The Players: Jordan Farmar
The Team: Los Angeles Clippers
The Deals: 2 years, $4.2 million, with the second year being a player option.
How does it affect the cap situation?
According to Basketball Insiders, between this deal for the Bi-Annual Exception, agreeing with Spencer Hawes on a 4 year deal for what appears to be the full Mid-Level Exception last week, and including the $1.5 million guarantee on Jamal Crawford’s deal as well as the $924,800 payable to first round pick C.J. Wilcox, the Clipper appear to have around $74 million committed in guaranteed money for the 2014-15 season. Having used both salary exceptions, the remaining sources for additional talent (aside from trades) are minimum salary players or possibly the traded player exception remaining from Eric Bledsoe moving to the Suns in the Jared Dudley trade.
How does it affect the luxury tax?
Regardless of the specific machinations by which the Clippers swing the Hawes and Farmar deals (cap exceptions or sign-and-trades, the Clippers are going to be hard capped at the luxury tax apron of around $81 million.
Probably try to find a home for one or both of Jared Dudley or Crawford to create a little breathing room and possibly secure one more piece via sign-and-trade. Signing Farmar was a shrewd bit of business as they replaced Darren Collison in the role of UCLA-alum backup point guard with a better player making about 40% of the salary Collison received in Sacramento. With Hawes presumably filling out the backup big man slot, the Clippers main need is reliable size on the wing, though they may be forced to roll the dice that one of Reggie Bullock, Wilcox or Dudley is able to effective fill that role. They could also use some defense in the front court, as Hawes is totally unreliable on that end.