NBA trade deadline: Breaking down an overlooked tool in the Charlotte Hornets' stacked trade arsenal

It's quiet. Almost too quiet...

When trade season unofficially opened on December 15th (the date a majority of newly-signed players became trade eligible), people in the NBA media-sphere believed that we would see some deals begin to percolate around the league.

The Charlotte Hornets, with a handful of valuable role players on the fringes of their rotation, some tradable contracts stuffing their books, and a lead decision-maker who has never seen a second-round pick he didn't like, were one of the teams liable to engage in some early action on the market.

However, as we trundle towards the February 5th trade deadline, no movement has happened quite yet; but that doesn't mean things will remain this quiet in the coming weeks. And if (re: when) Jeff Peterson's phone starts buzzing and the Hornets get active, they have an understated, yet valuable, trade chip to play with.

Charlotte's hidden in-season trade chip

Because they didn't sign player with it this summer, the Hornets can use their non-taxpayer mid-level exception to acquire a player in a trade without matching salary, as long as the player's contract fits within the exception's number.

Note: for a full breakdown on the mid-level exception and what it is, this article from Hooprumors.com will get you squared away.

Charlotte total salary allotment is below the league's first tax apron ($195,945,000), meaning they were granted the full mid-level exception worth $14,104,000.

For example, if the Hornets want to trade for a center who makes $13M in 2025-26, they can use their non-taxpayer MLE. They don't need to send any matching salary back to the rival team; Charlotte could acquire the player for just draft capital.

The only complication for Charlotte using this exception comes down to roster spots. As of this writing, the Hornets have 15 players on standard NBA contracts, the maximum number allowed in-season. The Hornets would need to waive a player (Mason Plumlee is the most likely candidate due to his groin injury) before acquring a player into their mid-level exception.

Per Spotrac, there are nine teams currently scheduled to pay the ta x, (Boston, Philadelphia, both Los Angeles teams, Houston, Orlando, Toronto, Denver, and Phoenix) but are less than $14M over it, meaning they could send one contract into Charlotte's mid-level exception in order to duck the league's harsh luxury tax penalties.

As a practical example, The Athletic's Eric Koreen said this about swingman Ochai Agbaji, a fourth-year player who is set to enter restricted free agency this summer: 'I believe the Raptors will move him, along with a second-round pick, to a team with cap room or unused midlevel exception space to duck the tax.'

If Charlotte wanted to absorb Agbaji's contract along with some second round picks, this is an outline of how the deal could look (assuming Charlotte waives a player):

For a second-round pick in four years, Charlotte could add two more selections in the upcoming draft and take a flyer on a talented young swingman who has enough pedigree and past production to resemble the blurry outlines of a key contributor on a playoff team.

For Toronto, they escape a $2.1M tax bill (debate the merits of a team making a move like to avoid paying $2M to the league all you want, I believe it's silly) without giving up one of their prized prospects or core contributors.

This tax example is just one of many scenarios in which Charlotte could look to wield their MLE.

If they want to go all-in on making a push for the Play-In Tournament? Charlotte could waive a player, send one of their many future first-round picks to a team, and receive a splashy impact player in return (Day'Ron Sharpe? Noah Clowney?).

If the Hornets want to turn back the clock and reprise their role in the Karl-Anthony Towns mega-trade and play facilitator? They can waive a player, receive some draft picks, and absorb a contract into their MLE to make a hypothetical Anthony Davis or Trae Young swap happen for other teams.

Charlotte, Chicago, and Washington are the only teams that currently have their full mid-level exception and able to use it without going over the first apron, making them some of the most important teams in the league to watch over the next few weeks.

- MORE STORIES FROM CHARLOTTE HORNETS ON SI -

Can the Hornets knock off the champs? Predictions are in for Charlotte vs. Oklahoma City

Will Tre Mann still be a member of the Charlotte Hornets past the trade deadline?

Players to watch, odds, and game info for Hornets vs. Thunder

Kon Knueppel is questionable vs. Thunder as new injury pops up on Hornets' star rookie