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NBA free agency is a dynamic period marked by negotiations, player movements, and strategic decisions that shape team rosters for the upcoming seasons. This comprehensive guide outlines the entire free agent process, including key terminology, types of free agents, and various contract options. It covers the significant dates, the roles of restricted and unrestricted free agents, and the intricacies of offer sheets, qualifying offers, and salary cap exceptions. Understanding these elements provides a clear picture of how teams and players navigate free agency, ensuring both strategic team building and optimal player career progression.

Key Dates in NBA Free Agency

Understanding the timeline of free agency is crucial for following player movements and team strategies:

• Day After Last Game of NBA Finals: Teams can start negotiating with their own upcoming free agents.

• June 30: Teams may begin negotiating with all free agents at 6 p.m. ET.

• July 6: Free agents can officially sign contracts starting at 12:01 p.m. ET.

Free Agent Terminology

Restricted Free Agency (RFA) A restricted free agent can sign an offer sheet with any team, but the original team can retain the player by matching the offer. This is known as the “right of first refusal.” Restricted free agency applies in several scenarios, including after the fourth year of rookie-scale contracts for first-round picks and for veterans with three or fewer seasons in the NBA.

Offer Sheets An offer sheet is a contract proposed by a new team to a restricted free agent. The original team has two days to match the terms. If matched, the player stays with the original team under the new terms; if not, the player joins the new team.

Qualifying Offers A qualifying offer is a one-year contract offer that makes a player a restricted free agent. It must be extended by the original team between the day after the NBA Finals and June 29. Players can accept the qualifying offer and play the next season under its terms, ensuring unrestricted free agency the following year.

Unrestricted Free Agency (UFA) Unrestricted free agents can sign with any team. Some UFAs may have options on their contracts that can impact their free agency decisions.

Free Agency Moratorium

The Free Agency Moratorium is a negotiation period from July 1-6 where most free agent signings and trades are prohibited. Negotiations can occur, but official signings and trades must wait until after the moratorium ends.

Signings Allowed During Moratorium:

• First-round draft picks to standard rookie-scale contracts.

• Second-round draft picks accepting required tenders.

• Restricted free agents accepting qualifying offers.

• Players on minimum-salary contracts for one or two seasons.

• Two-Way contracts and certain contract conversions.

Contract Options

Team Options A team option allows the original team to extend a player's contract for another year. It must be exercised before the contract’s final season begins.

Player Options A player option allows the player to decide whether to stay with the current team for another year or become an unrestricted free agent.

Early Termination Options (ETO) An ETO allows a player to end a contract early, typically after the fourth year of a five-year deal, making them an unrestricted free agent.

Salary Cap Exceptions

The NBA has several exceptions that allow teams to exceed the salary cap:

Bird Exception Allows teams to re-sign their own free agents to maximum contracts if the player has been with the team for three consecutive seasons.

Early Bird Exception Enables teams to re-sign their own free agents to contracts up to 175% of their previous salary or 105% of the league average salary, after two consecutive seasons with the team.

Non-Bird Exception Permits teams to re-sign their free agents to contracts up to 120% of their previous salary, applicable minimum salary, or qualifying offer.

Bi-annual Exception Allows teams to sign players to contracts totaling up to $3.382 million, usable once every two years.

Mid-Level Salary Exceptions Teams have several mid-level exceptions (Non-Taxpayer, Taxpayer, Room) allowing them to sign players to varying contract values and lengths based on their salary cap situation.

Rookie Exception Teams can sign their first-round draft picks to contracts up to 120% of the rookie scale amount.

Minimum Salary Exception Allows teams to sign players to minimum contracts, typically for one or two years.

Disabled Player Exception Permits teams to replace a player who suffers a season-ending injury with a contract worth up to 50% of the injured player’s salary or the non-taxpayer mid-level exception amount.

Traded Player Exception Allows teams to acquire players in trades while exceeding the salary cap, with specific rules for simultaneous and non-simultaneous trades.

Two-Way Contracts

Two-Way contracts allow players to split time between the NBA and the G League, with specific rules on their free agency status after the contract ends.

Detailed Processes

Restricted Free Agency

Restricted free agents have several options, including accepting a qualifying offer, signing an offer sheet with another team, negotiating a new contract with their current team, or pursuing a sign-and-trade deal. If no qualifying offer or contract is signed for a year, the player remains a restricted free agent the next summer.

Offer Sheets and Matching Rights

When a restricted free agent signs an offer sheet, the original team has two days to match it. If they match, the player stays; if not, the player joins the new team. The team making the offer must have enough salary cap room to accommodate the offer sheet and must maintain that room until the original team decides whether to match.

Qualifying Offers and Starter Criteria

Qualifying offers ensure a team retains matching rights on a restricted free agent. The value of a qualifying offer can be adjusted based on whether the player met starter criteria (starting 41 games or playing 2,000 minutes). Qualifying offers expire on October 1 but can be extended, affecting the player’s restricted free agency status.

Unrestricted Free Agency and Contract Options

Unrestricted free agents can negotiate with any team. Players with options in their contracts can choose to opt-in for another year or opt-out to test free agency. Early termination options give players the right to end a contract early, becoming unrestricted free agents.

Salary Cap Exceptions in Detail

Bird, Early Bird, and Non-Bird Exceptions These exceptions allow teams to re-sign their own free agents, with different eligibility requirements and salary limits based on the player's tenure and previous contract.

Mid-Level and Bi-Annual Exceptions These exceptions provide additional flexibility for teams to sign free agents, with different values and restrictions based on the team's salary cap status.

Rookie and Minimum Salary Exceptions These exceptions facilitate signing rookies and players to minimum contracts, ensuring teams can fill out their rosters even when operating close to the salary cap.

Disabled Player and Traded Player Exceptions These exceptions address unique situations, such as replacing injured players or facilitating trades while managing salary cap constraints.