What exception allows teams to exceed the salary cap to re-sign their own free agents?

The Bird Exception, named after NBA legend Larry Bird, allows teams to exceed the salary cap in order to re-sign their own free agents. This exception is crucial for teams to retain key players who may otherwise leave for larger contracts with other teams. It is designed to help teams maintain continuity and keep their core players, thereby promoting competitive balance within the league.

Under the Bird Exception, a player must have played for the team for three consecutive seasons without being waived or changing teams as a free agent. This rule incentivizes teams to develop their players and reward them with contracts reflective of their contributions to the franchise.

Other exceptions, such as the Non-Bird Exception or Mid-Level Exception, have specific limitations and conditions that do not carry the same advantages for retaining a player. The Disabled Player Exception is used in situations where a player is unable to play due to injury and is not meant for re-signing free agents. Thus, the Bird Exception stands out as the primary means by which teams can exceed the salary cap to keep their own players.