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Report: Manu Ginobili getting two-year, $5.7 million contract from Spurs

San Antonio Spurs v Denver Nuggets

DENVER, CO - January 20: Boris Diaw #33, Tim Duncan #21, and Manu Ginobili #20 of the San Antonio Spurs sit on the sideline during a game against the Denver Nuggets on January 20, 2015 at the Pepsi Center in Denver, Colorado. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and/or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. Mandatory Copyright Notice: Copyright 2015 NBAE (Photo by Bart Young/NBAE via Getty Images)

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Manu Ginobili announced he’d return to the Spurs next season.

He and San Antonio just had to agree to a contract.

It seems that’s done.

Shams Charania of RealGM:

That sounds like the room exception, which is worth up to $5,740,560 over two years. Crucially, the Spurs can exceed the salary cap to sign Ginobili after using their other cap space.

The biggest chunk will go to LaMarcus Aldridge. Will there be enough left to re-sign Tim Duncan without dumping someone?

If the salary cap is the projected $67.1 million, the Spurs waive Reggie Williams (unguaranteed contract), wait to give Kawhi Leonard and Danny Green their new contracts (preserving their lower cap holds) and get letters from first-round picks Nikola Milutinov and Livio Jean-Charles agreeing not to play in the NBA next season, San Antonio would have approximately $7.5 million in cap room to sign Duncan.

The salary cap could land a little higher, which would create more room for Duncan but also raise Aldridge’s max salary. If the Spurs don’t have enough money for Duncan, they’d trade Boris Diaw or Patty Mills.

But Ginobili taking the room exception gives them a huge leg up in keeping everyone.