Raptors Executive Shares How New 2nd Round Exception Impacts Draft

The Toronto Raptors say the NBA's new second-round pick exception has had a slight impact on how second-round picks are viewed in this year's draft

Jun 23, 2022; Brooklyn, NY, USA; A general view as NBA commissioner Adam Silver speaks before the first round of the 2022 NBA Draft at Barclays Center. Mandatory Credit: Brad Penner-USA TODAY Sports / Brad Penner-USA TODAY Sports

Second-round picks are suddenly more valuable than ever before.

Historically, signing a second-round pick came with some restrictions. Teams have been given salary cap exceptions to sign their first-round picks to pre-set first-round contracts, but second-round picks have been left in a more complicated state of flux.

Take Christian Koloko, for example. The Toronto Raptors drafted the 7-foot center with the No. 33 pick in the 2022 NBA draft and were forced to use part of their mid-level exception to ink the former Arizona Wildcat to a rookie contract. It was a three-year deal starting with $1.5 million for Koloko in 2022.

The downside to that deal meant Toronto had eaten $1.5 million into its mid-level exception to sign Koloko to a three-year, $5.2 million partially guaranteed contract. It’s not a significant amount, but it restricted the Raptors from offering anyone its full mid-level exception. Toronto ended up using its remaining mid-level exception to sign Otto Porter Jr. to a two-year, $12 million contract.

But this year things are different.

The league has carved out a new second-round pick exception: a three-year deal worth up to $5.9 million with an option in the final season or a four-year deal worth up to $8.8 million again with a player option in the final season.

Considering Toronto has the No. 31 pick on Thursday night, the Raptors will likely opt for the bigger exception and sign a prospect to a deal starting at $2 million next season.

The difference this year is that $2 million won’t be taken out of Toronto’s mid-level exception that allows the Raptors to sign a free agent to a deal worth up to $12.9 million next season.

“Being able to now have that second round exception that is probably the main part that's changed in terms of the value of being able to roster these guys without worrying too much about the other mechanisms,” Raptors assistant general manager Dan Tolzman noted Tuesday.

That change is particularly crucial for teams with salary cap restrictions who are deep into the luxury tax. The Phoenix Suns, for example, are into the second luxury tax apron and don’t have many avenues to improve their roster without draft picks. It’s why the Suns have been mentioned as a team looking to acquire second-round picks ahead of Thursday night, ESPN’s Jonathan Givony said on the Lowe Post podcast.

For now, Toronto plans to make its pick at No. 31, Tolzman said Tuesday. The expectation is the Raptors will see how the first round plays out and spend Thursday morning evaluating where they stand while trade calls likely to pour in for the pick.

It’s unclear how the league’s new two-day draft format impacts the value of Toronto’s second-round pick but the league’s new cap exceptions will certainly make that pick coveted come Thursday afternoon.