The Cavaliers Injury Exception And You (Free Newsletter Article)
Why did the Cavs get an Injury Exception?
The Cavaliers applied for a Disabled Player Exception (DPE) on January 12th days after Ricky Rubio went down with a torn ACL. The league granted the Cavs an injury exception on January 27th after their doctors determined that Rubio would be out until at least June 15th.
How Much Is The DPE Worth?
The DPE is worth half of the players salary or the amount of the Non-Taxpayer Mid-Level exception, whichever is less. In this case half of Rubio's salary is less than the Non-Taxpayer Mid-Level exception. So, the DPE is worth half of Rubio's salary or $8.9 million.
What Can They Do With the DPE?
The Cavs have 4 options when it comes to the Disabled Player Exception.
1. They can use it to sign a player to a 1 year deal up to the value of the exception. Which in this case would be $8.9 million.
Example: They could give Delly a 1 year deal worth $8.9 million.
2. They can use it to trade for a player who has 1 year left on his contract or the possibility of only having 1 year left on his deal.
Example 1: The Cavs trade for Dennis Schröder who has 1 year left on his contract and a salary that fits into the Cavs DPE.
Example 2: The Cavs trade for Kendrick Nunn who has 2 years left on his contract with the 2nd year being a player option. Nunn would have to waive his player option for the Cavs to make this trade.
3. The Cavaliers could wait until after the trade deadline and claim a player who has been put on waivers. As long as that player only had 1 year left on his deal when waived and is making less than $8.9 million the Cavs could claim him off waivers.
4. Do nothing and let the DPE expire on March 10th.
What Can't the Cavs Do With The DPE?
The Cavaliers must use the DPE before trading Ricky Rubio. Why? I have no clue but that's how it was explained to me.
Combine the DPE with any other exception or player. They can't combine the $4.2 million trade exception they received when they moved JaVale McGee to the Nuggets with the DPE to create one big exception. Nor can they combine it with a player on the roster.
Go over the Luxury Tax Apron (Hard Cap) by using this exception. The Cavs are currently $9,914,068 under the tax apron so they can use the full DPE as of 1/29.
Teams can apply for this exception from July 1 through January 15, and cannot apply after January 15. Once granted, the exception expires when a player is acquired, when the disabled player is traded or returns to the team, or on March 10 of that season, whichever comes first. This exception is granted on a season-by-season basis -- if the player also will be out the following season, the team needs to apply for this exception again the following season.
The disabled player must be on the team's roster from the time the team submits its application through the date on which the exception is granted. This exception only can be granted to the team for which the player was playing when his injury or illness was known, or reasonably should have become known. A team cannot trade for an injured player and subsequently apply for a Disabled Player exception for that player.
The disabled player exception is there to help a team bridge a gap while the player doesn't provide any value. If the player returns or is traded, then the player provided value. Thanks my take. Can't really explain the March 10th explaination.
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