|ESPN.com: Los Angeles Lakers||[Print without images]|
“Free agents, first round draft picks and exceptions have ‘cap holds’ which are used to account for the money that is expected to be spent, reducing the amount the team can spend on other teams’ free agents. As the Lakers’ first round draft pick (and number seven overall), Julius Randle has a cap hold on the Lakers’ books for $2.497,800. If the Lakers were to make a free agent offer to, say, Carmelo Anthony, they can’t offer him any of the money that’s in Randle’s cap hold -- it’s set aside for Randle.
“The amount of Randle’s cap hold is determined by the league salary scale, however teams can sign their first round picks for up to 120 percent of the scale amount, which means Randle will be eligible to sign for up to $2,997,360. High draft picks almost always sign for the full amount for which they are eligible. As soon as Randle signs his contract, his cap hold goes away and is replaced with his actual salary -- so instead of counting approximately $2.5 million on the Lakers’ books, he will count nearly $3 million.
"So when a team like the Lakers is chasing free agents, it makes sense to delay the signing of their first round draft picks. If the Lakers were to sign Randle first (assuming he will get the full 120%, which is a near certainty), they would have approximately $500,000 less to offer a free agent.”