RealGM

Hi Everyone,

My question is about the mid-level exception. The Bulls have already used the non-taxpayer mid-level exception on Rip Hamilton. They are allowed to use the tax-payer mid-level excpetion now since they are over the 70 mil luxury tax line, but say they were to get rid of the non guaranteed contracts of Ronnie Brewer, CJ Watson, and Kyle Korver. That would put them under 70 mil, would they be allowed to use the non-taxpayer mid-level exception again, even though they have already used it on Rip Hamilton? Basically, i'm asking, are you allowed to use the mid-level exception every year?

Thanks.

yshamsie wrote:Basically, i'm asking, are you allowed to use the mid-level exception every year?

Yes.

You can read all about the MLE and when you can use either the taxpayer or the non-taxpayer MLE here:

http://www.cbafaq.com/salarycap.htm#Q25

How does that affect using TPEs? Can you use TPEs and the MLE under certain circumstances? Somehow I get the impression that you cannot use one if you use the other.

turk3d wrote:How does that affect using TPEs? Can you use TPEs and the MLE under certain circumstances? Somehow I get the impression that you cannot use one if you use the other.

To use the full MLE you need to stay below the tax + apron hardcap. So, if the MLE were to take you to say 70m, and you had a TPE of 7m left also, you wouldn't be able to use it to go above the hardcap. Otherwise there isn't much of a connection.