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vasashi17+
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Joined: 13 Dec 2019
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 Posted: Sat Apr 01, 2023 7:34 am Post subject: |
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We have a new deal!
One that will start next season and last till the end of the 2030/31 season, with an option to opt out of that year and reach a new deal a season earlier (ie no different than how it played out with this current iteration of the CBA, this season).
| Quote: | The NBA and National Basketball Players Association have reached agreement on a new seven-year collective bargaining agreement, promising labor peace through the rest of the decade, sources told ESPN early Saturday morning.
The tentative deal, which starts with the 2023-24 season, was announced by the league and union and is expected to be ratified by league governors and players in the coming weeks. The deal includes a mutual opt-out after the sixth year, sources told ESPN.
Among the key initial elements of the deal described to ESPN:
The NBA is curbing the ability of the highest-spending teams, such as the Golden State Warriors and the LA Clippers, to continue running up salary and luxury tax spending while still maintaining mechanisms to add talent to the roster. The NBA is implementing a second salary cap apron -- $17.5 million over the tax line -- and those teams will no longer have access to the taxpayer mid-level in free agency. Those changes will be eased into the salary cap over a period of years.
Under these changes, Golden State's Donte DiVincenzo, Milwaukee's Joe Ingles, Boston's Danilo Gallinari and former Clippers guard John Wall wouldn't have been able to sign with those teams last summer.
As a counter to those spending limitations, the new CBA is expected to create more spending and trade opportunities for teams at the middle and lower spectrum of spending. There will be an opening of more opportunities in the free agent market, including larger trade exceptions.
In an attempt to curb load management and lost games among star players, the NBA is tying eligibility for postseason awards -- such as All-NBA teams and MVP -- to a mandatory 65 games played. The 65-game minimum does come with some conditions.
The in-season tournament could arrive as soon as the 2023-24 season. The event will include pool-play games baked into the regular-season schedule starting in November -- with eight teams advancing to a single-elimination tournament in December. The Final Four will be held at a neutral site, with Las Vegas prominent in the discussion, sources said.
Each in-season tournament game would count toward regular-season standings; the two finalists would ultimately play an 83rd game that would not count in the regular season. Winning players and coaches will earn additional prize money.
The NBA and NBPA have agreed to increase the upper limits on extensions from a 120% increase on a current deal to 140%, which could have a significant impact on the futures of stars like Celtics forward Jaylen Brown.
Under the current rules, Brown would be allowed to sign a four-year extension worth $165 million. With the extension rules increased to 140%, however, Brown -- who is set to earn $31.8 million in the 2023-24 season, the final year of his current contract -- would be able to reach his four-year maximum of $189 million, according to ESPN's Bobby Marks.
Similarly, Sacramento Kings All-Star center Domantas Sabonis could currently sign a four-year, $111 million extension -- one that jumps up to $121 million with the increase to 140%.
There is an increase in two-way contract slots, jumping from two to three per team. Two-way contracts were created in the 2017 collective bargaining agreement as a vehicle for teams to develop younger players. It has been seen as a success, as it's become a route to players earning long-term homes in the league, and in several cases becoming major contributors.
https://www.espn.com/nba/story/_/id/36025332/nba-nbpa-agree-new-7-year-collective-bargaining-agreement
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vasashi17+
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Joined: 13 Dec 2019
Posts: 5659
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| Posted: Sat Apr 01, 2023 8:17 am Post subject: |
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| mad55557777 wrote: | Damn, 17.5 m over tax line means no MLE, DS might as be gone now…
I hope vasashi can tell me I am wrong. |
As more details trickle out, we still don’t know fully which cap numbers wound apply to next season.
The most current projections are a salary cap of 134m (an 8.4% increase from this season’s 123.66m cap figure. However just like last season, a 10% max increase could still apply under the current CBA cap equation and in that case the new cap projections for next season could come to rest at 136m. Or an entirely new equation could be worked out were projections are much higher.
Let’s just assume for now that the cap comes to rest at a 10% increase as it did the season before. So on a projected max allowable 136m salary cap projection under the current CBA, the tax line wound be at 165m. The 1st cap apron triggering the hard cap would be about 7.5m above the tax line, 172.5m. That means that under the new CBA rules, the 2nd Upper Limit apron would be projected at 182.5m (ie 17.5m above the tax line). It’s at this point where a team would lose the ability to use their tpMLE (which is projected to be 7.74m).
| Quote: | Max Projections for ‘23 Offseason under current CBA
Salary Cap: 136m
Tax threshold: 165m
Hard Cap 1st Apron (HCA): 172m
Upper Limit 2nd Apron (ULA): 182.5m (17.5m above tax line; loss of tpMLE)
35% max: 47.6m
30% max: 40.8m
25% max: 34m
non-taxpayer MLE: 12.5m
taxpayer MLE: 7.7m
room MLE: 7.7m
BAE: 4.8m
vet min (2yr+ seasoned): 2.1m
incomplete roster charge / rookie min exception: 1.1m
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If you look at the last few years where the Lakers were in the tax, we triggered the apron for the 2020/21 season by signing Trez to the ntpMLE and Wes to the BAE. That essentially limited our team spending at that point where we could only go 6.3m above the 132.6m tax line before hitting the 138.9m apron. But check out what we did in the mast couple years…
2020/21: breached 132.6m tax line by 4.3m
2021/22: breached 136.6m tax line by 20m (resulting in highest taxes we ever payed at 45m)
2022/23: breached 150.3m tax line by 17.2m (resulting in 35.9m in taxes)
So with the new CBA rules, we would have lost the ability to sign Nunn with the MLE in the 2021/22 season since we were 2.5m above that 2nd 17.5m apron. In that scenario, maybe we push harder than to retain Schro and/or AC knowing we wouldn’t be able to rely on the MLE to add talent to the roster.
Also in this season, since we’re about 300k from the 2nd apron (17.5m breach from tax line), we would have still been able to add Walker to the roster since he used the full amount if the MLE and we were still under that 2nd Upper Limit apron line. However, let’s assume we retained AC the year before, his projected 8.5m would have been roughly 3m more than what Nunn had made this year. In that case, we wouldn’t have been able to sign Walker since his full 6.5m MLE amount would have breached the 2nd Upper Limit apron.
Looking ahead, let’s assume we have a hypothetical offseason cap sheet like this:
| Quote: | 1. Bron 47.6m
2. AD 40.6m
3. DLo 25m (via full bird for up to a 5yr deal)
4. Beas 16.5m (via team option)
5. Reaves 11.9m (via early bird max for up to a 4yr deal)
6. Mo 10.3m (via not waiving his nonguaranteed deal)
7. Rui 10m (via full bird for up to a 5yr deal)
8. tpMLE player (Schro??) 7.7m (via new 7.5% increased MLE)
9. Vando 4.7m
10. MaxC 1.7m
11. 2023 1st pick swap ~3.5m (based on pick falling #15-25)
12. 2023 2nd 1.1m (via new 2nd round rookie exception)
13. Vet min (Gabriel??) 2.1m
14. Vet min (TBJr??) 2.1m
*rookie min counts as 2.1m (2yr seasoned vet min) towards cap apron math
= 184.8m in team salary
= 20.8m above 165m tax line
= 3.3m breach of 2nd apron of 182.5m |
Meaning that only a 4.4m portion of the tpMLE used on Schro (or whomever) can only be used to adhere to the 182.5m Upper Limit Apron (ULA) OR our other FAs would need to get haircuts off of those projections OR we waive Beas and/or Mo and replace them with another vet min player at 2.1m per.
Obviously huge assumptions are made towards the figures above. If DLo and/or Rui get anywhere above those massive haircuts off their true max amounts, then we’d lose the use of our 7.74 tpMLE this coming season.
Hope that clarifies a few things till we get more details on the projections that will be used for next season.
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Last edited by vasashi17+ on Mon Apr 03, 2023 12:55 pm; edited 5 times in total |
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joeblow
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| Posted: Sat Apr 01, 2023 12:39 pm Post subject: |
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| ^^^ That clears up a few questions I had. Thanks. |
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vasashi17+
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| Posted: Sat Apr 01, 2023 5:06 pm Post subject: |
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^My pleasure @joe
| Quote: | ESPN Reporting with @BobbyMarks42: In new CBA, high-spending teams above a second-apron of luxury tax aren’t allowed to send cash in deals, trade first-round picks seven years away or sign players in the buyout market.
ESPN also reported those second-apron teams -- $17.5M above the tax level – will not have use of the taxpayer mid-level exception. There’s been an average of three teams in that range in recent years.
As a counter to those spending limitations, the new CBA focuses largely on increasing opportunities for the vast majority of teams – both above and below the salary cap.
There will be new spending and trade opportunities for teams at the middle and lower spectrum of payrolls, including larger trade exceptions and new and expanded exceptions to the salary cap, sources said.
Another limitation for teams that go above the second apron of the luxury tax is that they can’t take in more money than they send out in trades, sources said.
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So for example, the Lakers this post trade deadline are sitting on a team salary of 167.5m, which is 17.2m above the 150.3m tax line. But that came after shedding PatBev’s 13m for Mo’s incoming 10.3m AFTER the Russ for DLo trade.
So for example, the Russ/Damien/JTA/2027 FRP for DLo/Beas/Vando would not be a legal trade under the new CBA since it made for a team salary of 170m post trade, which would have breached the Upper Limit (2nd) Apron. Team salary after that particular trade was 170, which would been more that 17.5m above the 150.3m tax line. A team salary if 167.8m would be the most we could go up to post any trade.
Also let’s assume that trade did go thru where we still came in at 167.8m in team salary, then in the follow up PatBev for Mo trade with Orlando, we would not be able to include cash as part of that trade.
So the only way to have made the Russ for DLo trade under the new CBA is if we had made the PatBev for Mo trade 1st, then with a team salary reflecting that salary trimming trade, we could be hen turn to the Russ for DLo trade.
And all the other trade possibilities that involved both our 2027 & 2029 1sts…foggetaboutit…we would not be able to include that 2029 1st in any trade if team salary was already above 167.8m….which it was.
Come to think of it, we couldn’t even make the THT/Stan (12.6m aggregated) for PatBev (13m) trade at the beginning of the year (followed up by Schro at the min) since we would have been over the 167.8m Upper Limit Apron post trade.
| Quote: | 2022 cap sheet (as of 9/16/22)
1) Russ (Player Option exercised) 47.1m
2) Bron 44.5m
3) AD 38m
4) PatBev 13m
5) Walker IV (full tpMLE) 6.5m
6) Nunn (PO exercised) 5.3m
7) Gabriel (nonguaranteed till 1/10/23) 1.9m
8) Reaves (nonguaranteed till 1/10/23) 1.6m
9) Damian (2yr vet min w/2nd yr PO) 2.3m
10) Brown Jr. (vet min) 1.8m
11) JTA (vet min) 1.8m
12) TBryant (vet min) 1.8m
13) MaxC 1m (rookie min)*
14) Schro (vet min) 1.8m
= team salary of 168.4m; 1 roster spot open
= tax bill of 38.8m (18.1m over the tax threshold of 150.3m)
*rookie min counts as 1.8m in apron/tax math
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vasashi17+
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Joined: 13 Dec 2019
Posts: 5659
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| Posted: Sat Apr 01, 2023 5:25 pm Post subject: |
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| Quote: | Shams Charania @ShamsCharania
Sources: The NBA and NBPA have locked in salary cap smoothing of up to 10 percent increase through this new CBA, avoiding the cap spike that came with previous TV deal that shook up free agency. The league will sign a new media rights deal that starts in 2025.
Sources: Additional salary-related changes in new CBA:
- 7.5 percent increase to the mid-level exception
- 30 percent increase to the room exception
Game changer: The league's new collective bargaining agreement will give players the ability to invest in NBA and WNBA teams, as well as promote and/or invest in sports betting and cannabis companies, sources tell @TheAthletic @Stadium.
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So under a potential 136m salary cap next season (which would be the 10% max annual increase allowed) :
roomMLE goes from 5.9m to 7.7m
taxpayerMLE goes from 7.2m to 7.7m
non-taxpayerMLE goes from 11.6m to 12.5m
And I’m assuming the 7.5% increase also applies to the BAE, which would go from 4.5m to 4.8m
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vasashi17+
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Posts: 5659
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| Posted: Sat Apr 01, 2023 5:59 pm Post subject: |
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| Quote: | Tim Bontemps @TimBontemps
In the new CBA, the luxury tax brackets will increase at the same rate as the cap does, sources told @BobbyMarks42 and me. Since the current luxury tax system was implemented in the 2011 CBA, the brackets had been fixed $5 million increments. Now they'll grow as the cap does. |
RIP👇🏼✌🏼
| Quote: | Non-repeater Tax / Repeater Tax rates are as follows (total tax amounts for that tier are within parentheses) :
$0 - 4.99m ———> 1.5 (7.5m) / 2.5 (12.5m)
$5m - 9.99m ——> 1.75 (8.75m) / 2.75 (13.75m)
$10m - 14.99m —> 2.5 (12.5m) / 3.5 (17.5m)
$15m - 19.99m —> 3.25 (16.25m) / 4.25 (21.25m)
$20m - 24.99m —> 3.75 (18.75m) / 4.75 (23.75m)
$25m - 29.99m —> 4.25 (21.25m) / 5.25 (26.25m)
$30m - 34.99m —> 4.75 (23.75m) / 5.75 (28.75m)
$35m - 39.99m —> 5.25 (26.25m) / 6.25 (31.25m)
$40m - 44.99m —> 5.75 (28.75m) / 6.75 (33.75m)
$45m - 49.99m —> 6.25 (31.25m) / 7.25 (36.25m)
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gng930
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| Posted: Sun Apr 02, 2023 12:33 am Post subject: |
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So I think you answered my question. I wasn't sure if Apron 2 is pre- or post-tMLE but the latter always made more sense. It's a moot point for me because my gut feeling is that Buss wasn't going to let the payroll go anywhere near $182 million pre-tax anyway. The increase in the MLE/BAEs are a blessing and a curse though. It may help us with retention if Schro/TBJ are destined to get higher offers elsewhere but translates to another handsome sum of millions in taxes.
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vasashi17+
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| Posted: Sun Apr 02, 2023 7:28 am Post subject: |
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^G: I believe you correct buddy. Can’t so for certain till we see all the details, but if it’s anything like the current CBA, then I believe the use of certain resources will trigger the Upper Limit Apron.
We know in this CBA, the Hard Cap (1st) Apron is set at roughly 7m above the tax line: 172m
The triggers for the Hard Cap Apron are:
1. The use of the ntpMLE (11.6m)
2. The use of the BAE (4.5m)
3. When a S&T’d player is acquired
You utilize any of those cap mechanisms during the season and the 1st Apron is triggered and cannot be breached at any point during the season
We now know in the new CBA, the Upper Limit (2nd) Apron is set at roughly 17.5m above the tax line (ie 10.5m above the 1st Apron): 182.5m
The triggers for the Upper Limit Apron are:
1. The use of the tpMLE (7.2m)
2. The use of a first round pick, 7 years out (2030 1st for the 2023/24 SZN)
3. The use of trading cash (up to 6.7m can be traded this SZN)
4. When a buyout candidate is signed
5. When a trade is made where more incoming salary is received than outbound is sent
You utilize any of those cap mechanisms during the season and the 2nd Apron is triggered and cannot be breached at any point during the season
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gng930
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| Posted: Sun Apr 02, 2023 8:52 am Post subject: |
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Is it safe to say that Apron 2 is a hard cap? My initial impression was that you could maybe still sign vet mins but of course be excluded from doing any of the above. I felt the spirit of the rule was to close loop-holes for the super-spenders but not necessarily prevent teams from simply being about to fill out their rosters.
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vasashi17+
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| Posted: Sun Apr 02, 2023 9:03 am Post subject: |
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G: It acts like a hardcap in that you can’t perform any of the maneuvers that trigger it if you are ever in breach of it during the season, just like the Hard Cap Apron (HCA). So you can exceed the Upper Limit Apron (ULA), if you have not performed any of those triggers prior. And if course, if you ever exceed the ULA, then you are unable yo use any of the maneuvers to trigger it, unless you shed enough cap to comfortably operate below it once it’s triggered.
After all the deadline trades, this season, the Lakers team salary came to rest at 17.2m above the tax line (ie team salary of 167.5m, with 300k of wiggle before hitting Upper Limit Apron (ULA). However getting to that point, would have been troublesome if the new CBA were in effect this season. Consider all the moves we made prior to the trade deadline moves.
| Quote: |
2022 cap sheet (as of 8/24/22)
1) Russ (Player Option exercised) 47.1m
2) Bron 44.5m
3) AD 38m
4) PatBev 13m
5) Walker IV (full tpMLE) 6.5m
6) Nunn (PO exercised) 5.3m
7) Gabriel (nonguaranteed till 1/10/23) 1.9m
8) Reaves (nonguaranteed till 1/10/23) 1.6m
9) Damian (2yr vet min w/2nd yr PO) 2.3m
10) Brown Jr. (vet min) 1.8m
11) JTA (vet min) 1.8m
12) TBryant (vet min) 1.8m
13) MaxC 1m (rookie min)
= team salary of 166.6m; 2 roster spots open
= tax bill of 32.98m (16.3m over the tax threshold of 150.3m)
= total team salary + luxury tax of 199.58m |
So we used the entire tpMLE on Walker and we made a trade where outgoing salary (THT/Stan aggregated at 12.6m) was made for more incoming salary (PatBev’s 13m), so those 2 maneuvers alone would have triggered the ULA for us, where our team salary could no longer breach 167.8m. As you can see above we had a roster of 13 (after trading for PatB) and were around 16.3m above the tax line at that point (ie 1.2m in wiggle before hitting ULA).
So our next move was rostering Schro for the vet min of 1.8m and there you have it…breach!
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lakerican
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Posts: 3793
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| Posted: Sun Apr 02, 2023 10:41 am Post subject: |
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| Does we have early birds rights on Wenyen? |
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vasashi17+
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| Posted: Sun Apr 02, 2023 11:27 am Post subject: |
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^Yes we do. We can sign him for a starting annual of about 12m max…essentially what we can max Reaves out at this summer. The only other way we can give him (or Reaves) more, is by clearing up cap space by renouncing/waiving our other pending FAs (ie DLo, Rui, Beas, Mo, Vando, Reed).
Below are the bird rights we have and how much max we can potentially give our FAs as a capped out team…
| Quote: | DLo & Beas via team option opt out (full bird): 30% max eligible (ie up to 40.8m in yr1 of deal); can be up to a 5 year deal with up to 8% annual raises
Rui (full bird): 25% max eligible (ie up to 34m in yr1 of deal); can be up to a 5 year deal with up to 8% annual raises
Reaves & Gabriel & Vando via not picking up nonguaranteed deal (early bird): up to 105% of average NBA salary (ie ~12m in yr1 of deal); has to be a minimum of 2yrs in length and can be up to a 4 year deal with 8% annual raises
Mo via not picking up nonguaranteed deal (non bird): up to 120% of previous deal (ie 12.4m in yr1 of deal); can be up to a 4 year deal with up to 5% annual raises
Walker (non bird): up to 120% of previous deal (ie 7.8m in yr1 of deal); can be up to a 4 year deal with up to 5% annual raises
TBJr & Schro & Reed via not picking up nonguaranteed deal (non bird): up to 120% of vet min (ie 2.5m in yr1 of deal); can be up to a 4 year deal with up to 5% annual raises.
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Last edited by vasashi17+ on Sun Apr 02, 2023 11:38 am; edited 1 time in total |
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vasashi17+
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| Posted: Sun Apr 02, 2023 11:31 am Post subject: |
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Finally, a rule to protect our FO from themselves…
| Quote: | Shams Charania @ShamsCharania
The NBA/NBPA's new CBA will create a new Second-Round Pick Exception that can be used so teams will no longer need to dip into the mid-level exception to sign second-rounders, sources tell me and @MikeVorkunov.
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And another rule change that could impact up to 1m of our potential cap space this summer 😵
| Quote: | Adrian Wojnarowski @wojespn
ESPN Reporting with @BobbyMarks42: The NBA and NBPA agreed on some improved leverage for restricted free agents, including a 10 percent increase in qualifying offers and shortening the matching period from 48 to 24 hours.
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His QO caphold would now go from 2.1m to 2.3m and we would only have 24hrs to match a potential poison pill offersheet (if still applicable in new CBA). Likewise, another team’s potential cap space only remains frozen during that 24hr period while we still decide to match.
Meanwhile Rui’s RFA QO (due to not meeting “starter criteria” line Reaves) could go up from 7.7m to 8.5m.
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gng930
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| Posted: Sun Apr 02, 2023 3:23 pm Post subject: |
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| vasashi17+ wrote: | G: It acts like a hardcap in that you can’t perform any of the maneuvers that trigger it if you are ever in breach of it during the season, just like the Hard Cap Apron (HCA). So you can exceed the Upper Limit Apron (ULA), if you have not performed any of those triggers prior. And if course, if you ever exceed the ULA, then you are unable yo use any of the maneuvers to trigger it, unless you shed enough cap to comfortably operate below it once it’s triggered.
After all the deadline trades, this season, the Lakers team salary came to rest at 17.2m above the tax line (ie team salary of 167.5m, with 300k of wiggle before hitting Upper Limit Apron (ULA). However getting to that point, would have been troublesome if the new CBA were in effect this season. Consider all the moves we made prior to the trade deadline moves.
| Quote: |
2022 cap sheet (as of 8/24/22)
1) Russ (Player Option exercised) 47.1m
2) Bron 44.5m
3) AD 38m
4) PatBev 13m
5) Walker IV (full tpMLE) 6.5m
6) Nunn (PO exercised) 5.3m
7) Gabriel (nonguaranteed till 1/10/23) 1.9m
8) Reaves (nonguaranteed till 1/10/23) 1.6m
9) Damian (2yr vet min w/2nd yr PO) 2.3m
10) Brown Jr. (vet min) 1.8m
11) JTA (vet min) 1.8m
12) TBryant (vet min) 1.8m
13) MaxC 1m (rookie min)
= team salary of 166.6m; 2 roster spots open
= tax bill of 32.98m (16.3m over the tax threshold of 150.3m)
= total team salary + luxury tax of 199.58m |
So we used the entire tpMLE on Walker and we made a trade where outgoing salary (THT/Stan aggregated at 12.6m) was made for more incoming salary (PatBev’s 13m), so those 2 maneuvers alone would have triggered the ULA for us, where our team salary could no longer breach 167.8m. As you can see above we had a roster of 13 (after trading for PatB) and were around 16.3m above the tax line at that point (ie 1.2m in wiggle before hitting ULA).
So our next move was rostering Schro for the vet min of 1.8m and there you have it…breach! |
I gathered as much. The rule was more straightforward for us though. We already had 14 rostered so losing out on the ability to sign Schro would not have led to any violations in terms of minimum roster size. Hypothetically though, what happens if you have only 10 rostered at that point? Are you still prohibited from even signing rookie/vet mins to get to the minimum required roster size? Or, like the salary cap, are there "roster charges" that must be accounted for and deducted from the aprons before determining eligibility for the MLE or any other transactions of the above nature?
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vasashi17+
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| Posted: Sun Apr 02, 2023 4:04 pm Post subject: |
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^G, if you look at our roster from 8/24/22 that I posted above, it came after the THT/Stan for PatBev deal and we stood at 13 rostered, 16.3m above the tax line and with the impending 14th roster addition via the 1.8m vet min, we wound have breached the ULA by 300k.
I believe what teams will have to account for is utilizing their own pending FAs via bird right exceptions before turning to the tpMLE to address other FAs.
Also the use of vet mins will not trigger the ULA and now when you consider 2nd rounders / undrafted players, we now have this little resource to use now too…
| Quote: | Shams Charania @ShamsCharania
The NBA/NBPA's new CBA will create a new Second-Round Pick Exception that can be used so teams will no longer need to dip into the mid-level exception to sign second-rounders, sources tell me and @MikeVorkunov.
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So I believe the use of the tpMLE will be one of the last resources teams will use, particularly if they’re really close to the ULA.
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vasashi17+
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| Posted: Mon Apr 03, 2023 8:50 am Post subject: |
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Great writeup by Quinn for those that have time to read it. It essentially provides some primer to how the new rules impact the older rules that remained in the new CBA.
Here are some of the key takeaways/differences (with much more found in the re-direct link provided at the bottom):
| Quote: | The cap and the luxury tax
Here's the good news: the basic structure governing the salary cap is not changing. Players and owners will still split the league's basketball-related income essentially 50-50 (with each side capable of bringing in up to 51%, depending on how much teams spend in a given season). The salary cap itself will still be based on a projection of the following season's revenue and usually amounts to around 43% of that total basketball-related income divided across 30 teams. The NBA uses a "soft" cap as opposed to the NFL's "hard" cap, meaning teams are allowed to exceed the cap under a variety of special circumstances. This season's salary cap is roughly $122.7 million, but there are teams spending as much as $191 million in pre-tax salary.
The luxury tax line is a higher figure, usually amounting to around 53% of total basketball-related income divided across 30 teams, and teams that spend above that line have to pay a tax to the league and non-taxpaying teams for the privilege. The last relevant figure here is the "apron," a figure that is typically around $6 million above the tax line, and serves as a trigger-able hard cap under certain conditions. Any team that acquires a player through a sign-and-trade or uses either the non-taxpayer mid-level exception or bi-annual exception in free agency is not allowed to cross that line for any reason during the current league year. Sounds simple enough, right?
Here's where we introduce our first wrinkle. In the new collective bargaining agreement, there will be a second "apron." This figure will come in at around $17.5 million above the tax line, and it will trigger a host of restrictions that we will cover in the subsequent sections. The basic idea of those restrictions will be to make it harder for teams like the Los Angeles Clippers and Golden State Warriors to spend significantly more money on talent than their competitors, but we should note that these restrictions will only make it harder for teams to acquire new, expensive players. None of these changes will make it harder to retain players that a team has drafted and developed, and only in a few, rare cases will it become more difficult for teams to retain free agents they've signed from other teams. The NBA wants teams to be able to keep their players. It just doesn't want the rich to get richer.
Fortunately for those rich teams, the figures governing how much they will actually pay in luxury taxes are rising slightly. In the past, the NBA used fixed tax brackets set $5 million apart. If a team spent anywhere between $1 and $4,999,999 above the tax line, they would owe an additional $1.50 in luxury taxes for each dollar spent. Then, between $5 million and $10 million, that figure rose to $1.75. The tax grows more punitive the deeper a team goes, but it continues in those same $5 million increments forever. That's changing slightly with the new CBA. Now, the size of those brackets will increase every year by the same amount that the salary cap does. If the cap goes up by 5%, the brackets will as well. This will effectively make it harder for teams to reach the highest, most punitive tax brackets, and in the process will lower their tax payments on a relative basis.
When it comes to actually calculating the salary cap, the players did win one major concession from ownership. The league's licensing revenue—which is projected to come in at around $160 million next season—will now count as basketball-related income, allowing the players to share in that revenue. Based on that $160 million projection, this new source of player revenue will boost the salary cap by at least $2 million once instituted, and that figure is only likely to grow.
However, and this is perhaps the single most important point we will cover in this space: the cap's growth will not be limitless. In 2016, a new television contract between the league and its national media partners (Disney and Turner) led to an influx of revenue that increased the salary cap by 32%. This spike gave the Golden State Warriors the cap space they needed to sign Kevin Durant, but just as critically, it created an extremely uneven distribution of wealth within the league. Players who were lucky enough or prescient enough to become free agents in 2016 got enormous contracts because almost every team had space to spend. However, players who became free agents in 2018 saw a barren market because the cap didn't spike again and teams were still saddled with those enormous 2016 contracts.
That won't happen again because the two sides agreed to institute cap smoothing. Under the terms of this agreement, the salary cap cannot increase by more than 10% in any given year regardless of how much new revenue the league makes. If there is an excess, it will be tacked onto future seasons. The players will still get all of their money, but it won't come in the form of a short-term spike that alters that competitive balance of the league.
Free agency
Remember that second "apron" we mentioned earlier? Here's where it comes into play. It places two significant free-agent restrictions on teams that come in above that line:
-Teams above the second apron cannot use the taxpayer mid-level exception to sign free agents. That exception is the only tool tax teams currently have to pay free agents above the minimum salary. Such contracts could last up to three seasons, and this year, they could pay as much as $6,479,000 in starting salary. This rule would have prevented four free-agent signings in the 2022 offseason: Danilo Gallinari to the Boston Celtics, Donte DiVincenzo to the Golden State Warriors, Joe Ingles to the Milwaukee Bucks and John Wall to the Los Angeles Clippers.
-Teams above the second apron cannot sign players on the buyout market. The exact definition of "buyout market" has not yet been revealed, but it will likely apply to any player who is traded and waived during the season or waived while sacrificing a portion of his salary.
Already, we have two notable side effects to address here. As we've covered, most of the new rules will not impact teams if they are trying to retain their own players. There is one major exception, and that comes into play here.
The NBA's most expensive teams rely on minimum contracts to fill out the back of their rosters, but as most minimum contracts last for only one year, those teams only have Non-Birds on that player in free agency the following offseason. That means that if they want to keep them without using a cap exception, they can only offer a 20% raise on their prior, minimum salary. Players those teams want to keep often outperform those figures, especially since veterans typically use minimum deals on good teams as opportunities to showcase themselves for future deals. The workaround for these teams used to be the taxpayer mid-level exception. It allowed them to retain their minimum-salary successes by giving them a reasonable raise. However, without the taxpayer mid-level exception at their disposal, these teams are probably going to lose their best minimum-salary players after only a single year.
The second notable side effect here is that, for the first time, the taxpayer mid-level exception will trigger a hard cap. The original hard cap we covered above limits teams to the first apron, but now, the taxpayer mid-level exception will limit teams to the second. This matters because these exceptions are largely used in the offseason, and can therefore affect a team's ability to make trades or sign free agents during the season. Here's one critical example: the Dallas Mavericks used their taxpayer mid-level exception on JaVale McGee in the offseason. That would have triggered a hard cap at the second apron figure. However, the Mavericks crossed that second apron figure at the deadline when they added roughly $8 million in salary by trading for Kyrie Irving. Had this rule been in effect at the time, the Irving trade would not have been legal.
So, now we've covered what teams can't do. Now let's talk about what they can do. To balance out the restrictions in spending applied to the most expensive teams, the NBA has loosened spending among its other teams. Most notably, that means significant increases in the two other mid-level exceptions:
-The non-taxpayer mid-level exception will be increased by 7.5%. This season, the maximum starting salary on a non-taxpayer mid-level contract was $10,490,000.
-The cap room mid-level exception, which is given to teams that operate below the cap, will be increased by a whopping 30%. This season, the maximum starting salary on a non-taxpayer mid-level contract was $5,401,000.
-While free agency was once the primary vehicle for player-movement in the NBA, the 2017 CBA incentivized contract extensions in a way that robbed the July bonanza of much of its luster. These changes are meant to balance things out a bit. Teams will now have more money to throw at starter-level players with the full mid-level exception, and the enhanced cap room exception will give teams an extra path to depth if they carve out a bunch of space to chase a big fish.
One minor possible side effect to keep an eye on here relates to Early Bird Rights, which players typically earn by spending two years with a team after signing with them in free agency. Free agents with Early Bird Rights are eligible to be re-signed for 105% of the previous season's average salary (though their maximum might be higher, depending on their previous salary). This typically kept Early Bird Rights in line with the non-taxpayer mid-level exception, as that is meant to reflect the price of an average player and has previously risen the same percentage as the cap. If the non-taxpayer mid-level exception is rising and the Early Bird max doesn't, we are going to start seeing more teams lose their Early Bird free agents to teams who offer them the full mid-level exception. However, at only a 7.5% increase, both figures are likely to land in the same general ballpark.
Trades
You didn't think that we were done with the second apron, did you? Oh no. Here's where the restrictions get really draconian. Teams above the second apron will face the three following trade limitations:
-They cannot send out cash in trades. Teams are ordinarily allowed to include a certain amount of cash in trades per season, with this season's figuring coming in at around $6 million. Teams frequently use this tool when they make unbalanced trades or need another team to take on a player to clear a roster spot.
-They cannot trade first-round picks that are more than six years into the future. The NBA allows teams to trade draft picks up to seven years into the future, but that last season will be restricted to these teams.
-They cannot make trades in which they take back more salary than they send out.
It would take all day to list all of the blockbusters these rules would restrict. James Harden never would have become a Brooklyn Net with these restrictions. Kevin Durant wouldn't be a Phoenix Sun. Steve Ballmer won't be able to use his immense wealth to make trades like the 2022 deadline deal he swung for Norman Powell and Robert Covington anymore. These teams aren't even going to be able to pay off rivals to take players from them for the sake of tax savings. These rules are going to fundamentally change how NBA trades are made.
Predicting all of the ramifications of these new rules would be impossible. For now, the most important takeaway is this: it is going to be significantly harder for teams to trade for a second or a third superstar. Most teams that already have one in the building are either paying the tax or getting close to it, and the cost of those superstars on the trade market is typically so expensive that a first-round pick seven years away can make or break the deal. In fact, you could argue that those picks are the most valuable assets available in such deals. Ultimately, star trades tend to be player-driven. If a player is desperate enough to get somewhere, the teams can usually find a way to make it happen. It's just going to be much harder for them to do so now than it has been over the past few years.
https://www.cbssports.com/nba/news/nba-cba-101-everything-to-know-about-new-agreement-from-salary-cap-to-free-agency-and-beyond/ |
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vasashi17+
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| Posted: Mon Apr 03, 2023 2:54 pm Post subject: |
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And here’s another good entry (with more in re-direct link below) from Yossi @ Hoopshype:
| Quote: | The second apron
The threshold is for teams $17.5 million over the luxury tax threshold, and restrictions for those above it include:
No access to the mid-level exception (MLE), including the taxpayer MLE. The present-day apron is triggered when a team utilizes more than the taxpayer MLE amount. The second apron would get triggered if a team uses any portion of the MLE.
Not being able to take in more salary in a trade than they’re sending out. Teams over the luxury tax are currently allowed to take back up to 125 percent of their outgoing salaries, but that will be eliminated for them.
Not being able to trade a first-round pick seven years out or cash. This would not allow teams to trade their 2030 first-round pick this season.
Not being able to sign buyout players.
The only way teams over the second apron can further increase payroll is by re-signing their own players, signing draft picks, and signing minimum players. The removal of the MLE and the inability to take on more salary in trades are so restrictive to over-the-second-apron teams it’s essentially putting a de facto end to their team-building cycle. The teams that are in support of this essentially got their upper spending limit without actually naming it that.
This isn’t to say that teams are just going to enter cruise control once they reach the over-the-second-apron part of their team-building cycle. As long as those clubs are trying to remain competitive, they will still need to replenish depth over time. But teams will need to be more proactive with their decision-making so they can be prepared to operate with little flexibility. Teams can reach the second apron by re-signing or extending players to lucrative contracts, but they’ll want to deepen their roster and have a healthy amount of draft capital to sustain it.
This may feel like an attempt by teams with no intent on ever spending as much as the top spenders to even the playing field. And in their defense, the current luxury tax system was implemented to prevent teams from spending this much. These changes could succeed in shortening the window of contention of the top teams in the league, but it won’t stop the best front offices from finding ways to thrive within the new restrictions.
How the second apron could influence team decision-making
This new system will automatically increase the value of all draft picks and could lead to a stronger focus on the draft process. The value of first-round picks has declined over the past few years with many teams willing to trade the maximum amount they can for All-Stars. The history of these deals generally doesn’t favor the teams acquiring the star, so this also could save some teams from themselves. If over-the-second-apron teams have fewer avenues to add players then they will need as many bites at the apple toward finding talent.
Teams that have already drafted well and loaded up on future assets stand to be the most well-equipped for these changes in the short term. Teams like the Thunder, Jazz, and Spurs have time to establish their core and deepen the roster so when it’s time to compete, they can pay their top players and cross the second apron. They will then be able to sustain their windows better than others with multiple draft picks owed to them over the next seven drafts.
Bird rights are also much more important now. If an over-the-apron team needs to add a veteran role player, they will have to acquire him through trade. That player will still hold a ton of value if he’s on an expiring contract as long as he has sufficient Bird rights. The ability to re-sign or extend players is now priceless for these teams.
Second-round pick exception
Under the current rules, teams can sign second-round picks and undrafted players for up to two-year minimum deals via the minimum player exception. If a team wants to give such players a higher salary or more years, they would have to sign the player with a portion of their cap space, non-taxpayer MLE, or taxpayer MLE.
Teams over the second apron won’t have access to the MLE, meaning they wouldn’t have an opportunity to give such players more than a two-year minimum deal. To accommodate for that, there is now an exception available to all 30 teams that will no longer require them to dip into their MLE to sign second-round picks more than the minimum, according to Charania. This will also allow teams to maximize the use of their MLE, which should lead to higher salaries for veterans.
This rule should help decrease Gilbert Arenas provision situations for restricted Early Bird free agents outperforming their contracts.
Cap smoothing
According to Charania, salary cap rises will be capped at 10 percent. This will ensure that the salary cap doesn’t make a significant one-year spike when the new TV rights deal is implemented in 2025. This would prevent a summer of 2016 from happening again when nearly every team had significant cap space, leading to the Warriors being able to sign Kevin Durant.
Cap rises are actually being capped at 10 percent since 2020 as part of an agreed-upon amendment for the current CBA. In fact, this season’s $123.7 million salary cap is a 10 percent maximum raise of the previous season’s. It appears that both sides are content with the trial version of cap smoothing after agreeing to keep it for the new CBA.
https://hoopshype.com/lists/new-nba-cba-explained/
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vasashi17+
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| Posted: Mon Apr 03, 2023 3:29 pm Post subject: |
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UPDATE: How the new increased extension rates (going from 120% to 140% increase of previous salary) will apply to our players that are eligible for it now and in the offseason.
| Quote: | So which Laker players are eligible to sign extensions now and for how much?
DLo (via extend & trade)
Up to 2yrs/83.6m, starting @40.8m for the 2023/24 season (expiring summer of ‘25)
Beas (via team opt-out for the upcoming 23/24 season)
Has to be a minimum of 2yrs but up to 4yrs/98.2m, starting @21.8m for the 2023/24 season (expiring summer of ‘27)
Which Lakers can be extended this offseason and for how much?
AD (via 24/25 season ETO becoming guaranteed)
Up to 3 additional yrs/187m, starting @57.6m for the 2025/26 season (expiring summer of ‘28)
Beas (via team opt-in @16.5m for the upcoming 23/24 season)
Up to 4 additional yrs/104.1m, starting @23.1m for the 2024/25 season (expiring summer of ‘28)
Vando
Up to 4 additional yrs/69.4m, starting @15.4m (expiring summer of ‘28)
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The numbers above are based off a projected 136m salary cap for the 2023/24 season, 149.6m for the 2024/25 season & 164.6m for the 2025/26 season. Each year reflects the full max 10% cap increases that can be obtained in the new CBA.
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vasashi17+
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| Posted: Sun Apr 09, 2023 8:03 pm Post subject: |
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| Quote: | 2022/23 cap sheet (as of 4/9/23)
1) Bron 44.5m
2) AD 38m
3) DLo 31.4m
4) Beas 15.5m
5) Mo 10m (missed 2 LA games due to suspension at 125k per game)
6) Walker IV 6.5m
7) Rui 6.3m
8) Vando 4.4m
9) Gabriel 1.9m
10) Brown Jr. 1.8m
11) Schro 1.8m
12) Reaves 1.6m
13) MaxC (rookie min) 1m
14) Tristan 10.6k
15) ShaqH 10.6k
dead cap (of Reed/Ryan /Sterling deals) 2.4m
= team salary of 167.1m
= tax bill of 37.5m (17.6m over the tax threshold of 150.3m)
= total team salary + luxury tax of 204.6m
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When it comes to our 2023 offseason business, we can go about it in 2 ways:
A) The capped out route
Or
B) The cap space route
A) Projected 2023/24 Offseason Laker Cap Sheet on a 136m Salary Cap
1. Bron 47.6m
2. AD 40.6m
3. DLo 38.7m full bird caphold
4. Beas 16.5m team option (must exercise option by 6/29)
5. Mo 10.3m nonguaranteed (full guarantee trigger date 6/29)
6. Walker 7.8m non bird caphold
7. Rui 7.7m RFA caphold (QO must be offered by 6/30)
8. Vando 4.7m partially guaranteed (300k with full trigger date 6/30)
9. Reaves 2.1m RFA caphold (QO must be offered by 6/30)
10. Gabriel 2.4m early bird caphold
11. TBJr 2.4m non bird caphold
12. Schro 3.2m non bird caphold
14. MaxC 1.7m
15. 2023 1st pick (likely #17-18 overall) 3.7m
= capped out, but retention is possible via bird rights and if non bird is not enough, the use of the MLE and/or BAE can be used towards those players however the ntpMLE and BAE trigger the hard cap where team salary cannot breach 172m
B) Projected 2023/24 Offseason Laker Cap Sheet on a 136m Salary Cap
1. Bron 47.6m
2. AD 40.6m
3. MaxC 1.7m
4. 2023 1st pick (likely #16-18 overall) 3.7m
Dead cap 0.3m via Vando’s (4.7m partial guarantee) waived & renounced
DLo (38.7m caphold) renounced
Rui (7.7m QO caphold) renounced
Beas (16.5m) team option declined & renounced
Mo (10.3m) waived & renounced
Walker (7.8m caphold) renounced
Gabriel (2.4m caphold) renounced
Reaves (2.1m QO caphold) renounced
TBJr (2.4m caphold) renounced
Schro (3.2m caphold) renounced
5-12. 7 incomplete roster (IR) charges 8.8m
= 102.7m in team salary
= 33.3m in cap space
= capped out (if we renounce all our UFAs, keep our RFA capholds, do not waive any of our partial/non guaranteed deals & pick up Beas’s option)
= 36.5m in cap space (if we purge everyone on our books except for Bron & AD)
= 23.5m in cap space (if we keep all our RFA capholds, but waive our partial/non guaranteed deals & do not pick up Beas’s option ie if we only keep Reaves & Rui)
= 19.1m in cap space (if we only keep Reaves, Rui & Vando capholds)
= 13.2m in cap space (if we only keep Reaves, Rui & Mo capholds)
= 8.8m in cap space (if we only keep Reaves, Rui, Mo & Vando capholds)
FYI: the figures above have Reaves & Rui’s QO capholds at the amounts allowed by the old (current) CBA. If the new RFA CBA rules kick in this offseason, then Reaves’s QO goes to 2.3m & Rui’s QO goes to 8.5m. So you need to tweak the above numbers by that 1m difference accordingly.
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vasashi17+
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| Posted: Thu Apr 13, 2023 9:56 am Post subject: |
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“Cap Smoothing” Projections heading into new 2025 TV deal
Salary cap
2021/22: 112.4m (actual)
2022/23: 123.6m (actual max 10% raise)
2023/24: 136m (projected max 10% raise; current actual is 8.4% ie 134m)
2024/25: 149.6m (projected max 10% raise)
2025/26: 164.6m (projected max 10% raise)
Tax threshold / HCA -1st Apron / ULA - 2nd Apron
21/22: 136.6m / 143m / NA
22/23: 150.3m / 156.9m / NA
23/24: 165.3m / 172.2m / 182.8m
24/25: 181.9m / 189m / 199.4m
25/26: 200m / 207.5m / 217.5m
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mad55557777
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Joined: 29 Jun 2005
Posts: 23612
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| Posted: Thu Apr 13, 2023 10:22 am Post subject: |
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| vasashi17+ wrote: | “Cap Smoothing” Projections heading into new 2025 TV deal
Salary cap
2021/22: 112.4m (actual)
2022/23: 123.6m (actual max 10% raise)
2023/24: 136m (projected max 10% raise; current actual is 8.4% ie 134m)
2024/25: 149.6m (projected max 10% raise)
2025/26: 164.6m (projected max 10% raise)
Tax threshold / HCA -1st Apron / ULA - 2nd Apron
21/22: 136.6m / 143m / NA
22/23: 150.3m / 156.9m / NA
23/24: 165.3m / 172.2m / 182.8m
24/25: 181.9m / 189m / 199.4m
25/26: 200m / 207.5m / 217.5m |
big boys game.
good for the super max players of the future, they might be getting 70-80 mil per year before the end of the decade. |
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slavavov
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Joined: 03 Oct 2003
Posts: 8434
Location: Santa Monica
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| Posted: Sun Apr 16, 2023 7:20 pm Post subject: |
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I wish the NBA would allow teams and players to restructure contracts in order to get around these new restrictive rules, like they do in the NFL. It's going to become even harder to keep a core together and fail forward over the years toward a championship, and there has to be an alley or two to get around this new "second apron."
The NFL has a hard cap and restructuring is such a good way to get around it so a team can improve itself. For example, the 49ers, who have committed lots of money to its multiple stars, were able to clear enough space via restructuring to bring in Javon Hargrave, a star defensive tackle, @ $84 million over four years.
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mad55557777
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Joined: 29 Jun 2005
Posts: 23612
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| Posted: Sun Apr 16, 2023 10:35 pm Post subject: |
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| slavavov wrote: | I wish the NBA would allow teams and players to restructure contracts in order to get around these new restrictive rules, like they do in the NFL. It's going to become even harder to keep a core together and fail forward over the years toward a championship, and there has to be an alley or two to get around this new "second apron."
The NFL has a hard cap and restructuring is such a good way to get around it so a team can improve itself. For example, the 49ers, who have committed lots of money to its multiple stars, were able to clear enough space via restructuring to bring in Javon Hargrave, a star defensive tackle, @ $84 million over four years. |
Guaranteed contract vs non guaranteed |
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vasashi17+
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| Posted: Mon Apr 17, 2023 7:55 am Post subject: |
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@slav: Like @mad said, it’s the nonguaranteed vs nearly fully guaranteed deals that are the true difference makers for contract restructures in the hard capped NFL vs soft capped NBA. Also the NFL employs “void years” where they can stretch those cap hits out past a window where that player is no longer playing there. The NBA does have a stretch element in that regard, but unlike the NFL, the player immediately gets waived and cannot play on that team with that type of stretch restructure applying dead cap for the foreseeable future. There is also the zero year element in the NBA when it comes to older players that receive contracts that trigger the over-38 rule, where the contract is front loaded and the back end of the contract is effectively $0 where cap gets readjusted and moved to the latter years if that contract if that older player proves he can play into those years rather than prematurely retire.
All that being said tho, the NBA players have it good with these guaranteed deals and I highly doubt they will ever approve of the hard cap nonguaranteed NFL salary climate. Here’s an article on how the NFL’s cap structure is different compared to the NBA/MLB.
https://www.espn.com/nfl/story/_/id/36094476/why-fully-guaranteed-deals-rare-nfl-stars-lamar-jackson
Sidebar: I’m looking forward to that 9ers D next year! It’s going to be Delicious! (pause).
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vasashi17+
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| Posted: Mon Apr 17, 2023 12:04 pm Post subject: |
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So we just got another info dump on new CBA….
| Quote: | Tim Bontemps @TimBontemps
As part of the new CBA, if a team goes over the second tax apron, their 1st round pick 7 years out is unable to be traded, sources told me & @wojespn. Teams that then exceed the apron twice over the following four years will have that pick dropped to the end of the 1st round.
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In addition to repeat tax offenders (breaching tax line in 3 of 4 seasons), a repeatable offender of the ULA (breaching 2nd apron in 2 of 4 seasons) now has their potential draft pick drop to the bottom of the draft board. I’m assuming the higher spender (ie breached the ULA with a higher team salary) will determine who gets the 30th pick vs the 29th and so on. It hasn’t been specified whether this rule applies to only the FRP that is 7 years out or also to the other FRPs that come before it.
| Quote: | Shams Charania @ShamsCharania
Sources: New NBA Collective Bargaining Agreement numbers:
- Non-Taxpayer MLE increases 7.5%: $10.5M to 12.2M
- Room MLE increases 30%: $5.5M to $7.6M; max contract length now 3 years
- New Second-Round Pick Exception: 3-4 year contracts up to minimum salary for third-year player
Sources: Full terms of NBA's 65-game minimum to be eligible for honors such as MVP, All-NBA, DPOY:
Players must play 20 minutes in at least 65 games – with protections against season-ending injury (62 games), near misses in minutes (2 games at 15 min.), bad faith circumstances.
More salary increases as part of NBA’s new CBA, per sources:
- Two-way players can negotiate to guarantee half of salary on first day of regular season
- Exhibit 10 contracts now have $75,000 bonus, up from $50,000, increasing compensation for approximately 60% of G Leaguers
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So those numbers are based on this 2022/23 season (ntpMLE @ 10.49m; salary cap @ 123.66m). So assuming the projections for next year are still 8.4% in an annual cap hike, the salary cap would be 134m, with the ntpMLE projected at 11.36m. If that MLE experiences a 7.5% increase on top of that, you get the 12.2m figure in the Shams tweet.
So let’s assume the cap projections for next season (2023/24) remain at 8.4% instead of climbing to the max of 10%, then projected figures on the exceptions are below:
| Quote: | •Salary cap: 134m
•Luxury Tax Theshold: 162m
•Cap Floor: 120.6m
•Hard Cap Apron (HCA; 1st Apron): 169.5m
•Upper Limit Apron (ULA; 2nd Apron): 179.5m
•ntpMLE: 12.2m; up to 4yrs in length with 5% annual increases
•tpMLE: 7.6m (assuming 7.5% increase also applies to initial projection of 7.02m); up to 3yrs in length with 5% annual increases
•roomMLE: 7.6m; now up to 3yrs (instead of 2yrs) in length with 5% annual increases
•BAE: 4.8m (assuming 7.5% increase also applies to initial projection of 4.45m); up to 2yrs in length with 5% annual increases
•2nd round exception (Pelinka Exception; replacing rookie min exception & possibly could also be applied to undrafted rookies also): 2.06m; assumed up to 3-4yrs in length with assumed 5% annual increases
•Veteran min exception: 2.1m (assuming 7.5% increase applies to initial projection of 1.99m); up to 2yrs in length & this is the 2 seasoned vet min amount that would apply to a team’s books where the league pays the difference depending on the veteran’s seasons of experience
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For example, if we used the Pelinka Exception on MaxC this past offseason, his deal could have looked like this:
Yr1: 1.9m
Yr2: 2.1m
Yr3: 2.3m
Yr4: 2.6m
= 4yrs/8.9m
…instead of the 2yrs/2.7m deal we put him on using the vet min exception. That’s nearly double what 2nd round rookies ( and possibly undrafted rookies) could make in yr1 of their rookie min deals (1.9m vs 1m) and more than 3xs what they could make over the life of that contract). Also for reference, the 30th overall pick this season made 2.2m as their starting annual, which would have been 300k more than what the potential 31st overall player made had this exception been available and used this season.
It also appears that some of the new trade rules will go into effect immediately for the 2023/24 season, while other rules will get transitioned into the rule book starting the 2024 offseason which would apply for the 2024/25 season.
| Quote: | Bobby Marks @BobbyMarks42
Trade rules for teams that exceed the apron (first or second) is reduced from 125% to 110% in the 2023-24 salary cap year through the last day of the regular season.
Teams over the apron starting in the 2024 offseason cannot take back a player contract exceeding 100%.
Starting with the 2024-25 salary cap year, any team that is below the minimum salary floor (90% of the cap) on the first day of the regular season will not receive a tax distribution.
Ex: San Antonio would have forfeited $15.2M this season. |
For example, with the new trade rules, we would not be able to trade for Russ’s 44.2m using the aggregated 35.7m from the KCP, Kuz, Trez package during the 2021 offseason.
| Quote: | Zach Lowe @ZachLowe_NBA
Also in the new CBA, per league sources: players can now decline player options + sign long-term extensions starting at salaries below option $. Current rule is that any such extension must start at least at option amount.
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This new rule could potentially apply to LeBron in getting him on a lower annual number (for the 2024/25 season) if he opts out of his player option before the 2024 offseason and chooses to extend with us (by June 30th 2024), he would essentially bypass free agency altogether (July 1st 2024).
And here is a tidbit for the in-season tourney…
| Quote: | Adrian Wojnarowski @wojespn
ESPN Reporting with @BobbyMarks42: 2023-2024 NBA In-Season Tournament schedule is expected to include quarters, semis and finals in early December. Prize money: $500K per player on winning team, $200K per player on runner-up; $100K per on semifinal loser; $50K per quarter loser.
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All of this said, I still believe the projections will raise to the full 10% (salary cap of 136m instead of current 134m projection) which would slightly adjust those figures above.
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