-sign him for the maximum salary. By waiting to sign Redd last, the Bucks were able to take advantage of the difference by signing Bobby Simmons. Had they signed Redd first, they would have had no cap room to sign Simmons.
When do free agents stop counting against the team's cap?
When any one of the following three things happen:
- The player signs a new contract with the same team. When this happens, the player's effect on his team's team salary is based on his new salary.
- The player signs with a different team. As soon as this happens, the player becomes the new team's problem, and his salary no longer counts against his old team.
- The team renounces the player. (See question number 34)
What does renouncing a player mean?
As detailed in question number 31, free agents continue to be included in team salary. By renouncing a player, a team gives up its right to use the Larry Bird, Early Bird, or Non-Bird exceptions (see question number 19) to re-sign that player. A renounced player no longer counts toward team salary, so teams use renouncement to gain additional cap room. After renouncing a player, the team is still permitted to re-sign that player, but must either have enough cap room to fit the salary, or sign the player using the Minimum Salary exception. The exception to this is an Early Bird free agent who is coming off the second season of his rookie scale contract. Such players, when renounced, are treated as Non-Bird free agents.
After renouncing a player, a team can still trade the player in a sign-and-trade agreement.
Schools out children!!!