The Disabled Player Exception (DPE) is used to replace an injured player who is out for the season (where season means through to the end of June 15th).
In the scenario that a player returns from injury sooner than expected, the team can activate the player immediately, and any player acquired or signed using the DPE will not be impacted.
DPE Requirements:
The replacement player is acquired via trade, a waivers claim, or a free agent signing
The team is above the Salary Cap
The disabled player will be injured for the entire season
The deadline for applying to the league office for DPE status is January 15th
A team can only apply for DPE status for players who were injured while on their roster (Teams cannot trade for players to benefit from the DPE)
Only 1 contract can be signed using this exception
The DPE expires the moment any of the following are met:
The team signs a player or acquires a player in a trade or through waivers
The disabled player is traded or returns from injury
Requirements for contracts acquired through trade using the DPE:
The player must be on the last year of their contract
The last year salary must be the lesser of the Non-Taxpayer Mid-Level Exception + $100,000 or 50% of the injured players salary for that season + $100,000
Requirements for contracts acquired through waivers using the DPE:
The player must be on the last year of their contract
The last year salary must be the lesser of the Non-Taxpayer Mid-Level Exception or 50% of the injured players salary for that season