$109mm, not $126mm. $126mm is the luxury tax number. You can only enter luxury tax by resigning your own players that you have "Bird's rights" to. You're not able to sign outside free agents up to the luxury tax.
In your scenario the Jazz are $13mm over the cap and wouldn't have been able to sign those players. They could sign 1 player for the mid-level exception ($4.2mm) once they're over the cap and the veteran's minimum (roughly $1.5mm average) for an unlimited amount.