What happens if a team's salary exceeds the cap?

When a team's salary exceeds the salary cap, it still has options available for player signings to remain competitive. One such option is the use of mid-level exceptions, which allow teams over the salary cap to sign players to contracts even when they cannot exceed the cap for total team salary.

Using mid-level exceptions is crucial because it provides teams with the flexibility to acquire talent without needing to make immediate roster changes or trades to lower their payroll. There are different types of mid-level exceptions, such as the standard mid-level exception and the bi-annual exception, subject to specific annual limits. This framework is designed to maintain competitive balance in the league.

The other options imply restrictions that do not accurately represent the rules governing salary cap violations. For example, a team can still sign players with exceptions while exceeding the cap, trade players, or retain all draft picks regardless of their salary situation. Hence, the ability to use mid-level exceptions is a vital aspect of roster management in the context of exceeding the salary cap.