Mid-level exception
Once a year, teams can use a mid-level exception (MLE) to sign a player to a contract for a specified maximum amount. The amount of the MLE and its duration depend on the team's cap status. In the 2017 CBA, the MLE was initially set at $8.406 million in the 2017–18 season for teams that are over the cap either before or after the signing, but under the luxury tax apron, set at $6 million above the tax line.
Teams can use this exception to offer contracts of up to four years. Teams above the apron have an MLE initially set at $5.192 million, allowing contracts of up to three years. Teams with cap room, which were ineligible for the MLE before the 2011 CBA, have an MLE initially set at $4.328 million that allows two-year contracts. In subsequent seasons, all MLE amounts will be determined by applying the percentage change of the salary cap to the previous exception amount.[23]
Before the 2011 CBA, the MLE was equal to the average NBA salary for all teams over the cap; teams with cap room were then ineligible for the MLE.[7] The Mid-Level Exception for the 2008–09 NBA season was $5.585 million.[15] The MLE was $5.854 million for the 2009–10 NBA regular season.[16]
Under the 2017 CBA, the apron was initially set at $6 million above the tax line for the 2017–18 season. In a new feature, the apron will change from season to season, with the percentage change (up or down) set at half of the rate of change of the cap for that season.[10]