MLE meaning in NBA is "Mid Level Exception" a mechanism that basketball teams use to sign a player even when that transcends the salary cap.
It is a critical component of the NBA salary cap system that offers an edge in the decision-making process for clubs during the offseason.
The National Basketball Association introduced a salary cap in the 40s but was eliminated after one season, only to bring it back in 1984. The salary cap restricts the total amount of finances a team can spend on player salaries in a given season.
That's where MLE comes in. It allows a franchise to sign a player even when they are tight on budget for up to the average league salary or by teams under the salary cap to sign a player for up to the entire MLE amount.
According to the league's Collective Bargaining Agreement (CBA), the 2022-23 NBA season salary cap is $123.655 million.
MLE Basketball Explained
MLE for basketball teams in the NBA creates an exception that enables teams to sign a player even if their salary cap is already full.
It is a wildcard that a club can trigger once every season to buy new players, even exceeding the salary cap. It is a set amount that teams can offer to players who have either been in the league for two seasons or have played for the team for at least one season but do not have Bird rights.
In league with a salary cap, it can be difficult for teams to sign top prospects, particularly if they are already disbursing maximum contracts to their players.
Mid-level exception (MLE) is among many exceptions of NBA New rules that allow teams to acquire valuable players without exceeding the salary cap. This helps to maintain competitive spirit among the teams.
For the 2022-23 season, the initial MLE amount was set at $10,490,000. This means teams over the salary cap but below the "luxury tax apron" can sign a player for up to $10.49 million using the exception.
On the other hand, the luxury tax apron is a threshold set at $6,479,000 above the tax line, which is the point at which teams become subject to the luxury tax.
So, if a team's total payroll exceeded the tax line but was still below the luxury tax apron, they could use the MLE NBA to purchase a player for up to $10.49 M.
NBA Teams That Triggered MLE In 2023 (Highest Spend)
- Philadelphia 76ers - $10,490,000
- Minnesota Timberwolves - $9,798,269
- Sacramento Kings - $9,472,219
- Portland Trail Blazers - $9,317,781
- Cleveland Cavaliers - $8,703,659
- Washington Wizards - $8,845,262
- Toronto Raptors - $6,500,000
- Boston Celtics - $6,479,000
In the above list, the Philadelphia 76ers have used their $10,490,000 mid-level exception to sign one player, PJ Tucker. Hence, the club cannot exceed the taxpayer amount, i.e., $6,479,000 for the rest of the campaign.
Meanwhile, the Timberwolves used their MLE amount to pay for two new players, Kyle Anderson and Josh Minott. On the other hand, the Cleveland Cavaliers made a smart move by bringing on three new faces to their team, Danny Green, Ricky Rubio, and Sam Merrill, with a total MLE of $8.7 million.
Besides there are three forms of Mid-Level Exception (MLE):
- Full/non-taxpayer MLE - Four-year contract with starting salary up to $10,490,000
- Taxpayer MLE - Three-year contract with starting salary of up to $6,479,000
- Room exception - Two-year contract with starting salary up to $5,401,000
NBA New Salary Cap Rules
NBA new salary cap rules for the 2023-34 season are as follows:
- The salary cap for the season is projected at $134 million.
- A luxury tax threshold is $162,000,000 for the 2023-24 campaign. Teams that exceed this threshold will have to pay a luxury tax penalty.
- The Luxury Tax Apron is estimated at $170,461,000.
- When a team uses MLE in NBA free agency, they can sign a player for an amount up to the MLE limit.
- Teams can pass the salary cap while signing a player using the Mid-Level Exception or Bi-Annual Exception.
- Salary Cap Smoothing
The league salary cap rules keep changing every season as per the need to balance team spending to make the league more competitive.
There is an estimated 10 million rise in the salary cap for the season 2023-24 and it is set to be around $134 million. Likewise, a franchise can spend any amount without exceeding the luxury threshold of $163 million, which results in a luxury tax penalty.
Any team that uses any form of exception like Bi-Annual, Non-Taxpayer Mid-Level, or Larry Bird should remember that the expenditure at the end of the season does not surpass the luxury tax apron, according to NBA salary cap 2023-24 laws.
The new rules also introduced a "salary cap smoothing" system that will check surprising leaps in the salary cap from year to year. It will help prevent teams from having to make sudden, drastic changes to their rosters based on cap fluxes.
NBA Teams Salary Cap 2023-24
NBA Teams Salary Cap 2023-24 is evaluated at $134 million. The NBA had set the cap for the 2022-23 season to $123.6 million.
So there is a projected $10.4 million raise to the upcoming season salary cap, which means a team can spend an additional 10 million dollars on players without hesitation.
While most American sports leagues enforce hard caps to prevent teams from overspending and creating an uneven playing field, the NBA's soft salary cap system offers more leniency but with consequences.
Los Angeles Lakers Salary Cap 2023-24
The Lakers salary cap for the 2023-24 season is estimated at $222 million, which is the third highest cap value behind Golden State and LA Clippers.
It is more than next season's projected luxury tax apron around $172 million.
The Lakers players under salaries are:
- LeBron James - $46,900,000
- Anthony Davis - $40,600,080
- Malik Beasley - $16,524,100
- Mo Bamba - $10,300,000
- Jarred Vanderbilt - $4,698,000
- Shaquille Harrison - $2,413,300
- Max Christie - $1,719,864
Sixers Salary Cap 2023-24
The Philadelphia 76ers salary cap for the 2023-24 season is around $191 million. Center Joel Embiid earns the most salary from the team at $46,900,000.
The Sixers players under salaries are:
- Joel Embiid - $46,900,000
- Tobias Harris - $39,270,150
- James Harden - $35,640,000
- PJ Tucker - $11,014,500
- De'Anthony Melton - $8,000,000
- Furkan Korkmaz - $5,370,370
- Tyrese Maxey - $4,343,920
Denver Nuggets Salary Cap 2023-24
The Denver Nuggets salary cap for 2023-24 is estimated at 199.9 million dollars. Nuggets' 2022 summer signing Bruce Brown earns $6,802,950.
The Nuggets players under salaries are:
- Nikola Jokic - $46,900,000
- Jamal Murray - $33,833,400
- Michael Porter Jr.- $33,386,850
- Aaron Gordon - $21,266,182
- Kentavious Caldwell-Pope - $14,704,938
- Bruce Brown Jr - $6,802,950
- Zeke Nnaji - $4,306,281
- Christian Braun- $2,949,120
Golden State Warriors Salary Cap 2023-24
The Golden State Warriors salary cap for 2023-24 is the highest in the league, projected at $236,533,953. The active cap for the upcoming season will be $211,685,898, while the cap space will be $102,533,953.
The State Warriors players under salaries are:
- Stephen Curry - $51,915,615
- Klay Thompson - $43,219,440
- Jordan Poole - $27,455,357
- Draymond Green - $27,586,225
- Andrew Wiggins - $24,330,357
- Gary Payton II - $8,715,000
- Kevon Looney - $7,500,000
- Moses Moody - $3,918,480
Miami Heat Salary Cap 2023-24
The Miami Heat salary cap for the 2023-24 season is estimated at $200,750,283. Jimmy Butler and Bam Adebayo are the top two athletes on the team, with the highest paychecks.
The Heat players under salaries are:
- Jimmy Butler - $45,183,960
- Bam Adebayo - $32,600,060
- Kyle Lowry - $29,682,540
- Tyler Herro - $27,000,000
- Duncan Robinson - $18,154,000
- Victor Oladipo - $9,450,000
