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Dennis Schröder has agreed to a three-year contract with the Sacramento Kings, with a total value matching the exact maximum allowed under the mid-level exception – $44,427,600 – according to Michael Scotto of HoopsHype.

The contract features a partial guarantee of $4.35 million in the third year, providing Schröder with some financial security toward the end of the deal.

Although the full contract fits within the parameters of the mid-level exception, the Kings reportedly made use of an existing trade exception to complete the signing.

This strategic use of a trade exception allowed Sacramento to acquire Schröder without exceeding the salary cap, giving them greater flexibility in managing their roster and finances.

The combination of the mid-level exception and trade exception usage demonstrates the Kings’ careful approach to roster construction.

By leveraging these cap tools, Sacramento has been able to add a veteran playmaker to their lineup while maintaining the ability to pursue other moves in free agency or trades.