For those who were hoping we could use Pierce's opt out to create cap room, sign free agents, and then re-sign him using the Bird rights, as best as I can tell, Larry Coon's FAQ on the cap suggests that we can't do that. If we renounce Pierce and/or Allen, we clear the space, but by definition, we can't then use their Bird rights:
http://members.cox.net/lmcoon/salarycap.htm29. Can a team sign all the free agents it wants (up to the cap limit) and THEN re-sign its own free agents using the Bird exception?
Yes, but there's a restriction. A team's free agents continue to count as team salary (against the salary cap). This charge is called the "free agent amount." So there may not be enough money under the cap to sign another team's free agent, because the team's own free agents are taking up all their cap room.
30. How much do free agents count against their team's salary cap?
The free agent amount depends on the player's previous salary and what kind of free agent he is:
Kind of free agent Previous salary Free agent amount
Any Minimum salary Portion of minimum salary not reimbursed by the league (see question number 11)
Larry Bird, except when coming off rookie scale contract At least the average salary 150% of his previous salary*
Larry Bird, except when coming off rookie scale contract Below the average salary 200% of his previous salary*
Larry Bird, following the fourth season of his rookie scale contract At least the average salary 250% of his previous salary*
Larry Bird, following the fourth season of his rookie scale contract Below the average salary 300% of his previous salary*
Larry Bird, following the third season of his rookie scale contract Any The maximum salary the team can pay the player using the Bird exception
Early Bird, following the second season of his rookie scale contract Any The maximum salary the team can pay the player using the Early Bird exception
Early Bird (all others) Any 130% of his previous salary*
Non-Bird Any 120% of his previous salary*
* Not to exceed the player's maximum salary, based on years of service (see question number 11). If the difference in salary between the last two seasons of the player's contract exceeded $4 million, then the percentage is based on the average salary in the last two seasons of the contract.
A restricted free agent counts against his team's salary cap by the greatest of:
* His free agent amount (as defined in the table above)
* The amount of his qualifying offer (see question number 36)
* The first year salary from any offer sheet the player signs with another team (see question number 36)
Here's an example of how to use this chart: Let's say a player who made $5 million during the previous season becomes an Early-Bird free agent, and is not coming off the second season of his rookie scale contract. According to this chart, the player's free agent amount is 130% of his previous salary. So $6.5 million is included in his team's team salary while he is a free agent.
31. 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.
32. 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 33)
33. What does renouncing a player mean?
As detailed in question number 30, 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.
If the player does not sign with any team (his prior team or any other team) for the entire season, then his renouncement continues. In other words, the team is not permitted to renounce a player, let him lie idle for the year, then re-sign him the following summer using Bird rights. However, if the player re-signs with his prior team, then his renouncement is no longer in effect when his contract ends. For example, if a team renounces their Larry Bird rights to a player, then re-signs that player to a one-year contract using cap room, then the player is once again a Larry Bird free agent the following summer.
After renouncing a player, a team can still trade the player in a sign-and-trade agreement (see question number 78).
34. Can the renouncement be renounced? In other words, can a team un-renounce a player and then sign him using a Bird exception?
Only in one specific circumstance -- when they renounce one or more of their players in order to create enough cap room to sign another team's restricted free agent, but the restricted free agent's original team matches the offer sheet and keeps him. If that happens, the team can rescind the renouncement. There are a couple exceptions to this -- they can't rescind a renouncement if doing so takes them from below the salary cap to above it; or if they are above the cap and rescinding the renouncement takes them farther above the cap than they were before the renouncement.
See question number 36 for more information on restricted free agency.
