Ok, quick refresher on the penalties (because I needed it)
Salary Floor: 90% of the salary cap ~121mm
Salary Cap is $134mm
Luxury Tax is $162mm (set at 53% of basketball related income divided by 30 teams)
1st Apron is LuxTax+7mm (169mm)
2nd Apron is LuxTax+17.5mm (179.5mm)
Starting in 24-25, if you aren't above the salary floor on opening day, you won't get a tax dispersal. This year, that was in the 15-17mm range back to the teams. Thanks, Clippers!
- If you use the Bi-Annual Exception (4.5mm), you are hard capped at the apron and cannot go over. Teams over the first apron cannot use the BAE.
- If you use the full MLE (about 11mm), you cannot go over the Luxury tax line.
- If you use the tax-payer MLE (about 6.5mm), you cannot go over the 1st apron.
- If you use the Apron MLE (about 5mm), you cannot go over the 2nd apron.
- If you are over the 2nd Apron, you get no MLE.
- If you are over the 2nd Apron, you cannot take back more money than you send out in a trade. Previously, you could take back 125% of the salary you are sending out.
- If you are over the 2nd Apron, your 1st round pick in 7 years is frozen. If you go over the 2nd Apron one more time in the next 3 seasons, your pick is moved to last, no matter where you are. So if the Clippers can't dump Kawhi's gimpy ass and they pay the 2nd apron, their 2030 pick is frozen. If they go over the apron again in 2025, that 2030 pick is 30th, even if they win the lottery.
- If you are over the 2nd Apron, you cannot sign a buyout player. So the Jazz bought out Westbrook this year and he signed with the Clippers and was their star in some of the playoffs. Not possible next year.
- If you are over the 2nd apron, you can't send cash in a trade. The Celtics sent the Spurs cash and a 2nd to take Noah Vonleh to clear luxury tax room. Not possible anymore.
- Cannot trade 1st round picks more than 6 years in the future. And remember you can't trade 1st round picks that are consecutive years. That would keep the Durant/Harden/Kyrie and other recent big trades from happening.
If you are over the 2nd apron, you can only acquire players by:
- Veteran Minimum contract
- Trades where you take back less than you send out.
- Signing draft picks.