When the Bulls traded Lonzo Ball for Isaac Okoro earlier this month, they had to use a portion of their existing Zach LaVine traded player exception worth $17MM+ to absorb Okoro’s $11MM salary, tweets Keith Smith of Spotrac. Chicago couldn’t simply use Ball’s $10MM outgoing salary for matching purposes due to an injury protection clause in his contract, Smith notes.
The $10MM owed to Ball for the 2025/26 season would be fully guaranteed if he were waived today, but his contract includes an Exhibit 3 (“prior injury exclusion”) clause which would let the team off the hook for the full amount if he suffers a specific injury — presumably, a major one related to his surgically repaired knee.
It sounds as if the NBA required the Bulls to treat Ball’s salary as non-guaranteed due to that Exhibit 3 clause, which means it wouldn’t count for $10MM for outgoing purposes, as we explain in our glossary entry on the trade rules for non-guaranteed salary. That meant another exception had to be used to take on Okoro’s incoming $11MM.
The move will still hard-cap the Bulls at the first tax apron for the 2025/26 league year — instead of using the expanded traded player exception (taking back more than 100% of Ball’s salary), they used a trade exception generated during the previous season. Either move creates a hard cap at the first apron.
Here are a few more cap-related housekeeping notes worth passing along:
- The Nuggets used a portion of the traded player exception generated in their Michael Porter Jr./Cameron Johnson swap to acquire Jonas Valanciunas‘ $10.4MM salary from Sacramento, creating a new TPE worth Dario Saric‘s outgoing $5.4MM salary in the process, ESPN’s Bobby Marks reports for Sports Business Classroom. Denver could’ve used Saric’s outgoing salary to legally match Valanciunas’ incoming amount without touching the Porter TPE, but doing so would’ve created a first-apron hard cap. Because the Porter TPE was created after the regular season ended, using it doesn’t result in a hard cap for Denver.
- The 2025/26 salaries for Clippers guard James Harden and Celtics guard Josh Minott are now fully guaranteed. Neither Harden nor Minott received a fully guaranteed first-year salary at the time they signed earlier this month, but that was just a technicality so that the Clippers and Celtics could avoid guaranteeing their second-year options for 2026/27. Harden’s $39.2MM salary for ’25/26 became guaranteed after July 11, while Minott’s $2.4MM salary was guaranteed after July 15.
- Once Damian Lillard officially signs with Portland, there will be just four NBA teams who still have their entire $14.1MM non-taxpayer mid-level exception available and remain far enough below the first tax apron that they could use the entire thing. Those teams are the Wizards, Hornets, Bulls, and Warriors. However, Chicago and Golden State still have to resolve restricted free agency for Josh Giddey and Jonathan Kuminga, respectively, so there’s no guarantee they’ll remain on that list. That will make Washington and Charlotte two teams to watch closely for the rest of the offseason and perhaps into the season, since that MLE flexibility makes them candidates to take on unwanted salary in trades.