The DPE allows a team to sign a player without using cap space. In order for the exception to be granted, an NBA-designated physician must determine that the player is “substantially more likely than not” to be sidelined through at least June 15 of that league year.
If granted, the disabled player exception allows a club to sign a replacement player for 50% of the injured player’s salary, or for the amount of the non-taxpayer’s mid-level exception, whichever is lesser.
Holmgren has a $9,891,240 salary in his rookie year, so a DPE worth half his salary would work out to $4,945,620.
Holmgren, the No. 2 overall pick of the 2022 draft, will miss his entire rookie season after sustaining a right foot injury. The 20-year-old will undergo surgery in the coming weeks and is expected to make a full recovery by the start of 2023/24.
The injury took place during a Seattle pro-am that was later called off due to unsafe (slippery) court conditions.