DOES THE LARRY BIRD EXCEPTION MEAN THE FREE AGENT CAN BE SIGNED AND NOT COUNT AGAINST THE CAP?
No. It simply means that the free agent can be signed despite the cap. It still counts against the cap, and if it puts the team at or over the cap, then the team has no cap room left. 5. CONSIDER A PLAYER WHOSE CONTRACT HAS JUST EXPIRED. HE HAS NOT YET BEEN SIGNED TO A NEW CONTRACT. DOES HE COUNT AGAINST THE CAP? Yes, unless his team renounces its rights to him. 6. OKAY, SO HE COUNTS AGAINST THE CAP. BUT HE DOESN’T HAVE A CONTRACT– SO HOW MUCH DOES HE COUNT? 150% of his previous year’s salary, if that salary was below or at the league average; or 200% of his previous year’s salary, if that salary was above the league average. For example, if his salary last year was $1 million, he counts as $1.5 million (150% of his previous year’s salary) against the cap now. If his salary last year was $4 million, he counts as $8 million (200% of his previous year’s salary) against the cap now. 7. WHAT IS “RENOUNCING”? When a team renounces its rights to a free agent, that player no longer counts ag
