Categories
Contract Negotiation

Explanation of the Larry Bird Exception

This is one of the interesting parts of the NBA’s salary cap that I discussed before.

In brief, the exception allows a team to go above and beyond the salary cap in order aWhat a stud re-sign a free agent. The amount of the contract cannot exceed the maximum salary. The contract signed cannot be for more than 6 years. The maximum raise that a player can receive is 10.5% above the salary in the first season of the contract.

The exception is named after Larry Bird because it came into effect when the Boston Celtics tried to exceed the salary cap in order to resign the great Larry Bird. The exception is in the NBA’s collective bargaining agreement under the Veteran Free Agent exception. Free agents who qualify for the exception are listed under “qualifying veteran free agents” or “Bird Free Agents.”

In order to qualify for the exception, a player must:

  1. Have played in the NBA for 3+ seasons.
  2. Have not been waived during that time.
  3. Have not changed teams as a free agent.
  4. Have not been renounced (would have to wait a year to re-sign under Bird exception).

Caveat: If player is traded, Bird rights are traded with the player, and the new team can re-sign player under Bird exception.

Lots of more NBA salary cap issues to tackle in the future. I do not want to overload readers with too much information in a single day. On weak news days, I will add to this discussion.

[tags]larry bird, nba, basketball, cba[/tags]

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.