5 things to note about the LA Lakers' salary cap as they enter the 2021 NBA free agency

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#3 Can add salary in a trade for a player under contract

The LA Lakers were close to trading for Buddy Hield

The LA Lakers can, alternatively, move their players in a trade, but only for players under contract and not for free agents involved in a sign-and-trade. Such an example that has come up recently involves the future of point guard Dennis Schroder.

While the Lakers need to move the German, the market for guards, particularly those that will cost as much as he is expected to, is limited. In the unlikely event that they are able to find a landing spot for Schroder, the Lakers could receive players in return, as long as they are already under contract as another sign-and-traded player would put them over the hard cap.

They could also re-sign Schroder and trade him once the season has started, but that makes no sense for the 27-year-old to be at the organization's mercy.

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#4 LA Lakers cannot exceed the $143m salary threshold

With the salaries of LeBron James, Anthony Davis, Russell Westbrook and Marc Gasol, the LA Lakers are committed to $123.5m, well above the NBA's salary cap of $112.4m.

This also means the Lakers cannot operate under the hard cap, as they did last season. Since the NBA has set it at $143m, the Lakers simply wouldn't have the room to fill out a 15-man roster on minimums. This has ruled out any hopes of bringing in Kyle Lowry or DeMar DeRozan, while it has also limited their ability to use the full midlevel exception.

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#5 Rule out a sign-and-trade as it relates to adding to the roster

Dennis Schroder is expected to leave the LA Lakers

With the arrival of Russell Westbrook, it is certain that Dennis Schroder will be leaving the franchise. This has also ruled out the LA Lakers' ability to complete sign-and-trade for Schroder, as he will be able to demand a contract higher than that which would put the Lakers over the luxury tax apron ($143m).

You can rule out a sign and trade as it relates to adding to the roster.Lakers cannot exceed the $143M threshold in salary. https://t.co/XlcjykiQ9Y

— Bobby Marks (@BobbyMarks42) July 30, 2021

Any team using a sign-and-trade is hard capped. Since the Lakers already have salaries close to $130m, it doesn't make sense for the German to sign a deal that is worth less than what he can receive elsewhere from a team with cap space.