Question regarding MLE

[sliver91]

Hi, i have a hypothetical question:

A team starts free agency 20 mil $ under the cap with 1 cap hold for a player(no rookie) the team owns early Bird rights for (cap hold 5 mil). The team signs free agent contracts for 20 mil $ so they don't have anymore cap space left. Now the team gives it's player with early Bird right a new contract worth 7 mil $ the first year. So the team should be 2 mil $ over the cap now?
Does the team now have the non taxpayer MLE (5.6 mil $) because they are over the cap, or can the team only use the room MLE (2,8 mil $) because the team started free agency under the cap?

thanks for your help

[DBoys]

Hi, i have a hypothetical question:

A team starts free agency 20 mil $ under the cap with 1 cap hold for a player(no rookie) the team owns early Bird rights for (cap hold 5 mil). The team signs free agent contracts for 20 mil $ so they don't have anymore cap space left. Now the team gives it's player with early Bird right a new contract worth 7 mil $ the first year. So the team should be 2 mil $ over the cap now?
Does the team now have the non taxpayer MLE (5.6 mil $) because they are over the cap, or can the team only use the room MLE (2,8 mil $) because the team started free agency under the cap?

thanks for your help

Room MLE. By its very design, the Room MLE is the "Exception to the Cap Limit" that a team whose Team Salary is under the cap will get AFTER they spend their cap room. (It can also be used if a team is less than that exception amount under the cap.) Before the 2011 CBA, such a team got to use their cap room only, and was provided no once-a-year exceptions (like MLE, BAE) to exceed it.