What: Make your Restricted Free Agent into an Unrestricted Free Agent
Why: Likely no plans to resign and to clear cap space
When: Offseason Move
Benefit: Eliminates the cap hold for the RFA
Renouncing the rights to a player means that a team can no longer use Bird, Early-Bird, or Non-Bird exceptions to resign him, making him an Unrestricted Free Agent. As a result, a team can still negotiate with the player but must do so as an UFA. The team is freed from the cap hold that the player would claim as a RFA, and can use other exceptions besides Bird Rights.
This action can occur no earlier than July 1 following the most recent season of the player’s contract. If a team renounces a player on July 1, 2018, and the player remains unsigned for the 2018-2019 season, he will remain a UFA in the next offseason. A team cannot “wait-out” a renouncement period to then sign a player later on.
A team would likely renounce a player to free up cap space. If they chose, a team could sign the player to a Two-Way contract or execute a sign-and-trade after renouncing a player.
In one specific case can a team “un-renounce” a player. If Team 1 renounces a player (or players) to clear room to sign a RFA from Team 2, and the RFA resigns with the Team 2, Team 1 can “un-renounce” or rescind the renouncement of that player. However, a team cannot “un-renounce” a player if it takes them above the salary cap or further above the salary cap than it was before renouncement.
On June 23, 2017, the Detroit Pistons extended a Qualifying Offer of $4.96 million to Kentavious Caldwell-Pope. In July of 2017, the Detroit Pistons renounced the rights to Kentavious Caldwell-Pope, making him an Unrestricted Free Agent. At the time, they were over the salary cap, into the luxury tax, and couldn’t match KCP’s offers. Thus, Kentavious Caldwell-Pope signed with the Lakers for a 1 year/$17,745,894 contract using the cap room of the Lakers.
I'm Jake, a recent graduate of Duke University pursuing a career in collegiate or professional basketball operations.
Cap #s 2018 - 2019
Salary Cap: $101.869M
Lux. Tax: $123.733M
Tax Apron: $129.827M
Tax Floor: $91.682M
Room MLE: $4.45M