Why NBA teams are afraid of it

The new collective agreement has been active in the NBA for a year.

All rules regarding transfer modalities, salary cap, player contracts, etc. are determined there. What’s new are the two “aprons” – two penalty limits that are well above the salary cap (around $140 million).

Exactly these two, but especially the second one, could drive NBA teams to despair in the future – and literally make dynasties disappear.

First and Second Apron: Not just monetary penalties

So far, the penalties for exceeding the salary limit have been relatively manageable: In contrast to the NFL or NHL, there is only a soft cap in the NBA, which means that the franchises have a salary cap, but can go over it through certain exceptions.

Teams above this limit have so far only had to pay luxury tax, which increases progressively the more they are over the limit. This is around $170 million. The only hurdle is the owners’ ability to pay.

In the new system there is now also the first and the dreaded second apron. These two limits also ensure that not only “punitive tariffs” are due when exceeded, but other, more serious restrictions come into force if they are exceeded on the last day of the regular season.

Further restrictions on Second Apron

The First Apron is already tough: at this limit, which is seven million dollars above the luxury tax, the bi-annual exception (contracts above the veteran minimum up to around four million dollars) is no longer applicable, and there are also restrictions in sign-and-trades. For example, teams can no longer make trades that involve taking in more salary than they give away.

But it gets really painful with the Second Apron: The Taxpayer Mid-Level Exception (just over $5 million), sign-and-trades and buyouts of (expensive) players are no longer applicable, and first-round picks can no longer be traded However, picks in the draft will also be reset.

So the impact is significant. Teams can no longer simply go over the salary cap at will without consequences, otherwise the future of the franchise is at stake. Dynasties like the Golden State Warriors between 2014 and 2022 could be history.

Suns go all-in

The Phoenix Suns could be the most painful. According to Basketball Reference, the team around superstars Kevin Durant and Devin Booker blows up the second apron by over $30 million with a total of $220 million.

The contracts of Durant, Booker and Bradley Beal alone are worth around $150 million. Jusuf Nurkic and Grayson Allen also earn over $15 million.

What particularly stands out is Beal’s contract, which will receive over 50 million per year over the next three seasons. Due to the no-trade clause, a trade is only possible with the consent of the 31-year-old shooting guard – so it is almost impossible. He won’t live up to the (monster) contract anyway – Beal can hardly come close to his heyday with the Washington Wizards.

Despite the restrictions, the Suns were able to strengthen themselves quite well with Mason Plumlee (center) and point guard Tyus Jones on minimum contracts. An improvement in the squad is now hardly possible – the squad must function.

“Wolves” focus on the future after KAT trade

The situation is similar for the Minnesota Timberwolves, who also exceed the limit with $199 million. But the “Wolves” traded star center Karl-Anthony Towns for Julius Randel, Donte DiVincenzo and Keita Bates-Diop as well as a first-round pick (from the Detroit Pistons) in the offseason.

This not only saves Minnesota $9 million in salary, but also $50 million in penalties. If Randle and four-time Defensive Player of the Year (DPOY) Rudy Gobert do not exercise their player options, they could be re-signed at better salaries or released for free agency.

The Timberwolves are focused on the future. The KAT trade is intended to create salary flexibility for the extensions of Naz Reid (25) and Nickeil Alexander-Walker (26). Center Reid in particular should definitely stay.

Old men’s squad Milwaukee needs a sense of success

The Milwaukee Bucks could also have problems with the second apron. The Bucks pay $191 million in salaries, and the main problem is age structure.

The designated starting five of Damian Lillard, Pat Connaughton, Khris Middleton, Giannis Antetokounmpo and Brook Lopez has an average age of 33 years. The contracts are difficult to trade, and there is actually no real guard defender alongside the already defensively vulnerable point guard Lillard.

In addition to age, the depth of the bench is also an issue. With forward Taurean Prince and guard Gary Trent Jr., the 2021 champions have been able to strengthen themselves, at least in the short term. The Bucks probably have their hands tied for the most part when it comes to trades. If the “old men’s squad” doesn’t work, superstar Antetokounmpo could intensify his trade wishes.

Celtics on Second Apron, but without fear of the future

The reigning champion is almost on par with the Timberwolves in terms of salary – but without really having to fear for the future of the franchise.

With the superstar duo Jayson Tatum and Finals MVP Jaylen Brown, the Celtics are secured for years to come.

The contracts of Jrue Holiday, Kristaps Porzingis and Derrick White are expensive (a total of $80 million), but are easily tradeable. Bosten also has plenty of talent on the bench with an aging Al Horford, Payton Pritchard, Sam Hauser and Luke Kornet.

In other words: The Celtics can not only afford the tax penalties, but also any draft pick transfers without putting their entire future at risk.

Lakers kratzen am Second Apron

The LA Lakers can barely avoid the Second Apron – by just under two million dollars. On top of that, there is not much leeway left, which can also affect future trades.

The team around LeBron James and Anthony Davis hardly got any better in the off-season. They drafted Dalton Knecht brilliantly, but Bronny James is still relatively far from being a seasoned player. However, the urgently needed reinforcement from a free agent has not materialized.

If the Lakers strengthen the roster via trade, the Californians cannot absorb more salary than they spend without slipping over the second apron.

The 30 highest paid players in the NBA