Granger agreed to a 2 year deal with the Heat

[saltlover]

Tweet from Woj:

Adrian WojnarowskiVerified account
?@WojYahooNBA
Free agent Danny Granger has agreed to a two-year, $4.2 million deal with the Miami Heat, league sources tell Yahoo Sports.

This is the Bi-Annual exception.  Combined with the McRoberts deal earlier reported, Miami is now limited to the minimum salary for any free agents other than their own (unless the Big 3 break up).

Not if Wade and Bosh agree to pay cuts.

Bosh isn't agreeing to enough of a pay cut to matter.  The Heat currently have committed about $10.3 million to four players next year (Cole, Napier, McRoberts, and Granger).  LeBron gets his $20.6 million.  That's now $31 mil for 5. Say Wade takes $12 million.  That's $43 mil for six players.  Bosh would have to get Wade money before they had any real room to sign another free agent, and even then, they'd only have about another $5 mil to spend, once you account for roster holds.  No way is Bosh taking $12 mil when he's offered $20 mil somewhere else.  Maybe he'd take $17-18, but that won't get them anywhere.

If McRoberts and Granger are agreeing to accept the MLE and BAE respectively, those do not count against the 63.2 cap. These reports are agreements only, not official signings.

They can pursue let's say Gasol or Ariza at 8M and another FA at 3M. That's 11M for the two. That along with Lebron at 20M, Wade and Bosh at 15M each (just examples), Napier and Cole would put them at 63M. THEN when they are over the cap, they can officially sign McBob and Granger at the exception amounts listed above.

Being the first ones to agree to contracts DOES NOT mean that they will be the ones who will "OFFICIALLY" sign.

Exceptions are counted against the cap via a cap hold, I believe. I know the MLE does, for sure.

Meaning, there is a placeholder on the Heat's books right now for "MLE" with no name attached to it.

What he said.  The only way McRoberts and Granger don't wind up taking Miami's cap space is if one side reneges.

[staticcc]

Tweet from Woj:

Adrian WojnarowskiVerified account
?@WojYahooNBA
Free agent Danny Granger has agreed to a two-year, $4.2 million deal with the Miami Heat, league sources tell Yahoo Sports.

This is the Bi-Annual exception.  Combined with the McRoberts deal earlier reported, Miami is now limited to the minimum salary for any free agents other than their own (unless the Big 3 break up).

Not if Wade and Bosh agree to pay cuts.

Bosh isn't agreeing to enough of a pay cut to matter.  The Heat currently have committed about $10.3 million to four players next year (Cole, Napier, McRoberts, and Granger).  LeBron gets his $20.6 million.  That's now $31 mil for 5. Say Wade takes $12 million.  That's $43 mil for six players.  Bosh would have to get Wade money before they had any real room to sign another free agent, and even then, they'd only have about another $5 mil to spend, once you account for roster holds.  No way is Bosh taking $12 mil when he's offered $20 mil somewhere else.  Maybe he'd take $17-18, but that won't get them anywhere.

If McRoberts and Granger are agreeing to accept the MLE and BAE respectively, those do not count against the 63.2 cap. These reports are agreements only, not official signings.

They can pursue let's say Gasol or Ariza at 8M and another FA at 3M. That's 11M for the two. That along with Lebron at 20M, Wade and Bosh at 15M each (just examples), Napier and Cole would put them at 63M. THEN when they are over the cap, they can officially sign McBob and Granger at the exception amounts listed above.

Being the first ones to agree to contracts DOES NOT mean that they will be the ones who will "OFFICIALLY" sign.

Exceptions are counted against the cap via a cap hold, I believe. I know the MLE does, for sure.

Meaning, there is a placeholder on the Heat's books right now for "MLE" with no name attached to it.

What he said.  The only way McRoberts and Granger don't wind up taking Miami's cap space is if one side reneges.

No. Like I said, these are verbal agreements, not official signings. They can pursue other FAs as much as they want now, and on July 10, sign those FAs FIRST before signing McRoberts and Granger to the exceptions officially. Example, sign Deng at 12M tomorrow. That's a verbal agreement. On July 10, they can sign Deng first officially, the big 3, whoever else. Those signings will use up the 63.2M then officially sign Granger and McBob.

[Fafnir]

You can't use cap space and then use your mid level, you have to pick one or the other.

[Lucky17]

http://www.cbafaq.com/salarycap.htm#Q26

26. How do exceptions count against the cap? Does being under the cap always mean that a team has room to sign free agents? Do teams ever lose their exceptions?

If a team is below the cap, then its Disabled Player, Bi-Annual, Mid-Level (either the Taxpayer or Non-Taxpayer Mid-Level, whichever applies to the team) and/or trade exceptions are added to their team salary, and the league treats the team as though they are over the cap1. This is to prevent a loophole, in a manner similar to free agent amounts (see question number 39). A team can't act like it's under the cap and sign free agents using cap room, and then use their Disabled Player, Bi-Annual, Mid-Level and/or trade exceptions. Consequently, the exceptions are added to their team salary (putting the team over the cap) if the team is under the cap and adding the exceptions puts them over the cap. If a team is already over the cap, then the exceptions are not added to their team salary. There would be no point in doing so, since there is no cap room for signing free agents.

So being under the cap does not necessarily mean a team has room to sign free agents. For example, assume the cap is $58 million, and a team has $51.5 million committed to salaries. They also have a Non-Taxpayer Mid-Level exception for $5 million and a trade exception for $5.5 million. Even though their salaries put them $6.5 million under the cap, their exceptions also count toward their team salary, increasing their total to $62 million, or $4 million over the cap. So the team actually has no cap room to sign free agents, and instead must use its exceptions to sign players.

Teams have the option to renounce their exceptions in order to reclaim their cap room. So in the example above, if the team renounced their Traded Player and Mid-Level exceptions, then the $10.5 million is taken off their team salary, which then totals $51.5 million, leaving them with $6.5 million of cap room which then can be used to sign free agent(s).

[staticcc]

http://www.cbafaq.com/salarycap.htm#Q26

26. How do exceptions count against the cap? Does being under the cap always mean that a team has room to sign free agents? Do teams ever lose their exceptions?

If a team is below the cap, then its Disabled Player, Bi-Annual, Mid-Level (either the Taxpayer or Non-Taxpayer Mid-Level, whichever applies to the team) and/or trade exceptions are added to their team salary, and the league treats the team as though they are over the cap1. This is to prevent a loophole, in a manner similar to free agent amounts (see question number 39). A team can't act like it's under the cap and sign free agents using cap room, and then use their Disabled Player, Bi-Annual, Mid-Level and/or trade exceptions. Consequently, the exceptions are added to their team salary (putting the team over the cap) if the team is under the cap and adding the exceptions puts them over the cap. If a team is already over the cap, then the exceptions are not added to their team salary. There would be no point in doing so, since there is no cap room for signing free agents.

So being under the cap does not necessarily mean a team has room to sign free agents. For example, assume the cap is $58 million, and a team has $51.5 million committed to salaries. They also have a Non-Taxpayer Mid-Level exception for $5 million and a trade exception for $5.5 million. Even though their salaries put them $6.5 million under the cap, their exceptions also count toward their team salary, increasing their total to $62 million, or $4 million over the cap. So the team actually has no cap room to sign free agents, and instead must use its exceptions to sign players.

Teams have the option to renounce their exceptions in order to reclaim their cap room. So in the example above, if the team renounced their Traded Player and Mid-Level exceptions, then the $10.5 million is taken off their team salary, which then totals $51.5 million, leaving them with $6.5 million of cap room which then can be used to sign free agent(s).

This applies AFTER the official signing on July 10 I believe. Not for verbal agreements during the moratorium.

[staticcc]

You can't use cap space and then use your mid level, you have to pick one or the other.

You can , as long as you don't go above the tax apron. We did that with Jason Terry a few years ago.

[staticcc]

You can't use cap space and then use your mid level, you have to pick one or the other.

You can , as long as you don't go above the tax apron. We did that with Jason Terry a few years ago. There is usually a misinterpretation between the MLE and cap space. The MLE is related to paying the luxury tax, not on going over the salary cap.

From Larry Coon's NBA Salary Cap FAQ

"NON-TAXPAYER MID-LEVEL EXCEPTION -- This exception is available only when a team is below the "apron" (i.e., not paying luxury tax, or less than $4 million above the tax line). This determination is made after the exception is used, so a team below the apron cannot use this exception if doing so takes it above the apron. It cannot be used by a team that has already used the Taxpayer Mid-Level Exception or the Room Mid-Level exception."

[saltlover]

http://www.cbafaq.com/salarycap.htm#Q26

26. How do exceptions count against the cap? Does being under the cap always mean that a team has room to sign free agents? Do teams ever lose their exceptions?

If a team is below the cap, then its Disabled Player, Bi-Annual, Mid-Level (either the Taxpayer or Non-Taxpayer Mid-Level, whichever applies to the team) and/or trade exceptions are added to their team salary, and the league treats the team as though they are over the cap1. This is to prevent a loophole, in a manner similar to free agent amounts (see question number 39). A team can't act like it's under the cap and sign free agents using cap room, and then use their Disabled Player, Bi-Annual, Mid-Level and/or trade exceptions. Consequently, the exceptions are added to their team salary (putting the team over the cap) if the team is under the cap and adding the exceptions puts them over the cap. If a team is already over the cap, then the exceptions are not added to their team salary. There would be no point in doing so, since there is no cap room for signing free agents.

So being under the cap does not necessarily mean a team has room to sign free agents. For example, assume the cap is $58 million, and a team has $51.5 million committed to salaries. They also have a Non-Taxpayer Mid-Level exception for $5 million and a trade exception for $5.5 million. Even though their salaries put them $6.5 million under the cap, their exceptions also count toward their team salary, increasing their total to $62 million, or $4 million over the cap. So the team actually has no cap room to sign free agents, and instead must use its exceptions to sign players.

Teams have the option to renounce their exceptions in order to reclaim their cap room. So in the example above, if the team renounced their Traded Player and Mid-Level exceptions, then the $10.5 million is taken off their team salary, which then totals $51.5 million, leaving them with $6.5 million of cap room which then can be used to sign free agent(s).

This applies AFTER the official signing on July 10 I believe. Not for verbal agreements during the moratorium.

You're missing the point.  The simple fact is the Heat are either bound by the soft cap of approximately $63 million, in which case they cannot use the MLE or the BAE, or they go over the cap and use those exceptions.  McRoberts and Granger can sign either for the amount of the MLE and the BAE via cap room, or they can use those exceptions to sign.  It's not official until July 10th (or later), and certainly some deals fall through (Kyle Korver last year was rumored to the Nets via the taxpayer mid-level until re-signing with Atlanta for substantially more.  But for cap purposes, it doesn't matter about verbal agreements or anything else.  The Heat have a limited amount of dollars under the cap.  They can't sign their own free agents and others with cap room, and then sign McRoberts and Granger for the MLE and BAE, because that's what the exceptions are there for to begin with. You get one or the other, not both.

[saltlover]

From Larry Coon (it's best to read the FAQ in order of questions):

14. Exactly what is included when computing total team salaries? What is cap room? What is a cap hold?

A team's cap room (referred to simply as "room" in the CBA) refers to its ability to sign players to free agent contracts. If a team is above the cap, then its room is limited to the exceptions it possesses. If the team is below the cap, then its room is how far it is below the cap when all salaries and cap holds are included. Cap holds are "placeholders" for players the team is expected to sign in the future. For example, a team is expected to sign its unsigned first round draft pick, so an amount is reserved for this signing in the form of a cap hold. A team $10 million below the cap with $4 million in cap holds really has $6 million in room. A team $5 million under the cap with $6 million in cap holds is not considered under the cap at all, and must use exceptions to sign players. The following are included in team salary:

Salaries of all active and inactive players, including likely bonuses.
The full season salary of any players the team acquires in midseason trades.
Salaries paid or payable to waived players, minus any set-off amounts, and subject to the Stretch provision (see question number 65).
Any salary still being paid to retired players (see question number 62).
A cap hold for amounts paid or expected to be paid in conjunction with certain grievances.
A cap hold for salaries in contracts that have been agreed to but not yet executed (i.e., verbal agreements or agreements pending physicals). Note: During the July Moratorium (see question number 103), teams may not enter into verbal or written agreements. Therefore any agreements that are struck during the moratorium are still characterized as negotiations, and do not count toward team salary.
A cap hold for a percentage of the previous salary of every unrenounced free agent (see question number 38).
A cap hold for salaries offered in offer sheets to restricted free agents (see question number 44).
A cap hold for the "scale" amount for the team's unsigned first round draft pick(s) (see question number 51). This amount begins to apply to team salary immediately upon selection in the draft1. This amount can be excluded from the team salary for the current season if, before the season starts, the team and player agree in writing that the team will not sign the player during that season.
A cap hold called an "incomplete roster charge" if the team has fewer than 12 players (players under contract, free agents included in team salary, players given offer sheets, and first round draft picks). This charge is equal to the rookie minimum salary for each player fewer than 12. For example, if there are 11 players included in team salary, then an amount equal to the rookie minimum salary is added to the team salary2; if the roster is completely empty, then 12 times the rookie minimum salary is added to the team salary. This charge only applies during the offseason.
A cap hold for the combined amount of any Mid-Level, Bi-Annual, Disabled Player (see question number 25) and trade exceptions (see question number 84) available to the team (see question number 26), if the team is under the salary cap. (Teams may renounce these exceptions, in which case they no longer are included in team salary.)
Salaries for completed contracts (such as 10-Day contracts) are included in team salaries for the remainder of that salary cap year (through June 30).

[Fafnir]

You can't use cap space and then use your mid level, you have to pick one or the other.

You can , as long as you don't go above the tax apron. We did that with Jason Terry a few years ago.

No we didn't, the C's had zero cap space that year. Look at the salary sheets and the cap holds we had, we never had cap space.

You can either renounce your cap space and use the exceptions if you have any small amount of cap space, or you use the cap space and lose the exceptions.

[staticcc]

http://www.cbafaq.com/salarycap.htm#Q26

26. How do exceptions count against the cap? Does being under the cap always mean that a team has room to sign free agents? Do teams ever lose their exceptions?

If a team is below the cap, then its Disabled Player, Bi-Annual, Mid-Level (either the Taxpayer or Non-Taxpayer Mid-Level, whichever applies to the team) and/or trade exceptions are added to their team salary, and the league treats the team as though they are over the cap1. This is to prevent a loophole, in a manner similar to free agent amounts (see question number 39). A team can't act like it's under the cap and sign free agents using cap room, and then use their Disabled Player, Bi-Annual, Mid-Level and/or trade exceptions. Consequently, the exceptions are added to their team salary (putting the team over the cap) if the team is under the cap and adding the exceptions puts them over the cap. If a team is already over the cap, then the exceptions are not added to their team salary. There would be no point in doing so, since there is no cap room for signing free agents.

So being under the cap does not necessarily mean a team has room to sign free agents. For example, assume the cap is $58 million, and a team has $51.5 million committed to salaries. They also have a Non-Taxpayer Mid-Level exception for $5 million and a trade exception for $5.5 million. Even though their salaries put them $6.5 million under the cap, their exceptions also count toward their team salary, increasing their total to $62 million, or $4 million over the cap. So the team actually has no cap room to sign free agents, and instead must use its exceptions to sign players.

Teams have the option to renounce their exceptions in order to reclaim their cap room. So in the example above, if the team renounced their Traded Player and Mid-Level exceptions, then the $10.5 million is taken off their team salary, which then totals $51.5 million, leaving them with $6.5 million of cap room which then can be used to sign free agent(s).

This applies AFTER the official signing on July 10 I believe. Not for verbal agreements during the moratorium.

You're missing the point.  The simple fact is the Heat are either bound by the soft cap of approximately $63 million, in which case they cannot use the MLE or the BAE, or they go over the cap and use those exceptions.  McRoberts and Granger can sign either for the amount of the MLE and the BAE via cap room, or they can use those exceptions to sign.  It's not official until July 10th (or later), and certainly some deals fall through (Kyle Korver last year was rumored to the Nets via the taxpayer mid-level until re-signing with Atlanta for substantially more.  But for cap purposes, it doesn't matter about verbal agreements or anything else.  The Heat have a limited amount of dollars under the cap.  They can't sign their own free agents and others with cap room, and then sign McRoberts and Granger for the MLE and BAE, because that's what the exceptions are there for to begin with. You get one or the other, not both.

By reading the Salary Cap FAQ, I believe they can but I guess we'll find out in a few days.

[footey]

Should I change the heading of this thread to "Capology for Dummies"??  I have no clue!!

[staticcc]

From Larry Coon (it's best to read the FAQ in order of questions):

14. Exactly what is included when computing total team salaries? What is cap room? What is a cap hold?

A team's cap room (referred to simply as "room" in the CBA) refers to its ability to sign players to free agent contracts. If a team is above the cap, then its room is limited to the exceptions it possesses. If the team is below the cap, then its room is how far it is below the cap when all salaries and cap holds are included. Cap holds are "placeholders" for players the team is expected to sign in the future. For example, a team is expected to sign its unsigned first round draft pick, so an amount is reserved for this signing in the form of a cap hold. A team $10 million below the cap with $4 million in cap holds really has $6 million in room. A team $5 million under the cap with $6 million in cap holds is not considered under the cap at all, and must use exceptions to sign players. The following are included in team salary:

Salaries of all active and inactive players, including likely bonuses.
The full season salary of any players the team acquires in midseason trades.
Salaries paid or payable to waived players, minus any set-off amounts, and subject to the Stretch provision (see question number 65).
Any salary still being paid to retired players (see question number 62).
A cap hold for amounts paid or expected to be paid in conjunction with certain grievances.
A cap hold for salaries in contracts that have been agreed to but not yet executed (i.e., verbal agreements or agreements pending physicals). Note: During the July Moratorium (see question number 103), teams may not enter into verbal or written agreements. Therefore any agreements that are struck during the moratorium are still characterized as negotiations, and do not count toward team salary.
A cap hold for a percentage of the previous salary of every unrenounced free agent (see question number 38).
A cap hold for salaries offered in offer sheets to restricted free agents (see question number 44).
A cap hold for the "scale" amount for the team's unsigned first round draft pick(s) (see question number 51). This amount begins to apply to team salary immediately upon selection in the draft1. This amount can be excluded from the team salary for the current season if, before the season starts, the team and player agree in writing that the team will not sign the player during that season.
A cap hold called an "incomplete roster charge" if the team has fewer than 12 players (players under contract, free agents included in team salary, players given offer sheets, and first round draft picks). This charge is equal to the rookie minimum salary for each player fewer than 12. For example, if there are 11 players included in team salary, then an amount equal to the rookie minimum salary is added to the team salary2; if the roster is completely empty, then 12 times the rookie minimum salary is added to the team salary. This charge only applies during the offseason.
A cap hold for the combined amount of any Mid-Level, Bi-Annual, Disabled Player (see question number 25) and trade exceptions (see question number 84) available to the team (see question number 26), if the team is under the salary cap. (Teams may renounce these exceptions, in which case they no longer are included in team salary.)
Salaries for completed contracts (such as 10-Day contracts) are included in team salaries for the remainder of that salary cap year (through June 30).

Okay I missed that bold part my bad. So let's say the 7M committed to the two counts against the 63M salary cap. Then let's say the Heat fill up that space with the big 3 (hypothetically) and have salaries that amount to 63.2M (estimated salary cap) on the dot. Now do they have the MLE and BAE again because the Granger and McBob deals technically aren't exceptions anymore? 

[Roy H.]

Fafnir, et. al., are correct:  you can't utilize both cap space and the MLE / BAE.

Teams that use cap space are limited to the "room" exception and minimum contracts.

[LooseCannon]

Okay I missed that bold part my bad. So let's say the 7M committed to the two counts against the 63M salary cap. Then let's say the Heat fill up that space with the big 3 (hypothetically) and have salaries that amount to 63.2M (estimated salary cap) on the dot. Now do they have the MLE and BAE again because the Granger and McBob deals technically aren't exceptions anymore?

They would be resigning their own free agents using Bird rights and would never actually go under the salary cap due to cap holds, so wouldn't be renouncing the MLE and BAE.