The bi-annual exception is one of the tools available to NBA teams who are over the cap, giving those clubs the flexibility to offer free agents more than the minimum salary.
In 2026/27, the bi-annual exception is worth $5,477,000 and can be used to offer a deal worth up to $11,227,850 over two years. It can also be used to acquire a player via trade, assuming that player’s contract has no more than two years remaining and won’t pay him more than $5,477,000 in ’26/27.
However, the bi-annual exception isn’t available to every team. Clubs that go below the cap in order to use cap room lose access to the exception. Additionally, using the BAE imposes a hard cap of $209,015,000 (the first tax apron) on a team. So if a club has surpassed the first apron – or wants to retain the flexibility to do so – it can’t use the bi-annual exception.
Finally, as its name suggests, the bi-annual exception can’t be used by a team in consecutive years. In 2025/26, five teams used the BAE — the Hornets (Malaki Branham), Pistons (Daniss Jenkins), Lakers (Marcus Smart), Jazz (Kevin Love), and Wizards (Blake Wesley) As such, the exception isn’t available to those clubs during the 2026/27 league year. They’ll be able to use it again next summer.
With all those factors in mind, here’s a breakdown of how teams are using – or not using – their respective bi-annual exceptions in 2026/27:
Available Bi-Annual Exceptions:
Unused:
Atlanta Hawks
Boston Celtics
Cleveland Cavaliers
Golden State Warriors
Houston Rockets
Indiana Pacers
Los Angeles Clippers
Memphis Grizzlies
Miami Heat
Milwaukee Bucks
New Orleans Pelicans
Portland Trail Blazers
San Antonio Spurs
Toronto Raptors
Although all of these teams technically have the ability to use their bi-annual exceptions at some point in 2026/27, it’s more plausible for some than others.
For instance, the Pacers currently have just over $2.2MM in breathing room below the first apron and still have a chunk of their mid-level exception left, so unless they make a cost-cutting move, using their bi-annual exception likely won’t be a consideration until later in the league year.
Some of these teams also still have moves to make that may take using the bi-annual exception off the table. For example, the Cavaliers could move above the first tax apron if and when they re-sign James Harden.
Used:
Dallas Mavericks
Philadelphia 76ers
Sacramento Kings
The Sixers and Kings used the bi-annual exception to sign a free agent, while the Mavericks used their to acquire a player in a trade. None of those clubs will have the exception available during the 2027/28 season.
Although it historically hasn’t been common for more than two to four teams to use their bi-annual exception in a given league year, the ability to use it in trades – introduced in the latest CBA – could result in a slight uptick in BAE activity, as it did last year. We’ll update this list over the course of the ’26/27 league year if more clubs need to be added.
Unavailable Bi-Annual Exceptions:
Went under cap:
Brooklyn Nets
Chicago Bulls
These two teams forfeited their right to the bi-annual exception when they went under the cap and used space this offseason.
Over first apron:
Denver Nuggets
Minnesota Timberwolves
New York Knicks
Oklahoma City Thunder
Orlando Magic
Phoenix Suns
In theory, cost-cutting moves by these teams could put them in position to use their bi-annual exceptions. In actuality though, that’s a long shot for some of them, especially for a team like the Thunder, whose team salary is well beyond the second tax apron.
Used last year:
Charlotte Hornets
Detroit Pistons
Los Angeles Lakers
Utah Jazz
Washington Wizards
As noted in the intro, these are the five teams that used their bi-annual exceptions in 2025/26 and, as a result, won’t have them again until 2027/28.