So, it's to my understanding that a team cannot sign a FA to a salary that puts them over the cap limit. i.e., the Rockets cannot give a $18 million dollar contract to Wade because they are only $6 million under the cap next season. They can only offer $6 million or less to a FA next season. If that's the case, how do teams ever go over the salary cap? Is it because teams can re-sign their own players to salaries that go over the cap limit? i.e. We give Landry and Lowry an increase of $10 mil in salary, putting us $4 mil over the cap. If that's how it works, can someone explain the exact details (i.e. terms and conditions) of how a team can put itself over the cap limit?
This, and teams over the cap get the MLE and sometimes LLE which can put them even further over the limit if utilized. Plus teams always get to sign their first round rookies, and they can always sign players for the veteran minimum.
Re-signing your own players, trades, rookie contracts and the MLE are the reasons i can think of. Theres more details at wiki about the salary cap http://en.wikipedia.org/wiki/NBA_Salary_Cap
