True or False: If a team is above the salary cap, they are required to use exceptions in order to sign new players.

The statement is true because, in the NBA, when a team is above the salary cap, they cannot sign new players using standard contracts since their payroll exceeds the established salary limit. However, there are specific exceptions that allow teams to acquire new players despite being over the cap. These exceptions include the Mid-Level Exception, the Bi-Annual Exception, and others, which provide teams with more flexibility in roster management.

Teams above the salary cap must utilize these exceptions if they want to add new players to their roster, as they cannot simply negotiate contracts in the same way as teams that are under the salary cap. This framework promotes competitive balance by placing restrictions on how much teams can spend while also giving them tools to improve their rosters without completely undermining the salary cap rules.