How Injuries To Players On Non-Guaranteed Contracts Have Impacted Teams’ Caps

In most cases, an NBA team has the ability to waive a player on a non-guaranteed contract at any time before the league-wide salary guarantee date on January 7 to avoid being on the hook for the remainder of that player’s salary.

However, that equation changes if the player is injured at the time he’s placed on waivers. In that case, one of two rules applies:

1. If the player’s contract includes Exhibit 9 language, the team incurs a cap hit of $15K when the injured player is waived.
2. If the player’s contract does not include Exhibit 9 language and he’s waived on or before January 7, the team continues to pay the player until he has fully recovered from the injury or for the rest of the season, whichever comes first.

Cases that fall into the first category often fly under the radar unless the injury is serious or the player is a well-known veteran, since $15K isn’t enough to make a noticeable dent in a team’s overall salary. However, there were a couple notable instances this fall of players on Exhibit 9 contracts suffering injuries and counting against their respective teams’ caps for $15K.

One was Knicks guard Landry Shamet, who appeared on track to make New York’s opening night roster before he dislocated his shoulder in the preseason. The Knicks waived Shamet and took on a $15K cap hit in the process, which isn’t entirely insignificant for a team currently operating just $581K below its second-apron hard cap. That extra $15K cap charge won’t majorly alter the Knicks’ plans, but it’ll force the team to wait a couple extra days to fit a 15th man under its hard cap later in the season.

Lakers camp invitee Jordan Goodwin also sustained an injury during the preseason, resulting in a $15K cap hit. Los Angeles had been operating just $45K below the second apron, so accounting for Goodwin’s $15K cap charge moved the team to within $30K of the second apron. Again, that shouldn’t really affect the way the Lakers handle business on the trade market or in free agency during the season, but even that slight difference is notable for a team operating with such a razor-thin margin below the restrictive second apron.

Spurs camp invitee Nathan Mensah is the other player who was injured in camp and left his team with a $15K cap charge. But San Antonio is operating way below the luxury tax line and will barely notice that extra $15K.

Exhibit 9 contracts are only effect during the summer and preseason. Once the regular season begins, there are no players on contracts with Exhibit 9 language — a player like Shamet, if he had made the Knicks’ regular season roster, would have had his Exhibit 9 contract turned into a standard one-year non-guaranteed deal.

That means the second rule outlined above applies to any player on a non-guaranteed contract who suffers an injury between opening night and January 7. Pacers center James Wiseman is the most noteworthy example so far in 2024/25.

Wiseman remains on Indiana’s roster for now and his contract is still non-guaranteed, but even if the club waives him today, his full $2,237,691 cap figure will remain on the Pacers’ cap for the rest of ’24/25, since his torn Achilles tendon is expected to sideline him for the rest of the season. Indiana has to continue paying Wiseman until he recovers from his injury or until the end of the season, so waiving him will create no cap relief.

While the Pacers aren’t right up against a hard cap or an apron threshold like the Knicks and Lakers are, the $2.2MM+ cap charge for Wiseman is far more significant than a $15K hit for an Exhibit 9 player, and it could have a real impact on what Indiana can do on the trade market. Currently, the team is hovering just $500K below the luxury tax line.

The Pacers will want to avoid becoming a taxpayer this season, so their ability to take on an extra salary in a trade is now noticeably more limited than it would be if they could cut Wiseman and remove more than two-thirds of his cap hit from their books.