Players signed using the newly created cap exception for second-round picks that will be included in the NBA’s Collective Bargaining Agreement won’t count against the cap until July 31, Keith Smith of Spotrac reports (Twitter links).
In the past, teams looking to maximize their cap room have sometimes put off signing their second-round picks, since those players don’t have a cap hold until they sign. However, as Smith explains, the new rule will allow those players to sign immediately without affecting a team’s cap space for the first month of free agency. That will allow them to fully participate with their new teams in Summer League play.
According to Smith, the second-round pick exception will allow teams to sign players to three- or four-year contracts with team options in the final season. It will also give second-round draftees the opportunity to earn more than the rookie minimum in the first season (for three-year deals) or in the first two seasons (for four-year deals).
Here are more odds and ends from around the basketball world:
- Yossi Gozlan of HoopsHype has another minor update on the new CBA, tweeting that the extend-and-trade restrictions will be loosened beginning in 2024 to allow for an extra year and a higher salary. Currently, an extension-eligible player who is traded must wait six months to sign a new deal that places him under contract for more than three total seasons (including his current deal) or features more than a 5% raise.
- The veteran extension rules will also be tweaked to allow players to replace an option year with a smaller salary in the first year of an extension, tweets Mike Vorkunov of The Athletic. That wasn’t permitted under the previous CBA — if a player declined a $30MM option as part of an extension agreement, his starting salary in the extension had to be at least $30MM.
- John Hollinger of The Athletic shared his top free agent point guards, shooting guards, small forwards, power forwards, and centers based on his BORD$ formula. Among Hollinger’s most interesting rankings? Nikola Vucevic at sixth among centers, one spot behind Dwight Powell; and Rui Hachimura at 14th among power forwards, behind players like Trey Lyles and Oshae Brissett.
- Sports and entertainment venue developer Tim Leiweke, the CEO of Oak View Group, spoke last week about his plans to build a 20,000 seat, NBA-ready arena as part of a massive Las Vegas development project that has a $10 billion budget and will be entirely privately financed. Howard Stutz of The Nevada Independent has the story, including the quotes from Leiweke.
- Five-star recruit Ron Holland has officially signed with the G League Ignite, according to a press release from the team. We first covered Holland’s commitment to the Ignite last month.
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