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Woj: NBA approves Nets' $5.25 million Disabled Player Exception application

By Tom Lorenzo
Maddie Meyer

Adrian Wojnarowski of Yahoo! Sports is reporting that the NBA has approved the Brooklyn Nets' application for a $5.25 million Disabled Player Exception, which the Nets had applied for when they lost Brook Lopez for the rest of the season.

Here are the basics about the DPE, as explained by Net Income two days ago on this site:

Under the CBA, a team that loses a player for the season can apply to the league for a DPE. The amount of the DPE is limited to half the disabled player's salary or in the case of a max contract, an amount equal to the full MLE ... $5.15 if used to sign a free agent, $5.25 million if used in a trade (the MLE + $100,000). The team had until January 15 to file for the DPE. It can be used in a trade up until the February 20 deadline and can be used to sign a free agent up until March 15. At that point, it expires.

Of course, there are restrictions under the CBA, which limits the Nets' options, seeing as it does not allow for an extra roster spot, first and foremost, and also limits the Nets because of the tax implications.

Again, Net Income explains:

In the Nets case, there would be an additional luxury tax burden. If the Nets simply cut a player on a minimum contract and replaced him with a player signed with the DPE, it would cost them at least $4 million in additional taxes. Billy King has said that if the Nets saw an opportunity that would increase their luxury tax bill, they'd move on it. But he's not looking to make a big move.

To add to that, a team source told NetsDaily that the team using the DPE is "highly doubtful." So, any thoughts about picking up a free agent like Andrew Bynum can most likely be put to rest.

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