A recent rule change makes carrying the room exception into the season a strategic move for the Spurs.
The Spurs have finalized their roster, with notable additions including Stephon Castle, Chris Paul, and Harrison Barnes. Alongside these new faces, the front office has retained some familiar players to complete the lineup. Barring any unexpected trades, the 15-player roster for opening night is set, with only the two-way spots left to be determined.
Interestingly, the Spurs used only cap space and minimum salaries to build their roster, leaving them with the room exception. In previous years, this might have been seen as a sign of frugality or wastefulness, as few players worth the $7.9 million room exception typically clear waivers during the season. However, a recent rule change has made retaining the exception a valuable strategy.
Previously, the mid-level and bi-annual exceptions could only be used to sign free agents. Starting this season, teams can use these exceptions to absorb salary in a trade or claim a player off waivers. This significant change provides teams under the first apron with much greater flexibility. By not using the room exception, the Spurs effectively have a $7.9 million trade exception available, which can be used to absorb a contract in a trade or to outbid others for a player on waivers. While this isn’t a game-changing sum, it could facilitate an in-season acquisition or be leveraged to gain assets. The recent rule changes enhance its value even further.
Typically, having a medium-sized trade exception might not be a big deal. However, with the stringent second apron rules, reduced flexibility of the first apron, and severe luxury tax penalties, teams are already looking to reduce salaries and will continue to do so. If offloading a little-used prospect or an unsuccessful veteran signing helps avoid the repeater tax or other harsh penalties, teams will take that step. We’ve seen even a contending team like the Nuggets avoid overspending, even at the cost of assembling the best possible team during Nikola Jokic’s prime, highlighting the seriousness of these financial consequences. The Spurs will be well-positioned to capitalize on such situations.
For example, if the Warriors have a slow start and want to avoid the tax, they might send Moses Moody, a young wing still on his rookie deal, to San Antonio. Similarly, the 76ers could send KJ Martin along with a pick if they need to free up space to upgrade their roster. Several apron teams and those close to the apron would be potential trade partners, benefiting from the flexibility this exception provides. While other teams also possess exceptions, the Spurs’ low payroll makes adding salary in the right circumstances more feasible. The lack of an open roster spot could be a minor issue, but a few players are on minimum or near-minimum contracts, and General Manager Brian Wright likely wouldn’t hesitate to waive someone if it meant acquiring talent or assets.
There’s no guarantee that the room exception will net the Spurs a valuable player or pick. Although it now functions like a trade exception, many trade exceptions go unused and expire. San Antonio’s front office isn’t the only one with this tool, as most teams have retained their exceptions.
Nevertheless, it’s encouraging to see the Spurs’ decision-makers adapting to the evolving landscape of the league. They are forward-thinking in both significant ways, such as setting up a pipeline of future picks and swaps to avoid apron issues, and in smaller, more immediate ways, like leveraging the room exception.
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