Assuming we give (gave already?) him the QO, we can match any offer for Terrance Davis. no matter our cap situation.
This is correct. The long version is:
Technically we do have to use an exception, even to match a player as an RFA. However, we have Early Bird rights on Davis. Due to the Gilbert Arenas provision, teams aren't even allowed to offer Davis more than the full Early Bird as an RFA, so we are able match *any* offer. We would do that match with Early Bird, and not with the MLE. The MLE is slightly smaller than the Early Bird, and would be reserved to sign players from other teams.
I thought that if kings used our MLE to sign a C that if that signing puts us over the Cap, we could still match any offer sheet TD received even if we had no Cap Space left. And we can sign our Draft picks and any min Vet contracts even if over the Cap. Well there is a Cap hold of $4.6M for #9 Pick
Which reduces our cap space before using the MLE?
All cap holds (including a hold for the MLE!) count against cap space. Due to our various cap holds, we will not have cap space, and we would need to make some pretty serious maneuvers to get any. So at this point, don't worry about cap space. Holmes/Davis can be signed with Early Bird (but Holmes can receive an offer we can't compete with). #9 can be signed to the standard contract regardless of cap situation. #39, and any other player we might want to sign will basically have to fit into the MLE/Bi-Annual Exception, or get a league minimum contract.