I read an article about DLee which brought to light some complexities in the Bird exception I didn't know about. I was under the impression that the Knicks could sign players until the soft cap was filled, THEN re-sign Lee using the Bird Exception to go over the cap. This is not the case.
Free agents with Bird exceptions continue to hold up an imaginary portion of the salary cap even after their contract expires. In Lee's case, it would be ~$10.5 mil (150% of his current contract) in the summer of 2010. In order to free up that money, the Knicks would have to either renounce his Bird rights, or re-sign him. That SUCKS.
This also applies to the Mid-level exception. There is an imaginary ~$6 million being held by the MLE, so we'd have to renounce our ability to use the MLE to free up that money.
We have around $30 mil in free space for 2010. After a max contract, that leaves ~$13 mil. So, we'll basically have to choose between Lee and a 2nd big FA. We can't have both.
This is from the salary cap FAQ found here:
http://members.cox.net/lmcoon/salarycap.htm
Quote:
33. What does renouncing a player mean?
As detailed in question number 30, free agents continue to be included in team salary. By renouncing a player, a team gives up its right to use the Larry Bird, Early Bird, or Non-Bird exceptions (see question number 19) to re-sign that player. A renounced player no longer counts toward team salary, so teams use renouncement to gain additional cap room. After renouncing a player, the team is still permitted to re-sign that player, but they must either have enough cap room to fit the salary, or sign the player using the Minimum Salary exception. The exception to this is an Early Bird free agent who is coming off the second season of his rookie scale contract. Such players, when renounced, are treated as Non-Bird free agents.