SUMMARY
- The NBA employs the Disabled Player Exception to address challenges faced by teams when a key player is injured and is likely to miss the entire season.
- Teams are not automatically granted a Disabled Player Exception; they need to formally petition the NBA for it.
In the NBA, teams often face challenges when a key player is injured and misses the entire season. The NBA doesn’t have an injured reserve system and teams don’t get an extra roster spot unless they’re down several players. Running under a soft cap, with the possibility of a hard cap in some situations, NBA teams find it difficult to sign replacement players, especially since most are already over the cap by the time the season starts.
To address this issue, the NBA has a tool known as the Disabled Player Exception (DPE). This allows teams to acquire a substitute for a player who is likely to miss the entire season due to injury. However, obtaining a DPE is not automatic upon a player’s injury. Teams must formally petition the NBA for this exception.
The decision to give a DPE depends on the assessment of either an NBA-designated doctor or the league’s Fitness to Play panel. They decide whether the injured player is more likely than not to miss the rest of the season, the DPE is granted to the team that petitioned for it.
Recently, the New York Knicks applied for a DPE worth $7.8 million, assuming that center Mitchell Robinson would miss the rest of the season due to ankle surgery. Similarly, the Chicago Bulls were granted a $10.2 million exception due to Lonzo Ball’s knee injury, who has been ruled out for the entire 2023-24 season.
The New York Knicks have applied to the NBA for a Disabled Player Exception worth $7.8 million as the franchise projects center Mitchell Robinson will miss the rest of the season, sources tell @TheAthletic @Stadium. Major development as Robinson had ankle surgery last week. pic.twitter.com/8EvjWfI9qA
— Shams Charania (@ShamsCharania) December 21, 2023
Teams have a deadline of January 15 of each season to apply for a DPE. If a player’s season-ending injury is confirmed after this date, teams cannot request a DPE for that season. If injuries are expected to extend into the next season, teams must reapply in the following league year.
How can a Disabled Player Exception be used in the NBA?
The DPE is not only a unique exception but also a flexible one in the NBA’s salary cap structure. While other exceptions like the Non-Taxpayer Mid-Level, Taxpayer Mid-Level, Room, and Bi-Annual Exceptions are only available for signing free agents, the DPE gives more flexibility. It can be used to sign a free agent, trade for a player, or claim a player off waivers.
How was it a risky contract before he got hurt in 2020? Bak was notoriously available before that and was a top 2 LT in the league. Hindsight is 2020. Even the NBA has a Disabled Player Exception. pic.twitter.com/NOiD2Jk3rr
— GrantWRLD (@AjangoGrant) October 7, 2023
The value of a DPE is calculated by the injured player’s salary. It is restricted to one-half of the player’s salary, with the maximum limit equal to the Non-Taxpayer Mid-Level Exception for that season. For example, if a player with a $10 million salary is injured, the DPE value would be $5 million. However, if the player’s salary was $30 million, the DPE would be limited to the Non-Taxpayer MLE amount, which was $10,490,000 for the 2022-23 season.
What are the limitations to a Disabled Player Exception in the NBA?
The DPE comes with specific restrictions. Unlike other signing exceptions, it can only be used to sign a player to a remainder-of-season contract. This condition also applies to trades and waiver claims. Any player acquired via trade or waivers must be on an expiring contract with no option year after.
The NBA has granted the Bulls a $10.2 million Disabled Player Exception for the season-ending loss of Lonzo Ball, sources say. https://t.co/6pJ3Lc78vY
— Shams Charania (@ShamsCharania) July 14, 2023
The DPE is restricted to the acquisition of just one player. Teams using the DPE also inherit any applicable Bird Rights associated with the acquired player, for potential re-signing situations.