New CBA Breakdown.

u/texasphotog put this or r/nba but it’s the best breakdown I’ve seen so far so thought I’d post here.

The CBA is finally official and was sent to teams today.

from: https://theathletic.com/4607105/2023/06/28/nba-cba-new-rules/

Over the last 10 years, there have been roughly six teams per season that go over the tax, and an average of three teams per season that spent enough to reach what will soon be the second apron level. But that swelled this past season to new highs. Nine teams went into the tax, and seven teams were above what would have been second apron level of spending.

new CBA also has a built-in ceiling of no more than 10 percent cap growth each year.

FIRST APRON RULES

Currently about $7mm over luxury tax. Lux tax starts at 164mm this year.

now be unable to sign buyout players [waived during regular season, salary higher than MLE]

In this season:

can only match salaries up to 110 percent of the players in a trade

Next season and future:

only be able to trade for a player who makes up to the value of the salary being dealt away.

Also:

traded player exceptions generated in the prior year cease to be useable unless they get back down below the apron

SECOND APRON RULES

This is set at 17.5mm, but will increase proportionally with cap.

Teams will not be able to use their taxpayer midlevel salary exception.

This one will hurt:

teams cannot aggregate player salaries together in a trade

That means you can’t add Spencer Dinwiddie + Dorian Finney Smith’s salaries to add up to Kyrie’s salary.

will not be able to send out its own player in a sign-and-trade to acquire another team’s player

That will hurt the players more.

cannot send cash in a deal

No buying a draft pick anymore.

If a team is above the second apron as of the last day of the regular season, starting with the 2024-25 cap year (July 1, 2024), then its first-round pick seven years out cannot be traded. That’s called the frozen pick. If that team is also above the second apron in two of the ensuing four years, that frozen pick will also be moved to the end of the first round in that year.

So if the Clippers didn’t let Gordon go, they could have their future pick frozen, then later moved to the back, even though KL and PG have long since retired and they are rebuilding.

SALARY FLOOR

need to hit [Salary floor] by the first day of the regular season

It used to be last day of season

Any team under the cap floor will have the difference between its team salary and the floor added to its payroll, so it can’t use that amount as available cap space anymore.

Can’t hold that cap space to try to fleece a team during the trade deadline. Like the Spurs picked up 4 firsts and Graham.

It also won’t be allowed to perform any transactions after the first day of the regular season that would further decrease its team salary.

And the big one:

teams that don’t hit the floor won’t receive any of the money paid out to non-taxpaying teams

That’s 15-20mm.

EXCEPTIONS

Non-Taxpayer MLE = 9.12% of cap, up from 7.5%

Nice jump

Room Exception = 5.678% of cap – $7.7mm next year

It was like 5mm, I think.

Taxpayer MLE = $5mm, down from 6.479mm, max of two seasons, not three.

More hurting the luxury tax teams. Especially with the MLE jumping up. A team with non-taxpayer MLE will have over twice the amount of a taxpayer MLE. And you can split up the MLE.

Beginning with the 2024-25 cap year, teams will be able to use the non-taxpayer midlevel, the room midlevel or the bi-annual exception to acquire a player or multiple players in a trade or on a waiver claim

That’s a nice thing. You can trade someone into your MLE, but not your taxpayer MLE.

The second-rounders can sign a three-year deal, in which the first season’s salary is worth up to the minimum annual salary for a player with one year of service, or a four-year deal, in which the first season’s salary is worth up to the minimum annual salary for a player with two years of service. Both must have a team option as the final year.

Also a big deal. Teams used to use their MLE to sign second rounders. Don’t have to anymore.

LUXURY TAX

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And it goes up $.50 per $5mm over 20.

Repeat Offender

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And it goes up $.50 per $5mm over 20.

The Tax brackets will increase, not stay static like before. So if the cap rises by 10%, the bracket will go from 0-5mm to 0-5.5mm.

MISC

The incoming CBA stipulates that agents may now get fined up to $125,000 by the NBPA for violating the league’s tampering rules, going public with trade demands or the rules on when free-agency discussions can begin. Starting with the 2024 free-agency period, players and their agents will not be allowed to announce their new deals until the end of the moratorium period, unless that deal can legally be signed during it. The NBA will be able to fine teams or team personnel for violating the rules on premature free-agency talks. Those punishments include a fine up to $2 million, taking away draft picks and/or suspending people that work for that team.

Increased Tampering rules but…

Teams will be able to start negotiating a contract with their own players beginning the day after the end of the NBA Finals.

Teams can go after their own FAs earlier.

by Nickl444