do cap holds effect what MLE you have

[SamBone]

I understand how cap holds count against your available cap, but does that effect which MLE you will get to use?

If the players caphold (not his salary, his 150% hold) puts the team into the tax, does that mean they would only have the miniMLE, or does that only matter for actual salary?

Meaning can a team over the cap but below the tax number use the MLE to sign a player then resign someone they have bird rites to to get into the tax? or would they need to waive the cap hold (bird rites) to use the reg MLE

[DBoys]

"I understand how cap holds count against your available cap, but does that effect which MLE you will get to use?"

When the CBA mentions Team Salary, that includes holds. Here's the rule for the Non-Taxpayer Mid-Level Salary Exception, and since the requirement in it pertains to Team Salary, the answer to your question would be yes.

A Team shall be permitted to use the Non-Taxpayer Mid-Level Salary Exception during a Salary Cap Year only if (i) the Team’s Team Salary at the time the Exception is used and at all times thereafter during the Salary Cap Year does not exceed the Tax Level for such Salary Cap Year plus $4 million, and (ii) at the time the Exception is used, the Team has not already used either the Taxpayer Mid-Level Salary Exception or the Mid-Level Exception for Room Teams.

[SamBone]

so after using the reg MLE you can go upto $4mil into the tax level

[answerthink]

Actually, according to Art VII, Sec 6(m)(3)(D), Team Salary for the purposes of both the Taxpayer and Non-Taxpayer Mid-Level Salary Exception calculations would exclude free agent cap holds (but would include, for each restricted free agent, the greater of (i) the amount of any qualifying offer or (ii) the first year salary in any offer sheet to be matched).

The section I reference above also lists several other items that would/would not be included in the computation.

[DBoys]

Oops, good catch on the fact that Team Salary is adjusted in several areas in this case.

Looks like the adjustments are to make sure they won't go over the Tax + $4M limit, so if I'm deciphering them accurately ....
....all possible bonuses are included
....all players with a minimum salary are counted as the min salary of a 2-year vet
....cap holds for the amount of your own free agents generally are excluded, except RFAs are counted for their QO or the "First Refusal Exercise Notice" (ie, the amount matched, not the offer sheet), whichever is more
....cap holds for empty roster slots are still added
....the required tender amount for all picks is included
....holds for unused exceptions are excluded

But unlike other calculations with holds and exceptions, even though they are allowed to keep them, they can't necessarily use them. The Tax + $4M becomes a hard cap for them for the remainder of that cap year and they have to manage their spending accordingly.

[DBoys]

so after using the reg MLE you can go upto $4mil into the tax level

Yes. But it's a hard cap at $4M over, so all possible bonuses and mandatory offers (tenders to picks, and QO amounts) are included as money spent. Also, if I'm reading correctly, all minimum salaries are counted at the 2-year vet amount, so essentially the cap hold for an empty roster slot below the minimum number of players would effectively be that amount rather than the rookie minimum.

[answerthink]

Wow… You actually listed them all. I don’t have the energy to check them tonight...

Good night... Go Heat…

[SamBone]

thanks guys